What a property investor shouldn't do in today's market condition.

[狮子王]

Bro, touch tummy can absorb powder from u want leh... Be careful... Boy or girl??? Do tell me more the gender and I will shed some light....

He is an old man. I was wondering why he did that on 2 occasions to my tummy while I shook his hand.

Like rub rub action like that. He confirmed not gay .

First time he said I put on weight.

Second time he said that again

[Zile]

My 2-cents thought:

- Stop looking at the money; it is just some number with more zeroes behind it. Put it into an account that you don't see it every so often. In other words, don't bother about it for a while, don't let it change you.

- Use some of it to pamper yourself a bit; refurbish the house, a new car, and thats about it. Take a long holiday, stay away from the markets for 6 month to avoid getting into the "Greed" mode.

- Be thankful of the benefactor; and your family who all make the lucky star appear in your life.

Enjoy!

Thanks! Will do!!!!

[chestnut]

He is an old man. I was wondering why he did that on 2 occasions to my tummy while I shook his hand.

Like rub rub action like that. He confirmed not gay .

Bro, be careful.... If girl, I tell u go ahead and let her touch... Then slowly guide her to your target.... Navel hor.... Ent think crooked... Than she give u her powder...

Guy, he will suck your zhi up and dry u out.... Better siam him leh...

On a serious not... Check this out

http://www.forbes.com/singapore-billionaires/list/


We can now narrow u to be the top 16..... We going to use elimination process to determine your identity... Be careful hor....

Who knows how to check Botannia, which billionaire bot ah???? Kaypo leh...

Me think, hopeful quite good at this...

[狮子王]

He is an old man. I was wondering why he did that on 2 occasions to my tummy while I shook his hand.

Like rub rub action like that. He confirmed not gay .

First time he said I put on weight.

Second time he said that again

Further more when I look at him. His "YIN" qi very strong. I mean I can FEEL this kinda stuff.

[indomie]

Bro indomie... Me joking around lah... Never angry one... This one forum leh.... Sometime type so serious until sian.... Hhahahaha....

If lion angry, his problem... Very most next time don't share with him my story lor... So simple one... Hahahahahaha

I here to tcss....

On a serious note, my dear Watson Indomie..... You have excelled so much until it is about time u teach me a thing or 2. My dear Watson, when do u expect a major recession????? Do please enlighten me. I do plead with you....

Don't flatter me too much. I enjoy this forum a lot. Bro if u want to know the next major recession u should be at the look out at "mini america", ie. Japan. Japan is at the forefront of this money printing experiment.

[chestnut]

Thanks! Will do!!!!

Zile... Today, me good mood... Me offer another advise...

1. U have been very lucky.... But you need to be abit more studious in your financial pursuit...
2. U need to plan for retirement income... If not, it will always haunt u....
3. U need to take a little bit of money out and start to pay school fee... Thru this, you will learn....
4. Look at the bonds thread.... Vic has shared quite a bit.... Read thru the entire thread.... And learn...
5. U are right, don't swallow more than u can chew....
6. Read and read and read... There is no end to that...
Don't think of being lucky twice.... Hard work is important...



Secretariat, paiseh... I quite kaypo hor...

[chestnut]

Don't flatter me too much. I enjoy this forum a lot. Bro if u want to know the next major recession u should be at the look out at "mini america", ie. Japan. Japan is at the forefront of this money printing experiment.

I read and read and read... I just want your view lar.... There is no rite or wrong lar... U can always put in your caveat lar...

Bro, really... U nowadays damn cheem (compliments)


I hibernate quite awhile already so today, no holds barred. Hahahaha

[chestnut]

Radha, where are u????

[teddybear]

Yes & No.
Give you a new flat yes, but much smaller size and poorer location...
Rochor lesson..........................

Brudder, during my time, when I bot my anchorage... for me to stay in condo, I need to sell my HDB.... See peh sian leh....

I will own a hdb anytime if I can... Why???

When time is up, govt will definitely enbloc and give me a new flat... (but that may pose a problem... as I need to dispose off my hdb - i believe it is the rule...)

Bro, that's why I still love freehold.... for keepsake.... someone will come a long to enbloc 1 day....

That does not mean I dont have 99 year units hor... I have 3 of them... Why??? Rental yield is a lot better than freehold hor... So I am very diversified in my props as well as other financial instruments...

Keep an open mind and watch for paradigm shifts....

Different strokes for different people....

I better keep my mouth shut... Revealing too much liao... Hahahahaha

But for Indomie, no problem lar bro....

[chestnut]

Yes & No.
Give you a new flat yes, but much smaller size and poorer location...
Rochor lesson..........................

Sis, rochor resident will shift to kallang... 4 room flat there cost 600k. Direct swap... They have a choice to choose 28 floor face flyer or kallang river.. Of course if their q is low lar....

Their only advantage is 99 years start all over again...

Disadvantage, location not so swee lar.... Also must wait 3 years for flat to be ready, 5 years for mop... 8 years down the drain... So me agree with u on this....

But if no cash... This is better than nothing rite... Imagine, u continue to stay in rochor until lease expire... Which one worst????

As the saying goes, no fish, prawn also can....

[Zile]

Zile... Today, me good mood... Me offer another advise...

1. U have been very lucky.... But you need to be abit more studious in your financial pursuit...
2. U need to plan for retirement income... If not, it will always haunt u....
3. U need to take a little bit of money out and start to pay school fee... Thru this, you will learn....
4. Look at the bonds thread.... Vic has shared quite a bit.... Read thru the entire thread.... And learn...
5. U are right, don't swallow more than u can chew....
6. Read and read and read... There is no end to that...
Don't think of being lucky twice.... Hard work is important...



Secretariat, paiseh... I quite kaypo hor...

Thanks for your kind advice

Still got some "free shares" left in the US stock market from 08 and with my kind of entry price, I wouldn't touch any stocks in today's market. Been reading the bond thread...

[Simi]

You must be either good hearted or handsome like me to be so lucky lor....brother Simi..hehehehehhe

BJ21trader sifu

If there if a word to describe myself during
that time, it would be

Bird son dont know the lastic
And cow son dont know the tiger

[Zile]

Thanks for your kind advice

Still got some "free shares" left in the US stock market from 08 and with my kind of entry price, I wouldn't touch any stocks in today's market. Been reading the bond thread...

Cashing in the landed and going back to condo was a hard decision but at that time we were thinking about the profit we made in such a short time span...No looking back now. Will stay away from "investing" for a while and learn to enjoy a bit

[indonesian]

interest rate at 1.4% for $1 mil loan over tenure of 30 years, monthly repayment is $3,403.42 and total interest pay over 30 years is $225,231.68

If interest rate is at 5% for a $1 mil loan over a tenure of 30 years, monthly repayment will be $5,368.21 and total interest pay over 30 years is $932,557.84

it's a huge different even for 3.6% increment of the interest rate

[teddybear]

Stimulate can, but don't need to care.............
If they want to pay 5% for FD, with so much money putting into banks, you think they can afford to pay you 5% interest?
So SIBOR rate won't go up much for the next few years!

Brudder, when interest rate hit 5%, what is the rate you think short dated bonds will go for

Hahahahahaha

What do you think will be fixed deposit rate????

hahahahahahaha

Ask you a question, if short-term rate does go to 5%, and note that SG pegs to US rate, how would all major governments handle their government debt? Each year, they need to issue debt not only for current year's deficit, but also to refinance existing debts, how much would their debt service amount be?

Some food for thought...

[indomie]

interest rate at 1.4% for $1 mil loan over tenure of 30 years, monthly repayment is $3,403.42 and total interest pay over 30 years is $225,231.68

If interest rate is at 5% for a $1 mil loan over a tenure of 30 years, monthly repayment will be $5,368.21 and total interest pay over 30 years is $932,557.84

it's a huge different even for 3.6% increment of the interest rate

Hi Indonesian... I don't calculate quite like that. As long as u have enough money for down payment+ 5 years worth of cash for repayment, your are good to go. For investment property, 5 years worth of cash for repayment will give u plenty of room even interest rate shoot sky high. It is also unlikely that u don't get any tenant within the 5 years period.

[star]

If scare of this and that then there is no need to buy anything. That is why even when opportunity comes alot miss the boat, when they missed the boat they hope for crash or talk down property or stocks.

In this forum the one i most admire is chestnut and indomie. What they talk or say make sense and really open up mind.

[flxcat]

Got job also must be careful taking loans!

I don't know about how you guys managed your investment risks/leverage factor. For myself and several family relatives, we have personally experienced it twice in the past cycles. Two of them went bankrupt in 1997 financial crisis. I was lucky to make a huge come back in 2008 when the market rebounded. I was left on a lifeline of only several months before the bank would call me. The reason how I survived 2008 was that I was managing my risk/leverage factor much better than my uncles. But markets are as usual very forgetful.

Again, like brother chestnut and some others here pointed out, there may not be any crash. A few pointed out because this bull run was artificially managed and hence we should keep our rental yielding assets which is properties.

For me, frankly, I don't care about what investment theory or philosophy. I ONLY RECOGNISE INTEREST RATES when I invest in properties. Maybe due to seeing how my uncles one by one collapsed in 1997 financial crisis. ( Some would say is it due to old age ? ). I feel I am a borderline over-leverager, hence my decision to convert a portion of my portfolio into cash to hedge the interest rates risks.

People here are very confident the rental yield will stay at the current rate? For me, I see that the rental yield is high due to the displaced demand and sudden influx of foreigners into a market with short supply back in 2008.

With so many new completion and NOW even MMs in Jurong, I am not so sure that this rental demand could still be there. It is very obvious the developers have been targeting HDB or middle class buyers who are buying the properties for investment rental yields rather than capital gains.


Good Luck,.

Your Still Very handsome uncle,
Blackjack21Trader

Wow, reading every single discussion in this track, this is one that I most resonant with and indeed I did cashed out recently just to ensure that if no rental or kenna pressed down your asking rent(just like in 2008-2009) and anticipating the increase in interest rate (a double whammy for the overly leveraged).

My game of investment is to be able to keep afloat when the boat sinks and continue to be in the game by not selling all investment properties, but de-leverage for the worst case. Cheers!

[Cyberknight]

I thought of simulating the interest rate impact.
3 scenarios for a $1m loan, 30years tenor
1) Floating rate where year 3 spikes to 5%
2) Fixed rate 1.8% throughout 30 years
3) Floating rate for 2 years and fixed at 3% from yr 3 onwards, use (annual principal repayment of $6k per annum.

Attachment 6344

1) Floating rate where year 3 spikes to 3.5% (Current recommendation)
2) Fixed rate 1.8% throughout 30 years
3) Floating rate for 2 years and fixed at 3% from yr 3 onwards, use (annual principal repayment of $6k per annum.) and you send your loan in 23 years.

Attachment 6345
seems like 1 & 3 converges and what if the interest rates continue to stay low, will you still want to keep it at floating rate and fix the rate when it really creeps up.

[Ringo33]

interest rate at 1.4% for $1 mil loan over tenure of 30 years, monthly repayment is $3,403.42 and total interest pay over 30 years is $225,231.68

If interest rate is at 5% for a $1 mil loan over a tenure of 30 years, monthly repayment will be $5,368.21 and total interest pay over 30 years is $932,557.84

it's a huge different even for 3.6% increment of the interest rate

I am fearing for those who bought landed with high gearing. especially for own stay.

[bacteria]

The point is, with the huge amount of debt accumulated by almost all OECD countries, they will be much more panicked than you (a billionaire), if the rate (even for shorter durations) goes up to as high as 5%.

Ben and lots of other Fed officials panicked and stood out to calm market just because of the market reaction after the taper signal (and note that the rate increase was mostly for longer-dated), imagine how panicked the whole world would be if they dare to increase the shorter-duration rate to 5%? Well, i'm not saying it will not go as high, but if it really goes that high, stop worrying about property, one should worry about the whole world order.

Again, a word of caution, interest rate will go up, just that we do not know how much and when, it's always prudent to keep enough cash buffer and govt is doing a good job by implementing LTV and other policies some time back, and with that, the property price has been kept in check to prevent big bubble.

FED launched QE to save themselves. Lots of hot money move into asia as a results.

When USA economic start to pick up, inflation will also creep up. They will again rise interest to save themselves.

[狮子王]

FED launched QE to save themselves. Lots of hot money move into asia as a results.

When USA economic start to pick up, inflation will also creep up. They will again rise interest to save themselves.

Your logic is correct. With so much money returning ( if and only if USA economy recovers) , I suspect the rate hikes will be higher than what many expected

http://www.youtube.com/watch?v=ShGdgykCDiI

[狮子王]

I am fearing for those who bought landed with high gearing. especially for own stay.

Landed will crash more than 30%.

[Secretariat]

Thanks for your kind advice

Still got some "free shares" left in the US stock market from 08 and with my kind of entry price, I wouldn't touch any stocks in today's market. Been reading the bond thread...

My 2-cents thought on reading or even practicing what you read. A lot of investors that I have met tend to over-complicate how they approach the market (it doesn't matter what kind of instrument).

In reality, there are only a handful of concept to apply.

- The simple maths of investment (so simple that it is laughable).

Say something is currently priced at $1,000. When you buy it at $1,000 and the price goes up to $1,500, your gain is 50%.

When the original price falls by 50% and you buy it at $500 and the price goes back up to $1,000, your gain is 100%.

- The profile of the buyers changed as a bull market progresses. It is the profile of the buyers that determines the durability of a bull market.

In the Bond thread, Vic has repeatedly advocate buying there is fear in the market. This is an excellent advice, because the profile of the buyers at that level is typically strong holders.

- There is no such thing as an infinity of buyers in a bull market.

Cheers!

[chestnut]

Actually, I don't see bullishness leh??????

Can all the bulls today please raise your horns????

Everyone is all at the sideline....

All the CMs are put in place.

London is not out of the woods. US is not out of the woods. So I damn confused leh....

I shared with people to go 3 d printing, did anyone go in????

I shared with people about US stocks going to cheong, anyone went in????

I told people to buy waterview, what did they say????

I bot gardens @ bishan and what happened????

I bot Botannia also wat and sold....

I told people about Pasir Panjang and the port shifting, they laugh at me...

So lim peh got track record wat.....

Now, I just ask simple question like, when interst rate going up??? When recession coming???? Everyone Siam and tell me I crazy and not looking holistically.... Hahahahahaha

I tell u, interest rate will go up, recession will come again, us will recover, Europe will recover, china will be in recession, us dollar will strengthen.

All will be correct one... Why??? No date wat... When it happens, anyone who post the above can come out and say, see I told u so....

At least basic got my respect... He dare to put timeline....


Hahahahahaha

This is my last post as me going hibernation now.... Find it difficult to have constructive discussion in this forum... SIGH...

beware of Soothsayer.

[chestnut]

Paiseh, return for quickie...

Lim peh also have clover by the park hor.... And more...

Lim peh not scared leh.... Lim peh should be the one scared hor... If drop 10%, I kanna on my multiple unit hor.... Hahahahahaha

But I tell u all a secret lar, I not like all the foolish people, dump everything in properties... That's why lim peh not scared....

Lim peh also do a few bonds, have stocks in Europe, US, Taiwan, Singapore.... Hahahahahaha... Lim peh also have unit trust... Aus property.... Forex accounts...

Hahahaha

Must diversfy mah... Lim peh not billionaire but me think, me covered my ground Liao...

Why I dabble in stocks???? Because stocks gives u e pulse of the market.... Hahahahahaha

Enough said... Cheers and cherio

[chestnut]

Oh, last one... Most important u all must remember hor....

Lim peh got cash as part of my entire portfolio... Hahahahahaha

How much???? Enough for me 2 go in to buy a few properties at today's market (of course with 50% loan hor).....

Now u all know why I keep stressing cash is important

I just don't understand this thing called over leverage leh

Why make yourself suffer


Must be able to sleep at bite rite

[chestnut]

This one really last post.... Hahahahahaha

I not how lian hor....

Read my messages carefully.... There are cryptic clues there...

If u cannot see it, too bad.... This is my last parting gift to all of as I turn to hibernation and make more money.. Hahahah

[hyenergix]

I told people about Pasir Panjang and the port shifting, they laugh at me...

So lim peh got track record wat.....

I still find it very hard to believe that Pasir Panjang Port will be shifting in 10-20 years' time, given that it is still undergoing expansion up to 2020. Beyond that, maybe.

Singapore to Spend S$3.5 Billion to Expand Pasir Panjang Port
By Ann Koh - Oct 1, 2012 7:55 PM GMT+0800

PSA Singapore Terminals, the country’s container-port operator, plans to invest S$3.5 billion ($2.9 billion) to develop Phases 3 and 4 of its Pasir Panjang terminal, it said in an e-mailed statement today.

The planned work will include building 15 new berths, an automated container yard and unmanned, rail-mounted gantry cranes, PSA Singapore Terminals said in the statement.

When completed by 2020, the project will boost Singapore’s total container handling capacity to 50 million 20-foot equivalent units a year, it said.

The port has handled 20.88 million TEUs through August, according to the PSA Singapore Terminal website.

To contact the reporter on this story: Ann Koh in Singapore at [email protected]

To contact the editor responsible for this story: Linus Chua at [email protected]

http://www.bloomberg.com/news/2012-1...jang-port.html

[Cyberknight]

Cranes can be moved. Pier berth means readying e waterfront sites for condos. See e Caribbean , reflections