This morning, I had a whatsapps conversation with E. She is one of those agents who believe in property price is forever increasing and each property is a savings plans.
Well, we agree to disagree. I told her about my cashflow philosophy and to get her expenses in control and replace her expenses with passive income from business, property or other sources. Free up her salary for investment. Trading up is not a way to go, it merely increases the liability forever.
As always, I shared my favourite OCBC 360 accounts with 3.05% and she was surprised she did not know about this account. I also disagree about putting her money into different accounts, eg savings in her children's account. I told her the prudent way is to consolidate to get better income as a bigger client for the bank is a better way of getting higher returns.
We discuss HDB as well. HDB loan is one of the biggest stumbling blocks today. It requires you to empty the CPF account to pay for the downpayment. Which leaves the average Joe dependent on each month's salary to meet the mortgage service requirement without a massive base to depend on in case of emergency. This, I feel is very sad. I took a bank loan to preserve my base so that I could quit at anytime of my life and I have a sizable base for monthly installment. This is prudence.
Lets recap and work out a system :
1. Go through your expenses and work out the fixed income and decrease the variable income.
2. Protection, get yourself protected with term insurance.
3. Work on your credit ratings and leverage power.
4. Invest in network of agents, bankers, investors and attend free workshops.
5. Tap on their expertise.
6. Invest in cashflow income stream.
7. Create multiple income stream.
When passive income > expenses, work on capital growth investments.
As always, build a solid base, only then can you use that base to leap high and far!
Saturday, 7 February 2015
Why are there no or so few property investment blogs compared to shares investment blog?
Dear Readers, as a avid follower of the principal of cashflow principals, I've found there are little or no blogs on the steps towards financial success in property investment. Yet, there are tonnes of people writing about shares and shares investment and its exciting every day with share prices going up and down. If you are a follower of the cashflow principal, perhaps, shares is not a market you go into?
Lets say, if property blogs are written as share investment style, what would it be like?
It would probably be monotonous and without any excitement... 1 year of writing later and the market stays stagnant. Cashflow ~ same for the next few years, so whats so exciting about property investment vs shares?
Well, as far as I know, property investors are actively in the market researching, negotiating and raising funds and they have no time for market update by earnings, price changes etc. Price change, they take it in their stride. When Sqft research started analysing property by technical indicators, I got a good laugh. Yes it is possible to do so, and it gives a good base for the beginner investor, but really is every property same as another?
Do you have any good property investment blog to recommend?
Lets say, if property blogs are written as share investment style, what would it be like?
It would probably be monotonous and without any excitement... 1 year of writing later and the market stays stagnant. Cashflow ~ same for the next few years, so whats so exciting about property investment vs shares?
Well, as far as I know, property investors are actively in the market researching, negotiating and raising funds and they have no time for market update by earnings, price changes etc. Price change, they take it in their stride. When Sqft research started analysing property by technical indicators, I got a good laugh. Yes it is possible to do so, and it gives a good base for the beginner investor, but really is every property same as another?
Do you have any good property investment blog to recommend?
Tuesday, 3 February 2015
11 Central Avenue Moorabin
This development by Stellar reminded me of Toa Payoh and the quaint little city in Delft. Its a nice city centre location near the train station. This photo below actually shows the location, it has nice shops along the strip and its quiet and near amenities.
Lets see the location.
Lets see the location.
11 Central Avenue is about 200 m from the train station.
What about population growth in the suburb and others? Lets say this is micro-analysis and the location is nice and next to transport, it should be easily rentable. The apartments are all 2 BR and 3 BR starting from AUD 440K for 2B 1B and 1Carpark with good layout.
Saturday, 24 January 2015
Show hand...
Just not long ago, I blogged about being defensive and being passive. Being a extreme high D personnel, I just cannot stay still. This year 2015, I'm showing hand and up the level of leverage x 2.
This is very exciting and have been keeping me awake all nights as I ponder my cards. I'm going to assemble my 'troops' and plan for final assault. Soldiers, gear up, we are going for war.
Spartans, prepare for Glory!
This is an update for the property, the one property where I showhanded had a price increased of 0.5% as of last friday and the houses are demolised and construction starts in 2 weeks time. This is an equity gain of $2500 before construction.
This is very exciting and have been keeping me awake all nights as I ponder my cards. I'm going to assemble my 'troops' and plan for final assault. Soldiers, gear up, we are going for war.
Spartans, prepare for Glory!
This is an update for the property, the one property where I showhanded had a price increased of 0.5% as of last friday and the houses are demolised and construction starts in 2 weeks time. This is an equity gain of $2500 before construction.
Monday, 12 January 2015
Stucked - Update - 23rd March 15
Today, Jan 12th 2015 is the completion of my 3 years contract with the Thai hotel unit. What started as a fixed deposit test property ended as my worst nightmare now. Well, dealing with Thais in general requires a lot of patience, all would be fine if i have time on my side, however, due to my aggressive acquisition of properties, I'm kinda stucked... I needed liquidity now. Since September 2014, I've alerted the owners of my intention, hoping they could improve their efficiency. It was only last week, they told me they had a change of CEO and the new CEO will need to go through the contract again and requires more time.
Well, generally I do not have much issues with Thai honesty. They will honour their word and contract, however when would the money come in it would be a unknown time. I wonder if clocks and calendars work in Thailand?
Update on the 23rd March. Lovely Miss Ploy went to take a look at this unit of mine which is still stuck. I don't know how to talk to thai... so much miscommunications.
Thursday, 18 December 2014
What is the best way to grow your wealth?
What is the best way to grow your wealth, relatively risk free?
On one extreme end of the spectrum would be gambling. I'm not familiar with that and the other extreme end of the spectrum, saving. I hate that.
Being financially savvy, one would need to understand cost of borrowing, leverage and the power of compounding. So given the following scenario, a relatively fresh graduate, earning $4000, trying to gain a foothold in the property ladder with no savings yet, what can he do?
If he save for a $500,000 property, he would need for a 20% downpayment of $100,000. This could mean a 5 - 8 years of diligent savings. At the end of 8th year, when he wants to buy the property, the property would have grown at least 50% and the down payment would have grown higher still. A case of forever not able to catch the ladder.
What can he do?
Wednesday, 17 December 2014
Oil Price Free Fall, the black swan event?
Were you afraid of the recent oil price free-fall? Is this the black swan event that will crash the world economy?
"On December 23, 2008, WTI crude oil spot price fell to US$30.28 a barrel, the lowest since the financial crisis of 2007–2010 began, and traded at between US$35 a barrel and US$82 a barrel in 2009."
Today the spot price is slightly over US$50. How does the low price and over supply affect the economy? Naturally the oil production for oil producing country may suffer which Russia is the main economy, lets see what effect this economy have on the world economy.
Russia is no. 8 on the IMF world GDP ranking which is roughly 2% of the world's GDP?
According to http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
Seriously, Russia has been in sanction at some time or another, the current collapse of the Ruble will not affect World GDP much looking at the percentage of the GDP it contributes.
Do not be worried about the short term free-fall. It just says there is an opportunity to take advantage of the blood in the streets. Wait a few months and jump in to the fallen asset class, namely energy stocks. Also, in terms of leverage, interest rate hike will be slower with each wave of crisis. Interest have to be low to entice businesses to take on risks to grow the economy.
Is Oil price fall the 4th QE, it looks likely that the free fall will stimulate the emerging economy and for oil producing countries, a short term problem. Sooner or later, the weaker nations will give up and seek out a buyer for their future produce and that would cushion the cashflow, much like taking loan from IMF.
I'm bullish. Cheers!
"On December 23, 2008, WTI crude oil spot price fell to US$30.28 a barrel, the lowest since the financial crisis of 2007–2010 began, and traded at between US$35 a barrel and US$82 a barrel in 2009."
Today the spot price is slightly over US$50. How does the low price and over supply affect the economy? Naturally the oil production for oil producing country may suffer which Russia is the main economy, lets see what effect this economy have on the world economy.
Russia is no. 8 on the IMF world GDP ranking which is roughly 2% of the world's GDP?
According to http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
Seriously, Russia has been in sanction at some time or another, the current collapse of the Ruble will not affect World GDP much looking at the percentage of the GDP it contributes.
Do not be worried about the short term free-fall. It just says there is an opportunity to take advantage of the blood in the streets. Wait a few months and jump in to the fallen asset class, namely energy stocks. Also, in terms of leverage, interest rate hike will be slower with each wave of crisis. Interest have to be low to entice businesses to take on risks to grow the economy.
Is Oil price fall the 4th QE, it looks likely that the free fall will stimulate the emerging economy and for oil producing countries, a short term problem. Sooner or later, the weaker nations will give up and seek out a buyer for their future produce and that would cushion the cashflow, much like taking loan from IMF.
I'm bullish. Cheers!
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