Is buying private property a good investment?

[NewInvestor]

http://www.straitstimes.com/busines...ld-to-bukit-sembawang-estates-for-345-million

Singapore properties are still very cheap.

 

[Mergui219067]

Have not bought a decent sized freehold for your family before it is too late ?
Nowadays ulu ulu new leasehold condo are selling @$1400 easily.

 

[chopra]

If you are not in urgent need for a housing, accumulate your cash and invest in stocks and other liquid assets.

During the next financial crisis, then whack your 2nd property.

As I said, not many of us are like Li Ka Shing who is capable of buying a few properties across different time horizon.

Most of us have 1 or 2 tries only to buy a 2nd private property in their lifetime. So there is no room for error in our purchase price.

some of us want easy money and think property is the shortcut to that.

if stock n property rise up by 10% from now and if u have 100k
- stock: u can only earn $10k in a year
- housing: u can borrow 80%, i.e. buy a $500k property. for simplicity, disregard bsd, absd, ssd and currently low loan interest. u earn $50k in a year.

it would be nice if stock can be leveraged cheaply at such margin.

have anot?

 

[chopra]

Not buying a decent sized freehold for your
family before it is too late ?
Nowadays ulu ulu new condo are selling @$1400 easily.

y buy a freehold when one's life expectancy is no more than 120yrs and when govt gives so much subsidies for hdb dwellers?

i think most of us are uncertain if freehold will freefall together with leasehold if there's a crash. the crash has to come in a few decades time when some of the older hdbs have less than 40years of lease left.

 

[NewInvestor]

y buy a freehold when one's life expectancy is no more than 120yrs and when govt gives so much subsidies for hdb dwellers?

i think most of us are uncertain if freehold will freefall together with leasehold if there's a crash. the crash has to come in a few decades time when some of the older hdbs have less than 40years of lease left.

Buy and hold HDB plus others including freeholds.

 

[sgdividends]

some of us want easy money and think property is the shortcut to that.

if stock n property rise up by 10% from now and if u have 100k
- stock: u can only earn $10k in a year
- housing: u can borrow 80%, i.e. buy a $500k property. for simplicity, disregard bsd, absd, ssd and currently low loan interest. u earn $50k in a year.

it would be nice if stock can be leveraged cheaply at such margin.

have anot?

Can mortgage private property to buy stocks. Effect the same.

In fact, if want cash flow like property, buy corporate bonds. Blue chip ones at least.


Though, now is notna good time for anything generally

 

[BBCWatcher]

- housing: u can borrow 80%, i.e. buy a $500k property. for simplicity, disregard bsd, absd, ssd and currently low loan interest. u earn $50k in a year.

As sgdividends pointed out, leverage is not unique to housing. Indeed, via the options markets, you can amplify bets on stocks to crazy high levels if you wish.

Also, it may be “simple” to ignore taxes (also income taxes — rental income is taxed in Singapore), but they are real. You can’t disregard them. Especially when one of those taxes just recently increased by a percentage point (February, 2018).

it would be nice if stock can be leveraged cheaply at such margin.

That would be nice. Fortunately, you can, easily.

....But why is this question even framed as “either, or”? Do both. If you buy and live in a primary home, and stay there for at least a few years, great, you’ve got some real estate. And you can also invest in one or a couple low cost stock index funds with reasonable global diversification (and some percentage of additional real estate exposure, since there are a few companies in that business, too). What’s the problem with that combination?

 

[NewInvestor]

Is this another stocks vs property thread?

Well, then, here goes.

You can't sell your stocks en bloc. I just sold a property en bloc and the price is about 70% above the price I would have obtained if I had sold without en bloc. Many people in Singapore have done the same.

People may say that someone could mount a takeover of your stocks, and in the process offer to pay a premium for your stocks. Like Broadcom.

However, in our specific Singapore situation, the chances of your hitting an en bloc is greater than your buying a takeover target. All you have to do is to buy a condo which is sitting on a desirable piece of land and hold for 20 years or so. Please open your eyes. Singapore is going through a makeover and renewal phase and this is happening in our own backyard and during our lifetime. This is an extraordinary time for us. We happened to be living here now and can take full advantage. If we want to.

That's my view, please DYODD.

All brickbats and criticisms of my view, as always, are welcomed.

 

[Mergui219067]

There are countless millionaires ( private properties ) here but very few stock investors can make a few hundreds thousands $ profit in
stocks.

Already many who bought ECs last year are
another batch of millionaires.

 

[NewInvestor]

There are countless millionaires ( private properties ) here but very few stock investors can make a few hundreds thousands $ profit in
stocks.

Already many who bought ECs last year are
another batch of millionaires.

Tiagong the new Punggol EC will be launched at about $1,150 psf. And en bloc prices indicate that $3,000 psf will be quite common.... Just look at the Katong Towers en bloc price.

 

[Mergui219067]

Congrats!
I am on your side.

We laugh at those who voice out the options / margin trading as equivalent.
You can be sure they dare not practice what they advocate.

Is this another stocks vs property thread?
.

 

[Sinkie]

some of us want easy money and think property is the shortcut to that.

if stock n property rise up by 10% from now and if u have 100k
- stock: u can only earn $10k in a year
- housing: u can borrow 80%, i.e. buy a $500k property. for simplicity, disregard bsd, absd, ssd and currently low loan interest. u earn $50k in a year.

it would be nice if stock can be leveraged cheaply at such margin.

have anot?

Do you dare to put a $500,000 investment into a single stock? And pls share which single stock can confirm guarantee rise by 10% in a year, I don't mind even paying 6% margin interest to borrow $500k to earn that 4%

But I do dare to put a $500,000 investment into property lol

 

[NewInvestor]

Congrats!
I am on your side.

We laugh at those who voice out the options / margin trading as equivalent.
You can be sure they dare not practice what they advocate.

Stocks are more volatile and hence, the risks are high if one takes, say, 80% financing to buy stocks. Compare that risk with the risk of taking a 80% loan to buy a Spore property. These 2 risks are not the same level.

 

[Sinkie]

There are countless millionaires ( private properties ) here but very few stock investors can make a few hundreds thousands $ profit in
stocks.

Already many who bought ECs last year are
another batch of millionaires.

Hmmm why are they a millionaire by buying ec? They bought alone and also fully paid for the ec already?

I think can only consider them as half a millionaire, since they bought with wife, and also after paying their housing loan ba?

 

[shareholder]

Everyone becoming multi millionaires from this property boom. Now what does being rich mean? Many peers in their 40s already starting to feel stressed because now their few millions is not enough, need to make more money.

 

[Sinkie]

Everyone becoming multi millionaires from this property boom. Now what does being rich mean? Many peers in their 40s already starting to feel stressed because now their few millions is not enough, need to make more money.

It's true, my peers in their 40s, some of them stays in gcb but still drive uber during the weekend

 

[NewInvestor]

Everyone becoming multi millionaires from this property boom. Now what does being rich mean? Many peers in their 40s already starting to feel stressed because now their few millions is not enough, need to make more money.

This property boom seem to have some legs. So they just have to hold on and relax. Don't worry too much.

 

[klarklar]

Hi BBCWatcher,

When I ask around in Singapore, China and Hong Kong, most of them make money in property but lose money in stocks. Do you share the same observation among your American friends and relatives?

I don't know about India because my Indian friends are Singaporeans. Perhaps moneymind forummers from India like revhappy can share his observation?

This observation made about Asian countries/cities does say something good about investment in property versus stocks. One exception are Singaporeans who invest in Malaysian property. The win rate for this group is far lower.

 

[Mergui219067]

And I bet the ‘options’ guy would be happy to
out a few hundred thousand in a Singapore property ( stretch the bank loan ) but chicken out putting his $50k in a options.

Stocks are more volatile and hence, the risks are high if one takes, say, 80% financing to buy stocks. Compare that risk with the risk of taking a 80% loan to buy a Spore property. These 2 risks are not the same level.

 

[mediaskies]

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