Are you buying property now? Is it the right time? 23 October Sunday Times gave us 2 perspectives.
First, there’s an interview with a tycoon who has businesses in property development. When asked how many properties he owns, the four-time head of Redas
has this to say about property in Singapore:
“I haven’t invested in property in recent years because prices have gone up so much. As developers, we know the cost, and rental is not that attractive now. I have better use of my funds, in art, stamps and charity work.” (emphasis mine)
Seems like Mr Daniel Teo knows what he’s talking about.
Next, we have journalist Goh Eng Yeow writing on how to “save your savings”. He talks about a few scenarios, one of which is that of runaway inflation. The money-printing done by US and Europe to inflate their debts away may lead to costlier foodstuff and other necessities. He said:
“Against this backdrop of rising inflation, it is not surprising to find investors here turning to investments such as residential properties as a hedge against inflation. Their reasoning is simple: In a small crowded island like Singapore where the land supply is limited, any rise in inflation will only cause property prices to go up too. Coupled with the ultra-low interest rates charged by banks for home mortgages, it looks like a sure-win strategy for investors who bet on properties.” (emphasis mine)
So, who do you agree with? The tycoon or the journalist?
Category: Housing | 1 Comments