Updated on November 5, 2022 by admin

After reading Time Tested Strategies To Profit From Real Estate In A Crisis, a few of my blog readers emailed me with this question. Hope the past week at home has been going well for you!

Our economy will continue to function due to those of you who work on the front lines or in essential services. Thank you for keeping everything running so we can still get food and groceries.

Our Zoom calls provided lots of clarity on strategies, maximum financing options, and ABSD tax-saving methods, which I hope we were able to discuss with you during our sessions.

It can be overwhelming to follow all the Corona virus-related news in the media with so much going on today. I hope this will provide some clarity for you.

Investing In Property: When Is It Right?

Investing In Property: When Is It Right?

First, let me give you a brief overview of some macro trends. COVID-19 has been the subject of several major global stimulus measures since April 21, 2020.

  1. Efforts are being made by the US to stimulate the economy with trillions of dollars

  2. In order to increase consumer spending, China has invested billions

  3. An economy-saving $400 billion bailout plan for the UK has been announced

  4. The interest rates of most major countries have been lowered to all-time lows in an attempt to make lending and financing easier and more accessible

  5. In addition to purchasing bonds and helping firms stay solvent, Japan and Europe have invested many billions in the process

The COVID-19 Crisis and Government Stimulus Efforts Investopedia Reference.

Historically, the world has never been so united in its pursuit of a common goal.

Consumer sentiments and money velocity are at the heart of the issue – people aren’t confident in the near term and aren’t spending as much as they used to, which correlates to lower incomes.

It’s imperative that the music never stops, as that will result in confidence slipping, businesses folding and jobs lost may never be recovered.

To keep big companies and SMEs alive, and consumer spending alive, Singapore’s government has invested unprecedented amounts of money.

It appears that the government is doing everything it can to keep as many people afloat as possible in the face of this crisis.

What are the chances of the governments of the world being able to avoid another “Great Depression”?

In spite of the cost to future generations of huge national debts, this must be done, and it will.

There is no question of if; it is only a question of when

Three fundamental factors must occur before confidence can return and recovery can occur:

  1. In order for the virus to decline steadily, it must reach its peak

  2. There is a need to find the vaccine

  3. There is a need for the development of a cure

Is a correction on the way in the meantime? It appears (and my gut tells me) that the answer is yes.

As a real estate agent, I would never want to call the market bearish, as it would be an act of confirmation bias. 

Although the government is taking steps to remove home loans, absolve contractual obligations, and offer low-cost liquidity, there will still be gaps that will allow people and businesses to fail.

As a result of low oil demand, the current market shock also causes jobs, spending, and incomes to be affected. Quite a dilemma.

We should therefore invest our money in good assets again, doesn’t that mean?

That’s for sure. Crises provide opportunities precisely when they arise. In spite of the fact that it has become a cliché phrase over the years, I don’t mean it as a cliché.

It is only a matter of when but not if sentiment, spending, and asset prices will recover. A shepherd’s call always provokes a herd’s reaction to the news, which is always reported with hindsight.

Media outlets will set the stage for the recovery phase when new cases of the disease decline or vaccines and cures are developed.

Is it still possible to find good deals by then?

The crowds will certainly return, but they won’t be as negotiable as they are today due to pent-up demand, just like in China. Let’s get down to business.

If I’m planning to invest in property when would be the right time to do so?

If I'm planning to invest in property when would be the right time to do so?

In order to answer this question, we need to understand:

Choosing properties at a discount to their intrinsic value is called the Margin of Safety.

The bottom of the market is impossible to predict, much like stocks, so I urge you not to try.

It is not uncommon for those members who have tried to time the market to miss out on cycle after cycle, and the pain of missing out is even greater when they are older, have a smaller loan quantum, and have a shorter tenure of a loan.

There is a tendency for humans to prefer passivity, as it is easier to wait for (and hope for) the right conditions than create them. Rather than focusing on passively looking for deals, we should be actively seeking them.

A great deal of risk is factored into some developers’ rates, especially in today’s market conditions where many people have to liquidate their investments in order to stay afloat.

Depending on how you view the market and your personal perception of risk, you can determine how much margin of safety you require.

Others claim anything below 10% isn’t sufficient risk premium, even if it is 5% below the valuation. For myself, I prefer to evaluate it through the rental yield method.

The yield for a residential property in the core central region of a city should be at least 4%, the yield for those in the rest of the central region should be 4.5%, and the yield for those outside the central region should be 5%.

My personal method of assessing it is based on current rents through rental yield.

Property definitions for OCR, RCR, and CCR

It’s possible that the current crisis will lead to further rent drops; however, I’m willing to accept that risk if it means renting a home in the future.

I am actively searching for deals that fit my criteria by speaking with agents rather than waiting for the right time.

How will the market respond if it continues to fall or if rents correct further?

Due to the fact that I have already priced in rent fluctuation, am confident of holding out for an eventual recovery that, fingers-crossed, happens in 15-18 months, and ensure that I have sufficient holding power (so that I don’t lose money if there are further corrections).

Finally, I would like to summarize

Time isn’t really important when trying to figure out when to enter. As a result, it is easier to find the right investment property if you actively create the right conditions.

Consider finding properties at a discount with intrinsic value rather than attempting the impossible aka timing the market.

The goal of this article is to help you change your perspective on investing and to take charge of your investment journey in a more positive way.

Share this information with someone if it helped you! Otherwise, I recommend you read up on this related article.


In the real estate industry, Lawrence Lee, Executive Group District Director, is one of the industry’s most renowned leaders and personalities. His neighbors won’t be upset by him playing a few instruments decently. He adores music.

His wife barely finds his silly puns entertaining when he isn’t pillowed fighting with his son. With his experience in selecting and managing great property investments, he has helped many clients grow their wealth over the course of his career.

Several million dollar producing real estate agents in Singapore have also been coached by Lawrence Lee.