In this post you are going to learn 1 of the 11 selling signals my team and I use to help our investor clients.
Here is a graph of Caspian in Jurong Lakeside from Jan 2010 to Jan 2012.
In this graph you will notice that the price has stagnated.
Price stagnation usually shows that there is a presence of a price gap between what sellers are asking for and what buyers are willing to pay.
It is almost like a Mexican stand off. The eventual movement of this graph would depend on the psychology of the buyers and sellers.
Since the 5 rounds of cooling measures have pretty much weeded out the speculators, coupled with the fact that the interest rates keep mortgage payment affordable, we are confident that the owners of these units have holding power.
No dumping would occur here. No dumping, no price free fall.
But this stagnation means that your profits are stuck at a plateau and your money is not working hard for you.
This is a good time to cash in your profit instead of just making a paper gain. Restructure your portfolio to a better unit with higher potential growth.
There are neglected segments in the property market that has been dormant and just beginning to pick up steam.
Did you know that there were no cooling measures affecting the commercial market, and that an industrial office with B1 light status can bring you more rental yield than a condo?
- You can even take another 80% loan on top of the existing home loan you have now.
- And the quantum is lower than $700K and less than $500 psf.
- Just like the good old times in 2008 after the property market cooled
In summary:
- Price stagnation is a selling signal
- Restructure your portfolio to units with better facing / higher rental yield / higher capital appreciation potential
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