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The current property market is like a dose of white arsenic sprinkled into a wedding cake.

Take a bucket of piss and call it granny’s peach tea – For six years since Q3 2012, my views on the current state of the private property market remains what it is.

The scent of money in the water often leads to a feeding frenzy. Buyers go in like a lion and come out like a lamb – always.

I’m not going to bore readers (and potential buyers) with painted numbers and showroom statistics to prove a point. Has the current property market taken its toll on my realism? No. I’m still realistic. I just keep it safe behind a carapace of scepticism.

I’m constantly amazed how current buyers behave like flies attracted to light. They hopelessly believe there is a light behind the door. And I’m the one who has to tell them the door is locked, and the bulb burned out a long time ago anyway (six years to be exact).

Today’s buyers were just fodder for the machine. The machine needed to eat, and they were in the plate. The media and most people who lived and dreamed outside the machine didn’t get it.

What’s the difference between a catfish and a property developer? One’s a bottom-feeding scum sucker and one’s a fish.

A guy told me once that when you get to the end of your road, you have to look at the community woodpile and decide if you added to it while you were here or whether you just took it. I sleep good at night. But I wonder about “them” and their kind. Property developers of today are takers from the woodpile.

The developer’s tactic was clear – when strapped with land to buy and good property to sell, pad it with quasi-factoids. Agents further embellished the tale of easy money and by the time buyers had bought it, any gains of profit that might have been there were long gone.

The truth never stands in the way of a good story. Then, there are people who, fooled by sales agents and developer’s tagline, think they are partaking of works based on true investors. Within the markets lay some inkling of the greater game that was being played, one in which current buyers were more than a pawn but less than a king.

These days, everybody seems to believe in Santa Claus. How’s that? Because they believe in something for nothing. Current buyers are exuberant to the chance of profitability, sometimes to a point beyond rational estimate of probabilities.

The current property market is like a dose of white arsenic sprinkled into a wedding cake. It’s also a parable on the dangers of excessive leverage fuelled by childish exuberance by buyers and developers alike. Many will choose to believe the whole farrago, against their own better sense.

Shifting facts and fiction – it is plausible. The “experts” could piss in a cup and eager buyers would call it wine, but I offer them pure cold water and they squint in suspicion and mutter to each other about how queer it tastes. (FYI: I recently pocketed an easy half-a-million-dollars selling a property bought in 2011)

Advice for middle-class private home buyers: A property showroom is a buyer’s paradise, where everything is carefully designed to make you crave the lifestyle that looks far more real on the walls than in reality.

An expensive home is expensive to keep especially one that is bought at the wrong price. If you had one, you have to spend time in it to justify buying it. That seems kind of like putting the cart before the horse. You borrow heavily against future earnings to own an expensive liability which gets you old and broke very quickly.

Advice for yet-to-be-investors: In the markets there are three things for you to always consider: the knowns, the known unknowns and the unknown unknowns. It is your job to master the first two and always be prepared for the third.

Advice for current “investors” who bought properties recently: At this point, you’re no longer entitled to refer yourself as an “investor”. You may call yourself a speculator, but not an investor.

All your life various people, “experts”, self-vested-interest profiteers and the likes will tell you things. And most of the time, probably ninety-five percent of the time, what they’ll tell you will be wrong. It’s a fact of life. Human beings are just stuffed full of misinformation. It’s hard to know who to believe.

If you want to learn TRUTHS that very few property experts are willingly to reveal, check out my NEW eBook, “Real Estate is a Harsh Mistress”. 

Click Here To Find Out How You Can Harness Your Intentions And Turn Them Into Reality.

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To your investment success,

 


About the Author

Gerald Tay Author, entrepreneur, professional investor and loving father, runs crei-academy.com with a tongue-in-cheek approach to property investment - and himself. He is widely regarded in the industry as 'The Common-Sense' Investor. Gerald writes with passion and straight-forwardness, disclaiming wild claims and impractical investment strategies behind lies and ignorance pervasive in the property industry for vested interests. His well-known statement, "All I did is to value my investments with science, logic and common sense.'

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