Buying a Home is a dream for many – be it to diversify your investment portfolio, having a bigger space for your family, or to move to a more convenient location to improve your lifestyle choices. However, the timing becomes a crucial factor – when is it a good time to buy a home? Here is why we believe 2H 2022 might just be the best time to do so.
#1 Stable and safe choice amidst uncertainties
By now, you must have seen how volatile the investment markets are due to the ongoing aggression in Ukraine and Pandemic. Coupled with worries of economic recession, many of stocks and equities saw significant losses across the year. In fact, even stable ones like S&P 500 suffered the same fate. When it comes to more riskier ventures like cryptocurrency, they similarly took a hit, and we even saw the unfortunate Luna crypto collapse as well.
When such things happen, it’s extremely disheartening that your hard-earned money vanish in a flash. Huge losses can make anyone take a huge step back from achieving their life goals, and the emotional stress that comes with it is no laughing matter too. In times of uncertainty, it becomes imperative that you invest in safe and stable investment options. This is where properties come into play – while it takes a longer time to realise your profits, the private residential property index has been seeing a stable growth of 3.9% in the last two quarters.
#2 Rising inflation? Beat it with property investment
Due to the worldwide events, inflation has risen at a terrifying rate the past year. Even though many countries have tried to rein in the rising inflation rates by adjusting interest rates, we still see inflation on an upward trend. This could be worrying for many, since this implies that we are able to buy lesser amount of goods with the same amount of money.
To beat inflation, property investment is truly a viable option. Based on existing statistics, private residential price index has rose in value by a whopping 94% from the period of 2006 to 2022. Yes, that is almost double in value. As compared to consumer price index that went up by 38% in the same period, it is safe to say that property investment was more than enough to mitigate inflation hikes over the many years of events and uncertainty.
Overall, definitely a prime choice as a long-term hedge against inflation rates.
#3 BTO flats reaching their MOP – a large scale movement into private property
As many of you are aware, a huge number of couples have all moved into their BTO flats, which requires them to complete the Minimum Occupation Period (MOP) of 5 years. As the completion of their MOP nears, the majority of them will be thinking of moving out into a bigger unit or a private property. As of 2022, we are estimating more than 30,000 HDB flats that will be eligible for sale. This will mean a steady increase in number of young couples looking to sell their BTO and buy a new private property, indicating a strong demand in private properties in times to come.
This again drive the point of why property investments will continue to be a top choice, as it faces an ever-growing demand and limited supply.
Now that I am interested to buy a Home – where do I start?
Knowing how to manage property investment or home purchasing risks can be difficult, especially if you don’t have the most up-to-date market information. If you need guidance and help from someone with the right experience and knowledge, reach out to us to find our more.