Something strikes me today after reading AK's comment in his post on singapore property.
If I am to buy a home say S$1M, and a year later the price comes down by S$100K. Will I be sad ? Ofcourse i will, silly ! But sad due to what is the critical issue here. Well i am sad because my home value drops 100k. But why should i when is a place to stay other than being sad for paying 100K more. Someone will pay more someone will pay less in any trade. If i am to sell it 100k lesser 5 years later, i will be getting cheaper price from others of another property anyway.
If i got my home and price shoot up say 100K in a year, should i be happy then ? Why not, 100k take someone years to save ! But i cannot realise it since is a place to stay so what so big deal about it then ?
Well, i can sell it 5 years later and if price holds 100k up, i will be good. But then i will be buying another property from others at higher price too aren't we ?
And here comes the fundamental question if you haven't realise it yet. Higher property price only make the rat race course larger for your children and you. And a lot of paper work at your expense.
14th Nov 2014