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EastonBay/livermore, once the flat reach 5 years (with cpf housing grant), the whole flat can be rent out.
typo below..sorry hdb rule do not allow the owning of two hdb flats at the same time....has to sell off the 1st flat, n buy private for the 2nd one. that means if i would to implement the renting after 5 years, my future hubby n i have to get a condomium if we really have to do that.
Whether it is more profitable trading properties or equities depend very much on timing.
The downside is property price movement is slower than equities. One can buy a property and wait 15 years for the price to appreciate 50%, whereas good stocks can double or quadruple within from one to three years.
Stocks can be converted into cash with just a phone call or few taps on the keyboard whereas selling properties is a hassle. You have to bargain and get sick of buyers criticism and go to the lawyers office a few times!
Hi EastonBay, thanks for sharing the info on the 800K loan and 200K cash deposite....didn't think of it before. it is useful tip.
But then,i don't have 200K in cash...let's put investment in stocks aside first....if merely working as a employee, i think it will take me at least 10 years plus to save to this amount.... not to mention about "how to become a millionarie"... :o(
Livermore, thanks for the 4 room HDB flat tip.....it sounds like i better consider taking a 4 room flat than 5 room flat perhaps end of this year or next year. i also thought of renting it out after staying for X years (and clear off the hdb housing loan) in the future, then get another flat to stay. But i don't understand..how ur friend can get so much rent of 100K+ ? he rent out a lot of years liao? sorry maths not so good in some areas.
geojam, u must be kidding me lah... i should be patting you instead, so that i can absorb more luck n fortune from u.. :p
Hi Geojam,
Yeah cars are a depreciating assest. But I feel as long as there is some balance in life and you buy what you can afford it should be ok. After all life is short. For me I like to drive:)
Hi Eastonbay,
Oh I am not sure about when one can rent out. 10 years? Hm...I have to check. My friend going to rent
out his whole 4 room flat he purchased and renovated
livermore
My understand of rich dad and poor dad is this.
It is ok to hold assets if it is income producing,eg,shares u have divvy and properties u have rental collection.
But not deprecaiting assets like cars,furnitures and boats.
Cheers
harryp, people like to tell success story. During the downturn, many people who invested in property b4 the downturn, were licking their wounds in silence. So, property investment, only 2 things matters to me. 1) Location 2) Timing (while timing the equity market is often said to be futile, it really matters in property market).
Livermore, not very sure but I think one cannot rent out a new flat purchased directly frmom HDB if you had owned it for less than 10 years, unless you have valid reason like being posted overseas.
However, I agree that CASH is king!
For those who want to invest in property and need loan. Get a housing loan from banks which would pay the same interest for your deposit as with you loan. E.g. HSBS and StandardChartered. E.g. You need $800k loan, you have cash $200k. The bank actually charged you y% on your loan but also pays y% for your deposits in the loan account. i.e. you are actually paying interest on the net amt of $600k, while maintaining liquidity ($200k in your bank a/c). One thing abt std chartered, they have recently tweaked it to pay the housing loan rate to only 75% of your deposits (the rest of 25% is on normal saving deposit rate). It is still a good deal despite the change.
must pat,pat fortunegal every day for more fortune.
Remain invested. I am holiding one of my stock for 2-3 years.
God bless!
Livermore,
Yup, I am looking at condos. I believe price may escalate soon due to additional construction costs in sand and granite.
Peace
Hi Harryp,
It is not too late. You might make quite good returns buying a new 4 room HDB flat and then rent out. My friend made $100 over thousand.
Thanks Livermore,
I guess you are correct. A few of my friends owned a number of private properties each. Their assets are earning good rentals plus appreciations. I have lost out to them as I am very good at saving and hoarding my money in cash but still not too late lah :)
Peace
Hi Harryp,
Personally I don't see property price coming down for the next 3 years. The laggards are the HDB flats. I am not sure if you can still buy another HDB flat. My friend told me 4 room flats are in demand. Don't go for 5 room flats. You can bid for a new 4 room HDB flat, renovate and then and rent out. I heard that rentals are quite good now.
My colleague bought a condo about $540k 3 years ago and made about $60k now. The spectacular gains are at the high ends but I cannot afford that*ha*.
It seems to me that in Rich Dad Poor Dad, Robert K made his fortune mainly from buying and selling properties. To me, investing in property is for those with alot of spare cash and have super holding power. You also need to buy the right property at the right time. Not liqued as shares or unit trusts. It is not for the ordinary people....
Hi Livermore,
How about properties? I have only two pcs of properties; one in Spore and one Thailand (all paid up) and the rest in cash - fixed deposits and equities. I don't go for unit trusts as I don't believe paying those guys management fees. My financially trained friends think that I am an idiot as they think I should put more into assets especially properties.
Whats your view? Tks
Peace
Hi Geojam,
My shares are still cash to me. They are liquid. Moreover with margin account, if I need cash I just wthdraw from my margin account. I don't need to sell off my shares. So it is like a "bank account" to me:) .
err...excuse guys, i think you all will become millionaire/s first before i become (or some are already one? ;p)... haha...
Livermore,do u consider shares as asset or cash?
I agree with fortunegal. Don't be asset rich and cash poor. Do things step by step.