The second podcast of the Interview with Ku Swee Yong series will try to find answers for the big question “What can we buy in this market?”.
In this video, Mr Ku will share his thoughts on the 4 queries we have in mind on the current property market:
1) When there is oversupply in the private residential market, what about the office market?
2) In 1st Quarter 2019, office prices are up but rentals are down. What is happening in this market?
3) What about retail real estate?
4) If I have to buy something, what should I buy from the residential market?
You can now watch the podcast below. The video comes with full script or subtitles. If you are watching from your mobile, ensure that the “Caption” function is on. If you are on your desktop, turn on the “cc” button – the leftmost button at the bottom right hand corner.
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May I suggest some semblance of equality between interviewer and interviewee, if both can sit down at a table setting with the same eye level of contact and comfort.
Perhaps this can be implemented just in time for your next part of the podcast.
Cheers !
The interview was done at Mr Ku’s office. I was looking for a coffee table with 2 chairs. When it was not possible, we filmed at the same angle like what Channel News Asia did earlier. Sorry please focus on the content rather than the format.
Thanks for the video Vina. Always very helpful and sensible. Mr Ku made the point of buying a resale at slightly cheaper prices than new launch as it’s all about relativity. I agree with this. At the same time my agent often makes the point of NOT buying resale because more often than not you’ll be paying more than the other first time owners in the same estate (hence when you try to sell, the other owners will always be able to undercut your price as they paid lower). His argument goes “most of the profit will be earned by the first time owner. Why be second third time owner if u can be first owner in a new launch condo?”
Somehow I don’t fully subscribe to my agent’s POV, but on the surface it seems to make sense. How do I reconcile this with Mr Ku’s statement?
The difference between buying first hand HDB versus condo is : The former is highly subsidized by the government while the latter is being priced or often overpriced by the developers. That’s why first time owners of HDB flats won’t make a loss when they resell next time. But buyers of first hand condos in the mid 1990s took almost 20 years to breakeven. How many ten years do you have?
With regards to LL’s comments and the POV expressed by the agent, can I highlight the following :
1. Do investors (and the property agent concerned ) have the same view with regards to share investments ? Must all subsequent and potential share investors be concerned with what the previous sellers make or lose prior to the ‘new’ investors taking over or is it case of since the new buyers have no idea so they should not be bothered unlike those of the real estate where prior records are readily available?
2. Consider the case of an inherited property whereby the seller actually makes 100% profits based on the agent’s calculation since the cost can be presumed to be zero for the current albeit newly ‘transferred’ owner. According to this line of reasoning, there should be little or no chance for the ‘fresh’ investor to profit from the purchase or investment of such inherited properties and should then be avoided.
3. Investing in any asset class, the primary concern is what the future will hold and not what the previous owner profited from or did not.
4.The reasoning by the Agent is therefore fallacious and can be attributed to EITHER pure ignorance OR worse still motivated by higher commissions from developers or sellers wanting to move their newer stocks in the market place.
Great insights! I completely agree with you, especially on the point of whether the previous owner has been making a profit. But I would find this out to help me during bargaining.