Investing in property

A friend asked, 'When is it a good time to go into property investment? Is it too late and risky now?'

I told him about what Kwek Leng Beng said, 'Buy property only if you can service the loan installments. If you can't, you are just speculating. And the right time to buy is when the interest rate is at its lowest.'

My friend then asked, 'So is the interest rate at its lowest now?'.

I replied, 'How would I know!'.

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My friend later bought an freehold apartment at Race Course Road at $1100 psf.

I asked him, 'Why you buy property at Little India? You sure people want to stay there?!'.

My friend replied, 'For investment and rent out lah. MRT right at the doorstep. Why not? Agent said renting out sure no problem. Some more good rental yield.'

I said, 'Is it? So good meh'.

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My friend called me, 'Oi. Agent called me. Ask whether want to sell or not.'.

I exclaimed, 'Huh, you pay option money for less than 2 weeks, already got people want to buy from you. How much? Can make how much?'

My friend tried to act humble, 'Not much lah. Can sell at $1200 psf. May be make $50k only.'

I exclaimed again, 'What! 2 weeks can make $50k! So how, you want to sell?'.

My friend tried to act cool, 'No lah. Wait and see. Agent say will go up some more. Can rent out first.'

I asked, 'But the economy quite gloomy leh. You not scared meh.'

My friend reminded my words, 'Kwek Leng Beng said can buy if can pay installment what.'

I keep quite and wish him luck.