When is the right time?

[Arcachon]

The idea is to save up more before committing. (Agree)


Ensure that debts (cars, credits etc) are not overwhelming. (Agree)


Check that you have safety buffer funds. Down payment cannot be borrowed, (Agree)

High or low income is all relative, more important is right-sizing debt to income, (Don't Agree)

or else housing loans becomes just like Toto or 4-D tickets.

Refer with your bank the TDSR ratio.

I think if you can meet the TDSR to service your loan plus buffer of savings (depending on the nature of your income and your propensity for risk), you are good to go.

High or low income is all relative, more important is right-sizing debt to income,

One should always do a stock taking on your financial. e.g. what are the available cash, assets, stock e.g. and change your allocation according to your risk factor e.g. your age.

When you are young make use of the age to leverage to the Max.......

Use Other people money to plan for your retirement, we live in the World where we share our production. What you wear, eat, sleep are product produce that are make from other people.

When you have cheap labor, you buy what they can build, you don't wait till the labor cost is high and think of buying what they build.

Every inch of Land S'pore increase cost money and it cost more later not now.

Income is only one of the factor, the other is expense, commitment and unforeseen expenses.

[Arcachon]

Fed chairperson, Yellen, is going to hold a press conference on QE and rates at 2.30pm (NY time).

Janet Yellen, Thank you for keeping the rate low for Considerable Time. Let the party begin............

[Arcachon]

What is QE from a layman.

There was a Hotel Guest(A)who like to see the room before he decide to stay at the Hotel.

One day A go to the Hotel and tell the Hotel Counter staff who is also the owner (B) he would like to see the room before he decide to stay.

B say ok, but he need to deposit USD 100.

While A go to look at the room, B quickly use the USD 100 to pay the Butcher (C).

Then C quick pay the prostitute (D) USD 100 for her service.

She then quick pay the Hotel USD 100 for the room she use for her business.

After she pay the USD 100 to the Hotel, A don't like the room after viewing and decide to withdraw the 100 USD from the Hotel.

Now where did the 100 USD debt go to.

[Kelonguni]

High or low income is all relative, more important is right-sizing debt to income,

One should always do a stock taking on your financial. e.g. what are the available cash, assets, stock e.g. and change your allocation according to your risk factor e.g. your age.

When you are young make use of the age to leverage to the Max.......

Use Other people money to plan for your retirement, we live in the World where we share our production. What you wear, eat, sleep are product produce that are make from other people.

When you have cheap labor, you buy what they can build, you don't wait till the labor cost is high and think of buying what they build.

Every inch of Land S'pore increase cost money and it cost more later not now.

Income is only one of the factor, the other is expense, commitment and unforeseen expenses.

Friend, TDSR already limit over-exposure, and psf wise we are near the peaks of the world.

http://www.telegraph.co.uk/property/...?frame=2757808

Right now we are still partying but what happens when interest rates go up, virus induces recession, or bailout stops, or if financial hardships somehow strikes, or all of the above. Never say never. Leverage with wisdom.

[Arcachon]

Fact #2: Your money will be worth less in the future

Remember this word: Inflation.

A plate of chicken rice that costs $3 now could cost $5.10 in 30 years, going by an inflation rate of 2.4 per cent for 2013 - 2014, according to the Department of Statistics Singapore. With that said, inflation rates are never static with unexpected changes each year. For example, the inflation rate in 2011 - 2012 was 5.2 per cent which means that the $3 plate of chicken rice was forecasted to be $13.70 in 30 years. In the same vein, this means that your current savings will inevitably be worth less in the future.

Over time, your buying and spending power will decrease due to inflation unless you plan properly. Thus, to avoid this and ensure that you have enough by the time you retire, you need to start considering the true value of your savings in future terms.

- See more at: http://business.asiaone.com/personal....FxHdjbR0.dpuf

http://business.asiaone.com/personal...-ASIAONE-SEP14

[Jem]

The idea is to save up more before committing. Ensure that debts (cars, credits etc) are not overwhelming. Check that you have safety buffer funds. Down payment cannot be borrowed,

High or low income is all relative, more important is right-sizing debt to income, or else housing loans becomes just like Toto or 4-D tickets. Refer with your bank the TDSR ratio. I think if you can meet the TDSR to service your loan plus buffer of savings (depending on the nature of your income and your propensity for risk), you are good to go.

Ya, I thought I was missing out something on the down payment as I have the same understanding that it has to come from CPF or cash. Question on high income was to see the general opinion of forumners here what's an income level most will deem to qualify as high income bracket. Personally, I would say at least a personal income of 15K per month.

[Kelonguni]

Fact #2: Your money will be worth less in the future

Remember this word: Inflation.

A plate of chicken rice that costs $3 now could cost $5.10 in 30 years, going by an inflation rate of 2.4 per cent for 2013 - 2014, according to the Department of Statistics Singapore. With that said, inflation rates are never static with unexpected changes each year. For example, the inflation rate in 2011 - 2012 was 5.2 per cent which means that the $3 plate of chicken rice was forecasted to be $13.70 in 30 years. In the same vein, this means that your current savings will inevitably be worth less in the future.

Over time, your buying and spending power will decrease due to inflation unless you plan properly. Thus, to avoid this and ensure that you have enough by the time you retire, you need to start considering the true value of your savings in future terms.

- See more at: http://business.asiaone.com/personal....FxHdjbR0.dpuf

http://business.asiaone.com/personal...-ASIAONE-SEP14

This paragraph is from the website you recommended, fact #5:

"So although you may get sidetracked by pressing issues such as buying a house or funding your children's education, make sure that you are also putting away money for your future, before it's too late. - See more at: http://business.asiaone.com/personal-finance/investments-and-savings/5-important-reasons-why-you-need-plan-retirement-now/?cid=RETIREMENT-HOMEPAGE-NEWSROTATOR-TD-ASIAONE-SEP14#sthash.FxHdjbR0.MwjtPo5p.dpuf"

It also says this in the last graph:

"The later you start saving, the more money you will need to reach your desired retirement income".

House is not money. It is related, but it is not. Right now many retirees made the wrong steps and end up needing all kinds of arrangements because they are asset rich, cash poor.

[Arcachon]

Friend, TDSR already limit over-exposure, and psf wise we are near the peaks of the world.

http://www.telegraph.co.uk/property/...?frame=2757808

Right now we are still partying but what happens when interest rates go up, virus induces recession, or bailout stops, or if financial hardships somehow strikes, or all of the above. Never say never. Leverage with wisdom.

There are still a lot of people waiting for Durian to drop.

[Arcachon]

This paragraph is from the website you recommended, fact #5:

"So although you may get sidetracked by pressing issues such as buying a house or funding your children's education, make sure that you are also putting away money for your future, before it's too late. - See more at: http://business.asiaone.com/personal-finance/investments-and-savings/5-important-reasons-why-you-need-plan-retirement-now/?cid=RETIREMENT-HOMEPAGE-NEWSROTATOR-TD-ASIAONE-SEP14#sthash.FxHdjbR0.MwjtPo5p.dpuf"

It also says this in the last graph:

"The later you start saving, the more money you will need to reach your desired retirement income".

House is not money. It is related, but it is not. Right now many retirees made the wrong steps and end up needing all kinds of arrangements because they are asset rich, cash poor.

House is not money. (Agree) When you are staying in it, e.g. HDB

When you are young and can get a 5 room HDB would you go and get a 3 room, if yes why.

When you are old and want to upgrade to a bigger property, would you advise to go ahead, if yes why.

House is not money when you can just build more in another area and let the house rot, can you do it in Singapore.

[Kelonguni]

House is not money. (Agree) When you are staying in it, e.g. HDB

When you are young and can get a 5 room HDB would you go and get a 3 room, if yes why. (Depends on price. But if OCR HDB generally the advice is to go for larger one - first bite should take a sizeable one. But some get 3 room with the hope of getting a second private property 5 years down the road when children comes.)

When you are old and want to upgrade to a bigger property, would you advise to go ahead, if yes why. (Depends on family situation. If large cash hordes and price is low, why not?

House is not money when you can just build more in another area and let the house rot, can you do it in Singapore (catch no ball, but some kinds of hdb upgrades allow adding area).

[Arcachon]

House is not money. (Agree) When you are staying in it, e.g. HDB

When you are young and can get a 5 room HDB would you go and get a 3 room, if yes why. (Depends on price. But if OCR HDB generally the advice is to go for larger one - first bite should take a sizeable one. But some get 3 room with the hope of getting a second private property 5 years down the road when children comes.)

When you are old and want to upgrade to a bigger property, would you advise to go ahead, if yes why. (Depends on family situation. If large cash hordes and price is low, why not?

House is not money when you can just build more in another area and let the house rot, can you do it in Singapore (catch no ball, but some kinds of hdb upgrades allow adding area).

House is not money when you can just build more in another area and let the house rot, can you do it in Singapore (catch no ball, but some kinds of hdb upgrades allow adding area).

When I was in US, we need to travel from Tucson to Texas for our deployment, we drove 3 days across the state SOP say cannot drive too many hours a day.

https://www.google.fr/search?q=Ameri...ed=0CAYQ_AUoAQ

We pass Ghost Town one after another, They can build a town and then just leave the Town to rot and build another one because they got lot of land. Their training area is the size of Singapore.

Singapore is just too small, every inch of land is lot more expense.

Sometime it good to stay in another place and look back at Singapore and you will know the different.

Over in France House price never change for the late 8 years since I was here, House is not money, they got lots of land but not in Singapore.

[Arcachon]

http://www.leboncoin.fr/ventes_immob...e-Buch%2033260

http://www.zillow.com/tucson-az/

[Arcachon]

Pont d'espagne Day Trip.

https://www.google.fr/search?q=Pont+...w=1680&bih=933

[Jem]

Nice landscape~ especially it has been hazy in SG these 2 days and giving me a bit of an headache. Once did a 3 weeks trip to France and went to quite a few places. Would be nice to explore other places in future.

[Yuki]

Case study:
Fully paid hdb

Cash reserve: 4.5 years (and counting) for 5.2% mortgage monthly payment
payment

Should be safe?

Arcachon you are really a mysterious man. I learn a lot from your posts.. Not sure what you do for a job but admire that you have gotten so far.

My only regret is not learning about leveraging when I just started work. On hindsight, I would have done a lot of things differently.

[teddybear]

Actually, many people never learn about benefits of leverage because they have been told "too dangerous to leverage"!

Now, after they started to learn the benefits of leverage and they wanted to benefit from it, loh and behold, most of you (except the super rich and connected) will never benefit from leverage after new rules implemented to prevent you from borrow more to leverage! It is same like introducing so many cooling measures on residential properties and little if any for commercial properties! They can ever justify that >15% rent increase average per year over past 5 years for commercial properties is not a lot!

Case study:
Fully paid hdb

Cash reserve for 4.5 years (assumption of 5.2% mortgage monthly payment) and counting..


Should be safe?

Arcachon you are really a mysterious man. I learn a lot from your posts.. Not sure what you do for a job but admire that you have gotten so far.

My only regret is not learning about leveraging when I just started work. On hindsight, I would have done a lot of things differently.

[Yuki]

If the economy is in deep deep shi*, the CMs etc would most likely be removed.

If still in early/mid 30s..maybe still got chance ba.

Actually, many people never learn about benefits of leverage because they have been told "too dangerous to leverage"!

Now, after they started to learn the benefits of leverage and they wanted to benefit from it, loh and behold, most of you (except the super rich and connected) will never benefit from leverage after new rules implemented to prevent you from borrow more to leverage! It is same like introducing so many cooling measures on residential properties and little if any for commercial properties! They can ever justify that >15% rent increase average per year over past 5 years for commercial properties is not a lot!

[Jem]

Actually, many people never learn about benefits of leverage because they have been told "too dangerous to leverage"!

Now, after they started to learn the benefits of leverage and they wanted to benefit from it, loh and behold, most of you (except the super rich and connected) will never benefit from leverage after new rules implemented to prevent you from borrow more to leverage! It is same like introducing so many cooling measures on residential properties and little if any for commercial properties! They can ever justify that >15% rent increase average per year over past 5 years for commercial properties is not a lot!

My observation is that middle to high dual income household (especially those with no kids 10/10) would have leveraged and have mostly made very good returns (anyone who has done so in the early 2000s onwards). The single income household tend to be more prudent for obvious reasons - there's little to no backup plan if the sole earner loses a job or falls ill.

[teddybear]

Remove the CMs just when the economy is in deep deep shit? Oh gosh! That means firstly, you lost the golden opportunity to earn a pot of gold before the next economic recession comes (like in 2013 before the most severe CMs strike and most people would have made a lot of money if they invested in properties but their chance are ZEROed by subsequent CMs).

Secondly, when the next recession comes and CMs just lifted, if you people buy at that moment and don't wait till the shit hit the fence and fall and stabilize on the ground, they will be the first to get buried, ZERO chance!

So, all those CMs seem to bury more people than help them to earn a pot of gold and can retire early! Sorry, they seem to help to make sure that most of you have to work till you die otherwise you will not have enough money to live through your "golden years".......................

If the economy is in deep deep shi*, the CMs etc would most likely be removed.

If still in early/mid 30s..maybe still got chance ba.

Actually, many people never learn about benefits of leverage because they have been told "too dangerous to leverage"!

Now, after they started to learn the benefits of leverage and they wanted to benefit from it, loh and behold, most of you (except the super rich and connected) will never benefit from leverage after new rules implemented to prevent you from borrow more to leverage! It is same like introducing so many cooling measures on residential properties and little if any for commercial properties! They can ever justify that >15% rent increase average per year over past 5 years for commercial properties is not a lot!

[Arcachon]

Case study:
Fully paid hdb

Cash reserve: 4.5 years (and counting) for 5.2% mortgage monthly payment
payment

Should be safe?

Arcachon you are really a mysterious man. I learn a lot from your posts.. Not sure what you do for a job but admire that you have gotten so far.

My only regret is not learning about leveraging when I just started work. On hindsight, I would have done a lot of things differently.

Fully paid HDB, means your money is not working as hard.

If this is your only property than need to think how to max it.

By leveraging max what is lost is the amount you put in the property whereas for a fully pay property what you lost is the property.

I always dream of the day when the aircraft landing in Paya Lebar AirBase landed on my roof top and my 5 room completely destroy.

Also dream of the day War broke out in Singapore and I have a fully pay HDB which I cannot move.

Have been trying to sell it away and get the cash out to buy another property at SkyGreen but MAS put a stop on my plan.

e.g. 5 room HDB brought for SGD 250,000 now value at SGD 640,000.

When I lost my 5 room I lost SGD 640,000 whereas if I sell and buy another with mortgage, what I lost is the amount I pay for the deposit the rest of the cash with me.

[Yuki]

Oops I meant staying at a fully paid hdb

Cash reserve: 4.5 years (and counting) for 5.2% mortgage monthly payment meant for an OCR 2-bedder brought this year for mum stay.
It's a long story but suffice to say intend to rent out in future if she no longer want to stay there or no longer around since its next to an international school.

Of course if investment wise I was told repeatedly that it's not a wise move I should have parked the money at better location elsewhere Yada Yada. some said filial piety some said foolish. I m still in my early/mid 30s but my mum is more than 2xs my age lar. As long as she loves the place its all that matter ba. But I do wonder if I over leverage at times when there's constant talk about rapid interest hike.
.

Fully paid HDB, means your money is not working as hard.

If this is your only property than need to think how to max it.

By leveraging max what is lost is the amount you put in the property whereas for a fully pay property what you lost is the property.

I always dream of the day when the aircraft landing in Paya Lebar AirBase landed on my roof top and my 5 room completely destroy.

Also dream of the day War broke out in Singapore and I have a fully pay HDB which I cannot move.

Have been trying to sell it away and get the cash out to buy another property at SkyGreen but MAS put a stop on my plan.

e.g. 5 room HDB brought for SGD 250,000 now value at SGD 640,000.

When I lost my 5 room I lost SGD 640,000 whereas if I sell and buy another with mortgage, what I lost is the amount I pay for the deposit the rest of the cash with me.

[DC33_2008]

Garment officials have read the book, "OPM". Leveraging is still around but not for property anymore.

Actually, many people never learn about benefits of leverage because they have been told "too dangerous to leverage"!

Now, after they started to learn the benefits of leverage and they wanted to benefit from it, loh and behold, most of you (except the super rich and connected) will never benefit from leverage after new rules implemented to prevent you from borrow more to leverage! It is same like introducing so many cooling measures on residential properties and little if any for commercial properties! They can ever justify that >15% rent increase average per year over past 5 years for commercial properties is not a lot!

[Kelonguni]

Garment officials have read the book, "OPM". Leveraging is still around but not for property anymore.

Can still leverage but cannot over-leverage.

[DC33_2008]

Property investor will have to weigh the corresponding risk with the no. of times of leverage now more closely.

[Arcachon]

Property investor will have to weigh the corresponding risk with the no. of times of leverage now more closely.

Risk depend on the info gather by the investor before making the decision.

Question - Japan have a property Bubbles, is China property same as Japan, if not why.

Question - Johor have a property bubbles do Singapore have, if not why.

[teddybear]

How much is considered "over-leverage"?

May be they should walk the talk and dump their investment in company like "Olam" which has long been considered "too over-leverage" by the equity analysts!

Can still leverage but cannot over-leverage.

Garment officials have read the book, "OPM". Leveraging is still around but not for property anymore.

[Arcachon]

[Arcachon]

[Arcachon]

http://www.gold.org/reserve-asset-management/statistics

Who have the most gold?

Why is Gold price in USD?

When gold price rise USD drop, when gold price drop USD rise.
can USD drop and rise according the rise and drop of GOLD?

[Arcachon]

http://www.positivemoney.org/issues/house-prices/

1. Banks created hundreds of billions of pounds and put it into property
In the ten years up to the start of the financial crisis, house prices tripled. Many people think this is because there were not enough houses around, but that is only part of the picture. A major cause of the rise was that banks have the ability to create money every time they make a loan. During the period in question the amount of money banks created through mortgage lending more than quadrupled! This lending was a major driver of the massive increase in house prices.