Target networth

Status
Not open for further replies.

malthead

Member
Joined
Sep 2, 2018
Messages
281
Reaction score
7
I just finished my month-end networth snapshot compilation. Thought of sharing here how I maintain it. I maintain this report in INR. Below is the report in SGD, with the appropriate exchange rate applied.

(All figures in '000 SGD)

OXNFbRn.png

you did not include real estate?
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,119
Reaction score
3,014
Renting is cashout not good long term
So by that logic you should buy an electric power plant, because paying your electric bill is not good long term? :s22:

"It depends." For example, are you aware that Revhappy would have to pay 20% ABSD?
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,119
Reaction score
3,014
He does not have a residence ppty.
That’s correct, but Revhappy is subject to 20% ABSD and does not have a right to stay of his own accord in Singapore. The government will strictly limit his upside on any property, interest rates are increasing, rent-to-valuation ratios are attractive for renters, and property prices are relatively high at the moment.

Revhappy is likely quite wise not to buy any property in Singapore at this point in time in such circumstances.
 

malthead

Member
Joined
Sep 2, 2018
Messages
281
Reaction score
7
So by that logic you should buy an electric power plant, because paying your electric bill is not good long term? :s22:

"It depends." For example, are you aware that Revhappy would have to pay 20% ABSD?

No one is asking him to buy a property in Singapore.

he could have bought something in his home town right? where he is likely to retire?
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,119
Reaction score
3,014
I don't own real estate. Renting.

Renting is cashout not good long term

No one is asking him to buy a property in Singapore.
What2do4life did, by clear implication.

he could have bought something in his home town right? where he is likely to retire?
Yes, hypothetically he could buy a home in another country where he is currently planning to retire (but may not retire; that isn’t firmly decided) at least 10 years from now — and continue renting in Singapore in the meantime. Why on earth would he do that? Houses will still be available for purchase 10+ years from now! Many of them will be better houses, actually, since there will predictably be innovations in home building over the next 10+ years.

This is nutty advice! Let Revhappy keep doing exactly what he’s doing, which is most financially sensible.
 

revhappy

Arch-Supremacy Member
Joined
Mar 19, 2012
Messages
11,450
Reaction score
2,062
What2do4life did, by clear implication.


Yes, hypothetically he could buy a home in another country where he is currently planning to retire (but may not retire; that isn’t firmly decided) at least 10 years from now — and continue renting in Singapore in the meantime. Why on earth would he do that? Houses will still be available for purchase 10+ years from now! Many of them will be better houses, actually, since there will predictably be innovations in home building over the next 10+ years.

This is nutty advice! Let Revhappy keep doing exactly what he’s doing, which is most financially sensible.
Thanks Bbcwatcher.

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,119
Reaction score
3,014
Thanks Bbcwatcher.
Sure, no problem. Although I really wish you wouldn’t speculate on market movements and would just doggedly stick to one appropriate investing program. ;)

While you currently expect to retire in Bangalore some 10+ years from now, I’d also point out that Bangalore 10+ years from now (and over the course of your retirement) won’t be the same as Bangalore today. For example, Bangalore’s air quality might worsen, and in the future you might cross it off your short list for that reason alone. And of course that problem, if it were to occur, would affect real estate values, too.

In addition, India and Bangalore have really perilous real estate markets. Valuations are extremely volatile, and construction quality is often terrible. I think you’ve described how, initially anyway, you’d be a retiree renter for a while, until you can build up some important local knowledge to mitigate the significant risks when buying a home there. Good idea!

Anyway, I do think it’d be nuts to buy a home now, in these circumstances.
 

malthead

Member
Joined
Sep 2, 2018
Messages
281
Reaction score
7
What2do4life did, by clear implication.


Yes, hypothetically he could buy a home in another country where he is currently planning to retire (but may not retire; that isn’t firmly decided) at least 10 years from now — and continue renting in Singapore in the meantime. Why on earth would he do that? Houses will still be available for purchase 10+ years from now! Many of them will be better houses, actually, since there will predictably be innovations in home building over the next 10+ years.

This is nutty advice! Let Revhappy keep doing exactly what he’s doing, which is most financially sensible.

Do you have any idea how much housing prices have gone up in Asian cities in the last 2 years, let alone 10 years?

I know you are biased against real estate but perhaps you should keep an open mind. on a personal level, my property purchase accounted for more than 50% of my increase in networth in the last 5 years including from compensation from work.

I wouldn't be able to afford my home now if I hadn't bought it 9 years ago
 

revhappy

Arch-Supremacy Member
Joined
Mar 19, 2012
Messages
11,450
Reaction score
2,062
Sure, no problem. Although I really wish you wouldn’t speculate on market movements and would just doggedly stick to one appropriate investing program. ;)

While you currently expect to retire in Bangalore some 10+ years from now, I’d also point out that Bangalore 10+ years from now (and over the course of your retirement) won’t be the same as Bangalore today. For example, Bangalore’s air quality might worsen, and in the future you might cross it off your short list for that reason alone. And of course that problem, if it were to occur, would affect real estate values, too.

In addition, India and Bangalore have really perilous real estate markets. Valuations are extremely volatile, and construction quality is often terrible. I think you’ve described how, initially anyway, you’d be a retiree renter for a while, until you can build up some important local knowledge to mitigate the significant risks when buying a home there. Good idea!

Anyway, I do think it’d be nuts to buy a home now, in these circumstances.
Thanks. Sure, I will stick with my allocation. Trying to time markets is a behavioural thing, I hope I can overcome it.

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT
 

What2do4life

Senior Member
Joined
Sep 25, 2018
Messages
1,152
Reaction score
0
Yes ppty is a bubble in Asian.
When will it blust? Nobody knows.

But history and trend has proven it only goes up!
 

revhappy

Arch-Supremacy Member
Joined
Mar 19, 2012
Messages
11,450
Reaction score
2,062
Do you have any idea how much housing prices have gone up in Asian cities in the last 2 years, let alone 10 years?

I know you are biased against real estate but perhaps you should keep an open mind. on a personal level, my property purchase accounted for more than 50% of my increase in networth in the last 5 years including from compensation from work.

I wouldn't be able to afford my home now if I hadn't bought it 9 years ago
Not all Asian cities have gone up. Sydney has started correcting in the last year and is staring a financial crisis. Their banks are too much exposed to the real estate sector. Indian cities have been correcting since 2012. Hong Kong is defying gravity, let's see how much higher it can go.

London is correcting.

BTW, there is a concept called negative gearing in the Australian property markets. I didn't know what it is. It is an interesting concept. Basically the losses from property (difference between rental income and mortgage payments) can be offset against income tax and that has caused the property bubble there.

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT
 
Last edited:

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,119
Reaction score
3,014
On this financial score, at least, Revhappy is wise.

I’m not “biased against real estate.” I have some portion of my wealth invested in real estate, after all. But I’m not biased in favor of real estate either, which helps give me a clear head in assessing the wisdom (or lack thereof) in particular circumstances of buying a home. And for Revhappy, no f***ing way should he be buying a home now. In Singapore, no, that’s crazy: 20% ABSD, exceptionally low rents relative to valuations, rising interest rates, and no right to enjoy living in his home — he could be kicked out within 30 days at any point in time. In India, no, he’s hopefully 10+ years away from retiring there and not even entirely sure of that. And do any of you know more about Indian real estate than Revhappy does? I know a little bit about it, and...no, stay away, at least from individual properties. You can get VERY badly burned, especially when you’re (hopefully) 10+ years away from living in your home. India is not like Singapore.

WTF? Come on, this is silly. Revhappy is entirely correct here.
 

Dividends Warrior

Arch-Supremacy Member
Joined
Nov 7, 2010
Messages
22,929
Reaction score
865
Do you guys have a target networth and stick to it? Once attained, do you relax in any way like changing your job for something that you wanted tor try?

Or do you revise your target when you hit it?

The reason I am asking is that I wonder if I am able to tell myself "that's enough" and stop fretting or at least fret less about whether I have enough. Obviously there are other considerations like if you are single, married or with kids. The last scenario will definitely complicates matters in terms of the budgeting for their future expenses.

It's never enough. When I first started investing, I thought achieving $200k networth by 30 with passive income $1k/month is enough. Nope. I set a new target of $400k at 35 with passive income $2k/month. Going to achieved it this year. Am I satisfied? Nope. My next target is $500k and a new property by 40.
The only difference is that I feel more 'secured'. But it is never 'enough'.
 

malthead

Member
Joined
Sep 2, 2018
Messages
281
Reaction score
7
It's never enough. When I first started investing, I thought achieving $200k networth by 30 with passive income $1k/month is enough. Nope. I set a new target of $400k at 35 with passive income $2k/month. Going to achieved it this year. Am I satisfied? Nope. My next target is $500k and a new property by 40.
The only difference is that I feel more 'secured'. But it is never 'enough'.

Don't you think though why it's never enough?

I kept revising my target too.
 

What2do4life

Senior Member
Joined
Sep 25, 2018
Messages
1,152
Reaction score
0
The funniest thing is that when life ends, those $$$$ cannot even be brought along.

Thats the irony of it all!
 

havetheveryfun

High Supremacy Member
Joined
Jul 16, 2010
Messages
26,294
Reaction score
3,421
Don't you think though why it's never enough?

I kept revising my target too.

its human nature + the aversion to risk.

last time when i have $0, i thought 200k with a 5% yield will be good enough for me. But when I got closer to 200k, I felt that I couldn't put my whole 200k into something that gives 5% yield, in case of a market crisis. So I felt that I had to like put 100k in something safer like fixed deposits or SSB and the other 100k in 5% yield instruments. so naturally the average yield would have reduced, and 200k isn't enough anymore.

And then once you have like 400k, you would be like, oh god, 400k is a big risk to take to put them all in the stock market especially if it took years to build it up. so you be like "Wouldnt 1 million in fixed deposits or bonds with just 2% yield be better? and a lot safer?" and so your target ended up being from 200k to a million.

And so you keep revising your target once you reach your original goalpost. as if not, it feels a bit pointless. its like "alright, i have achieved this. now what ? "
 
Status
Not open for further replies.
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top