S$700000

[Gummy Bear]

What should I do with $700000? Invest in Property or Shares? If invest in property, should I go for bank loan to make it into 1.4m?

 

[Timthyo]

What should I do with $700000? Invest in Property or Shares? If invest in property, should I go for bank loan to make it into 1.4m?

Congrats on having $700,000.

I personally think that there are few things to take into consideration and it pretty much boils down to your profile. Since you've round it up to the two choices, you must have your reasons.
The likely question would be the best returns-on-investment.

Is it the best time to purchase property? What is the rent market like? Is it the best time to purchase property?
Good + Yes = Look for a suitable property and proceed from there.
I don't think you should let your money be used as collateral for a loan.(Anything in assets to backup the bank's confidence in issuing you a loan?)
Otherwise you can do a F.D. and take out a loan.

Shares can seek the advise of the other forumers as I am not well-versed.

Wise man once said to me: When man plans, god(s) laugh. But man do not ordinarily know what will happen in the future, they can only make the best decision based on the options they have.

More options, higher chance of a wiser decision. Cheers.

 

[alexchia01]

What should I do with $700000? Invest in Property or Shares? If invest in property, should I go for bank loan to make it into 1.4m?

When bank sees you have this amount, they will upgrade you to higher class, treat you like royalty and try to sell you their unit trusts.

Never buy unit trust, certainty to loss money and take 10 years to recover.

The problem with huge fortune and limited investment knowledge is very high chance of lossing it. First, put you cash in a FD account, keep it lock away safely for the time being.

Take the next 3 years to learn about investing. You can use a small portion of your wealth as school fee to gain experience.

After 3 years, you should know what you want to do with the money and then do it.

I would suggest you learn dividend investing, but the choice is up to you.

Avoid investment scams that promise high return in the short time, like pay $35k and get 15% yearly. These are certainty to loss everything.

You have to be wise with your money. Many people will come to you for money from now on.

 

[henrylbh]

Buy shares but wait for some correction. If you select those with consistent dividend yields, the net annual returns will be better than rental with no effort in looking for tenants, having problems with tenants, period of vacancy and paying agent's commission and replacing furnishings after some years. Also no need to declare income tax.

Though it seems property may give higher capital gain, you will incur additional stamp duty and the days of making high gains may be over wilth all the cooling measures. Equities could also give as much capital gain if you pick the correct counters.

Both investments are subject to loss, but if you need money in bad times you can liquidate part of your investment in propety.

 

[Keverus]

Never buy unit trust, certainty to loss money and take 10 years to recover.

Rubbish...

 

[wahkao3]

invest in low risk, high return opportunities such as FATA stocks

 

[Shiny Things]

What should I do with $700000? Invest in Property or Shares? If invest in property, should I go for bank loan to make it into 1.4m?

G'day mate,

You might want to get some external advice here, but we can give you some starting points. Two questions, first:
1) how old are you? (Within 5 years is fine, if you'd rather keep it a bit anonymous);
2) do you have any specific plans to use the money, and when? (for example: a wedding in 5 years, a kid's college fees in 15 years, that sort of thing. "no specific plans" is an OK answer too.)

 

[Aneosx]

invest in low risk, high return opportunities such as FATA stocks

Wow! there is a new stock counter in sgx named FATA.

 

[focus1974]

TS,

If you have just gotten the $700k.
Do nothing (no spending or investing) for 6 months and learn all you can about the various investment asset class and the different strategies within each.

Then you can make an informed decision.

And .. don't quit your job. If not, very hard to grow your money faster.

Oh.. and don't expect to be treated like royalty in a bank .. your money is a drop in the ocean .... Be humble and stay humble.

 

[Z070188]

What should I do with $700000? Invest in Property or Shares? If invest in property, should I go for bank loan to make it into 1.4m?

Half in stock and half invest in property, maybe one or two bedder.

 

[sandwicher]

invest in low risk, high return opportunities such as FATA stocks

Rubbish. Anything that's too good to be true, is probably too good to be true.

Anything low risk and high returns will have the market react and bring down the returns. Please don't confuse TS.

 

[Keverus]

Rubbish. Anything that's too good to be true, is probably too good to be true.

Anything low risk and high returns will have the market react and bring down the returns. Please don't confuse TS.

Please dont doubt our legendary FATA master.

 

[wahkao3]

wahkao3 wrote:

invest in low risk, high return opportunities such as FATA stocks​

Rubbish. Anything that's too good to be true, is probably too good to be true.

Anything low risk and high returns will have the market react and bring down the returns. Please don't confuse TS.

the solution is to grab those stocks before the market react and bring down the returns

 

[wondrdoggie]

TS,

If you have just gotten the $700k.
Do nothing (no spending or investing) for 6 months and learn all you can about the various investment asset class and the different strategies within each.

Then you can make an informed decision.

And .. don't quit your job. If not, very hard to grow your money faster.

Oh.. and don't expect to be treated like royalty in a bank .. your money is a drop in the ocean .... Be humble and stay humble.

Good advice, especially the part about giving it some time for new wealth to sink in. After that 6mths or so, you can start investing but still maintain your lifestyle. That way you can test what kind of returns you can generate. I personally made some silly financial decisions earlier on but fortunately it wasn't that bad. I kept my lifestyle for a year and things become much clearer.

 

[wondrdoggie]

I am traditional in guess but I would do a self assessment of your own risk profile and then allocate to bonds, equities and alternatives based on your risk/return ration desired. At 700k, a bit hard to get in private banks but you can get access to priority banking and use some leverage to get more yield.

 

[focus1974]

I am traditional in guess but I would do a self assessment of your own risk profile and then allocate to bonds, equities and alternatives based on your risk/return ration desired. At 700k, a bit hard to get in private banks but you can get access to priority banking and use some leverage to get more yield.

Actually, for $700k and you are interested in investing, i think most people won't go wrong with low commission and fees like SCB. Or like Shiny and others are doing.. on Interactive Brokers.

Like wondrdoggie suggest, if you are into bonds and need leverage, then you have no choice but to use the RMs. I've not tried IB , so i'm not sure whether you can leverage on bonds over there.

I heard the spreads on FX from IB is also almost always better than you could get from your RM. The trading specialist(aside from RM who does admin stuff, the trading specialist takes orders direct from you and trade. No need to go thru RM and RM go to trading specialist) told me to exchange usd with lowest spread, it is 10 basis points and minimum $100k usd, even if I put a limit order to buy at an $x price, they will add 10 basis points to it.

Bonds .. I can buy at par.. but i heard some priority customers have to buy at $100.25 or something like that. RM needs to take spread.

Anyway, I think how much you can squeeze from your RM is dependent on who you are and your potential to your RM. I am a nobody (not businessman) , so my bargaining power on the RM not that great. Probably if you are doctor .. they know you can be long term growth asset, they will treat you very well

 

[wondrdoggie]

Actually, for $700k and you are interested in investing, i think most people won't go wrong with low commission and fees like SCB. Or like Shiny and others are doing.. on Interactive Brokers.

Like wondrdoggie suggest, if you are into bonds and need leverage, then you have no choice but to use the RMs. I've not tried IB , so i'm not sure whether you can leverage on bonds over there.

I heard the spreads on FX from IB is also almost always better than you could get from your RM. The trading specialist(aside from RM who does admin stuff, the trading specialist takes orders direct from you and trade. No need to go thru RM and RM go to trading specialist) told me to exchange usd with lowest spread, it is 10 basis points and minimum $100k usd, even if I put a limit order to buy at an $x price, they will add 10 basis points to it.

Bonds .. I can buy at par.. but i heard some priority customers have to buy at $100.25 or something like that. RM needs to take spread.

Anyway, I think how much you can squeeze from your RM is dependent on who you are and your potential to your RM. I am a nobody (not businessman) , so my bargaining power on the RM not that great. Probably if you are doctor .. they know you can be long term growth asset, they will treat you very well

I seldom convert fx as I will borrow in that currency as a form of fx hedge. That way, I don't take fx risk. For new issue bonds, I don't pay above par, sometimes I get below par. Anyway, at 700k, you can only buy 1-2 bonds, so if I were the TS, I would just buy a bond ETF and spread out the risk.

Another idea is if TS can get into UBS, they have this discretionary product called the Asian Mandate program. You give them the lump sum and they will allocate for you across world wide ( but with asian slant) fx, bonds, equities and hedge funds. Denominated in sgd. Yield so far based on more aggressive profile like mine is about 6.3% end June, so annualized is about 12.6% which to me is pretty good. Nett of charges of course. But you must be comfortable being 100% hands off and if have issues not being in full control type then prob won't work.

Also important to know risk appetite, investment time horizon and financial commitments.

 

[focus1974]

I seldom convert fx as I will borrow in that currency as a form of fx hedge. That way, I don't take fx risk. For new issue bonds, I don't pay above par, sometimes I get below par. Anyway, at 700k, you can only buy 1-2 bonds, so if I were the TS, I would just buy a bond ETF and spread out the risk.

Yup. If leverage bonds , can take the fx loan.
For shares, I tend to convert to USD and not take fx loan.

 

[Gummy Bear]

G'day mate,

You might want to get some external advice here, but we can give you some starting points. Two questions, first:
1) how old are you? (Within 5 years is fine, if you'd rather keep it a bit anonymous);
2) do you have any specific plans to use the money, and when? (for example: a wedding in 5 years, a kid's college fees in 15 years, that sort of thing. "no specific plans" is an OK answer too.)

I am over 30yo and im single. I hope to generate passive income from either rental or dividends. In term of investment, 700k is peanut.. That is why I must be careful on how I use these money.

Objective is to generate monthly passive income of not less than 5k. So that I can be confident enuff to quit my day job.

Initially was thinking of getting loan from bank to leverage. Invest in some smaller condo units and yields rental incomes..

or invest in bluechip like Smrt, singtel and many other stocks that pay good divided.

To answer your question.. No I do not have any plan to use these money other than investing it.

 

[pattanispirit]

the best return you could get is to run yr own biz.

with your young age and some working experience, this is the best combination to start on your own.

i don't know your edu background and work experience, so can't give what trade to go in.

the return could be ten or hundreds of times your investment, based on my personal experience.

spent some time to research on the biz model or even can buy over existing biz.