Tuesday, June 3, 2008

About this Blog

Buy Low, Sell High = Less Risk, More Gain

I believe the basic principle in any forms of investment is always to buy low & sell high, be it stocks, properties, etc.... based on this principle, perhaps we should start asking ourselves :" Are the properties prices considered low right now?"

Having been in the property industry myself, i have got the opportunities to meet people whom I really considered them as investors... these are the people who are capable of earning a gain of over 30% in merely 2 years.... i have met them so i believe its true and possible... *salute their far sightedness* so what is their winning strategy? its exactly: buy low & sell high.

These property buyers know when to enter and exit the market at the right time.... ask me personally, i would say that its not the right time to buy properties at this point of time for investment... well, even if the prices may go up in the next 2 years or so by say 5%.... but for me, such gain is too marginal for the high holding cost and risk that i am undertaking....

But, of course, if you are a speculator, then it will be a different story... speculators normally do not have the ability to pay off majority of the cost of properties, say 80% to 90% or even all and depend only on 20% to 10% loan.... the monthly rental is more than their installment so that they can use the profit every month to offset the loan interest and maintenance fees... thus minimising their holding cost and risk... anything balance is consider their passive income

So when is the right time to invest in properties? for me personally, i will wait till the newspapers and statistics tell me that the properties prices and sales have rock bottomed, the bankers are pleading you to borrow money from them and when people all tell you dont buy properties.... for now, better to hold some hard cold cash in hand or invest in something else.... as the say goes "good things go to those who can wait"


just my 2 cents worth....

Posted by: triplese

Posted on: 1 Jun 2008


Smart Property Buyer said...

I remember one forumer retorting a property speculator:
"Buy low, sell high. Not buy high and hope to sell higher."

Just food for thought.

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The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.

Smart Buyer :)