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richwang
01-02-14, 20:58
http://www.youtube.com/watch?v=jqvKjsIxT_8
Money as Debt


Although the video Title is "Money as Debt", the real problem is "Debt as Money", and interest charges.

Most of the forumers here are trying to live on "passive income". But the question is: if EVERYONE is living on passive income, who will do the actual work?

Another observation is I/(P+I), compounded interests will be the one causing bankruptcy.
For example, the current CPF contribution rate for Special Account is less than 10% of one's salary. So a person makes S$80K a year, can only contribute S$8K to his CPF SA.
The Minimum Sum is exponentially increasing at >4%, it is now reaching at S$9K a year. In other words, for the next generation who starts with nothing in their CPF, even he is making S$80K a year, he cannot even cover the interest increment of Minimum Sum.

Comments and thoughts?

richwang
01-02-14, 21:08
For older generation who have already reached Minimum Sum, it is less a problem. Because the 4%+ interests on S$148K is almost $6K - kind of living on passive income.

Arcachon
01-02-14, 23:14
What I learn in Life insurance training, when you buy a policy of SGD 1,000,000 your life is worth SGD 1,000,000 when you die.

What I learn in Real estate training, when you put 20% down payment for the property the Bank created the other 80% and if you can get someone to pay the mortgage for you the property is your after someone have pay all the loan for you.

And if Ben switch on the money printing press than it will take a short time for someone to pay your loan and you can cash out and buy another property.

CPF is for those who have no time to educated themselves what is money. Don't spend too much time on what CPF can offer, spend more time to educated yourself what is Money?

http://www.youtube.com/watch?v=4Xx_5PuLIzc

radha08
01-02-14, 23:24
a wise man said....

"when you die and you have EXCESS money in your bank account it is for the unnecessary work you did when you were alive....:D:D:D

sporadic
01-02-14, 23:27
a wise man said....

"when you die and you have EXCESS money in your bank account it is for the unnecessary work you did when you were alive....:D:D:D

I like that quote!

Arcachon
01-02-14, 23:34
a wise man said....

"when you die and you have EXCESS money in your bank account it is for the unnecessary work you did when you were alive....:D:D:D

My Brother like to use the quote and he have 4 credit card loan.:scared-1:

chestnut
02-02-14, 06:27
What I learn in Life insurance training, when you buy a policy of SGD 1,000,000 your life is worth SGD 1,000,000 when you die.

What I learn in Real estate training, when you put 20% down payment for the property the Bank created the other 80% and if you can get someone to pay the mortgage for you the property is your after someone have pay all the loan for you.

And if Ben switch on the money printing press than it will take a short time for someone to pay your loan and you can cash out and buy another property.

CPF is for those who have no time to educated themselves what is money. Don't spend too much time on what CPF can offer, spend more time to educated yourself what is Money?

http://www.youtube.com/watch?v=4Xx_5PuLIzc

Bro Arachon, AGREE!!!!!

I shared this theory with my children just a few days ago....

I said, let's assume u buy a condo @ 1 mil.

The downpayment is 200k. So the loan is 800k.

Let's say u rent out the entire unit at say 3.5k.

Now let's compute the mortgage of 800k and put a % there....

You will now be able to compute at say 1.2% or 5%... It's up to you....

Now work it out.... Even if you have to pay say extra 1k for 30 years on top of your rental income.... Your total output is 200k + 1x12mthx30years= 200+360k= 560k total paid.... But your house still generate passive income for another 60 years. HAHAHAHAHAHA

Can u imagine figuring this out at 50???? How to borrow to the max tenure.. :confused::confused::confused:

I bot my first condo anchorage many years ago and the tenant has been paying for my loan... Cheers and KONG XI FA CAI.

DC33_2008
02-02-14, 07:35
Well. It is never late to change when one can see it. Your children will learn and do the right things. Worst is for those who see it and do nothing about it.
Bro Arachon, AGREE!!!!!

I shared this theory with my children just a few days ago....

I said, let's assume u buy a condo @ 1 mil.

The downpayment is 200k. So the loan is 800k.

Let's say u rent out the entire unit at say 3.5k.

Now let's compute the mortgage of 800k and put a % there....

You will now be able to compute at say 1.2% or 5%... It's up to you....

Now work it out.... Even if you have to pay say extra 1k for 30 years on top of your rental income.... Your total output is 200k + 1x12mthx30years= 200+360k= 560k total paid.... But your house still generate passive income for another 60 years. HAHAHAHAHAHA

Can u imagine figuring this out at 50???? How to borrow to the max tenure.. :confused::confused::confused:

I bot my first condo anchorage many years ago and the tenant has been paying for my loan... Cheers and KONG XI FA CAI.

chestnut
02-02-14, 07:51
Well. It is never late to change when one can see it. Your children will learn and do the right things. Worst is for those who see it and do nothing about it.

Bro, that's why I joined this forum to share.... Hahahahahaha

I remember sharing about taking out a loan on the house.... Kana humtam until like crazy.... Hahahahaha.... Many say I encourage too much loan....

Those who took out a loan on the house a few years ago should be laughing now... Hahahahahaha...

Bro DC... HAPPY PROPSPEROUS NEW YEAR....

Huat Ah.....

DC33_2008
02-02-14, 07:58
Spread was really low then. Good to spread good news during festive season. There are always people who treasure your thoughts. May the Year of the Horse brings Great Health, Wealth and Investment Opportunities to Everyone here in this Forum. Huat exp10.
Bro, that's why I joined this forum to share.... Hahahahahaha

I remember sharing about taking out a loan on the house.... Kana humtam until like crazy.... Hahahahaha.... Many say I encourage too much loan....

Those who took out a loan on the house a few years ago should be laughing now... Hahahahahaha...

Bro DC... HAPPY PROPSPEROUS NEW YEAR....

Huat Ah.....

chestnut
02-02-14, 08:14
Spread was really low then. Good to spread good news during festive season. There are always people who treasure your thoughts. May the Year of the Horse brings Great Health, Wealth and Investment Opportunities to Everyone here in this Forum. Huat exp10.

Bro, I will throw a conundrum today.... Can you all figure this out...

For a landed semi d, how much is the price in the year

1. 2013
2. 2003
3. 1993
4. 1983
5. 1973
6. 1963

Having done this exercise.... What did u notice?????

Time value of Money......

look at every country.... And u will also see inflation over the decades.... So what does this tell u????

If u had taken an endowment plan for your kids' education, when it matures, u will be wondering, shit why so little money ah???? Because of inflation....

Ok, enough Liao.... GONG XI FA CAI to all....

star
02-02-14, 09:28
Bro Arachon, AGREE!!!!!

I shared this theory with my children just a few days ago....

I said, let's assume u buy a condo @ 1 mil.

The downpayment is 200k. So the loan is 800k.

Let's say u rent out the entire unit at say 3.5k.

Now let's compute the mortgage of 800k and put a % there....

You will now be able to compute at say 1.2% or 5%... It's up to you....

Now work it out.... Even if you have to pay say extra 1k for 30 years on top of your rental income.... Your total output is 200k + 1x12mthx30years= 200+360k= 560k total paid.... But your house still generate passive income for another 60 years. HAHAHAHAHAHA

Can u imagine figuring this out at 50???? How to borrow to the max tenure.. :confused::confused::confused:

I bot my first condo anchorage many years ago and the tenant has been paying for my loan... Cheers and KONG XI FA CAI.

Exactly!!! This is very good post, it's enlightening.

yowetan
02-02-14, 12:19
Hi all...this is why I advocate Mt Sinai landed.

I love to be in debts, aka good debts.

mcmlxxvi
02-02-14, 12:22
Although the video Title is "Money as Debt", the real problem is "Debt as Money", and interest charges.

Most of the forumers here are trying to live on "passive income". But the question is: if EVERYONE is living on passive income, who will do the actual work?

Another observation is I/(P+I), compounded interests will be the one causing bankruptcy.
For example, the current CPF contribution rate for Special Account is less than 10% of one's salary. So a person makes S$80K a year, can only contribute S$8K to his CPF SA.
The Minimum Sum is exponentially increasing at >4%, it is now reaching at S$9K a year. In other words, for the next generation who starts with nothing in their CPF, even he is making S$80K a year, he cannot even cover the interest increment of Minimum Sum.

Comments and thoughts?

I have passive income, yet i choose to do real work. Reasons:

1. Save for rainy day
2. Bored to death
3. Still young and able

mummy
02-02-14, 12:28
I agree with the quote "debt as money" as even though our debt is quite high at 1.4 million excluding car loan, we can still look forward to retirement with passive income soon. Amazing but true as long as rental stays steady...but of course we are looking to pay off about half our debt in a few years time for a more comfortable retirement.

relax88
02-02-14, 14:31
But there are monkeys that say , those who buy properties will be caused like , no money lar, prices crash lar.

some even predict every year that prices will crash and after the government implement the cm, prices soften, then he start saying he is right in his predictions........2 years after making the first comments.


Like that I also predict that ah gong will pass on, not this year never mind, next year I try again:D: confirm 1 year sure kana, na bei有讲跟没讲一样

richwang
02-02-14, 14:49
HaHa, I was among those who turned bearish 2 years ago. And you can see from the buying attitude survey: I am still bearish for Singapore residential property in general, but turned neutral if I were first-timers (or if ABSD is removed.)

richwang
02-02-14, 14:54
I've seen so many people who try to time the market for the very perk or rock bottom, and end up missing the boat.
So my objective is not at the wrong side of the cycle.

VS
02-02-14, 15:57
I agree with the quote "debt as money" as even though our debt is quite high at 1.4 million excluding car loan, we can still look forward to retirement with passive income soon. Amazing but true as long as rental stays steady...but of course we are looking to pay off about half our debt in a few years time for a more comfortable retirement.

I just wonder, what is a good time to be debt free, ie, pay up all the housing loans but continue to work and have rental incomes? 50 years old? 60 years old? or only after jobless?

Allthepies
02-02-14, 16:04
I recently came across this series of video titled "the hidden secret of money", it says about the US and the world money system, wonder anyone has seen these videos and whether they make sense.
http://m.youtube.com/watch?v=DyV0OfU3-FU

Arcachon
02-02-14, 16:36
I recently came across this series of video titled "the hidden secret of money", it says about the US and the world money system, wonder anyone has seen these videos and whether they make sense.
http://m.youtube.com/watch?v=DyV0OfU3-FU

Know who is behind the video and you will understand what is he trying to sell.

What I learn in Direct Sale, you need to create fear and need for you to sell your product.


http://www.forbes.com/sites/afontevecchia/2013/07/18/bernanke-tells-congress-i-dont-understand-gold/

“Is gold money?” he asked. Clearly bothered, Bernanke told the representative, “No. It’s a precious metal.”

After Paul interrupted him to note the long history of gold being used as money, Bernanke continued,”It’s an asset. Would you say Treasury bills are money? I don’t think they’re money either but they’re a financial asset.”

http://www.youtube.com/watch?v=2NJnL10vZ1Y

4:30 Gold is not money, it an asset.

Allthepies
02-02-14, 16:45
Know who is behind the video and you will understand what is he trying to sell.

What I learn in Direct Sale, you need to create fear and need for you to sell your product.


http://www.forbes.com/sites/afontevecchia/2013/07/18/bernanke-tells-congress-i-dont-understand-gold/

“Is gold money?” he asked. Clearly bothered, Bernanke told the representative, “No. It’s a precious metal.”

After Paul interrupted him to note the long history of gold being used as money, Bernanke continued,”It’s an asset. Would you say Treasury bills are money? I don’t think they’re money either but they’re a financial asset.”

Yup I know they are promoting gold but I dont like and wont buy gold. To me gold is more a liability than asset.

So the question is shld we keep so much fiat currency or should we convert the fiat currency quickly into real estates if the videos are true?!

Arcachon
02-02-14, 16:46
I just wonder, what is a good time to be debt free, ie, pay up all the housing loans but continue to work and have rental incomes? 50 years old? 60 years old? or only after jobless?

How do you define debt free? A baby is debt free and he/she have no money.

My father is also debt free, after he retire he spend all his CPF and now no money.

Arcachon
02-02-14, 16:47
Yup I know they are promoting gold but I dont like and wont buy gold. To me gold is more a liability than asset.

So the question is shld we keep so much fiat currency or should we convert the fiat currency quickly into real estates?!

That is why you have all the CMs............ to stop you from buying.

You know why the property have not crash yet after all the CMs.... because if you sell you cannot buy due to the CMs....... and what will you do with all the money that is depreciating everyday.

Arcachon
02-02-14, 16:58
Bro, I will throw a conundrum today.... Can you all figure this out...

For a landed semi d, how much is the price in the year

1. 2013
2. 2003
3. 1993
4. 1983
5. 1973
6. 1963.

1967 SGD $66,000 now $14 million Coronation Road bungalow just over 1,000 sq m.

http://forums.condosingapore.com/showthread.php?t=20291

indomie
02-02-14, 17:01
That is why you have all the CMs............ to stop you from buying.

You know why the property have not crash yet after all the CMs.... because if you sell you cannot buy due to the CMs....... and what will you do with all the money that is depreciating everyday.
The rich are secretly liquidating their paper wealth into real assets. But they have to do it little by little or else the paper wealth value will fall. Interest rate will never rise again, because it is generally known that paper wealth has no intrinsic value. Paper wealth is not an asset now, its a liability.

Arcachon
02-02-14, 17:12
郎咸平说 54 金融危机下,你该不该买黄金

http://www.youtube.com/watch?v=26vs6kbOs1w

Arcachon
02-02-14, 17:30
郎咸平说 54 金融危机下,你该不该买黄金

http://www.youtube.com/watch?v=26vs6kbOs1w

20:40

https://scontent-b-ams.xx.fbcdn.net/hphotos-prn1/t31/1599835_10202016248500702_1230443225_o.jpg

Arcachon
02-02-14, 17:42
http://www.youtube.com/watch?v=j8SWsRaRgck

郎咸平说 59 黄金和美元飙涨的背后

chestnut
02-02-14, 17:47
1967 SGD $66,000 now $14 million Coronation Road bungalow just over 1,000 sq m.

http://forums.condosingapore.com/showthread.php?t=20291

Bro, when they bot at 66k. When it reached 180k, do u think its peak???? When from 180k, it reached 500k, do u think its peak??? From 500k, it reached 2mil, do u think its peak???? From 2mil, it reached 6 mil, do u think its peak??? From 6 mil, it reached 14 mil, do u think its peak???.

Inflation, every year inflation.... Can u imagine they sold at 2 mil, how many times they made.... But imagine how much they would lose.... Hahahahahaha

I really pity the people who hope for the worst of times to enter but never enter due to fear....

Those who hoped for worst of times should have already gone in in 2008/9.... Why didn't they:beats-me-man: only they know.... Hahahahahahaha

GONG XI FA CAI Arachon

SingaSling
02-02-14, 19:23
Bro Chestnut, based on this analogy, does it make sense to sell a fully paid HDB currently rented out and use the capital to leverage on a bigger private property on loan. Considering ABSD, would it be a better approach.



Bro, when they bot at 66k. When it reached 180k, do u think its peak???? When from 180k, it reached 500k, do u think its peak??? From 500k, it reached 2mil, do u think its peak???? From 2mil, it reached 6 mil, do u think its peak??? From 6 mil, it reached 14 mil, do u think its peak???.

Inflation, every year inflation.... Can u imagine they sold at 2 mil, how many times they made.... But imagine how much they would lose.... Hahahahahaha

I really pity the people who hope for the worst of times to enter but never enter due to fear....

Those who hoped for worst of times should have already gone in in 2008/9.... Why didn't they:beats-me-man: only they know.... Hahahahahahaha

GONG XI FA CAI Arachon

mummy
02-02-14, 19:38
I just wonder, what is a good time to be debt free, ie, pay up all the housing loans but continue to work and have rental incomes? 50 years old? 60 years old? or only after jobless?

I used to be averse to debt but changed these few years. I guess when interest rates rise too high is the time to cut down debt but if rental income can cover the interest, it also may not matter too much...

Arcachon
02-02-14, 22:47
http://www.youtube.com/watch?v=6Y2VircJxf4&list=PLGYS8R_YaLy5qEYYF6f0dLuEzJqOc7CoT&index=2

金錢的故事

http://www.youtube.com/watch?v=ksyTBD-wL4A&list=PLGYS8R_YaLy5qEYYF6f0dLuEzJqOc7CoT

貨幣戰爭

Laguna
03-02-14, 08:07
dear ALL

I have disappeared from the forum for some time just simply being lazy.:sleep::sleep:

在此我跟这些没見过面的朋友拜个年
祝福大家
财源滚滚
万事如意
心想事成
身体健康
大吉大利
马到功成
百射百中

Arcachon
03-02-14, 13:59
http://www.skyscrapercity.com/showthread.php?t=1650487

http://www.bmw-sg.com/forums/attachments/top93-sports-rim-tyre/59138d1390919032-happy-2014-horse-new-year-everyone-huat-ah-30281-vector-chinese-new-year-greeting.jpg