Iron ore slide hits small property investors

Posted to my FB page Sin Fong Chan Real Estate on 11/2/2015 at 2:23 PM (The Age does not accept comment)
Commenting on "Iron ore slide hits small property investors"
http://www.theage.com.au/money/iron-ore-slide-hits-small-property-investors-20150212-13cieq.html

If one holds property indefinitely, it is only value of the property is only the book value. Profit is made if the property is sold. The current property market is completely out of whack, and many people buying properties during low interest rate are prone to default when the rate increases.

One must not forget that there are ongoing rates and charges, opportunity loss on better class of investment, maintenance costs, etc. Past recessions did send many property owners on tail spin.

Is Buying a Home the Best Way to Build Wealth?

Posted to Sodahead (9/2/2015) on 10/2/2015
Commenting on "Is Buying a Home the Best Way to Build Wealth?"
http://www.sodahead.com/living/is-buying-a-home-the-best-way-to-build-wealth/question-4698794/

Many people will go to great extent to shop for cheap gadget and yet do not spend enough time to check out details before spending hundreds of thousands of hard earned dollars in real properties.

Several friends have asked me for opinion and advice after they have signed the purchase contracts. My standard response is "I cannot comment on what you have told me, and hope that you've made the right decision". A contract is a legal document, and trying to void one is beyond my scope. It is advisable to seek professional advice before committing, and no point to do so after.

Land appreciates but building depreciates. Every day, land gets more and more scarce, but building becomes older and older. Buying real property with no or little land is spending money on buying "thin air". Unless money is a dirty word and you have plenty to give away to the property developer or real estate agent, DO NOT get yourself that volume of thin air! Make sure that land near waterfront is not newly reclaimed or experiencing movement. Furthermore, properties near busy train stations, shopping centres, and popular schools command a good premium in prices.

Management graduates and staff at larger organisations are likely to have learnt the concept of continuous improvement. Similarly, properties must be maintained and improved continuously so as to minimise deterioration and in many cases, it can result in positive growth in real term.