When Is It The Right Time To Enter The Property Market? (Updated)

is it the right time to invest in a property buy

Hello again and I hope you have been coping well the past week at home!

For those of you on the front lines or in the essential services sector, thank you for keeping our economy functioning so that we can still get our food and groceries to comfort ourselves!

In the past weeks, a few of my blog readers have reached out to me with this question after reading Time Tested Strategies To Profit From Real Estate In A Crisis.

It was a pleasure meeting some of you on Zoom calls to discuss your plans and options for upgrading and investments, and i hope our sessions provided you with clarity on strategy, maximum financing options and ABSD tax savings methods.

If you are one of those who's waiting out for a good buy in today's market, congratulations. You're one of those with dry powder and will be able to make full use of this once in a decade opportunity to get a better than market deal.

With so much going on in the news today, I hope to provide you some clarity about how to go about next as it can get overwhelming to follow all the corona virus related news in the media.


When Is The Right Time To Enter The Property Market?

The perennial question on every investor's mind today, be it the stock market or property market.
The perennial question on every investor's mind today, be it the stock market or property market.

Let me preface with some macro trends for context.

As of 21st April 2020, several major stimulus have taken place globally to combat COVID-19.

1. US is pumping trillions to stimulate their economy

2. China has billions poured into spurring consumer spending

3. UK has unveiled a 'war-time' $400B Euro bailout programme for its economy

4. Almost all major countries have lowered their interest rates to all time lows to facilitate and spur lending

5. Japan and Europe has further committed hundreds of billions to purchase bonds and help firms stay solvent

Investopedia Reference: Government Stimulus Efforts to Fight the COVID-19 Crisis

Perhaps, in no time in history, has the world been so united as one in pursuing a common cause.

At the heart of the matter are consumer sentiments and money velocity - that people are not confident in the near term and not spending as much as before, which on the flip side, also means people aren't earning as much.

When the music stops, confidence drops and that must not be allowed to happen as businesses that fold and jobs lost as a result might never be recovered in the future.

In Singapore, our government has pumped in an unprecedented amount of money to keep big firms and SMEs alive, workers retained and consumer spending going.

We can infer from government actions that all guns are blazing to keep as many as possible afloat through this crisis.

Will the governments of the world then succeed in averting another "Great Depression"?

It has to and it will as people accept that this has to be done, even if at the expense of incurring huge national debts for the future generation.

Furthermore, the policy tools (Read: Printing of fiat currency) available today weren't available during the Great Depression years.

property market impact covid coronavirus

The question of when; not if

For confidence to return and a recovery to take place, 3 fundamental factors m