View Full Version : What will you do if you have 1mil on hand?
Hi guy,
What will you do if you have 1mil spare cash on hand? Invest in property, bond, share, REIT ...etc? How and what is your strategy?
buttercarp
12-09-12, 08:28
I will buy a new 2 BR OCR condo 99LH which has just TOP-ed and rent it out.
ABSD is a turn off .... I will invest in REITS and shares that give dividends as a form of passive income...
Otherwise transfer the money between different banks every few mths and u get freebies like ipads, notebooks, vouchers (of substantial amt) etc.... Cash is King. :tongue4:
Put in a bank and 百萬get萬free? :) interest rate so low... Looks like buying quality property is way to go...
buttercarp
12-09-12, 08:57
Put in a bank and 百萬get萬free? :) interest rate so low... Looks like buying quality property is way to go...
With everything going up and up..... no need quality property .... any type of property also can.
Diversify your investment. May be a little after this afternoon and better tomorrow.
phantom_opera
12-09-12, 09:04
Contribute to Cpf yours, spouse, children, parents, in laws, let them work for u lol
ABSD is a turn off .... I will invest in REITS and shares that give dividends as a form of passive income...
Otherwise transfer the money between different banks every few mths and u get freebies like ipads, notebooks, vouchers (of substantial amt) etc.... Cash is King. :tongue4:
It would be 100% property for me. 2 studios in CCR / city fringe with 40% downpayment each if eligible for the remaining 60% loan for both or if not eligible, then 1 studio in in CCR/city fringe. Relatively new or about to TOP. LH 99 ok but must be near MRT.
I would not wait for ABSD or cooling measures to be replaced as it might never happen. Possible for prices to remain firm or continue going up with cooling measures remaining intact or even more being introduced. The CMs may become a permanent feature.
Like many bros and sis here, i do agree that buying properties is the way to go, and i have many friends who feel that its the best investment for today.
But i also do have a handful of friends who are believers in stocks, as they feel it is more 'liquid' and they could cash out easier in times of emergency ... some more tax-free and dont have to go through the hassle of managing rentals etc :p
get a HDB and a RCR/OCR 2 or 3BR resale unit with a good location.
phantom_opera
12-09-12, 09:14
if you are 45+, CPF SA is the best investment for you
where else can u find risk free 4% return in this dark age of low return? first 60k is 5% btw
10y SGS bond is 1.3x % fyi so 4% is 3X more return than 10y SGS
The secret is every time you make a huge profit, allocate 20% and pump into your CPF SA or your spouse's CPF SA (if you are young, first target is to fill up SA + MA to 60k to enjoy the risk free 5%)
When you gradually approach retirement, shift more and more of your profit into CPF SA
:2cents:
Like many bros and sis here, i do agree that buying properties is the way to go, and i have many friends who feel that its the best investment for today.
But i also do have a handful of friends who are believers in stocks, as they feel it is more 'liquid' and they could cash out easier in times of emergency ... some more tax-free and dont have to go through the hassle of managing rentals etc :p
Only 5% of investors will make good money in stocks over long terms, the remaining 95% will see their fortune going around in circles but have lots of exitement. Property majority will make money over long term though less exciting. I will stick to property after going around in circles in the stock market.
Only 5% of investors will make good money in stocks over long terms, the remaining 95% will see their fortune going around in circles but have lots of exitement. Property majority will make money over long term though less exciting. I will stick to property after going around in circles in the stock market.
Thats interesting! Thanks for sharing and will take note of this valuable advice :)
Hi guy,
What will you do if you have 1mil spare cash on hand? Invest in property, bond, share, REIT ...etc? How and what is your strategy?
If you are talking about your own situation and since you are already vested in condos, my suggestion is to stick to property but diversify a bit by buying a landed and gearing up to take advantage of the low interest rates. Although yields may not be so good as a condo/apt, it is less volatile and holds its capital value better and in my personal opinion, has much better longer term prospects.
If you are talking about your own situation and since you are already vested in condos, my suggestion is to stick to property but diversify a bit by buying a landed and gearing up to take advantage of the low interest rates. Although yields may not be so good as a condo/apt, it is less volatile and holds its capital value better and in my personal opinion, has much better longer term prospects.
if you can park your money in an aussie bank, it's easily 5+%.
if you can park your money in an aussie bank, it's easily 5+%.
Sorry, but currencies and paper money are what I trust least in these times. Tangible assets are the way to go.
if really believe in the foregone conclusion ppty can only go one way up, then might make sense to buy blue chip property stocks loh. faster liquidity and definitely easier to collect dividends compared to rental income. if really super garang, can gear up via margin trading somemore. :sleep:
If you are talking about your own situation and since you are already vested in condos, my suggestion is to stick to property but diversify a bit by buying a landed and gearing up to take advantage of the low interest rates. Although yields may not be so good as a condo/apt, it is less volatile and holds its capital value better and in my personal opinion, has much better longer term prospects.
1mil is too little to buy a decent fh/999 inter terrace now.
40% downpayment + renovations.
Sorry, but currencies and paper money are what I trust least in these times. Tangible assets are the way to go.
currencies depend on which pair u choose mah. currency value is relative... choose wisely and u may huat until buay jin chu. but all investment carries risk lar.. ppty or stocks or bonds or fx or anything that can make $$. :cheers1:
if you are 45+, CPF SA is the best investment for you
where else can u find risk free 4% return in this dark age of low return? first 60k is 5% btw
10y SGS bond is 1.3x % fyi so 4% is 3X more return than 10y SGS
The secret is every time you make a huge profit, allocate 20% and pump into your CPF SA or your spouse's CPF SA (if you are young, first target is to fill up SA + MA to 60k to enjoy the risk free 5%)
When you gradually approach retirement, shift more and more of your profit into CPF SA
:2cents:
The extra 1% is not a permanent feature.
It is always good to top up MA. Tax relief and earning 4%
The extra 1% is not a permanent feature.
It is always good to top up MA. Tax relief and earning 4%
MA is $ u can't touch unless choy u are sick or u are on your deathbed. :rolleyes:
My two cents:
1. If it is the first property, then no objection to be in property
2. If it is your second property and u must assess what are the asset classes available to u.
Property now is almost at all time high, as such, down side risk is greater, and couple with the fact it is illiquid, thus may not be a wise choice.
The best option is perhaps REIT, there is property as well.
$1m at 6% yield, with $1m leverage at cost of about 1.5%, net yield is 4.5%, so u have an overall net yield of 10.5%, tax free.
The other option is bond or bond fund.
Those have a $1,000,000 spare cash can always have party with me to share share.
MA is $ u can't touch unless choy u are sick or u are on your deathbed. :rolleyes:
It is inevitable when one age.
Having said that, MA ceiling is pretty low. You cannot pump as much as you like.
Agree. Put in CPF is one way traffic with little flexibility of use.
Better earn less interest for awhile but have full use of it when you want.
I think Equities will be a good game for the next 5 years and Bonds will be a loser's game.
MA is $ u can't touch unless choy u are sick or u are on your deathbed. :rolleyes:
if you are 45+, CPF SA is the best investment for you
where else can u find risk free 4% return in this dark age of low return? first 60k is 5% btw
10y SGS bond is 1.3x % fyi so 4% is 3X more return than 10y SGS
The secret is every time you make a huge profit, allocate 20% and pump into your CPF SA or your spouse's CPF SA (if you are young, first target is to fill up SA + MA to 60k to enjoy the risk free 5%)
When you gradually approach retirement, shift more and more of your profit into CPF SA
:2cents:
Yah hor, by the way how to save in CPF to get the 4% interest? monthly or lumpsum? thanks
currencies depend on which pair u choose mah. currency value is relative... choose wisely and u may huat until buay jin chu. but all investment carries risk lar.. ppty or stocks or bonds or fx or anything that can make $$. :cheers1:
yep, no doubt can make a lot in currencies but too much monitoring for me plus the decision of when to buy or sell can be too taxing sometimes. At least in property, can just rent out and get some cash in each month. Wait a few yrs, nice gain, sell and move on. If you have a nice property, you can even live in it. That is something that other assets cannot provide.
Agree. Put in CPF is one way traffic with little flexibility of use.
Better earn less interest for awhile but have full use of it when you want.
I think Equities will be a good game for the next 5 years and Bonds will be a loser's game.
same view bro.. same view. :cheers4:
My two cents:
1. If it is the first property, then no objection to be in property
2. If it is your second property and u must assess what are the asset classes available to u.
Property now is almost at all time high, as such, down side risk is greater, and couple with the fact it is illiquid, thus may not be a wise choice.
The best option is perhaps REIT, there is property as well.
$1m at 6% yield, with $1m leverage at cost of about 1.5%, net yield is 4.5%, so u have an overall net yield of 10.5%, tax free.
The other option is bond or bond fund.
Those have a $1,000,000 spare cash can always have party with me to share share.
Reit and bond fund have potential capital risk and their yield is not guaranteed.
I do not have the risk appetite to leverage on these.
However, fixed income instrument is a must-have in today's climate. How many % to allocate depends on individual risk appetite and capacity.
My 2cents.
yep, no doubt can make a lot in currencies but too much monitoring for me plus the decision of when to buy or sell can be too taxing sometimes. At least in property, can just rent out and get some cash in each month. Wait a few yrs, nice gain, sell and move on. If you have a nice property, you can even live in it. That is something that other assets cannot provide.
i value liquidity turnaround... ppty takes way too long to release if things go awry. as such, i believe in having a nice roof to live in and then for investments go for alternative sources for portfolio diversification. but that's just my personal view. i know many here are landlords who did extremely well.. juz tat i'm too noob to dare put all my eggs in 1 basket (ppty as an asset class). :o
Reit and bond fund have potential capital risk and their yield is not guaranteed.
I do not have the risk appetite to leverage on these.
However, fixed income instrument is a must-have in today's climate. How many % to allocate depends on individual risk appetite and capacity.
My 2cents.
same goes for ppty mah. :confused:
i value liquidity turnaround... ppty takes way too long to release if things go awry. as such, i believe in having a nice roof to live in and then for investments go for alternative sources for portfolio diversification. but that's just my personal view. i know many here are landlords who did extremely well.. juz tat i'm too noob to dare put all my eggs in 1 basket (ppty as an asset class). :o
Each investor have their own risk appetite and investment preferences. Moral of the story is to have a balanced asset portfolio but keep some reserves as a buffer.
Yah hor, by the way how to save in CPF to get the 4% interest? monthly or lumpsum? thanks
Log into cpf website and e-nets payment directly into your MA or into 3 accounts.
My two cents:
1. If it is the first property, then no objection to be in property
2. If it is your second property and u must assess what are the asset classes available to u.
Property now is almost at all time high, as such, down side risk is greater, and couple with the fact it is illiquid, thus may not be a wise choice.
The best option is perhaps REIT, there is property as well.
$1m at 6% yield, with $1m leverage at cost of about 1.5%, net yield is 4.5%, so u have an overall net yield of 10.5%, tax free.
The other option is bond or bond fund.
Those have a $1,000,000 spare cash can always have party with me to share share.
i dun hab 1 mil spare cash.. in fact i dun even haf 1 mil of net assets. lidat during your sharing party can i be the waiter and serve u & your guests drinks (so hopefully can gather some snippets of investment wisdom)? :p
Each investor have their own risk appetite and investment preferences. Moral of the story is to have a balanced asset portfolio but keep some reserves as a buffer.
this statement i agree wholeheartedly. :cheers4:
same goes for ppty mah. :confused:
Yes. But i will gladly leverage when comes to property than these.
Yes. But i will gladly leverage when comes to property than these.
dun really understand the logic of your argument. seems emotionally driven. :confused:
if A = B and A = C, why will B > C? :doh:
anyway, everyone gotch their own preferences lah. :cheers5:
I learnt a lot from my own mistakes and passing on my experience to my children.
There are 3 types of investors
1. anticipate the change and invest
2. participate in the change and invest
3. did not know the change and invest
(I cannot remember the correct wordings...)
That is why I read widely now, the number in itself is meaningless, and too many numbers and facts and clouds around....
U need to read in depth the numbers and interprete them carefully to make a move.
dun really understand the logic of your argument. seems emotionally driven. :confused:
if A = B and A = C, why will B > C? :doh:
anyway, everyone gotch their own preferences lah. :cheers5:
It is different.
Property mortgage loan having the least risk of bank calling for topping up.
However, beware of equity loan if you refinance your property.
If you are single and has a roof over your head, use the money to go enjoy all the good things that life gets to offer, and keep some in safe reserve/life insurance.
Why worry so much about LH or FH bricks and get chained down.
Tomorrow may never come.
phantom_opera
12-09-12, 11:07
One mistake ppl make is risk must be assessed individually i.e. risk is relative, not absolute
For Laguna, leverage bond or REIT may be of little risk to him it could be very risky for another person
I find it funny also ppl rather pay their insurance agents/companies and get locked in 30-40y to see non-guaranteed 4% pa return compared to putting a fraction of their income into CPF SA which could be tax exempted
It is different.
Property mortgage loan having the least risk of bank calling for topping up.
However, beware of equity loan if you refinance your property.
we can go into a much longer and detailed discussion on this.. but i guess i will respect we have our differences in opinion. all the best!
Sorry, but currencies and paper money are what I trust least in these times. Tangible assets are the way to go.
any investment vehicle has its risks; property has its downsides too.
i, for one, will definitely not park my monies in CPF SA. it's just giving HO HO Ka-CHING more resources to flush down the drain with stupid investments. then all the government needs to do is up the withdrawal age, raise the minimum sum limits and come up with another cock program, e.g. annuity. all that's left is a sum of money that you can see on paper, but can't touch
One mistake ppl make is risk must be assessed individually i.e. risk is relative, not absolute
For Laguna, leverage bond or REIT may be of little risk to him it could be very risky for another person
I find it funny also ppl rather pay their insurance agents/companies and get locked in 30-40y to see non-guaranteed 4% pa return compared to putting a fraction of their income into CPF SA which could be tax exempted
insurance (excluding investment linked), serves alternative purposes vs CPF SA.
every type of investment carries it's own pros n cons. end of day, it's being able to evaluate each objectively and also making sure u assign the correct values to each pro & con (based on your own perspective and life) and making the correct allocation in accordance to these principles.
so, everyone could have different allocations and all will be right. but one thing that i cannot accept nor comprehend is putting all eggs into 1 singular entity just becos one can't wrap their heads around other alternatives. need to have an open mind...
For Laguna, leverage bond or REIT may be of little risk to him it could be very risky for another person
As a trader, leverage is the norm.
I did not leverage heavily this round for the REIT and bonds...
One thing good about these two is I can run any time..take back my cash and wait for the next good fish...unlike properties..
One mistake ppl make is risk must be assessed individually i.e. risk is relative, not absolute
For Laguna, leverage bond or REIT may be of little risk to him it could be very risky for another person
I find it funny also ppl rather pay their insurance agents/companies and get locked in 30-40y to see non-guaranteed 4% pa return compared to putting a fraction of their income into CPF SA which could be tax exempted
i can't use SA monies to pay for healthcare needs. insurance is meant for an entirely different need
phantom_opera
12-09-12, 11:12
insurance (excluding investment linked), serves alternative purposes vs CPF SA.
if you have 1m spare cash and at least 2 properties fully paid up, you won't need insurance
phantom_opera
12-09-12, 11:13
i can't use SA monies to pay for healthcare needs. insurance is meant for an entirely different need
i am talking ILP and endowment, not term insurance
if you have 1m spare cash and at least 2 properties fully paid up, you won't need insurance
yeah, indeed. insurance is for the poor, less so for the rich.
but problem is, most pple (me definitely included) falls under the class of the less privileged.
i am talking ILP and endowment, not term insurance
ILP is crap and stupid. why pay a fund manager to invest my monies when i can sit behind my screen (like now :D ) to do it personally?
If you are single and has a roof over your head, use the money to go enjoy all the good things that life gets to offer, and keep some in safe reserve/life insurance.
Why worry so much about LH or FH bricks and get chained down.
Tomorrow may never come.
yah loh.. mayan calendar said the world ending on 20 dec 2012. akan datang.. better spend now and enjoy life (within one's means).
if overspend, then regardless whether world comes to an end as the mayans predicted, then ur world will still come to an end after 2012. :cheers5:
any investment vehicle has its risks; property has its downsides too.
i, for one, will definitely not park my monies in CPF SA. it's just giving HO HO Ka-CHING more resources to flush down the drain with stupid investments. then all the government needs to do is up the withdrawal age, raise the minimum sum limits and come up with another cock program, e.g. annuity. all that's left is a sum of money that you can see on paper, but can't touch
Agree on SA part.
One should only consider topping up MA and IRAS is having VC-MA tax relief since 2009.
ILP is crap and stupid. why pay a fund manager to invest my monies when i can sit behind my screen (like now :D ) to do it personally?
again, this seems to sweep all under one stroke.
for plan vanilla funds, indeed one can replicate the fund and save the mgmt fee. but for more complex and cross regional funds (i.e. foreign exposure which may be restricted to retail access), it's sometimes wiser to let others to do the job for u.
i.e. u dun do everything in your life just becos u can do it. u hire domestic helpers to clean your house, u eat at restaurants instead of cooking every meal yourself, u engage ppty agents to do paperwork and sell your house instead of DIY.. and the list goes on.
end of day, it's deciding what u can do yourself and what u shld trust others to perform for u.
ps: i'm totally not into ILPs too! but am positively leaning towards funds that allow for exposure to regions and instruments that i will otherwise be excluded from.
if you have 1m spare cash and at least 2 properties fully paid up, you won't need insurance
Medishield is a must-have.
ILP is crap and stupid. why pay a fund manager to invest my monies when i can sit behind my screen (like now :D ) to do it personally?
Bond funds and unit trust etc are managed by fund managers as well
again, this seems to sweep all under one stroke.
for plan vanilla funds, indeed one can replicate the fund and save the mgmt fee. but for more complex and cross regional funds (i.e. foreign exposure which may be restricted to retail access), it's sometimes wiser to let others to do the job for u.
i.e. u dun do everything in your life just becos u can do it. u hire domestic helpers to clean your house, u eat at restaurants instead of cooking every meal yourself, u engage ppty agents to do paperwork and sell your house instead of DIY.. and the list goes on.
end of day, it's deciding what u can do yourself and what u shld trust others to perform for u.
ps: i'm totally not into ILPs too! but am positively leaning towards funds that allow for exposure to regions and instruments that i will otherwise be excluded from.
fully agreed
yesterday, I spent the whole day looking into Investment Link Note...and conclusion : Don't touch......
Just put in bank and collect the interest.... some paying 1% now.... that's 10k a year.
Else if I still not sick of managing tenants and buying properties, buy two el cheapo shoeboxes. Or one old walkup reno nice nice.
fully agreed
yesterday, I spent the whole day looking into Investment Link Note...and conclusion : Don't touch......
ILNs are punter's instruments. can play for fun at times.. but not as core investment. :tsk-tsk:
Just put in bank and collect the interest.... some paying 1% now.... that's 10k a year.
Else if I still not sick of managing tenants and buying properties, buy two el cheapo shoeboxes. Or one old walkup reno nice nice.
actually hor, one sideline u can do is set up a ppty mgmt company that helps other landlords who are too busy to manage their portfolio of ppties. shld be lucrative especially since u are familiar with the tricks of the trade.
ILNs are punter's instruments. can play for fun at times.. but not as core investment. :tsk-tsk:
Many of the financial instruments are not suitable for average Joe and yet bankers are pushing them for their comm.
For those who are thinking of buying bond funds, you can diy using fundsupermart platform. Some of their bond funds are having zero sales charge. However, there is a small platform fees.
Many of the financial instruments are not suitable for average Joe and yet bankers are pushing them for their comm.
For those who are thinking of buying bond funds, you can diy using fundsupermart platform. Some of their bond funds are having zero sales charge. However, there is a small platform fees.
key is taking the time out to understand the investment and whether it fits your profile and not just trust the salesperson selling u koyok.
yeah, fundsupermart is a good starting tool for retail investors who's willing to DIY and read up on the many funds listed on the platform. but from my experience most pple do not know how to discern whether one fund is more superior than the other cos they are not that comfortable going thru the prospectus and understanding the mechanics behind the fund. so still impt to get some advice from professionals (on the product specs but not on how much $$ the investment can return).
actually hor, one sideline u can do is set up a ppty mgmt company that helps other landlords who are too busy to manage their portfolio of ppties. shld be lucrative especially since u are familiar with the tricks of the trade.
too much running around to do. I don't like it in sg weather. I rather sit on my ass and collect money.... like many property agency boss.
oh. you mean employ a runner too? I have seen some of these runners around. they drive Mercedes. mine you, they are only the runner....
too much running around to do. I don't like it in sg weather. I rather sit on my ass and collect money.... like many property agency boss.
oh. you mean employ a runner too? I have seen some of these runners around. they drive Mercedes. mine you, they are only the runner....
yeah, u can start the company and provide training and guidance to your employees.. so u manage and strategize while they do the groundwork for u..
not sure if there's already such companies around but u may have a niche set of skills here that could be much sought after by the many landlords (overseas based lagi alot also)...
a lot of joo Chiat, geylang walkups, conservation terrace subdivided, etc are managed by such companies.
some kena when due to greed turned into backpacker hostels style.
these property owners probably too old to run around or use these companies as a face to shield them from the law of illegal partitioning.
buttercarp
12-09-12, 11:48
Yes. But i will gladly leverage when comes to property than these.
Yup, me too.
At least if economy down and price down, you will still have the house and not some piece of paper.
I will buy gold bars too, if i had 1 mil.
a lot of joo Chiat, geylang walkups, conservation terrace subdivided, etc are managed by such companies.
some kena when due to greed turned into backpacker hostels style.
these property owners probably too old to run around or use these companies as a face to shield them from the law of illegal partitioning.
aiyoh.. maybe is used as a front for other illicit activities. :scared-5:
but imagine a clean company that really acts in the best interests of landlords (sorta altruistic) and eases the hassle of ppty investment (some rich towkays are loathe to invest into ppties cos of the potential hassle of dealing with agents, tenants, taxes, expenses etc) so u can be somewhat fill the space for these HNWIs.
funny to say this, but most UHNWs are serviced by similar HNWs in the pte banking industry. these pple are also super rich themselves but choose to dedicate their "skills" to serving the crazy rich (cos only they alone can serve them). "only a rich can understand the rich" as the saying goes..
Yup, me too.
At least if economy down and price down, you will still have the house and not some piece of paper.
I will buy gold bars too, if i had 1 mil.
sometimes, i wonder whether humans had it coming.
then I am totally out of that league. I know no one like that.... do former CEOs count?
lol but they not into property investment. the one that does, heading a certain Telco here, I heard from his former PA or someone close he is a penny pincher and loves to load up on freebies at events, expos etc giving excuses its for his kids (whom are all grown up btw)
then I am totally out of that league. I know no one like that.... do former CEOs count?
lol but they not into property investment. the one that does, heading a certain Telco here, I heard from his former PA or someone close he is a penny pincher and loves to load up on freebies at events, expos etc giving excuses its for his kids (whom are all grown up btw)
no boss, what i mean is pple tend to look for pple who have the expertise required to help them. ie for the UHNWs, they look for HNWs to help them manage their wealth..
for ppty landlords, they will look for similar landlords to help them manage their portfolio. so u will fit in perfectly cos of your set of expertise as a full time landlord dealing with all the steps that other investors may not be comfortable doing. in fact, i think there's many full time landlords here and i think it's a venture that could be interesting for some.
been wanting to start up a LLC.
LandLords Cooperative.
buttercarp
12-09-12, 12:04
been wanting to start up a LLC.
LandLords Cooperative.
Will it take care and protect landlords something like the lemon law?
been wanting to start up a LLC.
LandLords Cooperative.
u have the skillset but what's next in planning is how u intend to solicit for clients and how u market it.. i.e. a top chef still need biz acumen to turn his restaurant into a full loaded business.
no pain no gain.. wishing u all the best in your venture!
yeah. its gonna called landlord law lol
Wow...8 pages within a few hours...and with so many strategies n own opionions on investment :scared-4:!
For me, probably like some of them...use 85% to invest 2x 2 bedder 99y pc (40%/pc downpayment & ABSD) which can out rental immediately n let it run by itself :D . The other 15% go to short term share or fix deposit(1.38% maybank)
In case there is really a crissis like ah B said (property down by 50%) :scared-1: then I might need the 15% to save this 2 pc else leave it in the bank as reserve :D .
Ah B said:"let see......global economy collapse will come anytime soon.....
not next 1-2 weeks....then next 1-2 months.....all will collapse down.....
no way out now....print or buy bond or.....will just make market crash harder...." :scared-1: :scared-1: :scared-1: !
well you can max out the number of posts per page to I think 30 in your settings then you won't see so many pages liao.
Regulators
12-09-12, 13:19
Medishield yes, forced medisave contributions is totally unnecessary if one is well insured coz would be double spending.
Medishield is a must-have.
Yup, me too.
At least if economy down and price down, you will still have the house and not some piece of paper.
I will buy gold bars too, if i had 1 mil.
That's what I intent to do ! :ashamed1:
I have no other insurance other than medisave and shield. what does that make me?
if you can park your money in an aussie bank, it's easily 5+%.
It is 4.65% now.
I have no other insurance other than medisave and shield. what does that make me?
a RISK TAKER!! :D
buttercarp
12-09-12, 14:57
I have no other insurance other than medisave and shield. what does that make me?
Save on shield.
Wow...8 pages within a few hours...and with so many strategies n own opionions on investment :scared-4:!
For me, probably like some of them...use 85% to invest 2x 2 bedder 99y pc (40%/pc downpayment & ABSD) which can out rental immediately n let it run by itself :D . The other 15% go to short term share or fix deposit(1.38% maybank)
In case there is really a crissis like ah B said (property down by 50%) :scared-1: then I might need the 15% to save this 2 pc else leave it in the bank as reserve :D .
Ah B said:"let see......global economy collapse will come anytime soon.....
not next 1-2 weeks....then next 1-2 months.....all will collapse down.....
no way out now....print or buy bond or.....will just make market crash harder...." :scared-1: :scared-1: :scared-1: !
Don't worry about topping up if prices go down by 50% as long as you take your loan from local banks esp DBS. They are not going to drive down the economy further by asking for top ups, as long as you do not default on payments. So better to buy a studio in CCR than a 2bedder in RCR as the rent will always be guaranteed regardless of the quantum.
East Lover
12-09-12, 15:12
Many ppl said got pattern of 98-03-08, why not just wait for few more mths? Who knows price wont drop at 2013?? At least won't go up a lot right?
Wow...8 pages within a few hours...and with so many strategies n own opionions on investment :scared-4:!
For me, probably like some of them...use 85% to invest 2x 2 bedder 99y pc (40%/pc downpayment & ABSD) which can out rental immediately n let it run by itself :D . The other 15% go to short term share or fix deposit(1.38% maybank)
In case there is really a crissis like ah B said (property down by 50%) :scared-1: then I might need the 15% to save this 2 pc else leave it in the bank as reserve :D .
Ah B said:"let see......global economy collapse will come anytime soon.....
not next 1-2 weeks....then next 1-2 months.....all will collapse down.....
no way out now....print or buy bond or.....will just make market crash harder...." :scared-1: :scared-1: :scared-1: !
phantom_opera
12-09-12, 16:46
How many ppl here CPF SA has reached minimum sum raise your hand (other than retirees like Laguna)
How many ppl here CPF SA has reached minimum sum raise your hand (other than retirees like Laguna)
wad's the min sum anyway? 150k? :confused:
phantom_opera
12-09-12, 16:53
wad's the min sum anyway? 150k? :confused:
Probably 200k when u and I Lao Kok Kok
CPF minimum sum to be raised to $139,000
The CPF minimum sum will be revised upwards to $139,000 from the previous $131,000 from July 1 said the Ministry of Manpower (MOM) on Wednesday.
The new minimum sum will apply to CPF members who turn 55 from July 1, 2012 and June 30, 2013.
The Medisave minimum sum will also be raised to $38,500 from the previous amount of $36,000.
Members will be able to withdraw their Medisave savings in excess of the Medisave minimum sum at or after age 55.
They will base it on 50% of the MS.
How many ppl here CPF SA has reached minimum sum raise your hand (other than retirees like Laguna)
for me, the min half in property and half in cash
I closed the OA alr...
Probably 200k when u and I Lao Kok Kok
CPF minimum sum to be raised to $139,000
The CPF minimum sum will be revised upwards to $139,000 from the previous $131,000 from July 1 said the Ministry of Manpower (MOM) on Wednesday.
The new minimum sum will apply to CPF members who turn 55 from July 1, 2012 and June 30, 2013.
The Medisave minimum sum will also be raised to $38,500 from the previous amount of $36,000.
Members will be able to withdraw their Medisave savings in excess of the Medisave minimum sum at or after age 55.
for me, will take a long time to hit 139k.. the thing is garmen is too kind to corporations liao. first, there was a cap up to 4.5k income.. followed by cuts to contribution rate.. now up to 5k income n contribution slightly adjusted up... but still far cry from old days.
gimme back the 20% contribution rate with a cap up to 20k income! then can very fast hit the minimum sum. :tongue3:
phantom_opera
12-09-12, 17:15
for me, will take a long time to hit 139k.. the thing is garmen is too kind to corporations liao. first, there was a cap up to 4.5k income.. followed by cuts to contribution rate.. now up to 5k income n contribution slightly adjusted up... but still far cry from old days.
gimme back the 20% contribution rate with a cap up to 20k income! then can very fast hit the minimum sum. :tongue3:
heh heh you hit the nail on the head about the contribution ceiling and employer side contribution
I only managed to hit minimum sum after I did voluntary contribution from a % of profit in stock trading many years ago
@carbuncle, half of min sum is to use CPF OA to buy extra properties
What I am trying to say is many have not enough CPF savings
heh heh you hit the nail on the head about the contribution ceiling and employer side contribution
I only managed to hit minimum sum after I did voluntary contribution from a % of profit in stock trading many years ago
@carbuncle, half of min sum is to use CPF OA to buy extra properties
What I am trying to say is many have not enough CPF savings
my stocks profit all go to the downpayment for my new house liao. lol... :p
so i think by the time i retire i still wun have enuff in SA to hit min sum. :beats-me-man:
phantom_opera
12-09-12, 17:30
my stocks profit all go to the downpayment for my new house liao. lol... :p
so i think by the time i retire i still wun have enuff in SA to hit min sum. :beats-me-man:
That's why PAP die die must ensure property / rental value goes up ... otherwise 90% of ppl won't have enough $$ in CPF for even paying the annuity scheme
:banghead:
Is this sustainable? (MM will say as long as there is GDP growth lol) :scared-1:
Medishield yes, forced medisave contributions is totally unnecessary if one is well insured coz would be double spending.
True for those with private medishield with extra options. For those under government medishield, it will be useful.
That's why PAP die die must ensure property / rental value goes up ... otherwise 90% of ppl won't have enough $$ in CPF for even paying the annuity scheme
:banghead:
Is this sustainable? (MM will say as long as there is GDP growth lol) :scared-1:
It is sustainable if property price growth is stable at 3-5% yearly. Any growth surplus shall be clamped by the cooling measures or a price correction during a recession.
Hi guy,
What will you do if you have 1mil spare cash on hand? Invest in property, bond, share, REIT ...etc? How and what is your strategy?
I would use 10% of the spare cash and sell far dated downside stock index futures puts with >20% profit potential. I would only do this when the VIX spikes up. 3 to 6 months expiry. Strike price below 50% of current index value. Less risky than buying Sg property, at current prices.
phantom_opera
12-09-12, 19:29
I would use 10% of the spare cash and sell far dated downside stock index futures puts with >20% profit potential. I would only do this when the VIX spikes up. 3 to 6 months expiry. Strike price below 50% of current index value. Less risky than buying Sg property, at current prices.
clap clap clap ... first time I hear PUT option or warrant is less risky than property ... index stays flat you die, property won't die :tongue3:
imo, garmen should just ban option trading unless for accredited investors
Assuming I'm still working, already have a fully paid property... Not quitting because I have 1 mil... I would...
1) put 20% down on a 1mil investment property, that 200k. The property should give high rental yield so it's self financing.
2) put 80% on high dividend stocks or reits. Giving say 6% returns. That's 48k a year. Sort of enough to retire if I choose to.
Will capture capital gains if prices go up, and beat inflation.
In the good old days with 80 LTV, I'll buy another property (with savings and dividends + some stocks/REIT) 1 year later. Dollar cost average on the property, so I'm not too concerned about which way property prices go.
:2cents:
phantom_opera
12-09-12, 20:11
scary, the dark side has grown stronger ... durians all BAO JIA :scared-3:
I will do bond. Fund ur self at 100bps and get some rated A bonds, even at 3% coupon rate you can get decent yield, and feel safe. Things like NTUC, DBS. U know, AIA can fail, NTUC Income will not ...
And it's liquid, any time can run.
Btw phantom my SA has reached the minimum sum.
phantom_opera
12-09-12, 20:32
I will do bond. Fund ur self at 100bps and get some rated A bonds, even at 3% coupon rate you can get decent yield, and feel safe. Things like NTUC, DBS. U know, AIA can fail, NTUC Income will not ...
And it's liquid, any time can run.
Btw phantom my SA has reached the minimum sum.
Ha ha ha ... those forumers with CPF SA not yet reaching min sum yet has 1m spare cash must be born with silver spoon or striked TOTO :beats-me-man:
Ha ha ha ... those forumers with CPF SA not yet reaching min sum yet has 1m spare cash must be born with silver spoon or striked TOTO :beats-me-man:
There is a repeated broadcast for southbank.
5xxk has become 1.5mil now
I will do bond. Fund ur self at 100bps and get some rated A bonds, even at 3% coupon rate you can get decent yield, and feel safe.
Is the funding at 100bps subjected to sibor flutuations?
You must be working for a bank to enjoy such rate.
Is the funding at 100bps subjected to sibor flutuations?
You must be working for a bank to enjoy such rate.
Actually I meant SIBOR plus a spread. No you dun need to be working for a bank to get this. With 1mil u can open private banking level relationship. With that bank will fund you anything.
Just receive calls for viewing of my units by interested buyer. Seems that people are heating up as zero interest rate will be extended till 2015.
My two cents:
1. If it is the first property, then no objection to be in property
2. If it is your second property and u must assess what are the asset classes available to u.
Property now is almost at all time high, as such, down side risk is greater, and couple with the fact it is illiquid, thus may not be a wise choice.
The best option is perhaps REIT, there is property as well.
$1m at 6% yield, with $1m leverage at cost of about 1.5%, net yield is 4.5%, so u have an overall net yield of 10.5%, tax free.
The other option is bond or bond fund.
Those have a $1,000,000 spare cash can always have party with me to share share.
Sure.. when can we meet up to learn :)
I pm you!
I will do bond. Fund ur self at 100bps and get some rated A bonds, even at 3% coupon rate you can get decent yield, and feel safe. Things like NTUC, DBS. U know, AIA can fail, NTUC Income will not ...
And it's liquid, any time can run.
Btw phantom my SA has reached the minimum sum.
Eh.. 100bps ..might be a thing of the past..
CS told me they are increasing their term facility rate to 1.5% above cost of funds in October.
too much running around to do. I don't like it in sg weather. I rather sit on my ass and collect money.... like many property agency boss.
oh. you mean employ a runner too? I have seen some of these runners around. they drive Mercedes. mine you, they are only the runner....
Carbuncle,
If a buyer not staying in Singapore needs the following services for his newly TOPed condo, what do you think is a reasonable fee?
1. Liaise with developer for defects correction during 1st year
2. Find contractor to renovate unit. supervise the renovation
3. Furnish house - buy furniture, electrical appliance etc
4. Find tenant?
My friend just told me, her saving of $1,000,000 is all the time in her saving account.....:confused:
Agent who markets your unit for rental can condect the defect list check and make good by contractor but they have to be the sole marketing agent. They will also coordinate the furnishing of your unit too. Good to have Your trusted friend or relative to oversee these processes.
Carbuncle,
If a buyer not staying in Singapore needs the following services for his newly TOPed condo, what do you think is a reasonable fee?
1. Liaise with developer for defects correction during 1st year
2. Find contractor to renovate unit. supervise the renovation
3. Furnish house - buy furniture, electrical appliance etc
4. Find tenant?
She is waiting for the next downturn. :)
My friend just told me, her saving of $1,000,000 is all the time in her saving account.....:confused:
Agent who markets your unit for rental can condect the defect list check and make good by contractor but they have to be the sole marketing agent. They will also coordinate the furnishing of your unit too. Good to have Your trusted friend or relative to oversee these processes.
Thanks DC33_2008, do u happen to know what's a reasonable fee the agent charge for these kind of services?
It is FOC as long as they are your sole agent marketing this unit but I give them a period before opening up to the other agents.
Thanks DC33_2008, do u happen to know what's a reasonable fee the agent charge for these kind of services?
for defects check first time check is free by agent. but if you expect ongoing coordination and resolution if anything pops up during tenancy, you probably have to pay him to do it.
renovation and supervision of works - don't think they will do for free. if you find one such agent let me know....
I meant identification of defects by agent and co-ordination of rectification of defects with contractor before the unit is handover to new tenant. Agent will co-ordinate if there are subsequent defects . This is for just TOP project where they are still there marketing other projects. In fact, rectification was completed faster and better as agent knows the contractor and developer very well. They have the interest to ensure things are done well and quickly as they would like the unit to rented out quickly.
for defects check first time check is free by agent. but if you expect ongoing coordination and resolution if anything pops up during tenancy, you probably have to pay him to do it.
renovation and supervision of works - don't think they will do for free. if you find one such agent let me know....
for defects check first time check is free by agent. but if you expect ongoing coordination and resolution if anything pops up during tenancy, you probably have to pay him to do it.
renovation and supervision of works - don't think they will do for free. if you find one such agent let me know....
My agent do it foc for me for all my properties. He is the sole agent. Just g one is easier. They take care of everything.
My agent do it foc for me for all my properties. He is the sole agent. Just g one is easier. They take care of everything.
Your agent helped you to supervise and coordinate with the renovation contractors, and chased after them for quality issues and schedule slips? Wow!
Your agent helped you to supervise and coordinate with the renovation contractors, and chased after them for quality issues and schedule slips? Wow!
it is because the agent has rights to market the unit for rental. there ain't no free lunch in the world
Hi guy,
What will you do if you have 1mil spare cash on hand? Invest in property, bond, share, REIT ...etc? How and what is your strategy?
Since early this year, I've been investing a big chuck of my spare cash into my company. It is much safer and provides better returns than the current bonds and equity markets, as I have plenty of control over my investment. It is also very liquid and I can draw out cash quickly should good opportunites appear.
Since early this year, I've been investing a big chuck of my spare cash into my company. It is much safer and provides better returns than the current bonds and equity markets, as I have plenty of control over my investment. It is also very liquid and I can draw out cash quickly should good opportunites appear.
Your own company? What trade isit..mind sharing?
My business is maritime related and communication related.
Your agent helped you to supervise and coordinate with the renovation contractors, and chased after them for quality issues and schedule slips? Wow!
Yup. Exclusive agent. New property, he does the inspection etc., get lightings fixed up, apply electricity, etc.
Old property, if got problem, he will get tenant pay the 150 and balance i pick. Damn good service, so I only have 1 agent. Dont mind him earning the comm. So long my life easy.
I dont mind paying for the service.
Yup. Exclusive agent. New property, he does the inspection etc., get lightings fixed up, apply electricity, etc.
Old property, if got problem, he will get tenant pay the 150 and balance i pick. Damn good service, so I only have 1 agent. Dont mind him earning the comm. So long my life easy.
I dont mind paying for the service.
Me too. I only have one agent. Whenever tenant complain or things break down, she does the leg work and investigation and arranges the repairs. After all, I have a full-time job so I don't mind out-sourcing these tedious tasks even if she earns extra commission from the works I don't mind.
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