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Investing in a Condo?

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Old 31-07-2020, 10:20 AM   #61
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For me, borrowing costs is not key, valuation is key. You may be borrowing cheaply to buy an asset expensively.

Me play with all 3 - Equity, Property and Bonds. I will invest whichever offers the best value. The trick therefore is to be able to determine what is the intrinsic value of the asset u are investing. Obvious and simple rule: Accum if undervalue, Sell if overvalue.

Once u know what something is worth, the next step is then to determine how best to finance it - what is the right mix of cash and leverage. That's when the borrowing cost will come in.
Clever man
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Old 31-07-2020, 11:22 AM   #62
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Your timing must be very good when buying a property as an investment.

Most of us have only 1 or 2 chances to buy one at the right timing.

If you happen to buy at the peak price, that's it. You cannot average down. And you need longer period to break even.

For stocks, you can always buy in separate tranches.
I like this view.

Current property price has not come down significantly. And next couple of years dont look good. Is now really a good time for property?
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Old 31-07-2020, 12:04 PM   #63
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Still many prefer property as investment as they can feel and touch.

Perhaps only when prices drop significantly and stay low for long periods will they change their mindset.
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Old 31-07-2020, 01:57 PM   #64
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I have been asking the same, but for IWDA and S&P500, since they are at historical highs despite US and global countries GDP crash due to CoVid-19, is it really good time to continue to buy IWDA and US stocks?

I like this view.

Current property price has not come down significantly. And next couple of years dont look good. Is now really a good time for property?
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Old 31-07-2020, 01:59 PM   #65
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With massive money printing, many stocks (especially US stocks) are terribly over-valued!
I won't be buying those stocks now, especially US stocks!

For me, borrowing costs is not key, valuation is key. You may be borrowing cheaply to buy an asset expensively.

Me play with all 3 - Equity, Property and Bonds. I will invest whichever offers the best value. The trick therefore is to be able to determine what is the intrinsic value of the asset u are investing. Obvious and simple rule: Accum if undervalue, Sell if overvalue.

Once u know what something is worth, the next step is then to determine how best to finance it - what is the right mix of cash and leverage. That's when the borrowing cost will come in.
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Old 31-07-2020, 02:00 PM   #66
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I have been asking the same, but for IWDA and S&P500, since they are at historical highs despite US and global countries GDP crash due to CoVid-19, is it really good time to continue to buy IWDA and US stocks?
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Unless can fully paid the house or have enough bullet for a few years assuming If kena pok by company no income then why not since like the view
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Old 31-07-2020, 02:03 PM   #67
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Good question, in today's environment it isn't as worth it as the past. Despite low interest rates, rental yields and expected appreciation are also low.

To evaluate if this is a good investment, consider it on a net basis. The rental you receive will likely cover mortgage interest costs but the remainder will be eaten away by other ongoing costs (upkeep to keep the unit rentable, MCST fees, homeowner's insurance, property tax and income taxes). Also keep in mind that you won't get rental * 12 months. You would experience vacancy between tenants and the agent will take 1 month per year of the lease.

Capital appreciation helps, ~2-4% per year is a good estimate, but also consider the one-time costs like BSD, ABSD, mortgage fees and selling agent fees.

Once it's all added up, if you hold for say ~10 years, my guess is that you would come out with a decent gain, but I'm not sure it's worth the time and effort.

Last edited by bluegt; 31-07-2020 at 02:32 PM..
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Old 31-07-2020, 02:12 PM   #68
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It only ones that are profiting like mad in the past few years are the agents
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Old 04-08-2020, 03:27 AM   #69
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For me, borrowing costs is not key, valuation is key. You may be borrowing cheaply to buy an asset expensively.

Me play with all 3 - Equity, Property and Bonds. I will invest whichever offers the best value. The trick therefore is to be able to determine what is the intrinsic value of the asset u are investing. Obvious and simple rule: Accum if undervalue, Sell if overvalue.

Once u know what something is worth, the next step is then to determine how best to finance it - what is the right mix of cash and leverage. That's when the borrowing cost will come in.
Exactly, investment is about the numbers. Do your due diligence in calculating numbers, there is no sure win method. Different people prefer different investment so there isn't a one size fit all.
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Old 04-08-2020, 04:02 AM   #70
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With massive money printing, many stocks (especially US stocks) are terribly over-valued!
I won't be buying those stocks now, especially US stocks!
Uncle you have avoided US market for a few years already.

You have missed alot of good returns.

I wonder how you can maintain 30% pa with your portfolio.
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Old 04-08-2020, 11:03 AM   #71
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Uncle you have avoided US market for a few years already.

You have missed alot of good returns.

I wonder how you can maintain 30% pa with your portfolio.
Also missed lots of bad time in USA.
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Old 04-08-2020, 11:20 AM   #72
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go to excel, use the formula xirr

Better way to show which is higher
yup this is the best way
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Old 09-08-2020, 06:24 PM   #73
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I like this view.

Current property price has not come down significantly. And next couple of years dont look good. Is now really a good time for property?
For all thatís itís worth. I recently spoke to the MS analyst who said 2 years ago that private property prices in Singapore will double by 2030. He is sticking to that view.
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Old 09-08-2020, 06:27 PM   #74
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Anyone know if it is possible to use retired parentís name to purchase a property and still get a loan through say a guarantee to the bank?
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Old 09-08-2020, 06:36 PM   #75
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For all thatís itís worth. I recently spoke to the MS analyst who said 2 years ago that private property prices in Singapore will double by 2030. He is sticking to that view.
I think it will go 10x

for it to double, the increase is 7% every year. You got see any condo 7% increase every year?
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