Why do Rich People Lose money in Property Investment? – 11 Feb 2015
1) Recently, our radar was alerted that many millions are being lost by big budget property investors who have gotten their timing wrong. It doesn’t matter if they had deep pockets to start with. Being rich doesn’t mean you always have the midas touch. Even the rich make investment mistakes.Just like Warren Buffett. Just like anyone else.
2) In any downturn in the property market, expensive luxury properties are always the first to take a big hit. This is because the pool of big budget buyers are smaller to begin with, compared to more affordable property which appeal to all savvy investors as long as the yield makes sense.
3) Even if one has the holding power, buying at the peak may mean that no matter how long you hold, the only claim to fame is that you have contributed to the highest psf ever for that particular property. It’s not exactly a record you want to show your peers unless it’s for bragging rights. Perhaps these owners have decided to cut their losses and recoup it elsewhere. We do hope to see them at Empower Advisory’s investment outreach. If not, we wish them our best, nevertheless.
4) Property is not just about location, location, location. It’s also about timing, timing, timing! Try not to cringe at the losses we have highlighted below!
ST REGIS RESIDENCES SINGAPORE
SOLD ON
|
ADDRESS
|
UNIT AREA
(SQFT) |
SALE PRICE
(S$ PSF) |
BOUGHT ON
|
PURCHASE
PRICE (S$ PSF) |
L0SSES (S$)
|
---|---|---|---|---|---|---|
23 JAN 2015 | 33 TANGLIN ROAD #20-05 | 3,897 | 2,002 | 19 JUN 2006 | 2,872 | 3,390,860 |
17 JAN 2015 | 33 TANGLIN ROAD #22-09 | 4,941 | 1,923 | 17 OCT 2006 | 2,890 | 4,780,000 |
ST THOMAS SUITES
SOLD ON
|
ADDRESS
|
UNIT AREA
(SQFT) |
SALE PRICE
(S$ PSF) |
BOUGHT
ON |
PURCHASE PRICE
(S$ PSF) |
LOSSES
(S$) |
---|---|---|---|---|---|---|
10 DEC 2014 | 31 ST. THOMAS WALK #29-01 | 4,672 | 1,552 | 29 DEC 2010 | 2,213 | 3,088,000 |
THE ORCHARD RESIDENCES
SOLD
ON |
ADDRESS
|
UNIT AREA
(SQFT) |
SALE PRICE
(S$ PSF) |
BOUGHT
ON |
PURCHASE PRICE
(S$ PSF) |
LOSSES
(S$) |
---|---|---|---|---|---|---|
2 JAN 2015 | 238 ORCHARD BOULEVARD #36-06 | 1,808 | 3,041 | 1 NOV 2007 | 4,287 | 2,253,000 |
Our Best, Always!
Share our postings, be our Facebook Ambassador and win prizes!
* Download “Empower Advisory” App on your mobile phone/device to get INSTANT Updates on Deals, Events and More!
* Simply Scan the QR Code on the left using your mobile phone, follow the link and install the App!