To Sell or Not to Sell
In September 2005, I was lucky enough to enter the local property market when it was at its lowest. By sheer “luck” of being in an unhappy relationship, I was looking for my escape when I bought a small two-bedroom apartment from a developer in the central part of our small island. As soon as I walked into the showflat, I knew I had to have it.
Although it would take about two years for the development to be completed, deep down I knew that it would eventually be my ticket to freedom. And even though I left the relationship long before the apartment was ready, the property has still brought me a lot of blessings.
The property market on our small island has been booming recently, with articles in the media speculating on its growth for the next year and beyond. In some ways, it almost seems like ‘panic’ buying to me as prices have risen very sharply over a very short time. It does worry me as we’ve seen from the past that there is always a boom before a bust. I would hate for the property bubble to burst as I am now a player in this sector.
There are several schools of thought floating around at the moment. Some people think that the market is already slowing down, while others believe that there is still room for growth until 2012. I would be the first to admit that I haven’t got a clue as to what will happen.
On an emotional level, I want to hang on to the apartment. It is the first home I have ever owned, although my friend DJ rudely pointed out that it still belongs to the bank! Well, they do own 80% of it, but at least I can call the balcony and bathroom my own and it is only my name on the title!
However, today I was offered a price for it which if I accepted, would give me a net return of 250% on my initial investment in under two years.
At first glance, it does look really amazing and I would be a fool not to accept the offer. But when I dig a little deeper, I realize there are other factors to consider.
If I sold my apartment now, I would never again get a property in that area for the price I paid for it. I would not be able to afford another place in a nice location until the market comes down again, and who knows that will be? As I’m unsure if the market has reached its peak, I’m also afraid of being caught in in a negative equity situation. Plus, all my money would then be invested in funds and on the stock market. And if I remember correctly, the one major rule of investing is to diversify, diversify, diversify.
I wish I had a crystal ball (don’t we all?) which I could look into to help me make the right decision.
As a wise man (who is married to an accountant) recently said to me, “You can make the right calculations, but the wrong decision.” If I go with what my heart says, it is to keep the apartment and to live in it for a while until P and I decide where we are going to settle.
It really is a beautiful seventh floor unit with lots of windows that overlooks a leafy area that has been zoned as a park. The fixtures and fittings are all very modern and stylish. There is a lap pool with a water feature at one end and the development is very close to all the facilities necessary for a convenient life i.e. restaurants, public transport, shopping, etc. It is only five minutes by car from the main shopping street.
If we should ever decide that this small island isn’t the place for us, then it should be relatively easy to rent out.
I guess since I have doubts, I won't sell and unless I’m offered an amazing amount, I’m still a property owner!
Although it would take about two years for the development to be completed, deep down I knew that it would eventually be my ticket to freedom. And even though I left the relationship long before the apartment was ready, the property has still brought me a lot of blessings.
The property market on our small island has been booming recently, with articles in the media speculating on its growth for the next year and beyond. In some ways, it almost seems like ‘panic’ buying to me as prices have risen very sharply over a very short time. It does worry me as we’ve seen from the past that there is always a boom before a bust. I would hate for the property bubble to burst as I am now a player in this sector.
There are several schools of thought floating around at the moment. Some people think that the market is already slowing down, while others believe that there is still room for growth until 2012. I would be the first to admit that I haven’t got a clue as to what will happen.
On an emotional level, I want to hang on to the apartment. It is the first home I have ever owned, although my friend DJ rudely pointed out that it still belongs to the bank! Well, they do own 80% of it, but at least I can call the balcony and bathroom my own and it is only my name on the title!
However, today I was offered a price for it which if I accepted, would give me a net return of 250% on my initial investment in under two years.
At first glance, it does look really amazing and I would be a fool not to accept the offer. But when I dig a little deeper, I realize there are other factors to consider.
If I sold my apartment now, I would never again get a property in that area for the price I paid for it. I would not be able to afford another place in a nice location until the market comes down again, and who knows that will be? As I’m unsure if the market has reached its peak, I’m also afraid of being caught in in a negative equity situation. Plus, all my money would then be invested in funds and on the stock market. And if I remember correctly, the one major rule of investing is to diversify, diversify, diversify.
I wish I had a crystal ball (don’t we all?) which I could look into to help me make the right decision.
As a wise man (who is married to an accountant) recently said to me, “You can make the right calculations, but the wrong decision.” If I go with what my heart says, it is to keep the apartment and to live in it for a while until P and I decide where we are going to settle.
It really is a beautiful seventh floor unit with lots of windows that overlooks a leafy area that has been zoned as a park. The fixtures and fittings are all very modern and stylish. There is a lap pool with a water feature at one end and the development is very close to all the facilities necessary for a convenient life i.e. restaurants, public transport, shopping, etc. It is only five minutes by car from the main shopping street.
If we should ever decide that this small island isn’t the place for us, then it should be relatively easy to rent out.
I guess since I have doubts, I won't sell and unless I’m offered an amazing amount, I’m still a property owner!
posted by SG Babe | 2:25 PM
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