A Peacock On Your Head, A Monkey On Your Back

[30years]

A Peacock On Your Head, A Monkey On Your Back!

That's what you get when you take a loan to buy a property for investment.

It is no secret. The experienced property investor knows. Do you?

Property prices are going up, up and away. This is true. Resale HDBs hits new high. Private residential and commercial properties launched are sold out, at record prices. You read these bullish news and you get excited and then you decided to buy your second property now, for investment, with a loan.

What did you get? What have you got yourself into?

You may think you just bought a piece of asset that you appreciate, that will appreciate in value but the truth is this - all you got is a MONKEY on your back, with an arm around your neck, the moment you sign a mortgage loan to pay for your property purchase.

You just exchange your asset, your cash, with a liability. The investment property that you bought with a loan is a liability, not an asset. It is like exchanging your cash for a monkey that will sit on your shoulder until you get rid of the property or pay off the loan.

This monkey could be light or heavy. If you loan to buy 500K MM, you get a small monkey. Loans for million dollars PC or landed are like big, heavy apes on your back and they always have an arm around your neck and another arm dangling just in front of your crotch.

When the return you get from your property is more that what you pay to service your loan, the monkey will stay off your back but will remain with you and follow you wherever you go. It is yours. You sleep with it even when your tenants feed it.

The moment you lose your tenant, the monkey will jump back onto your back and if you do not feed it, its arm will strange your neck. If you lose your job or get into a crisis, the other arm will squeeze your balls! Beware, this beast can turn you into a bankrupt and it is still yours, after it turned you into a bankrupt!

What about the PEACOCK? Yes, I almost forgot. The peacock is free. You get it the moment you sign on the dotted line, and it sits on your head with its feathers fully opened. The agents in the showroom will clap their hands and the people in this forum will congratulate you for your purchase. The peacock is the secret the developers and their sales agents used to lure you to exchange your asset for a monkey on your back.

The moment you buy a second property for investment, every other vested party makes money, except you. All you get is a monkey on your back and a peacock to show off, on your big head.

Now you know why they clap and congratulates you or you still don't get it?

[phantom_opera]

One word to sum it up, leverage is double edge sword

Your monkey will get lighter if u keep feeding it, as long as u don't take on a king kong lol

Doing nothing? M3 has doubled since 2005, honey I shrunk the money?

[proper-t]

But what if the monkey on yr back turns out to be a rare species that is worth a lot of money in the future... much more than all the bananas that you feed it

AND the bananas that you use to feed the monkey decrease in size every year so much so that it can never properly fill yr storeroom and planting it gives you even smaller bananas each year?

[radha08]

moral of story...invest in bananas........so when the monkey strangles you you can feed it.......bananas

NB:but seriously i like ur STory

[ikan bilis]

heya... why i have that feeling of you mean flamingo but wrote as peacock hur ??..



aiya... you already made some handsome profit of >1mil in properties liow... give other people chances of making some tinier $$, and wish them also lah... cheers, bros ...

[flagship74]

Investment is like gamble.Win or Lose?

[phantom_opera]

Sour grapes? Even if do nothing, the inflation monkey army sent by emperor PAPatine will be after u unless u join the dark side

[stiook]

The idea is to have others feed the monkey with bananas and then hopefully someone come along and give you alot more bananas for the peacock and the monkey...

It is a choice what a person wants to do with his bananas...

[Kelonguni]

I don't think the monkey is yours after you are bankrupt. The zoo will take it back from you and prevent you from getting any more monkeys.

[Allthepies]

u either feed the bankers and make them grow fat with free bananas when u park ur bananas with the bank, or u feed ur own monkey which may most probably turn into one which can help u harvest even more coconuts

[radha08]

The idea is to have others feed the monkey with bananas and then hopefully someone come along and give you alot more bananas for the peacock and the monkey...

It is a choice what a person wants to do with his bananas...

very true the goondu is the one who help u feed the monkeys...

[Kelonguni]

very true the goondu is the one who help u feed the monkeys...

The problem in this analogy is that there are more circus masters (tenants and home owners) than monkeys to go round. Monkeys therefore become costlier and costlier.

[hopeful]

TS write this because Yowetan receive many congratulations.

[radha08]

TS write this because Yowetan receive many congratulations.

yt is a champion...he did what he did because he believe in himself and his vision......but others may have a different view...so who is right who is wrong.....

[hopeful]

yt is a champion...he did what he did because he believe in himself and his vision......but others may have a different view...so who is right who is wrong.....

1.57mil, LTV 90%, 35 yr mortgage,
his monthly repayment at 1% = $3989.
at 2% = $4680.

he and his wife cpf can cover HDB monthly payment.
his parents and PIL HDB rental $5k can cover this FV monthly payment.

so anybody here think YT has weak holding power?

[DC33_2008]

Heard similar story from my uncle 20 years ago. He would have been a few more millions richer if he is not worried about the monkey on his back.

[august]

yt is a champion...he did what he did because he believe in himself and his vision......but others may have a different view...so who is right who is wrong.....

inaction is the worse kind of action






caveat: sometimes agents want ppl to believe this too hehe

[radha08]

1.57mil, LTV 90%, 35 yr mortgage,
his monthly repayment at 1% = $3989.
at 2% = $4680.

he and his wife cpf can cover HDB monthly payment.
his parents and PIL HDB rental $5k can cover this FV monthly payment.

so anybody here think YT has weak holding power?

hmm...u got a point...

[phantom_opera]

1.57mil, LTV 90%, 35 yr mortgage,
his monthly repayment at 1% = $3989.
at 2% = $4680.

he and his wife cpf can cover HDB monthly payment.
his parents and PIL HDB rental $5k can cover this FV monthly payment.

so anybody here think YT has weak holding power?

that is if what he said is true .... i have never seen PIL / parents both willing to sacrifice for son/daughter b4 ... and this assumes PIL/parents HDBs fully paid up

in totality, 12k income borrowing 1.8m is really risky

[sh]

M3 has doubled since 2005, honey I shrunk the money?

No, it should be, honey I shrunk the monkey....

[phantom_opera]

No, it should be, honey I shrunk the monkey....

the power of dark side of the force

force lightning which will torture and kill the monkeys, a force arise from greed, fear, anger ... the master of force lightning is Emperor PAPatine

[carbuncle]

I prefer to stroke my peacock and eat my banana.

[radha08]

I prefer to stroke my peacock and eat my banana.

bro......what happened to u...

[radha08]

the power of dark side of the force

force lightning which will torture and kill the monkeys, a force arise from greed, fear, anger ... the master of force lightning is Emperor PAPatine

ha ha for once no GRAPH and charts...

[30years]

I prefer to stroke my peacock and eat my banana.

Uncle, if you have many fully paid peacocks, no monkey on your back, and lots of bananas, go visits showflats and show the sales staff there your peacocks, your bananas and the feathers in your cap.

If you are lucky, some may show you their feathers and eat your banana.

[samuelk]

A Peacock On Your Head, A Monkey On Your Back!

That's what you get when you take a loan to buy a property for investment.

It is no secret. The experienced property investor knows. Do you?

Property prices are going up, up and away. This is true. Resale HDBs hits new high. Private residential and commercial properties launched are sold out, at record prices. You read these bullish news and you get excited and then you decided to buy your second property now, for investment, with a loan.

What did you get? What have you got yourself into?

You may think you just bought a piece of asset that you appreciate, that will appreciate in value but the truth is this - all you got is a MONKEY on your back, with an arm around your neck, the moment you sign a mortgage loan to pay for your property purchase.

You just exchange your asset, your cash, with a liability. The investment property that you bought with a loan is a liability, not an asset. It is like exchanging your cash for a monkey that will sit on your shoulder until you get rid of the property or pay off the loan.

This monkey could be light or heavy. If you loan to buy 500K MM, you get a small monkey. Loans for million dollars PC or landed are like big, heavy apes on your back and they always have an arm around your neck and another arm dangling just in front of your crotch.

When the return you get from your property is more that what you pay to service your loan, the monkey will stay off your back but will remain with you and follow you wherever you go. It is yours. You sleep with it even when your tenants feed it.

The moment you lose your tenant, the monkey will jump back onto your back and if you do not feed it, its arm will strange your neck. If you lose your job or get into a crisis, the other arm will squeeze your balls! Beware, this beast can turn you into a bankrupt and it is still yours, after it turned you into a bankrupt!

What about the PEACOCK? Yes, I almost forgot. The peacock is free. You get it the moment you sign on the dotted line, and it sits on your head with its feathers fully opened. The agents in the showroom will clap their hands and the people in this forum will congratulate you for your purchase. The peacock is the secret the developers and their sales agents used to lure you to exchange your asset for a monkey on your back.

The moment you buy a second property for investment, every other vested party makes money, except you. All you get is a monkey on your back and a peacock to show off, on your big head.

Now you know why they clap and congratulates you or you still don't get it?

The clapping normally is practice by ECG agents.
That draws attention to the crowd there as well as add pressure that another one sold. Dont buy no more liao mentality. Hold steady and you may be able to get the right one u gunning at.

[CondoWE]

I believe no pain, no gain so...

With monkey on shoulder...you will work harder for more bananas. !

[CondoWE]

1.57mil, LTV 90%, 35 yr mortgage,
his monthly repayment at 1% = $3989.
at 2% = $4680.

he and his wife cpf can cover HDB monthly payment.
his parents and PIL HDB rental $5k can cover this FV monthly payment.

so anybody here think YT has weak holding power?

To me, holding power is cash reserve in bank that can last 12 months or more instead of depending the source from rental incomes. Imho, It's a bit risky just in case lost of job or rental drop in demand....