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Property investment - If I buy a 1 million property today
Let's look at a hypo senario... Assuming a person buys a 1 million property today with rental at say 3.5K. Loan @ 60%
So downpayment is 400K
Loan is 600K @ 1.5% 30 years
End of 30 years, total paid up is 746K
Gross rental after 30 years - 1,260K
Monthly rental = S$2,070
Please do your own deduction on maintenance, property tax etc....
So if interest is @ 3%
Loan is 600K @3% 30 years
End of 30 years, total paid = 910K
Gross rental after 30 years = 1,260K
Monthly rental = S$2,539
So if interest is @ 5%
Loan is 600K @5% 30 years
End of 30 years, total paid = 1,159K
Gross rental after 30 years = 1,260K
Monthly rental = S$3,220
question now, is it worth it to invest???? So technically, if you invest earlier, you can have a longer loan tenure.... You also take advantage of time value of money....
I am using 40% as downpayment as this is the situation today.... If you think your job is unstable, or if you are fearful, or you think prices will drop and you want to take advantage of it, please do so by all means.... No one size fits all.... I am not encouraging neither am I discouraging.... I am just stating what I found out about life !!!!! There are people who could not service the loans during bad times.... and were forced to sell.... So when would be a good time to buy.... Only you yourself know.... Please do your own calculations and enter only if you are comfortable and can sleep at nite.... If not, it will be a stressful situation and not advisable to enter if you are fearful....
Will prices drop or will it go up, use the above calculation and predict in 10 years, 20 years or even 30 years time..... I have done all the investing in properties and this is just my little contribution to all of you....
Some of you can do a spreadsheet and do a hypo scenario on your own.... To see how deep a pain you can sustain.... No investment is a guaranteed...
And lastly, if you think 3.5 k is too high or too low, input your own figures... hahahahahahaha
Cheers
:D:D:D:D:D:D:D:D:D
need to change definition of monthly rental in the 3 scenarios.
eg Monthly rental = S$2,070
people might think it is free cash flow.
need to change definition of monthly rental in the 3 scenarios.
eg Monthly rental = S$2,070
people might think it is free cash flow.
Bro, if they think it is free cash, I personally think they better not enter into this investment. hahahahahaha:D:D:D
Allthepies
20-05-13, 16:50
Change to minimum rental to cover loan payment?
Change to minimum rental to cover loan payment?
Bro, if rental cannot cover mortgage.... the question is will this person come out on top after 30 years???? With the 40% downpayment, the question is what is the likelihood of rental not covering mortgage even at 5%???? That's why i painted a few scenarios.. Hahahahaha
With the 40% downpayment, the dynamics has changed quite a fair bit....
Those who bot say a 1 mil property 3 yrs ago, with say 20% downpayment, would have had their mortagage amount reduced from 800K to about 700K. Somemore with kopi money from the rental. hahahahahahaha...
Of course the best is to have rental more than cover mortgage rite.... and with extra kopi money (excess)....
So those with 40% downpayment, would they have major issue???? That's the question moving forward with this new paradigm shift.... Food for thought.
:spliff::spliff::spliff:
It is really early movers' advantage in Singapore's property market in the last couple of years.
one key question remains whether can you rent out your unit if there is an over supply? If no matter what you can still rent out, then it is obvious that this investment confirm jalan...:p
have any giru here face this over supply issue during bad time?
It is really early movers' advantage in Singapore's property market in the last couple of years.
Bro, agree... but I feel there is still room.... Let me share my other view.... If you dont invest in properties and you have saved say 1 mil... What would the individual do to get constant income to support their retirement??? This is a question that has been pondering me for the past few years.... Would the individual be skilled to managed other investment opportunities to get say 4k per month to support their retirement plan???? What would this investment vehicle be???:confused::confused::confused::confused::confused::confused:
one key question remains whether can you rent out your unit if there is an over supply? If no matter what you can still rent out, then it is obvious that this investment confirm jalan...:p
have any giru here face this over supply issue during bad time?
I rented out my anchorage at 2K during bad time.... The key is can you survive this period... If you dont do properties, you would have put into other vehicles like stocks... During the bad times, your stocks would also have halved... your dividents may not even kick in??? And you may be required to buy rights issues by the companies as well... So every investments has risk... Hahahahahaha.... Of course if you are champion in other investments, play to your strength.... Hahahahaha:D:D
Here's my take on the future (I may be wrong)... But I really do see many parents buying properties for passive income and ultimately passing on to the kids... This is the new paradigm shift... I do know many of my friends with multiple units and a few have used this as a model.... The future generation of kids who have parents who bought houses will be at an "advantage" - say what you want.... Just like tuition in the past.... Then overseas educations... now properties... Is it rite??? It all boils down to the value given to the kid... Hahahahaha
Are kids with rich parents at a disadvantage??? To each his own... Diff strokes for diff people.... :spliff::spliff:
It is about the choosing a safer vehicle for a portion of the portfolio. Those who did not leverage before found themselves stuck. Lots of people have this dilemma: Got money but not enough to invest. Got money but think it is too high and risky now.
Bro, agree... but I feel there is still room.... Let me share my other view.... If you dont invest in properties and you have saved say 1 mil... What would the individual do to get constant income to support their retirement??? This is a question that has been pondering me for the past few years.... Would the individual be skilled to managed other investment opportunities to get say 4k per month to support their retirement plan???? What would this investment vehicle be???:confused::confused::confused::confused::confused::confused:
It is about the choosing a safer vehicle for a portion of the portfolio. Those who did not leverage before found themselves stuck. Lots of people have this dilemma: Got money but not enough to invest. Got money but think it is too high and risky now.
Bro agree.... The pain is in the ABSD. Hahahahahaha buy 1 mil, kana 70k extra to folk out which will take about 2 yrs rental... Very pain.... Saying all that, bloody showrooms are crazy man !!!! :eek::eek::eek::eek:
No perfect answers.... Only time will tell....:cheers6::cheers6::cheers6::cheers6::cheers6::cheers6::cheers6:
The market is still so flushed with liquidity.... :spliff2::spliff2:
Property investment - If I buy a 1 million property today
Let's look at a hypo senario... Assuming a person buys a 1 million property today with rental at say 3.5K. Loan @ 60%......
Cheers
:D:D:D:D:D:D:D:D:D
http://media.npr.org/assets/img/2013/03/11/istock_000018661376medium-775677a41db6297c491b1e0222d83e19c98ad23b-s3.jpg
Bro, agree... but I feel there is still room.... Let me share my other view.... If you dont invest in properties and you have saved say 1 mil... What would the individual do to get constant income to support their retirement??? This is a question that has been pondering me for the past few years.... Would the individual be skilled to managed other investment opportunities to get say 4k per month to support their retirement plan???? What would this investment vehicle be???:confused::confused::confused::confused::confused::confused:
Agree. That's way I bought recently even though there is ABSD and the price is high.
If not locking it, I am afraid I will lose most of my cash in the stock market in the next round of recession.
For properties, I am sure even if I have bought high, twenty years later, it will worth more than today.
Thank you for sharing, chestnut :D
I was lucky to have met someone when I was in my twenties who shared with me this few pointers :
1. Go ahead and buy.... Take advantage of the tenure...
2. Remember : Time Value of Money.... Your money only reduces with time
3. Do you think your salary will not increase... Can all of you compare your salary 10 years ago with today.... Or even compare 5 years ago with today???
4. Land is limited here....
I have absolutely nothing to gain here.... I am here just sharing what I have learnt.... REMEMBER - DO IT TO YOUR COMFORT LEVEL... Do not give yourself undue stress if you think you cannot manage it or you think your job is unstable or you think your salary will not increase.... You need to know yourself well....
Property is not for everyone... But it will do well if you know how to wield it...
This is purely a sharing exercise.... Wish you all well in your pursuit of happiness and financial freedom.... But remember this - treasure those around you !!!!! Family is everything.... :D:D:D:D
moving forward my inspiration and motivation is to buy my 3rd property a 1 bedder that is strategically located..maybe in 2 to 3 years time my dream might materialize but as what bro chestnut said i tried so many other forms of investment only one i ever made money from is property maybe others got better luck than me in shares..unit trusts..bonds...casino:scared-1: ..so to each his own:cheers4:
Soon people will prefer renting over buying. Buying will be viewed as too much commitments and creating lost of opportunities.
moving forward my inspiration and motivation is to buy my 3rd property a 1 bedder that is strategically located..maybe in 2 to 3 years time my dream might materialize but as what bro chestnut said i tried so many other forms of investment only one i ever made money from is property maybe others got better luck than me in shares..unit trusts..bonds...casino:scared-1: ..so to each his own:cheers4:
:confused:
How not to make money in equities/unit trusts? Global markets are at or near 5-year highs.
Bro agree.... The pain is in the ABSD. Hahahahahaha buy 1 mil, kana 70k extra to folk out which will take about 2 yrs rental... Very pain.... Saying all that, bloody showrooms are crazy man !!!! :eek::eek::eek::eek:
No perfect answers.... Only time will tell....:cheers6::cheers6::cheers6::cheers6::cheers6::cheers6::cheers6:
The market is still so flushed with liquidity.... :spliff2::spliff2:
why not buy mm where ABSD is about 1 year rental or slightly less..
Here's my take on the future (I may be wrong)... But I really do see many parents buying properties for passive income and ultimately passing on to the kids... This is the new paradigm shift... I do know many of my friends with multiple units and a few have used this as a model.... The future generation of kids who have parents who bought houses will be at an "advantage" - say what you want.... Just like tuition in the past.... Then overseas educations... now properties... Is it rite??? It all boils down to the value given to the kid... Hahahahaha
Are kids with rich parents at a disadvantage??? To each his own... Diff strokes for diff people.... :spliff::spliff:
yeap..bro..agreed with you.
I bought in the context of generating passive income while working as a casual worker (former company engage me time to time on project basis), when i called it the day few years back...i must say that i am very lucky in term of timing...
but during the time of purchases, i do have the thought of fighting inflation and seeing property appreciated, was thinking how would my children afford when their time to buy ppt when they wanted to upgrade ( currently all happliy living in HDB )
i told them that they have to make them make their own mark, the ppt are for generating passive income and me and my wife i expenditures... but deep in me, eventually i will pass to them....
some may thing that it spoil the kid, but is diff stoke for deff ppl as you mentioned
I was lucky to have met someone when I was in my twenties who shared with me this few pointers :
1. Go ahead and buy.... Take advantage of the tenure...
2. Remember : Time Value of Money.... Your money only reduces with time
3. Do you think your salary will not increase... Can all of you compare your salary 10 years ago with today.... Or even compare 5 years ago with today???
4. Land is limited here....
I have absolutely nothing to gain here.... I am here just sharing what I have learnt.... REMEMBER - DO IT TO YOUR COMFORT LEVEL... Do not give yourself undue stress if you think you cannot manage it or you think your job is unstable or you think your salary will not increase.... You need to know yourself well....
Property is not for everyone... But it will do well if you know how to wield it...
This is purely a sharing exercise.... Wish you all well in your pursuit of happiness and financial freedom.... But remember this - treasure those around you !!!!! Family is everything.... :D:D:D:D
Bro Chestnut, really lucky of you to meet such a person in your twenties.
I only understood it in my mid-thirties and only after paying 'tuition money' in the other form of investments.
Thanks for sharing....
:confused:
How not to make money in equities/unit trusts? Global markets are at or near 5-year highs.
i am talking about my experience playing shares over the past 20 years :banghead:
buy high sell low:banghead:
i am talking about my experience playing shares over the past 20 years :banghead:
buy high sell low:banghead:
Ouch! We all have paid tuition fees along the way.
If you buy blue chip STI stocks, then generally you can hang on to them through the down turns unless you are in dire need of cash. Somewhat like property. And when the market goes down a lot and you have spare cash, you can buy in slowly a bit at a time. Because you won't know when it reaches the bottom.
If you buy penny stocks then sorry, you have to be in and out quickly or get caught with your pants down when the syndicates have moved ahead of you.
I intend to rent my properties as long as I could for passive income.
However on 2nd thought - is it possible to be able to
get tenants for 20 to 30 years. By then the house
already look like old hen. Tenants will prefer new
development by then right? Maybe only Blangah will
rent at half the price..:D :D
As I am new, anybody here can share their experiences?
I intend to rent my properties as long as I could for passive income.
However on 2nd thought - is it possible to be able to
get tenants for 20 to 30 years. By then the house
already look like old hen. Tenants will prefer new
development by then right? Maybe only Blangah will
rent at half the price..:D :D
As I am new, anybody here can share their experiences?
Check this out
http://www.propertyguru.com.sg/project-listings/mandarin-gardens-107/rent/1
Check this out
http://www.propertyguru.com.sg/project-listings/mandarin-gardens-107/rent/1
Oh yeah..Mandarin Garden - very nice development.
This is one of the few old developments which I feel even better than many new developments, spacious , good view and nice landscape.
Ouch! We all have paid tuition fees along the way.
If you buy blue chip STI stocks, then generally you can hang on to them through the down turns unless you are in dire need of cash. Somewhat like property. And when the market goes down a lot and you have spare cash, you can buy in slowly a bit at a time. Because you won't know when it reaches the bottom.
If you buy penny stocks then sorry, you have to be in and out quickly or get caught with your pants down when the syndicates have moved ahead of you.
yup i know but easier said than done for me at least i tend to be my biggest enemy and always sabotage myself ah well thats life but then in
the property game i was a bit more focussed and timing was right:spliff:maybe just luck:) so i decided maybe i not meant to play shares or those other financial instruments just invest in brick n mortar:D
Check this out
http://www.propertyguru.com.sg/project-listings/mandarin-gardens-107/rent/1
nice view sure can rent at the RIGHT $$$:spliff: but then again mandarin gardens is a GOLD MINE waiting to burst once eastern region MRT comes up:spliff2:
nice view sure can rent at the RIGHT $$$:spliff: but then again mandarin gardens is a GOLD MINE waiting to burst once eastern region MRT comes up:spliff2:
Thanks Chestnut for sharing.
Believe it all boils down the price the property is purchased, location, amenities, and also whether the MC do a good job in keeping the condo surrounding and facilities in good condition, and mindful to maintain or enhance the value of the condo.
I visited Caribbean, even though is very old already, but the whole compound is still very well maintain and my friend even mentioned the MC had added a function room and build a bigger gym to keep the value of the condo. Well I have to admit that the maintenance fees is a killer too.:)
Oh yeah..Mandarin Garden - very nice development.
This is one of the few old developments which I feel even better than many new developments, spacious , good view and nice landscape.
Nice development, but it is left with about 70 years lease.
Bro Chestnut, really lucky of you to meet such a person in your twenties.
I only understood it in my mid-thirties and only after paying 'tuition money' in the other form of investments.
Thanks for sharing....
i'm lucky to have met Chestnut in my 20s :D:cheers4:
Nice development, but it is left with about 70 years lease.
If bot mandarin garden 30 yrs ago, loan already paid. Assume $30kper annum. 30x70 = another 2.1 million (I use low side). If sell now, already made money. Hahahaha
That's the life of a landlord.
Not so good yield if buy and rent out now. :(
If bot mandarin garden 30 yrs ago, loan already paid. Assume $30kper annum. 30x70 = another 2.1 million (I use low side). If sell now, already made money. Hahahaha
That's the life of a landlord.
nice view sure can rent at the RIGHT $$$:spliff: but then again mandarin gardens is a GOLD MINE waiting to burst once eastern region MRT comes up:spliff2:
No need to wait for MRT. Just wait for the tender results for the land plot in front of Victoria School.
http://www.ura.gov.sg/sales/Siglap/tenderdocs/Sglp-LPnCP.pdf
Not so good yield if buy and rent out now. :(
Brudder DC, for those with multiple units and have been collecting rental and loads of cash, there are basically other instruments to play with....
The issue is with those going for the 2nd property... Wait too long for crisis, and when it strikes, scared will lose job.... So the getting of the 2nd property is the toughest... Why??? You also dont know what to experience??? It is those with 2nd property that have gain experience that will go multiple but with the new rulings, many are having difficulty entering their 3 and beyond....
Taking the dive is the toughest... Just curious, anyone here with 2nd property and regretted going into the property market??????
:confused::confused::confused::confused::confused::confused::confused:
What about those already having multiple properties? Some of taking wait and see strategy. What is your advice?
Brudder DC, for those with multiple units and have been collecting rental and loads of cash, there are basically other instruments to play with....
The issue is with those going for the 2nd property... Wait too long for crisis, and when it strikes, scared will lose job.... So the getting of the 2nd property is the toughest... Why??? You also dont know what to experience??? It is those with 2nd property that have gain experience that will go multiple but with the new rulings, many are having difficulty entering their 3 and beyond....
Taking the dive is the toughest... Just curious, anyone here with 2nd property and regretted going into the property market??????
:confused::confused::confused::confused::confused::confused::confused:
What about those already having multiple properties? Some of taking wait and see strategy. What is your advice?
Brudder, it depends on what stage you are in...
1. Accumulation stage
2. Planning for retirement (near retirement)
If you are near retirement stage, does your current properties give you the passive income you need??? If yes, try something else lor...
If no, do you want all your passive income to come from properties or a mixture of other investments???
Say you need 10K/mth and property gives you nett 8k/month (after deducting all expenses like renewal, taxes, maintenance, etc...). Do you want to do some stocks/bonds, etc..... to make up for this shortfall???
Very difficult to explain on writing leh....
For me, all my retirement operating expense will be taken care off by the properties with excess.... So now, whatever spare, I use it for other investments.... But bro, not one size fits all... I am not saying my way is the way... It is just that I planned it that way leh...
You really need to know what you want... than work it out... Most of the RMs I met all tell me this "Mr XXX, if I have a choice I will also want to invest in a property for passive income". The entry ticket is the key... and with 40% downpayment, it has knocked out many people... But if you have 40% downpayment and can weather the next say 20 years (assume loan of 20 years), your house is more or less paid by the tenant.... So it is a form of force savings...
I have quite a few liao, so enough for me.... diff strokes for diff people...
I am retiring next year. Hahahahahahaha :cheers4::cheers4::cheers4:
So that's my plan bro...
I still have 2 kids going University soon but all taken care of.... 1 is now in Melbourne Uni and coming back mid next year... All the aus dollar bot already and settled for the eldest...
I want to smell the roses soon before I regret... Tour the world... totally different from biz trips leh....
:cheers5::cheers5::cheers5::cheers5:
Cheers
hi Mr chestnut,
Congrats for announcing your retirement plan.. Even David Beckam also get bored by playing soccer.
how old are you ?
sometimes, we plan and think hard for our retirement. Met a friend yesterday who don't have shares or properties, all in cpf has already retired by 55.
He is now keeping himself fit and look after his children in JCs.
East Lover
21-05-13, 10:18
Big bro, thanks for your valuable posts! Very worthy reading! And yes congrats to your early retirement!! How lucky you are! :cheers4:
Can I consult you one question? My friend has fully paid HDB. She wants to buy a 3-bedder PC (around 1mil OCR) for own stay, and rent out her HDB flat for mortgage. She is fully aware of additional 7% ABSD. And she doesn’t want to change her HDB to EC.
The problem is that the 20% down payment was originally saved up for her son’s university fund. Her son is preparing O level now, so she will need money in 4 years. She is very confused now.
What will you advise? Shall she go ahead for find an idea house to enjoy life first? Or say goodbye to Condo forever?
Congratulation on retiring next year. We are in similar situation except that I have two teenager kids instead of three, and therefore lower expenses. Property investment takes up 60% of my portfolio with the rest in bonds, equity,commodities, insurance, etc is the balanced. A few of them is already fully paid up, and therefore have sufficient passive income for my spouse and partially for me. Work is not bad for me so may not retire so soon and may go into semi-retirement and do some voluntary work. Hence, I am looking to grow the portfolio now in terms of capacity. A few of my friends thought $5million is enough to retire some years ago but with the current inflation rate and low yield return, it will have to be more than $5million by not compromising on our lifestyle. It is more difficult to predict moving forward.
Brudder, it depends on what stage you are in...
1. Accumulation stage
2. Planning for retirement (near retirement)
If you are near retirement stage, does your current properties give you the passive income you need??? If yes, try something else lor...
If no, do you want all your passive income to come from properties or a mixture of other investments???
Say you need 10K/mth and property gives you nett 8k/month (after deducting all expenses like renewal, taxes, maintenance, etc...). Do you want to do some stocks/bonds, etc..... to make up for this shortfall???
Very difficult to explain on writing leh....
For me, all my retirement operating expense will be taken care off by the properties with excess.... So now, whatever spare, I use it for other investments.... But bro, not one size fits all... I am not saying my way is the way... It is just that I planned it that way leh...
You really need to know what you want... than work it out... Most of the RMs I met all tell me this "Mr XXX, if I have a choice I will also want to invest in a property for passive income". The entry ticket is the key... and with 40% downpayment, it has knocked out many people... But if you have 40% downpayment and can weather the next say 20 years (assume loan of 20 years), your house is more or less paid by the tenant.... So it is a form of force savings...
I have quite a few liao, so enough for me.... diff strokes for diff people...
I am retiring next year. Hahahahahahaha :cheers4::cheers4::cheers4:
So that's my plan bro...
I still have 2 kids going University soon but all taken care of.... 1 is now in Melbourne Uni and coming back mid next year... All the aus dollar bot already and settled for the eldest...
I want to smell the roses soon before I regret... Tour the world... totally different from biz trips leh....
:cheers5::cheers5::cheers5::cheers5:
Cheers
I guess many here in their late forties or early fifties wondering can that still ride on the boat knowing that they left 10 years plus to retirement. If can pay 40% and loan 20 years I think should be quite safe. By ten years time, the rental should be able to cover the installment and generate some income. If not better don't. My guide feel.
hi Mr chestnut,
Congrats for announcing your retirement plan.. Even David Beckam also get bored by playing soccer.
how old are you ?
sometimes, we plan and think hard for our retirement. Met a friend yesterday who don't have shares or properties, all in cpf has already retired by 55.
He is now keeping himself fit and look after his children in JCs.
Wah, he must really have a lot in CPF..... The issue is if the kid cannot go the the course he or she wants in the local uni and wants to go abroad... Some are blessed with kids who are super smart... Hahahahaha
I will retire before I hit 50.... Then will hopefully have 20 yrs to travel the world.... before my body cannot take it.... Try climbing the great wall of China at 60.... I climb at 40+ already steam. hahahahaha
Big bro, thanks for your valuable posts! Very worthy reading! And yes congrats to your early retirement!! How lucky you are! :cheers4:
Can I consult you one question? My friend has fully paid HDB. She wants to buy a 3-bedder PC (around 1mil OCR) for own stay, and rent out her HDB flat for mortgage. She is fully aware of additional 7% ABSD. And she doesn’t want to change her HDB to EC.
The problem is that the 20% down payment was originally saved up for her son’s university fund. Her son is preparing O level now, so she will need money in 4 years. She is very confused now.
What will you advise? Shall she go ahead for find an idea house to enjoy life first? Or say goodbye to Condo forever?
My 2 cents :
Will your friend be working over the next few years? if yes... Scenario like this.
1. Down payment for ready built condo.
2. Rent out the HDB @ say 2.2k x 12 = 26.4K
3. Rent it out for 4 years = 100K
4. Say up another 100K to make up for the balance... if cannot save enough, no choice but to give up the idea??? Unless your friend confident for kid to do local route or distant learning....
5. Your friend must be certain will not lose job....
There are many variables at play.... My only advise is - dont give advise... Just paint the scenario available and for the individual to make the choice.... I dont give advise leh.... I just paint various scenarios for people to visualise and come to their own conclusion... because only the individual knows what are the stumbling blocks ahead... Cheers
:cheers4::cheers4::cheers4::cheers4::cheers4:
Congratulation on retiring next year. We are in similar situation except that I have two teenager kids instead of three, and therefore lower expenses. Property investment takes up 60% of my portfolio with the rest in bonds, equity,commodities, insurance, etc is the balanced. A few of them is already fully paid up, and therefore have sufficient passive income for my spouse and partially for me. Work is not bad for me so may not retire so soon and may go into semi-retirement and do some voluntary work. Hence, I am looking to grow the portfolio now in terms of capacity. A few of my friends thought $5million is enough to retire some years ago but with the current inflation rate and low yield return, it will have to be more than $5million by not compromising on our lifestyle. It is more difficult to predict moving forward.
Brudder, an interesting discovery I made which I will share... I have a few props also fully paid up... I regret leh.... Should have used it to buy some more units leh.... So stupid to pay up the property!!!! time value of money... You and I are so damn under leverage !!!!!
I recently drew out from my property leh... Used it to buy some bonds... Imagine, interest at 1+% and bond give you 4% (I super conservative and go for big brands).... So even interest rate hit 3% so what... I still get 1% from nothing.... Hahahahahaha.... This money just save lor and when need be redeem the loan lah... What a joke.... I am still learning and learning... everyday.... Actually I mentioned about drawing money sometime last year but guess what... The special thing in our life just keep popping up
"PROCRASTINATION"... Hahahahahaha... I am trying to remove it from my life... Hahahahaha :cheers4::cheers4::cheers4::cheers4::cheers4:
Those paid up properties of ours are contributed partially by our tenants so not so bad. Those properties may have attracted loan interest of 4-5% then and no bank is interested to take up the refinance deal. Hence, a wiser choice is to redeem the balance. IT is not the quantum but the interest that we should review. Bonds are not pay as some sound ones are paying as high as 5.5%. However, got to keep some spare cash to do capital repayment if the interest upswing or go in again if there is a correction. As you said, I am still learning and try to expose to minimum risk.
Brudder, an interesting discovery I made which I will share... I have a few props also fully paid up... I regret leh.... Should have used it to buy some more units leh.... So stupid to pay up the property!!!! time value of money... You and I are so damn under leverage !!!!!
I recently drew out from my property leh... Used it to buy some bonds... Imagine, interest at 1+% and bond give you 4% (I super conservative and go for big brands).... So even interest rate hit 3% so what... I still get 1% from nothing.... Hahahahahaha.... This money just save lor and when need be redeem the loan lah... What a joke.... I am still learning and learning... everyday.... Actually I mentioned about drawing money sometime last year but guess what... The special thing in our life just keep popping up
"PROCRASTINATION"... Hahahahahaha... I am trying to remove it from my life... Hahahahaha :cheers4::cheers4::cheers4::cheers4::cheers4:
Those paid up properties of ours are contributed partially by our tenants so not so bad. Those properties may have attracted loan interest of 4-5% then and no bank is interested to take up the refinance deal. Hence, a wiser choice is to redeem the balance. IT is not the quantum but the interest that we should review. Bonds are not pay as some sound ones are paying as high as 5.5%. However, got to keep some spare cash to do capital repayment if the interest upswing or go in again if there is a correction. As you said, I am still learning and try to expose to minimum risk.
Bro, can you imagine if we had not paid up for those units and instead spread them to 2 units (instead of paying full)... With 1/2 paid, the rental will still cover mortgage..... On the hindsight.... Its thru experience we become wiser leh.... I am remembering all this to impart the skillsets to my kids.... That's the value we can bring to our kids.... Will share some more strategies at a later stage... I have sort of mapped out what I would like my kids to do to multiply the assets when we kick the bucket... We should share the strategies so we can learn from each other... Cheers bro
:cheers5::cheers4::cheers3:
Sure. Look forward to your sharing. Got a colleague who is far more senior than me had one kid to operate his property investment portfolio and the other running his other business while he still continues to work full-time. He started from enbloc project till buying and selling of land in Singapore while he as just an employee. Well, he told me he was woken up by cold sweat then. High risk lead to high gain. I am not so gunho when I was younger. I can see youngster these days are more willing to take risk.
Bro, can you imagine if we had not paid up for those units and instead spread them to 2 units (instead of paying full)... With 1/2 paid, the rental will still cover mortgage..... On the hindsight.... Its thru experience we become wiser leh.... I am remembering all this to impart the skillsets to my kids.... That's the value we can bring to our kids.... Will share some more strategies at a later stage... I have sort of mapped out what I would like my kids to do to multiply the assets when we kick the bucket... We should share the strategies so we can learn from each other... Cheers bro
:cheers5::cheers4::cheers3:
Sure. Look forward to your sharing. Got a colleague who is far more senior than me had one kid to operate his property investment portfolio and the other running his other business while he still continues to work full-time. He started from enbloc project till buying and selling of land in Singapore while he as just an employee. Well, he told me he was woken up by cold sweat then. High risk lead to high gain. I am not so gunho when I was younger. I can see youngster these days are more willing to take risk.
hold a job and biz at same time. that's the best. i gave job up for a biz. kid too young to take over. strike out while still young. lol
Brudder DC, for those with multiple units and have been collecting rental and loads of cash, there are basically other instruments to play with....
The issue is with those going for the 2nd property... Wait too long for crisis, and when it strikes, scared will lose job.... So the getting of the 2nd property is the toughest... Why??? You also dont know what to experience??? It is those with 2nd property that have gain experience that will go multiple but with the new rulings, many are having difficulty entering their 3 and beyond....
Taking the dive is the toughest... Just curious, anyone here with 2nd property and regretted going into the property market??????
:confused::confused::confused::confused::confused::confused::confused:
Brought my 2nd PC in 2011 after CM6, never regret in buying property only regret for not making my parent buy studio.
Brought my 2nd PC in 2011 after CM6, never regret in buying property only regret for not making my parent buy studio.
:cheers4::cheers4::cheers4::cheers4::cheers4::cheers4::cheers4::cheers4:
:cheers4::cheers4::cheers4::cheers4::cheers4::cheers4::cheers4::cheers4:
Thanks for Sharing Brother Chestnut.
East Lover
21-05-13, 15:28
big brother, thanks! ok, i will paint the scenario to her accordingly....:D
Thank you! :cheers4:
My 2 cents :
Will your friend be working over the next few years? if yes... Scenario like this.
1. Down payment for ready built condo.
2. Rent out the HDB @ say 2.2k x 12 = 26.4K
3. Rent it out for 4 years = 100K
4. Say up another 100K to make up for the balance... if cannot save enough, no choice but to give up the idea??? Unless your friend confident for kid to do local route or distant learning....
5. Your friend must be certain will not lose job....
There are many variables at play.... My only advise is - dont give advise... Just paint the scenario available and for the individual to make the choice.... I dont give advise leh.... I just paint various scenarios for people to visualise and come to their own conclusion... because only the individual knows what are the stumbling blocks ahead... Cheers
:cheers4::cheers4::cheers4::cheers4::cheers4:
Bro chestnut
Thanks for Sharing & congrats for early retirement. To have few paid up properties at your age is not easy feat. I guess one must have substantial earning power & financial knowledge. I am near 50 but only have one paid up out of three. Beside starting too late also very fearful. But don't know why, once I bought my 2nd within a year I bought my 3rd. Luckily just need to pay additional ABSS 3%. Now when I ponder. Wow why I got the guts from. Basically part of the reason also want financial freedom ASAP. Quite tired of work. To wait for the crash may be too late for me. As what you say, it depends on individual. I trying to play catch up.
Bro chestnut
Thanks for Sharing & congrats for early retirement. To have few paid up properties at your age is not easy feat. I guess one must have substantial earning power & financial knowledge. I am near 50 but only have one paid up out of three. Beside starting too late also very fearful. But don't know why, once I bought my 2nd within a year I bought my 3rd. Luckily just need to pay additional ABSS 3%. Now when I ponder. Wow why I got the guts from. Basically part of the reason also want financial freedom ASAP. Quite tired of work. To wait for the crash may be too late for me. As what you say, it depends on individual. I trying to play catch up.
Bro, you have done well..... Really.... The people lurking in this forum, I safely say tend to be high earners.... or Risk taker... I am no risk taker... I play to my comfort level and I strongly encourage that for anyone who wants to take the plunge...
Thinking and painting scenarios will better help you prepare better... Many a times, after plunging in then you realise how easy things are... After your second property, you must be telling yourself, wa... So easy ah.... But if the "income" is not stable nor solid, the individual is threading on thin ice regardless of the time he or she enters...
So play to comfort level.... Dont chew more than you can swallow... But I really do believe the 2nd property as investment is the gateway to financial freedom... Just plan it well...
Again, congrats... you have done well... We should be about the same age... Cheers Bro...
:cheers4::cheers4::cheers4::cheers4::cheers4::cheers4:
bro chestnut what i respect about you is your consistency in delivering your message..from day 1 i know you in this forum you have shared and given good and sound advice unselfishly..property is the way to go...you dissapeared for a while and now your back sharing again...cheers bro for being one of the most respected bros in this forum and giving good sound advice to others..:cheers5:
may your retirement bring you to the next level of happiness in life:D :D :D
Bro, you have done well..... Really.... The people lurking in this forum, I safely say tend to be high earners.... or Risk taker... I am no risk taker... I play to my comfort level and I strongly encourage that for anyone who wants to take the plunge...
Thinking and painting scenarios will better help you prepare better... Many a times, after plunging in then you realise how easy things are... After your second property, you must be telling yourself, wa... So easy ah.... But if the "income" is not stable nor solid, the individual is threading on thin ice regardless of the time he or she enters...
So play to comfort level.... Dont chew more than you can swallow... But I really do believe the 2nd property as investment is the gateway to financial freedom... Just plan it well...
Again, congrats... you have done well... We should be about the same age... Cheers Bro...
:cheers4::cheers4::cheers4::cheers4::cheers4::cheers4:
Hi...I am a daring risk taker.
I am ready to jump into Mt Sinai anytime now.
Bro, you have done well..... Really.... The people lurking in this forum, I safely say tend to be high earners.... or Risk taker... I am no risk taker... I play to my comfort level and I strongly encourage that for anyone who wants to take the plunge...
Thinking and painting scenarios will better help you prepare better... Many a times, after plunging in then you realise how easy things are... After your second property, you must be telling yourself, wa... So easy ah.... But if the "income" is not stable nor solid, the individual is threading on thin ice regardless of the time he or she enters...
So play to comfort level.... Dont chew more than you can swallow... But I really do believe the 2nd property as investment is the gateway to financial freedom... Just plan it well...
Again, congrats... you have done well... We should be about the same age... Cheers Bro...
:cheers4::cheers4::cheers4::cheers4::cheers4::cheers4:
Hi bro chestnut,
You really inspired me to achieve financial freedom via property investment. Rest assured I'll invest within comfort level n hope to be a successful property investor like you! :) thks for all the sharing!
Brother Chestnut is indeed a very wise guy.
Sorry to say this, alot of people kpkb that their kopi increase $0.10, mrt fare increase $0.20, food increase $0.50, erp increase $1 etc, however all these are not significant to me compare to rental property owners collected. Is it better to save $0.20,$0.50 or it is better to have rental every month? For WP u may save $0.20, $0.50 but risk losing your rental. A 4 room Hdb flat can easily rent for $2400 or a condo easily $3200.
Brudder, it depends on what stage you are in...
1. Accumulation stage
2. Planning for retirement (near retirement)
If you are near retirement stage, does your current properties give you the passive income you need??? If yes, try something else lor...
If no, do you want all your passive income to come from properties or a mixture of other investments???
Say you need 10K/mth and property gives you nett 8k/month (after deducting all expenses like renewal, taxes, maintenance, etc...). Do you want to do some stocks/bonds, etc..... to make up for this shortfall???
Very difficult to explain on writing leh....
For me, all my retirement operating expense will be taken care off by the properties with excess.... So now, whatever spare, I use it for other investments.... But bro, not one size fits all... I am not saying my way is the way... It is just that I planned it that way leh...
You really need to know what you want... than work it out... Most of the RMs I met all tell me this "Mr XXX, if I have a choice I will also want to invest in a property for passive income". The entry ticket is the key... and with 40% downpayment, it has knocked out many people... But if you have 40% downpayment and can weather the next say 20 years (assume loan of 20 years), your house is more or less paid by the tenant.... So it is a form of force savings...
I have quite a few liao, so enough for me.... diff strokes for diff people...
I am retiring next year. Hahahahahahaha :cheers4::cheers4::cheers4:
So that's my plan bro...
I still have 2 kids going University soon but all taken care of.... 1 is now in Melbourne Uni and coming back mid next year... All the aus dollar bot already and settled for the eldest...
I want to smell the roses soon before I regret... Tour the world... totally different from biz trips leh....
:cheers5::cheers5::cheers5::cheers5:
Cheers
Bro chestnut, I follow your post too, very good insights to me.
So next year can spend more time in SG condo forum.
Would like to pm you for your opinion on my investments.
:confused:
How not to make money in equities/unit trusts? Global markets are at or near 5-year highs.
Hi all, since stocks and shares have no ABSD, is there a chance to make lots of $ when the market crashes from the 5 year high?
Hi all, since stocks and shares have no ABSD, is there a chance to make lots of $ when the market crashes from the 5 year high?
Easier said than done. You may have a long wait.
When it crashes, panic will set in and you will cry when you see the value of your investment halved and you will swear you will not risk your $ in stocks and shares again.
:scared-3:
How to crash when they are just recovering from investors' interest and money got printed like no tomorrow still on sideline? Much of these money still on sideline but you will see them all coming into stocks once the stocks uptrend persisted! Slow and steady poon pee pee! The bull is coming! :cheers5:
Hi all, since stocks and shares have no ABSD, is there a chance to make lots of $ when the market crashes from the 5 year high?
How to crash when they are just recovering from investors' interest and money got printed like no tomorrow still on sideline? Much of these money still on sideline but you will see them all coming into stocks once the stocks uptrend persisted! Slow and steady poon pee pee! The bull is coming! :cheers5:
The party has started going for some time already. :cheers4:
Yes you are right. At that time not clear yet, now very clear! :cheers3:
The party has started going for some time already. :cheers4:
Yes you are right. At that time not clear yet, now very clear! :cheers3:
I am a strong believer stocks have cycle,... properties can only buy two to 3 times, shares u can hoot as many times as you one....I believe 2015 shares will crash, best time to buy
You can wait and see then... :cheers5:
I am a strong believer stocks have cycle,... properties can only buy two to 3 times, shares u can hoot as many times as you one....I believe 2015 shares will crash, best time to buy
Easier said than done. You may have a long wait.
When it crashes, panic will set in and you will cry when you see the value of your investment halved and you will swear you will not risk your $ in stocks and shares again.
:scared-3:
wise words i know EXACTLY what you mean:cheers5:
Goldman raises S&P 500 targets through 2015
Improving economic growth, rising dividends and potentially low interest rates. It’s all good for Wall Street and the stock market.
That’s according to Goldman Sachs, which is taking an ever increasingly bullish view on the S&P 500 with some target lifting in a note dated May 20. their upbeat S&P 500 outlook for this year has played out faster than they expected:
“We are raising our S&P 500 dividend estimates and index return forecasts for 2013 through 2015. We expect S&P 500 index will rise by 5% from the current level to 1,750 by year-end 2013, advance by 9% to 1,900 in 2014, and climb by 10% to 2100 in 2015.”
I am a strong believer stocks have cycle,... properties can only buy two to 3 times, shares u can hoot as many times as you one....I believe 2015 shares will crash, best time to buy
wise words i know EXACTLY what you mean:cheers5:
Oh it was the best time of my life in the market, liquidate all my FD to wack at near the lowest point!ceven though I still kana stuck some earlier.....
Office Boy joins this thread late!
Too many documents to deliver today. haha!
Certainly agree that starting young works very very well!
Office Boy started in late 20s and by now about 10+ years later voila! Most things are taken care of.
The most difficult thing now is to decide what to do next.
But I am surprised to see that $5mil may not be enough for retirement ?! Is that true ? I always got the impression that with a cash balance of $1mil and net monthly rental income of $10K should be good enough to retire liao!
Maybe Office Boy lead a cheap life ... haha!
DKSG
Goldman raises S&P 500 targets through 2015
Improving economic growth, rising dividends and potentially low interest rates. It’s all good for Wall Street and the stock market.
That’s according to Goldman Sachs, which is taking an ever increasingly bullish view on the S&P 500 with some target lifting in a note dated May 20. their upbeat S&P 500 outlook for this year has played out faster than they expected:
“We are raising our S&P 500 dividend estimates and index return forecasts for 2013 through 2015. We expect S&P 500 index will rise by 5% from the current level to 1,750 by year-end 2013, advance by 9% to 1,900 in 2014, and climb by 10% to 2100 in 2015.”
Be very cautious of what GS comment.
i am only optismistic about the equity market till year end. Review again by then.
Be patience with property investment. I always enter when market starts to pick up after a correction. Safest entry point imo.
Hdb bto/new EC will never go wrong for 1st timers.
CondoInterested
22-05-13, 08:18
@chestnut
You use the same nick over at other forums?
@chestnut
You use the same nick over at other forums?
Only at cbtp forum. I shared some info over at clover by the park. And it has been awhile since I posted there... Hahahaha a
Other than that - I do not contribute in any other forums.
Cheers....:cheers3:
Hi Chestnut...should I sell away one HDB flat and exchange for a Mt Sinai property valued at 1.6mil SGD, assuming I can dispose one fully paid HDB flat at around 600kSGD.
Technically speaking, I will use 500k to downpayment the 1.6mil SGD unit so I will get a bank loan of 1.1mil SGD.
At this point of juncture, is it advisable to pay for a development which is around 20 years old, i.e. Ridgewood? TIA.
shareidiot
22-05-13, 08:45
Think you have an outstanding loan for tiong bahru hdb isnt it?
If so, buyer can only take out 50% loan from a bank (assuming u hv an outstanding loan). PS: my assumption may be wrong.....
S$1.6M @50% - down payment S$800k ($400k in cash & balance $400k in cash or cpf).
How about stamp duty, legal cost, etc..... (To be paid in cash)?
$600k cash liquidated from sale of ur PIL or parents' hdb not enuf to cover (I reckon).
Whatever it is, please make your decision within your own comfort zone. Do not over stretch yourself.
Think about other (financial) needs in the family. Example: medical needs for the aged, family vacation, etc.....
Think wisely.....
Hi Chestnut...should I sell away one HDB flat and exchange for a Mt Sinai property valued at 1.6mil SGD, assuming I can dispose one fully paid HDB flat at around 600kSGD.
Technically speaking, I will use 500k to downpayment the 1.6mil SGD unit so I will get a bank loan of 1.1mil SGD.
At this point of juncture, is it advisable to pay for a development which is around 20 years old, i.e. Ridgewood? TIA.
Brudder, an interesting discovery I made which I will share... I have a few props also fully paid up... I regret leh.... Should have used it to buy some more units leh.... So stupid to pay up the property!!!! time value of money... You and I are so damn under leverage !!!!!
I recently drew out from my property leh... Used it to buy some bonds... Imagine, interest at 1+% and bond give you 4% (I super conservative and go for big brands).... So even interest rate hit 3% so what... I still get 1% from nothing.... Hahahahahaha.... This money just save lor and when need be redeem the loan lah... What a joke.... I am still learning and learning... everyday.... Actually I mentioned about drawing money sometime last year but guess what... The special thing in our life just keep popping up
"PROCRASTINATION"... Hahahahahaha... I am trying to remove it from my life... Hahahahaha :cheers4::cheers4::cheers4::cheers4::cheers4:
Chestnut,
Really appreciate your kind sharing and insight. Like you, I also took equity out of my investment ppty thinking of buying a UK ppty. But in the end, due to some cock up in my travel plans, couldn't travel and instead put it in Bonds and earning a small spread of 4.5%.
My plan is to buy a UK or Oz ppty in preparation for my children's overseas education....just in case they need to study overseas, especially Medicine. It acts as a natural currency hedge. Medicine is 1 course which is darn hard to get into in Sg but not that difficult if you do it overseas, eg Scotland. Downside is the costs which is several times over local med school.
This is the greatest thread so far this year !
I simply love all the generous sharing from all the experts in this forum.
May I humbly know, if I take out equity from my property, how will the interest be calculated. Is there any difference from taking a bridging loan.
:)
Easier said than done. You may have a long wait.
When it crashes, panic will set in and you will cry when you see the value of your investment halved and you will swear you will not risk your $ in stocks and shares again.
:scared-3:
How true... comments from an Old Bird..I guess investment is like that.. up and down.. good if you can time the market... I am planning that if the market crash, I will borrow more to buy in and then average down the price... But hopefully dont have to resort to this...:)
Goldman raises S&P 500 targets through 2015
Improving economic growth, rising dividends and potentially low interest rates. It’s all good for Wall Street and the stock market.
That’s according to Goldman Sachs, which is taking an ever increasingly bullish view on the S&P 500 with some target lifting in a note dated May 20. their upbeat S&P 500 outlook for this year has played out faster than they expected:
“We are raising our S&P 500 dividend estimates and index return forecasts for 2013 through 2015. We expect S&P 500 index will rise by 5% from the current level to 1,750 by year-end 2013, advance by 9% to 1,900 in 2014, and climb by 10% to 2100 in 2015.”
Teddy,
not sure about you, but when Goldman start shouting `buy'...i normally take some off the table....they have a `track record' of giving lousy calls, intentionally or unintentionally, I have no idea :beats-me-man:
But I feel a lot of times when people has made money in stocks....eventually they will plow some of it back to ppty. Initially when the CMs came out 1 by 1, I kpkb, not because it stop the price from sky-rocketing, but due to the greater barriers of entry. But now I appreciate the CMs as it forces me to think out of the box.
Chestnut,
Really appreciate your kind sharing and insight. Like you, I also took equity out of my investment ppty thinking of buying a UK ppty. But in the end, due to some cock up in my travel plans, couldn't travel and instead put it in Bonds and earning a small spread of 4.5%.
.
How much would it be to go oversea for medicine? My daughter got potential but I think SG difficult lah and make worst she is a female...
Office Boy joins this thread late!
Too many documents to deliver today. haha!
Certainly agree that starting young works very very well!
Office Boy started in late 20s and by now about 10+ years later voila! Most things are taken care of.
The most difficult thing now is to decide what to do next.
But I am surprised to see that $5mil may not be enough for retirement ?! Is that true ? I always got the impression that with a cash balance of $1mil and net monthly rental income of $10K should be good enough to retire liao!
Maybe Office Boy lead a cheap life ... haha!
DKSG
Hi Officeboy,
Better late then never :-)
I think you are on the same track. To generate the $10k net rental income, you probably need ppty investments of around $5-6m base on a conservative yield of 2.5%. Of coz if you have some ppty bought earlier in the cycle, it might be even higher like 6%.
Base on my current lifestyle, I'm planning $8k (current dollars) total for my wife and myself to spend during retirement. Still a long way off to achieving the target :scared-3:
Hi Officeboy,
Better late then never :-)
I think you are on the same track. To generate the $10k net rental income, you probably need ppty investments of around $5-6m base on a conservative yield of 2.5%. Of coz if you have some ppty bought earlier in the cycle, it might be even higher like 6%.
Base on my current lifestyle, I'm planning $8k (current dollars) total for my wife and myself to spend during retirement. Still a long way off to achieving the target :scared-3:
Great to know someone on the same track!
I believe $8K is enough also - when I start to look at what to do during retirement, I realised I dont have very expensive hobbies like travel every month to some exotic country. I am happy here eating Chee Cheong Fun, Chicken Rice and maybe a small car to visit showflats. My greatest interest is to visit showflats, buy and sell PCs, but the government had just impeded my interest - bad!
Office Boy is currently at $6K perpetual income, still got to work harder to increase that to $8K.
DKSG
Great to know someone on the same track!
I believe $8K is enough also - when I start to look at what to do during retirement, I realised I dont have very expensive hobbies like travel every month to some exotic country. I am happy here eating Chee Cheong Fun, Chicken Rice and maybe a small car to visit showflats. My greatest interest is to visit showflats, buy and sell PCs, but the government had just impeded my interest - bad!
Office Boy is currently at $6K perpetual income, still got to work harder to increase that to $8K.
DKSG
Just a small note....usually I go to work quite late like 9ish-10am but today gave my boy a ride to school and came to work straight after that. As it was only 7.30am, there weren't a lot of office workers but i saw an old lady in her 50s (I reckon) waiting for my car to pass before crossing the road.
After driving past her, I stole glances of her in my rear view mirror and seeing her walk across to enter my office building, tears welled up in my eyes after I recongised her as one of the building cleaning ladies. Its a fact that the Gini-Coeff is increasing and do contribute in whatever ways we can back to society.
Just a small reminder but I trust a lot of the bros and sis here are already aware of this and paying it forward, backward, sideways etc :)
God bless us all.
Great to know someone on the same track!
I believe $8K is enough also - when I start to look at what to do during retirement, I realised I dont have very expensive hobbies like travel every month to some exotic country. I am happy here eating Chee Cheong Fun, Chicken Rice and maybe a small car to visit showflats. My greatest interest is to visit showflats, buy and sell PCs, but the government had just impeded my interest - bad!
Office Boy is currently at $6K perpetual income, still got to work harder to increase that to $8K.
DKSG
Brudder, 4 k also can leh... It all depends on your lifestyle.... Got car, maid, trips, etc...???? But the insurance part very difficult to run away... Many do not think of the insurance portion if they retire early.... Still need to pay leh.... So if you want to retire early, must do the sums what is required... Cheers :cheers3::cheers3::cheers3::cheers3::cheers3:
Singaoore garment will welcome all foreign trained doctors who are singaporean back to Practice. They have done it and will continue to do it. Singapore subsidized tuition fee is about $20000. Try to get someone to write a good reference or if even better if it is recommended by doctor friend will stand a better chance. :D
How much would it be to go oversea for medicine? My daughter got potential but I think SG difficult lah and make worst she is a female...
That is why we need more than that if you want to continue to service our insurance.
Brudder, 4 k also can leh... It all depends on your lifestyle.... Got car, maid, trips, etc...???? But the insurance part very difficult to run away... Many do not think of the insurance portion if they retire early.... Still need to pay leh.... So if you want to retire early, must do the sums what is required... Cheers :cheers3::cheers3::cheers3::cheers3::cheers3:
For those looking at retirement... This is part 2.... There are too many scenarios, so you all need to look at your own future scenario....
For today, I will use this scenario
You are about retirement age and you have 1 house fully paid for and you have 1 million cash.... You need 3k for your expenses when you retire (please input in your own figures and compute on your own - I am no financial planner... I am here to tickle your brains as we seek financial freedom)
1. Would you buy a second investment property and get monthly rental of say 3.5K(use your own number which you think is comfortable)
2. Would you buy an investment property which is mm and get say 2.5k and use balance to invest in other stuff to give you the additional 0.5k to support your lifestyle... What would this other investment be??? You need to start early to think so when it happens you dont get a shock and dont know what to do(as you need need to amass knowledge along the way by dabbling in this new investment)
3. Would you split your 1 mil in to equity, bonds, cash, etc... What kind of returns can you get to sustain your lifestyle??? In this case
Equity say 500k @ 2% dividend = 10k
Bonds say 250k @ 5% coupon = 12.5K
Cash 250K @ 1% = 2.5k
Total = 30K and on top of it, you need to wait for the payouts....
Please input the numbers to your own future retirement plan and also include in things which I may have left out....
The list and hypo scenario is limitless... I am just sharing with you all some starting points to ponder over.... WHY??? Because you need passive income my friends !!!!!!
I have spoke with 1 of my friend and he share this.... If I have 1 mil (the amount is bigger, but I will use 1 mil in this situation)... I can draw out 48K and it can last me 21 yrs.... I :doh::doh::doh::doh::doh::doh:
I was thinking how can someone think like this.... Cant he invest in something to give passive income and yet retain the residual value of the 1Mil????
Talk is cheap... Once you start planning, than you will know the complications...
This is my little contribution to all of you. there is no plan that fits everyone.... Some may not have enough money for 2nd investment properties.... So if you cannot get your second property, you need to plan what needs to be done early.... for passive income...
Trust me, when I was 40 and someone told me, you need to plan for your retirement, I laughed and say I will work until I am old.... Sometimes, what you want, you cannot.... (your health may deter you)... Then what?????
I started planning all this since the age of 40 !!!!!! And it no smooth sailing... So please plan !!!!!
Cheers :cheers3::cheers3::cheers3::cheers3::cheers3::cheers3::cheers3::cheers3::cheers3:
That is why we need more than that if you want to continue to service our insurance.
Brudder, when many people plan, they forgot simple things they still need to pay like :
1. Telephone
2. broadband
3. pub bill
4. marketing
5. maintenance fee
6. insurance premiums
7. ang pow
8. wedding ang pow
9. christmas gifts
10. dental
11. medical
12. maid
13. car
Add all this up and you get a shock !!!!!! The beauty is, you can take away some of the items to bring the cost down.... After you work out all the amount, that would be the what the individual needs to work towards to generate the passive income amount....
Property is a hedge...
Cheers
:cheers3::cheers3::cheers3::cheers3::cheers3:
My plan is to buy a UK or Oz ppty in preparation for my children's overseas education....just in case they need to study overseas, especially Medicine. It acts as a natural currency hedge. Medicine is 1 course which is darn hard to get into in Sg but not that difficult if you do it overseas, eg Scotland. Downside is the costs which is several times over local med school.
I would like to share my experience in this.
But last time I shared about my investments, I kanna whacked by forum member and told be humble.
So scared of sharing anymore.....
I would like to share my experience in this.
But last time I shared about my investments, I kanna whacked by forum member and told be humble.
So scared of sharing anymore.....
Sis, do share.... I am all ears.... I believe you bot in UK... I need to understand abit more on UK props....
:cheers3::cheers3::cheers3:
How much would it be to go oversea for medicine? My daughter got potential but I think SG difficult lah and make worst she is a female...
Hi SL,
take a look at the sites below for egs ya?
http://www.medschools.ac.uk/STUDENTS/COURSES/Pages/All-courses.aspx
http://www.abdn.ac.uk/medicine/prospective/overseas/fees/
Unfortunately the large ticket items are the essential ones. :o
Brudder, when many people plan, they forgot simple things they still need to pay like :
1. Telephone
2. broadband
3. pub bill
4. marketing
5. maintenance fee
6. insurance premiums
7. ang pow
8. wedding ang pow
9. christmas gifts
10. dental
11. medical
12. maid
13. car
Add all this up and you get a shock !!!!!! The beauty is, you can take away some of the items to bring the cost down.... After you work out all the amount, that would be the what the individual needs to work towards to generate the passive income amount....
Property is a hedge...
Cheers
:cheers3::cheers3::cheers3::cheers3::cheers3:
Look forward to your sharing. It will certainly wake some of us up. :D
I would like to share my experience in this.
But last time I shared about my investments, I kanna whacked by forum member and told be humble.
So scared of sharing anymore.....
Sis, do share.... I am all ears.... I believe you bot in UK... I need to understand abit more on UK props....
:cheers3::cheers3::cheers3:
OK when I have more time over the next few days....today is a busy day at work.
Thanks.
OK when I have more time over the next few days....today is a busy day at work.
Thanks.
Thank You.... :D:D:D:D:D:D
OK when I have more time over the next few days....today is a busy day at work.
Thanks.
friday is a good day in the spirit of vesak day set yourself free:D:D:D
Unfortunately the large ticket items are the essential ones. :o
Maid can change to weekly cleaning service.
Car change to taxi and public transport which is better for health as you get to walk more and since retiree also has alot more time to spare.
Great to know someone on the same track!
I believe $8K is enough also - when I start to look at what to do during retirement, I realised I dont have very expensive hobbies like travel every month to some exotic country. I am happy here eating Chee Cheong Fun, Chicken Rice and maybe a small car to visit showflats. My greatest interest is to visit showflats, buy and sell PCs, but the government had just impeded my interest - bad!
Office Boy is currently at $6K perpetual income, still got to work harder to increase that to $8K.
DKSG
You sound a bit like me! Except that I dont visit showflats. anyway it is definitely possible to survive with $8k, not to mention $10k and no need to be extremely frugal. I can vouch for it :D
When you are retired (or semi), you will realised that you don't spend as much as before.
And yes, damn the CMs for stopping me in the pursuit of more properties :tongue3:
Medical and insurance premium could take up 70%.
Maid can change to weekly cleaning service.
Car change to taxi and public transport which is better for health as you get to walk more and since retiree also has alot more time to spare.
5k is more than sufficient for a couple excluding holiday expenses.
Personally, i do not buy too much insurance. Keep some life insurance and medishield will be sufficient. 30 major illnesses also difficult to claim.
In fact, if one have sufficient retirement savings like 500k on top of regular passive income, Medishield alone is more than sufficient.
This is the greatest thread so far this year !
I simply love all the generous sharing from all the experts in this forum.
May I humbly know, if I take out equity from my property, how will the interest be calculated. Is there any difference from taking a bridging loan.
:)
You guys are getting me excited but nobody care to explain to me how the equity loans work? Don't ask me to ask my bankers, I prefer to talk to them with some pre-knowledge.
Medical and insurance premium could take up 70%.
Look at limited pay insurance plan for whole life, from 15-25 yrs. With low interests rates now, some of these plans are actually quite worth it. Ignoring time-value of $, you could breakeven after 20 yrs if you were to surrender your policy. I certainly hope to go into semi-retirement age 50-55 so I'm in favour of such limited pay insurance policy so that I dun have to work to pay for the premiums. Just my opinion.....
I would like to share my experience in this.
But last time I shared about my investments, I kanna whacked by forum member and told be humble.
So scared of sharing anymore.....
Dun worry, imagine if Chestnut were to worry and not share, we wouldn't have benefited. So just share lah....and if people bash you, just ignore lor....
Dun worry, imagine if Chestnut were to worry and not share, we wouldn't have benefited. So just share lah....and if people bash you, just ignore lor....
Great! you chose to entertain a pretty lady but not tell me how the equity loans work.
Great! you chose to entertain a pretty lady but not tell me how the equity loans work.
Er....I have no idea the gender of most forumers....and I dun even know if you are Lion King or if you are Queen of Sheba. But anyway, do refer to the link below...dun say I didnt help.....
http://www.standardchartered.com.sg/personal-banking/mortgages/learn-more/home-loan-glossary/sub/en/
Great! you chose to entertain a pretty lady but not tell me how the equity loans work.
Paiseh. Since I am implicated in this I will try to help out.
I am no expert on this but it works roughly like this:
For your existing property loan which you took some years ago, the bank valuation of your property will have gone up compared to when you bought. Therefore, depending on the outstanding amount of your loan, you may have "spare" capacity to loan additional amount of $ secured on the "new" (higher) value of your property based on current valuation. You can apply to loan this additional amount at similar rates to your mortgage loan (depends on what rates your banker offers but it would be based on SOR/SIBOR plus the spread).
You can use this amount to invest in instruments that give higher yield than the interest rate you would be paying to loan this amount, thus being able to pay the interest on the loan plus any capital gain that you make from your investment. That is the rationale behind taking the equity loan.
You would pay back the loan on a monthly basis similar to how you pay your mortgage.
As to how much equity loan you can take, that one you will really have to ask your banker because you are subject to the same LTV limits and debt-servicing ratios as would apply if you loan for a mortgage. And the same tenure limitations as a mortgage.
You are not supposed to use this additional amount loan towards servicing another property. But some people do, I believe. I don't know how the bank would be able to prove that though.
Sorry if the above is too simplistic for you and if you need any more details, you do have to approach the banker directly.
Paiseh. Since I am implicated in this I will try to help out.
I am no expert on this but it works roughly like this:
For your existing property loan which you took some years ago, the bank valuation of your property will have gone up compared to when you bought. Therefore, depending on the outstanding amount of your loan, you may have "spare" capacity to loan additional amount of $ secured on the "new" (higher) value of your property based on current valuation. You can apply to loan this additional amount at similar rates to your mortgage loan (depends on what rates your banker offers but it would be based on SOR/SIBOR plus the spread).
......
You are not supposed to use this additional amount loan towards servicing another property. But some people do, I believe. I don't know how the bank would be able to prove that though.
Sorry if the above is too simplistic for you and if you need any more details, you do have to approach the banker directly.
Thanks, pretty lady. That helps a lot. I dun wan to call my bankers and sound like a fool. Must show some knowledge first. Appreciate that.
Er....I have no idea the gender of most forumers....and I dun even know if you are Lion King or if you are Queen of Sheba. But anyway, do refer to the link below...dun say I didnt help.....
http://www.standardchartered.com.sg/personal-banking/mortgages/learn-more/home-loan-glossary/sub/en/
My banker will think I read from a script leh. I prefer actual responses/thoughts from the wise heads in this forum. That way, I can sound smarter than the banker and he will be careful when he want to suggest anything to me :) Anyway, thanks.
My banker will think I read from a script leh. I prefer actual responses/thoughts from the wise heads in this forum. That way, I can sound smarter than the banker and he will be careful when he want to suggest anything to me :) Anyway, thanks.
Remember to check out how much is the CPF used for property already plus the accrued interest. They will minus off this from the amount that they will loan to you in addition to the amount oustanding. You can check out how much it is from the CPF website, log into your account and look under the relevant section.
With the CMS/reduction in LTV/closer check on DSR etc, you will find that the amount you can take out as equity loan is not as great is you originally thought unless you have already paid off most of your loan.
Remember to check out how much is the CPF used for property already plus the accrued interest. They will minus off this from the amount that they will loan to you in addition to the amount oustanding. You can check out how much it is from the CPF website, log into your account and look under the relevant section.
With the CMS/reduction in LTV/closer check on DSR etc, you will find that the amount you can take out as equity loan is not as great is you originally thought unless you have already paid off most of your loan.
that is correct. also when you are holding say 3 properties it doesnt mean that 1 will be 80% LTV and the other are say 60 or 50%. IIRC all will be treated as 3rd property.
Me and my wife are currently in our 30s, and we started our foray into property in 2003 with very minimal saving, and today we have 3 propertie; a penthouse, a 4 bedder and a 1 bedder apartment.
2 of our properties are currently rented out, and we are collecting around $12k per month in rental. As for mortgage, our loan to asset ratio is around 50%.
At the moment, both of us are still working with a combine income of around $250K per year and we have no plans to give our properties to any of our 2 children because we would like them to build their own nest.
Our retirement plan will be to retire in Iskandar Malaysia and live off our rental income from our Singapore properties because we think that the quality of life will be better across the causeway but we still wishes to be close to Singapore.
We dont really have a target age for retirement as we believe that as long as we are healthy we should keep ourselves active.
If u don't know malay or speak malay in malaysia quality of life is not better.
Remember to check out how much is the CPF used for property already plus the accrued interest. They will minus off this from the amount that they will loan to you in addition to the amount oustanding. You can check out how much it is from the CPF website, log into your account and look under the relevant section.
With the CMS/reduction in LTV/closer check on DSR etc, you will find that the amount you can take out as equity loan is not as great is you originally thought unless you have already paid off most of your loan.
i am taking the loan to buy some franchise ;)
Me and my wife are currently in our 30s, and we started our foray into property in 2003 with very minimal saving, and today we have 3 propertie; a penthouse, a 4 bedder and a 1 bedder apartment.
2 of our properties are currently rented out, and we are collecting around $12k per month in rental. As for mortgage, our loan to asset ratio is around 50%.
At the moment, both of us are still working with a combine income of around $250K per year and we have no plans to give our properties to any of our 2 children because we would like them to build their own nest.
Our retirement plan will be to retire in Iskandar Malaysia and live off our rental income from our Singapore properties because we think that the quality of life will be better across the causeway but we still wishes to be close to Singapore.
We dont really have a target age for retirement as we believe that as long as we are healthy we should keep ourselves active.
You should have enough to retire comfortably in Singapore actually.
At the moment, there are still some risks in Iskandar. But maybe by the time you retire, all of these will be sorted out.
You had good timing (2003) when you started. Congrats!
i am taking the loan to buy some franchise ;)
I applaud your entrepreneurship! All the best!
You should have enough to retire comfortably in Singapore actually.
At the moment, there are still some risks in Iskandar. But maybe by the time you retire, all of these will be sorted out.
You had good timing (2003) when you started. Congrats!
actually it is more by chance than choice.
when I enter the work force in 1997, I was telling myself what a bad time to start working because when everything that was once so rosy suddenly become a crisis. that was perhaps a blessing in disguise because it really taught me a good lesson.
2003 was actually the year where I decided to get married so we had to find our own place. And due to our low cost base, we were lucky that we were able to save up enough money to buy our 2nd property in 2008, which is also a good year because of the lehman crisis. what happen after that is history if you know what I mean.
2011 was the year which we decided to get adventurous and venture into small apartment for rental income. And that investment did pay off because we were able to escape the recent hike in ABSD and also managed to get a decent rental for our apartment.
You are right that we could retire in Singapore, but once we factor in the cost of cars and the projected cost of living based on current inflation rate, I think we will be better off living in Iskandar and have a comfortable retirement.
the way I look at how this country is moving, we believe we will be better off living a simple but comfortable life in Malaysia and yet still enjoy the world class healthcare facilities in Singapore and be close to our children.
I applaud your entrepreneurship! All the best!
Thanks, good sister !
May I know is 7-11 better or Petrol Station ?
actually it is more by chance than choice.
when I enter the work force in 1997, I was telling myself what a bad time to start working because when everything that was once so rosy suddenly become a crisis. that was perhaps a blessing in disguise because it really taught me a good lesson.
2003 was actually the year where I decided to get married so we had to find our own place. And due to our low cost base, we were lucky that we were able to save up enough money to buy our 2nd property in 2008, which is also a good year because of the lehman crisis. what happen after that is history if you know what I mean.
2011 was the year which we decided to get adventurous and venture into small apartment for rental income. And that investment did pay off because we were able to escape the recent hike in ABSD and also managed to get a decent rental for our apartment.
You are right that we could retire in Singapore, but once we factor in the cost of cars and the projected cost of living based on current inflation rate, I think we will be better off living in Iskandar and have a comfortable retirement.
the way I look at how this country is moving, we believe we will be better off living a simple but comfortable life in Malaysia and yet still enjoy the world class healthcare facilities in Singapore and be close to our children.
I walked a similar path :)
Singapore will be like new York and iskandar will be like new jersey and the peripheral areas....
Iskandar will be our hinterland.... We must pray that it will succeed or else all the lower middle inch e retirees will have a big problem... Sngapore is too strategic and small to contain non productive humans... Me included when I retire...
If iskandar don't succeed Singapore will have a problem in 50 years time... Coz there is no avenue for out flow of non productive humans and our country will stagnate....
I guess we as human will only think for ourselves so let the leaders worry... :D
actually it is more by chance than choice.
when I enter the work force in 1997, I was telling myself what a bad time to start working because when everything that was once so rosy suddenly become a crisis. that was perhaps a blessing in disguise because it really taught me a good lesson.
2003 was actually the year where I decided to get married so we had to find our own place. And due to our low cost base, we were lucky that we were able to save up enough money to buy our 2nd property in 2008, which is also a good year because of the lehman crisis. what happen after that is history if you know what I mean.
2011 was the year which we decided to get adventurous and venture into small apartment for rental income. And that investment did pay off because we were able to escape the recent hike in ABSD and also managed to get a decent rental for our apartment.
You are right that we could retire in Singapore, but once we factor in the cost of cars and the projected cost of living based on current inflation rate, I think we will be better off living in Iskandar and have a comfortable retirement.
the way I look at how this country is moving, we believe we will be better off living a simple but comfortable life in Malaysia and yet still enjoy the world class healthcare facilities in Singapore and be close to our children.
Singapore's inflation is too much. It will deplete e savings of e lower income group n force e middle income group to live like e lower income group. It is only a place good for education n work, n v little thing else.
The main prob is we run out of land too fast before we can have sufficient population for a more robust domestic market n larger talent pool. From e way I c things, we need to leverage on Iskandar's land n labour. At least now it takes some steam away from our hot property market n offers cheaper place for family recreation. The next stage shd b allowing our retirees a more affordable retirement.
Thanks, good sister !
May I know is 7-11 better or Petrol Station ?
:confused:
Sorry I am not a financial person. I have no idea which of those is better as a business. Both have their problems I expect.
Hi SL,
take a look at the sites below for egs ya?
http://www.medschools.ac.uk/STUDENTS/COURSES/Pages/All-courses.aspx
http://www.abdn.ac.uk/medicine/prospective/overseas/fees/
I'm afraid you would have to estimate around half mill total for a medical course. The fees are only part of it. There are various other miscellaneous expenses. Lucky for those going these recent years. The Sterling GBP has come down a lot relative to SGD. Australia is not much cheaper. My friend whose daughter studied to be a vet there said it cost around half mill for that too.
So retirement might have to wait for those whose kids aspire to be doctors or vets.
:confused:
Sorry I am not a financial person. I have no idea which of those is better as a business. Both have their problems I expect.
7-11 is the most rip off stores you can find in this part of the world. The mark up of their products are out of this world and while their cost are as low as their stores like giant or cold storage.
thats why it keep popping out like mushroom everywhere.
You are right that we could retire in Singapore, but once we factor in the cost of cars and the projected cost of living based on current inflation rate, I think we will be better off living in Iskandar and have a comfortable retirement.
the way I look at how this country is moving, we believe we will be better off living a simple but comfortable life in Malaysia and yet still enjoy the world class healthcare facilities in Singapore and be close to our children.
even with the proposed MRT link with johore or improved driving access, i would not consider the kind of commute required to qualify as "still enjoy the world class healthcare facilities in spore". I think u will be a lot better off just staying put in Spore if healthcare is a consideration.
I walked a similar path :)
I thought the King had a path with much more roses ?
Office Boy started around those years also, except I took more risk, and have a slightly bigger portfolio (as compared to Juniper) !
DKSG
Me and my wife are currently in our 30s, and we started our foray into property in 2003 with very minimal saving, and today we have 3 propertie; a penthouse, a 4 bedder and a 1 bedder apartment.
2 of our properties are currently rented out, and we are collecting around $12k per month in rental. As for mortgage, our loan to asset ratio is around 50%.
At the moment, both of us are still working with a combine income of around $250K per year and we have no plans to give our properties to any of our 2 children because we would like them to build their own nest.
Our retirement plan will be to retire in Iskandar Malaysia and live off our rental income from our Singapore properties because we think that the quality of life will be better across the causeway but we still wishes to be close to Singapore.
We dont really have a target age for retirement as we believe that as long as we are healthy we should keep ourselves active.
Bro, with ur 250k combine income.. How much ur expenses? Care to share..:D
I thought the King had a path with much more roses ?
Office Boy started around those years also, except I took more risk, and have a slightly bigger portfolio (as compared to Juniper) !
DKSG
Yes, my path is also similar to yours. With the exception that I took lesser risks because I have many beds of roses. :( If I failed in my investment, I simply go crying foul to my billionaire family.
When you start off with less well-off background, you have to take a bigger risks. That is life, it is the price you have to pay to be on par with the people at the top. Otherwise, anyone can easily become a millionaire, tiobo?
But it is all worth it, do you not agree?
Yes, my path is also similar to yours. With the exception that I took lesser risks because I have many beds of roses. :( If I failed in my investment, I simply go crying foul to my billionaire family.
When you start off with less well-off background, you have to take a bigger risks. That is life, it is the price you have to pay to be on par with the people at the top. Otherwise, anyone can easily become a millionaire, tiobo?
But it is all worth it, do you not agree?
But being in my position also has its con. Very few people want to point out my bad habits or mistakes. Not because they are money minded or fear to offend me, but simply because they think I will be ok eventually or somebody else will help me figure it out.
Yes, my path is also similar to yours. With the exception that I took lesser risks because I have many beds of roses. :( If I failed in my investment, I simply go crying foul to my billionaire family.
When you start off with less well-off background, you have to take a bigger risks. That is life, it is the price you have to pay to be on par with the people at the top. Otherwise, anyone can easily become a millionaire, tiobo?
But it is all worth it, do you not agree?
Very the agree!
I quite enjoy the journey of property investment.
So much so that my friends say I am only keen on spotting good deals, buy, sell then spot again ... haha!
There was once I bought a PC to prove to my agent that the unit will confirm make money! Then 2-3 years later, when I sell, I make it a point to invite the agent to sell for me! Haha!
But now I tone down a lot already la ... not so compulsive.
DKSG
My friendship to my peers is very precious. They treasure me a lot. Many went into financial crisis but will never approach me for help even if I offered. This is because they only want my advice and friendship. I am so blessed to be educated in Singapore and find true peers here .
Very the agree!
I quite enjoy the journey of property investment.
So much so that my friends say I am only keen on spotting good deals, buy, sell then spot again ... haha!
There was once I bought a PC to prove to my agent that the unit will confirm make money! Then 2-3 years later, when I sell, I make it a point to invite the agent to sell for me! Haha!
But now I tone down a lot already la ... not so compulsive.
DKSG
Good to hear that, good brother ! Do not be compulsive, that is the first mistake even an old bird businessman can make :)
Very the agree!
I quite enjoy the journey of property investment.
So much so that my friends say I am only keen on spotting good deals, buy, sell then spot again ... haha!
There was once I bought a PC to prove to my agent that the unit will confirm make money! Then 2-3 years later, when I sell, I make it a point to invite the agent to sell for me! Haha!
But now I tone down a lot already la ... not so compulsive.
DKSG
Just remember this, good brother DKSG. You have helped elevated your next generation to a higher level with your sheer effort. Do teach them to be wiser and all the financial skills so as to help them go further in the future :)
Just remember this, good brother DKSG. You have helped elevated your next generation to a higher level with your sheer effort. Do teach them to be wiser and all the financial skills so as to help them go further in the future :)
Financial skills are never taught in schools. It is the knowledge passed on by father to son.
Buying a property in sg is better than buying shares. Volatility in market can kill greed. For Property u don't have to monitor frequently.
I think a change of trend for stock market has started, look at today market all deep red.
Very the agree!
I quite enjoy the journey of property investment.
So much so that my friends say I am only keen on spotting good deals, buy, sell then spot again ... haha!
There was once I bought a PC to prove to my agent that the unit will confirm make money! Then 2-3 years later, when I sell, I make it a point to invite the agent to sell for me! Haha!
But now I tone down a lot already la ... not so compulsive.
DKSG
Winners know what they want. Kudos to you.
Financial skills are never taught in schools. It is the knowledge passed on by father to son.
and master to disciples.
Not forgetting that many business cannot survive beyond 3 generations
Thanks so much for sharing, chestnut. This is a good thread to read and it puts me into thinking about investing in property more seriously.
I totally agree that its so hard to make the decision to take the plunge. There are so many factors to consider (what to buy, location, etc) as well as concerns about 'what if things go wrong'.. Maybe it's bcos I'm way too amateurish in this field and lack confident in my decisions.
But I must say I have learnt quite a lot by reading up in this forum but sorry to say I am unable to contribute anything useful thus far
CondoInterested
24-05-13, 18:24
Only at cbtp forum. I shared some info over at clover by the park. And it has been awhile since I posted there... Hahahaha a
Other than that - I do not contribute in any other forums.
Cheers....:cheers3:Read your postings at CBTP, wah, you big time property owner, huh?
Why should I save/invest for education in UK?
There are limited vacancies for some of the popular courses in Singapore, for example, Medicine, Law, Architecture. And as far as I am aware, there is no veterinary science degree offered in Singapore U. Your kid may decide he/she has a passion for these disciplines in the future. You cannot predict it when they are younger. Degrees from UK universities are recognized in Singapore (please refer to other sources to see which universities are recognized for which disciplines).
When should I start saving/investing?
As with all investments, the earlier the better. You will have time to ride out the ups and downs of the economic cycles and your outlay will be lower the earlier you start. You don't want to be in the situation of lacking funds at the point in time when you kid is ready to enter Uni as you will be in your 40s/50s by then and will also be planning for retirement. Plus salaried jobs tend to become insecure at around this age.
Banks and insurance companies offer Endowment policies for education. Aren't these good enough?
The returns on Endowment policies are very poor these days and your premium would need to be quite high if you want a large payout. Just call your insurance agent and try asking for a quote.
Why consider buying property in the UK?
- can leverage by taking mortgage
- can rent it out and get tenant to help you pay off the mortgage
- your kid might be able to stay in it eventually if he/she decides to study there (although student accomodation might be available but in some places it is of dubious standard, especially in London where property and rents are relatively expensive compared to the rest of UK)
- currency hedge (OK British pound sterling has dropped a lot in recent years but how far can it drop? What if it shoots up when your kid is ready to start Uni?)
- no special restrictions on foreigners buying properties (unlike Australia)
- no ABSD
- non-residents (not domiciled in the UK) are not liable to Capital Gains Tax.
Where should I buy in the UK?
Generally London is a good market for rental. Many people go there to work from overseas as well as other parts of UK. They mostly would rent as the cost of buying a property there is much higher than in many other parts of the UK. Also, there are a number of medical schools in London (greater choice of medical schools), all of which are recognized in Singapore, as far as I am aware (again check the list as it may be updated from time to time). And also some other famous institutions such as LSE (London School of Economics), Imperial College, etc. As with Singapore, proximity to MRT (London Underground) stations is an important factor.
Are there any special considerations of buying a property in the UK?
You must be aware that there is Inheritance Tax payable on the property if you should pass away while you own it. This is a whopping 40% of the value of the property which exceeds the inheritance tax threshold (currently at GBP325,000). A husband and wife can jointly own a property and have a threshold of GBP650,000 as transfer of assets at death to a spouse is free of inheritance tax and any exempted amount not used can be carried forward to the surviving spouse (provided you have not given a share to other parties).
Can rent from a paid up GBP650,000 property help to pay for my kid's education?
It is not likely to be able to pay all of the expenses, but it should be able to at least defray most of the fees portion (gross rental estimated around 5% at the moment).
I see many advertisements in the newspapers for developments in the UK being marketed in Singapore. Should I buy one from these sources since it is more convenient than going over to look for a place on my own?
It is better to buy a ready for occupation property as you can collect rent from it straightaway to pay your mortgage. And those properties marketed in Singapore will be having a fair amount of commission being paid to the marketing agencies which would inflate the selling price. I feel you can get better value by going over to London and looking for a property directly. Also, many of the properties meant for overseas investors have "extras" like gym, 24 hour concierge, etc. These can mean high maintenance fees and the maintenance fees can go up steeply from year to year (outpacing inflation). This will eat into your rental yield.
Note: Because of the Inheritance Tax issue, I feel that people should not rush into big investment in UK property unless they have an accountant or lawyer who has offered some solution to this. But an investment of just under the Inheritance Tax threshold may be viable for saving for your kid's education.
Sis, thanks for sharing... I now share about investing overseas a bit...
I bot a unit in Melbourne in the heart of cbd... Why??? Because I don't know what development is happening.... But like Singapore, many argue CCR is the best. I beg to differ.... Look at jurong lake area, you know investment is going to take place there, so why not invest there??? Let me ask a simple question, over the past 4-5 years, which area rose the most, Jurong Lake or name me any CCR?
Why I bot the unit in the cbdin Melbourn? Because I am not so familiar with Melbourne and that is the safest bet. Hahahahahaha
You are Singaporeans, you know what's happening, why don't you go for biggest gain??? Hahahahahaha
I am not against CCR, but every region will go up, it is called relativity.... Diff strokes for diff people.
:cheers4: :cheers4: :cheers4: :cheers4: :cheers4:
But we also know how to count, like Jurong Lake area selling at S$1500 psf, while some areas CCR selling at S$1800 psf, we know which to choose, regardless of how much development there are at Jurong Lake area, the industrial areas and nearness to Jurong Island will always be there. No brainer right? :p
Sis, thanks for sharing... I now share about investing overseas a bit...
I bot a unit in Melbourne in the heart of cbd... Why??? Because I don't know what development is happening.... But like Singapore, many argue CCR is the best. I beg to differ.... Look at jurong lake area, you know investment is going to take place there, so why not invest there??? Let me ask a simple question, over the past 4-5 years, which area rose the most, Jurong Lake or name me any CCR?
Why I bot the unit in the cbdin Melbourn? Because I am not so familiar with Melbourne and that is the safest bet. Hahahahahaha
You are Singaporeans, you know what's happening, why don't you go for biggest gain??? Hahahahahaha
I am not against CCR, but every region will go up, it is called relativity.... Diff strokes for diff people.
:cheers4: :cheers4: :cheers4: :cheers4: :cheers4:
But we also know how to count, like Jurong Lake area selling at S$1500 psf, while some areas CCR selling at S$1800 psf, we know which to choose, regardless of how much development there are at Jurong Lake area, the industrial areas and nearness to Jurong Island will always be there. No brainer right? :p
True... So there will always be turns.... So buy the undervalued.... If today CCR undervalued, go CCR... If rcr undervalued, go rcr... Likewise of OCR... There are certain segments in each market. The key is not to go blindly....
:cheers4: :cheers4: :cheers4:
The question is what will drop most in $psf and rental income when there is correction. ;)
True... So there will always be turns.... So buy the undervalued.... If today CCR undervalued, go CCR... If rcr undervalued, go rcr... Likewise of OCR... There are certain segments in each market. The key is not to go blindly....
:cheers4: :cheers4: :cheers4:
If you are looking for value in London,one option is ex-local authority homes. In Singaporean terms, these are equivalent to privatised HDBs.
http://www.telegraph.co.uk/property/9508685/Ex-council-homes-how-to-buy-a-bargain.html
http://www.dailymail.co.uk/property/article-1326853/Wise-councils-Spacious-solid-ex-local-authority-houses-good-deal.html
I am not sure if banks have more stringent lending rules for these. One advantage is that they can have very good locations near to public transport and amenities. And their maintenance charges are much lower than private housing. Due to their lower pricing, the rental yields on these come out significantly better than for a private unit of similar price.
But you would have to do the leg work to go down and inspect the neighbourhood and it would generally need more extensive renovations to make it attractive.
If you are looking for value in London,one option is ex-local authority homes. In Singaporean terms, these are equivalent to privatised HDBs.
http://www.telegraph.co.uk/property/9508685/Ex-council-homes-how-to-buy-a-bargain.html
http://www.dailymail.co.uk/property/article-1326853/Wise-councils-Spacious-solid-ex-local-authority-houses-good-deal.html
I am not sure if banks have more stringent lending rules for these. One advantage is that they can have very good locations near to public transport and amenities. And their maintenance charges are much lower than private housing. Due to their lower pricing, the rental yields on these come out significantly better than for a private unit of similar price.
But you would have to do the leg work to go down and inspect the neighbourhood and it would generally need more extensive renovations to make it attractive.
Hi...how to ensure the property will be well-look after by the agency or whatsoever managing agent when the owner/investor is not in the country physically?
Hi...how to ensure the property will be well-look after by the agency or whatsoever managing agent when the owner/investor is not in the country physically?
That is one of the big draw-backs of investing in overseas property. You will find it difficult to ensure that your agent is doing a proper job when it is half way round the world. It applies to other countries as well as the UK.
Some agents can even lease for you and tell you that it is not lease out but in fact already leased out and collect the rent. This has hPpened in Singapore.
That is one of the big draw-backs of investing in overseas property. You will find it difficult to ensure that your agent is doing a proper job when it is half way round the world. It applies to other countries as well as the UK.
That is one of the big draw-backs of investing in overseas property. You will find it difficult to ensure that your agent is doing a proper job when it is half way round the world. It applies to other countries as well as the UK.
Hi...that means I must have deep pocket and spare time to fly there for holiday and spot check.
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