I love my Bank.

[phantom_opera]

Hi phantom
Tks for coming in.

Exactly, I m fearful if interest goes up... So far this current interest rate is the lowest in my entire property mortgage payment, thought want to capitalise on it till 2015, on the other hand with all these cm, need to think very hard how to go ard it otherwise cash eat up by inflation.

So now is buy die, don't buy also die.

Bro, what's yr take. Shd wait or buy now? Le to hear yr view.

No one size fits all solution, but it is sufficient to probably say stock valuation is cheaper than both bond & property ... property has factored in a lot of future inflation expectation ... HK is leading the speculative fever now

IMO, MAS did a good job this time ...

[kane]

Hi phantom
Tks for coming in.

Exactly, I m fearful if interest goes up... So far this current interest rate is the lowest in my entire property mortgage payment, thought want to capitalise on it till 2015, on the other hand with all these cm, need to think very hard how to go ard it otherwise cash eat up by inflation.

So now is buy die, don't buy also die.

Bro, what's yr take. Shd wait or buy now? Le to hear yr view.

If you must, buy something that doesn't require you to stretch yourself so thin. Why die die must buy a $3m property if you know you cannot stomach the risk.

[chestnut]

What I dun like about property is liquidity, cannot throw in seconds like stocks and bonds

bro, how can you say it is illiquid when you can get equity loans?
I tell you why u dont really like properties. You have done so much reading on stocks and bonds that your speciality is in this area. So far you have been right in your analysis on stocks and have been making money. You are able to cut losses in the event a particular stock turns sour and you think it will go south somemore. Now you know why I said I learnt from you. I am not so good in such activities. Why? Not that I am not capable. I am at this stage whereby I am bloody lazy and I really dont need to make so much more money. I am at this stage where I am looking at passive income. So the paly is different. I play stocks to keep my mind busy and also understand the world economy.

My speciality is in properties.

So report card on my knowledge

Properties(depending on areas) A
Stocks B
Forex D
Bonds/notes - I leave it to others to advise me (low risk)
Fixed deposit A
Legal A if dont know, pay lawyer - hahaha

[chestnut]

If you must, buy something that doesn't require you to stretch yourself so thin. Why die die must buy a $3m property if you know you cannot stomach the risk.

200% agree. Sleeping well is the key. But some people like adventures.

Thats why not everyone can do sales because the stress is so high. But many dream to do sales because the money is there. Just an example.

[Werther]

If I buy my next pty, got to feel like I can move in if I want to, so not too small...all those I saw, of reasonable size ard there, like Hawaii tower, though old but nice environment except invaded by .... But ok lah.

So now is buy die,dont also die or buy die faster?

[kane]

$2-2.25m can get you a lot of the older big size apts. No need to go to 3m.

[carbuncle]

I really like uncle nut posts. can share why you took so long to return to the forum? or rather wait till now then Grace us with your presence?

[focus]

Enough said. What is important is people who took the risk and were rewarded. Some took risk and were punished. This were the people in 97. I was one of them for both instances. That's why it's important to learn.

So 前辈，now is reward or punishment if you buy singapore property now?

[Fisherman]

On the topic of alternative investment, just wonder what do you guys think of USD hedged bond funds. Apparently one can leveraged up to improve on yield. This investment class is liquid and being a fund it is diversified. With leverage, yield can reach a high of ~10 pct p.a. on initital capital outlay! Seems attractive isn't it??

[chestnut]

I really like uncle nut posts. can share why you took so long to return to the forum? or rather wait till now then Grace us with your presence?

I was busy making more money. I am almost there (still a bit greedy but not overly). In fact today I can tell you I can retire but wifey wants to work so follow her and plan to retire together.

I had a good mentor who taught me the initial ropes. If i tell you the story you faint because it will take me 2 bloody months to write it - sorry, it should be i faint. Cut to the chase, this guy shared with me this :

1. When you are young, do you expect your salary to be constant for the next 10 yrs?
2. If you take 5% growth, what would be your salary in 10 yrs?
3. When you buy property, you need to do forward purchase with your earning capacity.
4, If you have no guts dont do it.
5. He said "you are a smart guy, I see you will be someone very shortly". So he saw what I could not see when I was young. My mirror was foggy.
6. Time value of money was what he stressed on.

He was drawing 2K but bot a walk up apartment in east coast for 200K and the rental took care of everything and he had excess cash. But of course he had the luxury of buying on the cheap.

Today, he is in a deep shit because he overleveraged. Sold away all his investment properties. So I learnt all the above from his experience and I myself went thru shit in 1997. I just hope, people can learn a very very little from my experience and wont go thru shit like me. So i am sincere in sharing.

My only advise, play within your means and limits. You must know if your car can go 200kmh or not and if emergency, can the car brake in time, if not, pray you have a luxury car to protect you so you get minimum hurt.

Life is fragile, be nice to people and share along the way, if they take your advice, dont expect a meal. If they dont take your advise, just take it you never gave. And lastly, dont anyhow give advise, one day it may come back and haunt you. I dont give advises. I only share. What each of you want to do with your life is up to you. I dont owe you a living and neither do you to me. But who ever pisses me off, I will keep my mouth shut. After all, who am I to you. hahaha. Enough of the philosophical story.

[chestnut]

So 前辈，now is reward or punishment if you buy singapore property now?

Bro, in 2005/6 u go in anywhere with your eyes close, the gold was all around. All you needed was to take a dart and aim at the singapore map and wherever it landed, you can buy, SURELY WIN.

Today, with the prices more then doubled since 05, what do you think? There are still pockets here and there but more researches need to be done. When it is up so high, you have to go in with your eyes wide open and get out in the event of cracks. If the ship is leaking, you must determine if it can still float or not. Dont be like the stupid mouse that thinks the cheese will always be there. Read 0 who moved the cheese. Changes are happening everyday and what may be right today could be wrong tomorrow. I got out of gardens because i saw some cracks, then came ECB, then QE3, last straw was 6 mil population and latest stats on population. The risk reward now is not so good if you ask me. Really have to keep abreast of the situation, but it good for me because it exercises my mind. If not I will slack.

Bottomline, History always repeats itself because there will be a new generation that did not go thru shit and believe that "this time it is different". I was that generation in 1996. Hahaha. Remember the 4 tigers!!!

[carbuncle]

+++LIKE nutnut!!!!!!!!!

if the world still around after 21 Dec I shall reveal my true identity and then seek enlightenment from this great master.

[chestnut]

+++LIKE nutnut!!!!!!!!!

if the world still around after 21 Dec I shall reveal my true identity and then seek enlightenment from this great master.

Huh??? You believe in the Mayan calendar?

Sorri, I diff religion. But I strongly believe in peace and love. Maybe I was a hippie living in San Fran in my previous life.

[Werther]

Like chestnut and caruncle for your selfless sharing. Really appreciate it.

Yes, I went thr all the down cycle in 97-2000, 2001-2006. But has been prudent so not really affected. But did throw some away cos panic and now heart ache as they r in ccr...but life can't win all the time...most important at the end still win a little bit, ok liao.


Chestnut - share yr concern property at its peak so now dilemma..price may climb higher like Hong Kong..heard recently prc in sin grabbing 10 unit sentosa bungalows again and 20s unit at new launch. Maybe herd instinct also...

Equity - not familiar, always buy high sell low...haha

[chestnut]

Werther, I only share this with you. Please, not advise.

"If you cannot sleep at nite because of any purchases, not worth it. The stress will drive you up the wall and you will easily fall sick. You will also get edgy and scold your kid and spouse easily. If you have gone thru 97 and beyond. You should know what is about to happen. I can only see 1 year so far and things looks OK unless something bad happens. Now you know why I keeping my eyes wide open. Please do not take my case because even if I cannot spot the crack, I can weather the storm. So yes i am risk averse. Thats why I sleep peacefully at nite".

You sold because you did not do enough research and thus have no conviction. Research only solidifies your conviction. Research is like running 10km everyday so when you have to run 12 km, you know you can do it."

Balance your life and enjoy the road but please do plan for retirement. If will happen sooner than you expect. This is the key. Not the property.

[focus]

Bro, in 2005/6 u go in anywhere with your eyes close, the gold was all around. All you needed was to take a dart and aim at the singapore map and wherever it landed, you can buy, SURELY WIN.

Bottomline, History always repeats itself because there will be a new generation that did not go thru shit and believe that "this time it is different". I was that generation in 1996. Hahaha. Remember the 4 tigers!!!

Kam Sia !
Always good to hear another view of the market
I've also noticed a lot of property millionaires who made their fortunes from 2006-2009.
Blackjacktrader was saying last time about the rise of the middle class to the next level. I thought that had happened in 2006-2009.

Anyway, I'm finding the australia market to be interesting. It is starting a recovery.

You were mentioning about the $500k in FD and leverage for 4% bonds to yield 5%. Well, the strategy sounds alright but just curious.. are you ok to get locked into a bond for 5-10yrs at 4% once you redeemed with your FD (should interest rate goes up). Which means if you need the money to buy properties, your bond value can at most leveraged up to 70% for investment grade right. So your $500k will become <$400k in value when interest rates goes up and you redeemed. And if you draw out 70% of lending value from the $400k, it will be arond $300k.

[focus]

+++LIKE nutnut!!!!!!!!!

if the world still around after 21 Dec I shall reveal my true identity and then seek enlightenment from this great master.

WALAU..... so many people want to reveal something on December..
You reveal identity..
blackjack reveal his 3rd/4th and some say 5th eyes insight..
who else wants to join the party? >.heheh..

[chestnut]

Wa, lunch time you give me number crunching.

For me to do this, I will put long term. I have more than enough of properties. As for the bonds part, I have not executed. I honestly tell you, I can think of all kind of ideas, but come execution time, super lazy. I can afford to now. But for the younger chaps, time is money and have to make every drop count. I dont know how old you are but I do know I am quite old. But below 50 OK. Last time I 40 went fishing and a 20+ guy came to me and ask - Uncle, caught any fish? I turn to my side because I tot he was talking to the person next to me only to realise, there was no one beside me. So out of courtesy, I replied - yes, a few. Then, I wound back by line and whispered to myself, Wa Piang, I now quite old hor, young punk call me uncle.

So I have accepted the fact and decided to make more money and save for retirement and this is where I am now. Please do financial planning early because you will get a shock sooner then you expect.

And lastly, before I head for lunch - Dont believe all the financial consultant who tell you overseas study will cost you a leg and an arm. It cost about 100k sing per year for your kids education today. My kid is in melbourne. It is even cheaper in the states and UK.

[condolisa]

Chestnut guru, thank you for your generous sharing. I pour tea for you, pls accept ya

[buttercarp]

Just had a can of baked beans for lunch.
Although it was simple, it was delicious and best of all it is low in calories. It has low glycemic index which makes you fuller for a longer time and high in fibre. And it is cheap.

If only housing and cars in Singapore were like that too .............

[chestnut]

Just had a can of baked beans for lunch.
Although it was simple, it was delicious and best of all it is low in calories. It has low glycemic index which makes you fuller for a longer time and high in fibre. And it is cheap.

If only housing and cars in Singapore were like that too .............

Dare to dream if the dream can be a reality. If it cannot, then face it and find a solution around it. Dreamers will succeed if they are inventors. If you are not, face the reality, study the market and work on it.

There are a few people in this forum that are super solid. I have learnt a lot from them and that is another reason why I am beginning to contribute. I dont want to be selfish. I hope I am not wrong in this aspect. but if you dont try, you will never know.

[Arcachon]

This is final, MAS is doing a good job.

Ans. It's the same 6 yrs

Q. What if LTV is 40% how many years.

Ans. the bank can only grant you the max loan tenor at 6 yrs only and based on the ppty purchased and your income, the max loan quantum is only @ 60% LTV. Do you still want me to proceed for you if you can only get 6 yrs of loan tenor. Pls advise. thank you.

[chestnut]

Chestnut guru, thank you for your generous sharing. I pour tea for you, pls accept ya

Condolisa, please do not call me guru. I am not always right but please do exchange views with me as it will widen up my views. But I dare say I am >70% right most of the time. No one can get it right all the time. but getting a high hit rate is the key. U can ask phantom on this. Come stocks, he is hitting it right >70%. I am very sure I am right on this.

[chestnut]

This is final, MAS is doing a good job.

Ans. It's the same 6 yrs

Q. What if LTV is 40% how many years.

Ans. the bank can only grant you the max loan tenor at 6 yrs only and based on the ppty purchased and your income, the max loan quantum is only @ 60% LTV. Do you still want me to proceed for you if you can only get 6 yrs of loan tenor. Pls advise. thank you.

Bro, you are a champion already in my mind and you were damn lucky to have gotten on the boat.

[Werther]

For fire insurance for common walls, any companies to recommend? I think I forgot to get one....

[Arcachon]

If i remember correctly, the game changer for him was southbank.

SGD 353,000 to SGD 1,500,000.

[Arcachon]

His cola is more than his salary. And his overseas housing is probably subsidised.

While he is abroad he is collecting rent from his hdb and PCs (if that is so his rental should be higher than what he states - maybe the contracts were from 2 y ago).

He did well by adding to his property portfolio while he was abroad.

Maybe his retirement age in his job is 55 that's why bank is only offering him 6 year tenure. Some army officers have such early retirement age.

I jump from the left pocket to the right pocket at age 43 in 2007. Retirement now, the sky is the limit.

Now, 0725 in France got to go to work.

[buttercarp]

Hi Arcachon, i was wondering what is cola.
After chiaberry's post then i realized it is cost of living adjustments.

At first I tot it had something to do with cocaine!

So bro, my memory did not fail me.... you are indeed in France!

[kane]

Excellent nuggets of wisdom chestnut!

[kane]

SGD 353,000 to SGD 1,500,000.

Nice. Speechless. That's up there with the record books.