Aug 28, 2012

Posted by in Property Investment Tips

Cash Out But Do Not Get Priced Out!

Cash Out But Do Not Get Priced Out!

Hello friends!


We are happy to share more property market update and tips.

There are many ways to make money from properties but there are perils along the way as well.

I’ll like to share some common mistakes that people have made.

The tip for today:
Do not cash out from the market without another entry strategy.

We know of home owners /investors cashing out in their property while waiting for a good opportunity to come by.

They found themselves priced out of the market when the prices surge higher and higher.

So, if you are cashing out ask yourself how you can hedge your risk by actively sourcing or planning your next investment. Hope this helps!

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  1. Any new business should start out with a solid business plan. Knowing how much office space, equipment, network fees and staffing will cost can help a new business owner prepare for and find the necessary funding. In addition to start up costs, a real estate business owner should prepare a one-year, five-year and ten-year plan and build in measures for how to spend profits and how to weather slow times.

  2. This is great information, reminds me of the saying “don’t close one door without opening another”.

  3. It is very risky to invest all the funds in one sector. A wise person always thinks alternative but not doing anything with just one sector, what you have cleared in this post. To utilize the best of the funds is finding out the best options available. A splitting method of funds and a longer duration of getting back a good outcome is the best choice of investment. A splitting method would help you to overcome from the odd situation if one sector has been collapsed other will help to overcome.

  4. This is a very insightful tip. I agree to it completely. It is true that sooner or later you will lose your money’s potential for profit when you just let it sit after cashing it out from an investment while thinking of another investment plan. The wise thing to do prior to cashing it out from your former investment is that you must already have the next investment in mind. Planning ahead will spare you from potential losses.

  5. Adnan S. Jatt says:

    It is a common mistake people make to invest in the same sector and also of getting cash out. Anyone starting a new business, whether it is a large scale business or a small scale investment or a cottage industry, should consider all the expenditures and expenses before hand. This pre-investment and pre-business analysis always help us out when it comes to spend the hard gained profit. Always invest in atleast two sectors at the same time, because it balances the load and doesnt make us lose our wealth all at once when comes an economic turmoil.

  6. Business is all about the strategy. But the proverb goes on that as much as the risk as much the profit for the business. But this proverb is not applicable today. Because business can be started with a solid and detailed plan after having an inspection in the market. Wendy Kwek is such a person who is always advising the investors to invest in the right sector. Thanks Wendy Kwek for such a nice article.

  7. Thanks for the advice. It can be hard to know the right time to cash out so it makes sense to have a backup plan for your money after you do. With how quickly the prices of the market are rising it could be easy to get priced out.

  8. I totally agree that you should have a way to suss out what are the best under performing buys in the property market first before you sell your property. That way you will know that your reasons for selling are based on a sound business decision and have no regrets later on.

    Its no point just keeping the money in the bank after selling. The point is how to re-invest and take advantage of the next wave!

    • Thanks for agreeing Lille. And yes, our money appreciates very little in the bank. So the way to go is through investing.

  9. I think to put in simple terms, do not cash out on your property without having another for accomodation. A lot of buyers cash out to realise their profits, and choose the rental options, only to be price out of their future homes and having their realised profits eroded by the rentals they paid. This is the biggest and worst mistakes a seller can make. They are now in a dilemma of whether to continue rental or buy at a much higher price than their previous selling price.
    However, if you have holding power, i say keep your property as long as you are collecting decent rental yields since the bank’s interest are pathetic. If you have multiple properties, who is to say now is or is not the best time to sell? There’s absolutely no way one can predict the right time to sell or buy. The most important consideration is always to be financially stable and not overcommiting, with reference to one’s current and future income, assets liquidity and investment risk profile.

  10. Totally agree. Long-term wise its best to always stay invested.

  11. I am really pleased to read this blog posts which carries lots of helpful information, thanks for providing such statistics.

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