The Heat Is On

Heard any hot tip somewhere? This is the typical scenario in the Singapore market, where we can get “tips” of any sort from your office, coffee shop, at home and any place of gathering one can think of. I am always very amused how people can actually listen to the uncles and aunties in the coffee shop giving out either stock or real estate “tips” to their coffee kakis (buddies) on what to buy, sell or what not to buy or sell. Now, the best part, (drums rolling) many people actually listened to these “advises”. Of course we know what happened in the end…

In the current real estate market, prices seems to be holding strong, though both HDB and non-landed private property prices have slowed down a bit. On the contrary, sales and prices of landed properties are having their bull-run. As a result, we see an influx of foreigners flocking to Singapore to invest in the medium to high-end properties. If you have been following the trends and news lately, prices in both Hong Kong and China have been hitting ridiculously high prices, such that the government have implemented their cooling measures to curb the prices. It has gone beyond what they expected. Now many cannot even afford a decent rental of a small unit. Many are resorting to even renting basements of apartments at high prices and even taking turns to share the bed. Is this for real? Have they gone beyond a stage where the rich gets richer and the poor gets poorer? This equation will always be the same.

So instead of spending big dollars for the properties in their own countries, they opted to stop by Singapore and  invest their dollars here. We will see more coming over from China to buy up more properties here. The heat is on! The interesting question is many of us are just watching this phenomenal and not doing much, not to mention some do nothing at all. In the end, they blame the whole world for causing them not to have the opportunity to invest. Even now as I am writing this blog post, I have friends from China who wants to sell their properties over there and invest over here. Are they seeing something great in the Singapore market that many of us are missing it? Are we really so myopic and ignorant about what is going here or we just simply do not bother and start learning about situation awareness? All I always see is people are very comfortable to do what everyone is doing as they feel a sense of security and warmth when everyone is in the same boat. However, a true blue investor is usually being labeled as wield, crazy, etc when they choose to do otherwise. When you only react after reading the headlines of the papers, it is usually too late. We need to take action way before the news is made known. Always ask yourself why this happen instead of following the blind.

Do not hort your money but rather invest smartly for cash-flow. Do not work for money, let money work for you. Till the next time… Awesome! :)

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