Does achievement matters ?

[Joseph22]

just some information for those that waiting for the big crash in pty mkt..

Looks like very very hard to go down.... what's going on?!?!

 

 

URA report in for Q4 2012

The stock of completed private residential units increased by 1,274 units in 4th Quarter 2012. The vacancy rate of completed private residential units decreased from 6.1% as at the end of 3rd Quarter 2012 to 5.4% as at the end of 4th Quarter 2012 (see Annex E-1).

 

URA report in for Q1 2013

The stock of completed private residential units increased by 2,204 units in 1st Quarter 2013. The vacancy rate of completed private residential units decreased from 5.4% at the end of 4th Quarter 2012 to 5.2% at the end of 1st Quarter 2013 (see Annex E-1).

you got check the number of HDB rental?? got increase or not??

[Nullifi3d]

No leh, with only $300k in the bank, i will feel insecure......dare not spend

 

I feel insecure if i have $30,000 but not so much if i have $300K haha.

 

I can spend $300 easily, the same way a person with better bank balance can easily spend $30,000.

 

 

[ShepherdPie]

you got check the number of HDB rental?? got increase or not??

 

dun know where to get that information.. this is from ura.

[ShepherdPie]

and you believe their s--t???

 

no.. but ppl sure is reading them :P

[Tedlhw]

Yesterday straits times invest section, interviewed a guy who didnt fully own his everyday car or his hdb flat.

 

Does he need to be at least slightly more succesful financially before being feature ?

 

Its quite silly to think that he thinks that by not stretching his HDB home loan.. To me, either you pay all beause it totally not necessary to pay interest to banks if you have cash.. Or you stretch to the max, if you believe that you have better use of your $$.

 

wah lao every Sunday also got many of this type..

Apparently the standard is low.

Like that can also start one thread ar?

[Tedlhw]

If you invest and you lose money, yes, u may look stupid. If you invest and you gain money, are you saying it is smart? The fact is the current situation suggest that is not so hard to get returns. Even doing nothing is better. E.g. monies left in CPF OA is already earning higher interests than bank loan. It is already smart by doing nothing.

 

Anyway, we dun even have to invest. Many of us have many debts. Car and Home. If you really want to pay up quickly, the smart way is to pay up the car loan. The home loan is the cheapest loan and it should be the last one you want to pay up faster.

 

We all have to worry about downside. So, invest carefully. I would argue that if you really lose money, you are not stupid. It only means you make the wrong bets. At the extreme example, someone who gamble and lose money, is he really stupid? I would think that he is too greedy and make very risky bets.

 

Have a rethink on how you borrow and use your monies. Even the richest people borrow cheap money. E.g. Facebook (not google) CEO is so rich but yet borrow cheap monies to buy his property.

 

If buy car in the first place cash, ok.

If got car loan liao then go pay off, you sure is a good deal with rule of 78?

 

Leverage is not wrong i have client worth maybe 80m and still use leverage to hedge some currency exposure or for other purpose.

But just cos someone lose money doesn't mean he is very greedy... There is no such thing as a free lunch

[Latio2005A]

no one is judging successful in life according to wealth..

 

Just that if he is dishing out advise on investment.. dont he need abit more creditablity ?

 

I agree with you. After reading that article, I was like...what the fish, like that also dare tell people his investment story.

 

Not that we are being judgmental. At least someone who is featured under that heading should be one who has achieved some semblance of success, for lesser mortals like us to emulate and be motivated.

[Latio2005A]

Guys, does that means i should stretch my housing loan to maximum years to lower monthly repayment period? Because my interest is still quite low below 2%. I can use the excess to funds for the next house downpayment in case i want to buy another one?

 

I actually did a change to lower the number of years to pay back :( So stupid of me

 

On red - no you are not. You are prudent.

 

I did the same 10 years-plus ago.

 

I used CPF + a lot of cash each month. And along the way capital repayment in lump sums. People around me laughed at me for putting cash into my property.

 

In less than 15 years, I fully paid up my first private property. And now wrapping up my second.

 

The feeling of having properties fully paid is indescribable.

 

Go for it!

 

 

 

 

 

[A5SB]

One of the biggest myth perpetuated by well meaning people is rich people pays everything in cash upfront.

 

We have to be careful to distinguish good debts and bad debts. Good debts are incurred in order for more money to be made. Remember spending cold-hard cash has opportunity costs. Bad debts are incurred for non-necesities which do not in and of themselves generate income, and there is a serious prospect of not being able to service the loan sometime in future.

 

Only poor people have habits like fearing debts and being obsessive about savings. Rich people are obsessive with investments and ROI, how to generate more income.

 

All these discussion about paying full cash upfront for house, car and so on to me is a personal choice thing. Some people just have no ideas how to generate wealth, so might as well save on interest expenses and pay up their house and car since they happen to have the cash to spare. Doesn't mean they are rich, or clever for that matter.

[Throttle2]

On red - no you are not. You are prudent.

 

I did the same 10 years-plus ago.

 

I used CPF + a lot of cash each month. And along the way capital repayment in lump sums. People around me laughed at me for putting cash into my property.

 

In less than 15 years, I fully paid up my first private property. And now wrapping up my second.

 

The feeling of having properties fully paid is indescribable.

 

Go for it!

 

 

Careful now, ahem, wait people say you haolian toa pow sian..

 

Muayhahahah

[Throttle2]

One of the biggest myth perpetuated by well meaning people is rich people pays everything in cash upfront.

 

We have to be careful to distinguish good debts and bad debts. Good debts are incurred in order for more money to be made. Remember spending cold-hard cash has opportunity costs. Bad debts are incurred for non-necesities which do not in and of themselves generate income, and there is a serious prospect of not being able to service the loan sometime in future.

 

Only poor people have habits like fearing debts and being obsessive about savings. Rich people are obsessive with investments and ROI, how to generate more income.

 

All these discussion about paying full cash upfront for house, car and so on to me is a personal choice thing. Some people just have no ideas how to generate wealth, so might as well save on interest expenses and pay up their house and car since they happen to have the cash to spare. Doesn't mean they are rich, or clever for that matter.

 

End of the day, Its all about risk appetite and perspectives.

 

 

..

 

[Latio2005A]

Careful now, ahem, wait people say you haolian toa pow sian..

 

Muayhahahah

 

Thanks.

Have means have. No have means no have.

[Latio2005A]

One of the biggest myth perpetuated by well meaning people is rich people pays everything in cash upfront.

 

We have to be careful to distinguish good debts and bad debts. Good debts are incurred in order for more money to be made. Remember spending cold-hard cash has opportunity costs. Bad debts are incurred for non-necesities which do not in and of themselves generate income, and there is a serious prospect of not being able to service the loan sometime in future.

 

Only poor people have habits like fearing debts and being obsessive about savings. Rich people are obsessive with investments and ROI, how to generate more income.

 

All these discussion about paying full cash upfront for house, car and so on to me is a personal choice thing. Some people just have no ideas how to generate wealth, so might as well save on interest expenses and pay up their house and car since they happen to have the cash to spare. Doesn't mean they are rich, or clever for that matter.

 

Agree.

 

The key word here is : Diversification.

 

Anyhow, the feeling of debt free is priceless.

[Rayoflight]

Its like a margin account mah.

 

Good market, it is a good tool. bad market, no need to say la.

 

Put 20k to allow you buy 35k of stocks. If this stk double, you profit 50k.

 

without this leverage, you win 20k only.

[Jeronlee]

Instead of looking at how much debt one carries, I'd prefer to look at networth.

 

Person A has a networth of $1m and debt free. Person B has a networth of $5m and carries $1m debt. Who is richer?

 

Just like when one invest in a company, you don't only look at the debt but also revenue, profit, cash-flow etc.

[Jeronlee]

Interesting article extracted from ST Forum:

 

FUND manager Tan Chin Hwee writes about how Singapore has moved from being a society where people grow rich from working hard to get higher incomes, to one where people grow rich from accumulating assets that rise in value ("Growing wealthy without bubbles"; April 23). He further muses about how the former may be a better alternative to the latter.

 

While saving is a virtue, nobody I know has become rich simply through saving. This is true in a low-interest and high-inflation environment where every dollar left idling in the bank loses value.

 

Previous generations of Singaporeans wormed their way out of poverty through hard work and savings, but they merely achieved middle-class status and no more.

 

Those who had the foresight and financial savvy started building their empires by getting loans for investments and leveraging their meagre savings. They succeeded phenomenally by repeating this strategy with increasingly bigger bets and ventures.

 

A dollar saved is a dollar earned in the bank; a dollar invested may earn you the whole bank.

 

Singaporeans should not get dispirited that the investment boat has come and gone, leaving them high and dry - it always comes around again, in one form or the other. Bemoaning financial policies and futilely longing for a past that will never return are not useful. Being alert to the next big thing is far more productive.

 

Make no mistake - investing is hard work. The road to investment riches is littered with indolent paupers who have not done their homework and were ruined by financial inaptitude. To the victor, the spoils. For the rest of us, good luck and caveat emptor.

 

Yik Keng Yeong (Dr)

[Throttle2]

Instead of looking at how much debt one carries, I'd prefer to look at networth.

 

Person A has a networth of $1m and debt free. Person B has a networth of $5m and carries $1m debt. Who is richer?

 

Just like when one invest in a company, you don't only look at the debt but also revenue, profit, cash-flow etc.

 

 

Brother, networth means worth without debt.

Means all assets minus all liabilities, already net.

 

Anda apa bicara?

Simi net worth and debt?

 

Person B net worth $5m means more than person A net worth $1m already.

[laugh]

 

 

Kiang doh hor, Mai key kiang......

 

If you not sure can ask Teddy, our in house private banker.

Dont cut and paste .

Muayahaha

Edited May 1, 2013 by Throttle2

[Jeronlee]

Brother, networth means worth without debt.

Means all assets minus all liabilities, already net.

 

Anda apa bicara?

Simi net worth and debt?

 

Person B net worth $5m means more than person A net worth $1m already.

[laugh]

 

 

Kiang doh hor, Mai key kiang......

 

If you not sure can ask Teddy, our in house private banker.

Dont cut and paste .

Muayahaha

Pai sey. You're right. Thanks for pointing out.

 

Anyway, my bad for the poor example but my point is being debt free doesn't make one richer and being in debt doesn't make one poorer