This isn't an easy topic to address but I'll do my best to provide my thoughts via a simple generic🧵
#RealEstate isn't linear. It is multifactorial:
1) Country
2) Time period
3) Information asymmetry
4) Opportunity cost
5) Personality
6) Job security
etc
🧵👇
#RealEstate isn't linear. It is multifactorial:
1) Country
2) Time period
3) Information asymmetry
4) Opportunity cost
5) Personality
6) Job security
etc
🧵👇
https://twitter.com/FarNiente2000/status/1395737919827156995
2/ There is no guarantee for any gains in any investment vehicle. No guarantee in #RealEstate, #bitcoin, #Equities etc
As cliche as it sounds, the only constant is: Change.
History only provides a clue.
Simply put, yields are not guaranteed.
Back to factors 1 to 6
As cliche as it sounds, the only constant is: Change.
History only provides a clue.
Simply put, yields are not guaranteed.
Back to factors 1 to 6
3/ #RealEstate differs from country to country.
In a jurisdiction where there are high capital gains tax or when the cost of borrowing is high, owning/investing in property might not make much sense.
In #Singapore, capital gains tax has been abolished
In a jurisdiction where there are high capital gains tax or when the cost of borrowing is high, owning/investing in property might not make much sense.
In #Singapore, capital gains tax has been abolished
4/ Time period
#Boomers were born in a period when "number go up".
Basically, any property they bought, even at an average location still appreciated in price. (Let's avoid inflation for now)
It isn't the same now. We're in a time period where LOCATION really matters.
#Boomers were born in a period when "number go up".
Basically, any property they bought, even at an average location still appreciated in price. (Let's avoid inflation for now)
It isn't the same now. We're in a time period where LOCATION really matters.
5/ Information asymmetry
Two people buy a #property that cost the same amount PSF.
Years later, both houses sell for a completely different price.
One person has knowledge that the other doesn't and that translates to completely different outcomes.
Two people buy a #property that cost the same amount PSF.
Years later, both houses sell for a completely different price.
One person has knowledge that the other doesn't and that translates to completely different outcomes.
6/ Opportunity cost
When someone says yield is better in one vehicle vs another, assumption is:
1) The person knows how to get better yield
2) The person is able to act on it
If I don't know how to get yield via other instruments then there is technically no opportunity cost.
When someone says yield is better in one vehicle vs another, assumption is:
1) The person knows how to get better yield
2) The person is able to act on it
If I don't know how to get yield via other instruments then there is technically no opportunity cost.
7/ Personality/private circumstances
This is technically side tracking but worth a note:
Not everyone wants higher yields from certain investment instruments.
It could be due to:
- religion
- risk aversion to volatility
- past experiences
- trauma
This is technically side tracking but worth a note:
Not everyone wants higher yields from certain investment instruments.
It could be due to:
- religion
- risk aversion to volatility
- past experiences
- trauma
8/ Job Security
For someone that doesn't have job security/ is in a gig economy, even if Real Estate investment were to give higher yields, the person may not be interested.
For someone that doesn't have job security/ is in a gig economy, even if Real Estate investment were to give higher yields, the person may not be interested.
9/ @FarNiente2000 Summary:
1) Yield can never be guaranteed
2) Some #RealEstate investments do spectacularly well, some don't.
3) It depends on place/time
That's why I'm here, to help people in #Singapore make the best decision based on their current life situation.
1) Yield can never be guaranteed
2) Some #RealEstate investments do spectacularly well, some don't.
3) It depends on place/time
That's why I'm here, to help people in #Singapore make the best decision based on their current life situation.
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