Investment Talk

[Throttle]

wow, been a while. i tidied up and went on a holiday Down Under.

with the inflation and the AUD strength , holidaying in Australia has actually become quite expensive.

 

havent looked at the market since i'm still on leave.

any major changes, have i lost another brand new Ducati Diavel?

hope not.

 

Property has taken another hit too.

hope this weeds out the wannabes and short term players.

 

Enjoy the lull period.

[cougar]

will start buying some blue chips next year.

 

If Euro is confirm kaput, that means all those banks holding Euro currencies will suffer losses all round the world right? They have to write down/ off the banana money?

Edited December 15, 2011 by cougar

[Throttle]

using yourself as example.

 

If earn little and take little loan = just trotting along

If earn little and take a lot of loans = die cock stand in due course

If earn a lot and take too little loan = lost of opportunity

If earn a lot and take a lot = trotting along but at higher speed, may fall off.

 

Secondly earning is just earning, there is also other asset and investment valuation. Some people have more , some have less. same for countries.

 

a ratio is just a ratio at the end of the day, you must see what it is made of. most of the time, it is just a guide and means nothing unless read in conjunction with other information

 

anyway why worry, we are all poor people, wont affect us lah.

 

cheers

[Throttle]

Thanks for the analogy Throttle. I get what you mean.

 

Someone has explained to me that the Public Debt is govt dept to CPF (a.k.a sinkies). The more impt debt (external) is just 10% of our GDP.

 

I am not sure what is the Singapore context of public debt but public Debt of a nation in general refers simply to debts which the govt borrow which are not financed by tax revenues. not necessarily to CPF / sinkies

Treasuries / treasury bills form the major part of public debt.

[Throttle]

"Government debt (Public debt) can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders)."

http://en.wikipedia.org/wiki/Government_debt

 

Economy of Singapore (http://en.wikipedia.org/wiki/Economy_of_Singapore)

GDP $251.5 billion (2010 est.)

Gross external debt $21.82 billion (31 December 2010 est.)

Public debt 117.6% of GDP (2009 est.)

 

IF the information provided by wiki is correct, then the high public debt probably refers to internal debt (CPF), not external.

It also means we're being suck dry by our govt. lol

 

Cool......

[cougar]

2012, STI up or down??? I interested to know.

[Throttle]

up a bit ......

[Throttle]

so far my paper losses reduced by $13k already.

 

hopefully can get better

[DeusExMachina]

IF the information provided by wiki is correct, then the high public debt probably refers to internal debt (CPF), not external.

It also means we're being suck dry by our govt. lol

 

That has been a known fact for some time.

 

Do we really believe that raising the minimum withdrawal age, and the minimum sum, is the citizens' benefit?

They won't be able to service their debt to us if we all took all our cash out at 55.

[econbizer]

Some TA I did late last month.. still valid. For valid breakouts beyond the abv resistance OR bottom support, daily breakout bar must have strong close with 1/2 or more of the bar beyond breaking point. Then we will enter into a new trading range.

 

Watch S&P500 tonight.. just below spooky round number 1,300. Are we really gonna head back up towards the 52 week high with all that US public debt? I doubt so.. but dear market, make me eat my shorts.

 

[Throttle]

as of end of this week, my paper losses reduced by $25k !

 

whhooooooooo......

[Throttle]

as of end of this week 27 jan.

 

my paper losses reduced by $35....

 

woooooo....

[iknowuwanthislah]

hypotetically, if you have money for only one, which would you choose? and why?:

 

invest in stocks or property...

[cougar]

http://www.nypost.com/p/news/business/not_so_friendly_ChdwVK0UaV1krE1J3k0FoI

 

Facebook going for public listing, how to buy their shares in Sg?

[CSV]

online brokers.

[Throttle]

hypotetically, if you have money for only one, which would you choose? and why?:

 

invest in stocks or property...

 

depends on amount of money and horizon and how much one values instant liquidity

stocks are more volatile but instant liquidity.

property generally more stable but stuck with low liquidity.

 

there isnt exactly a fair comparison to make.

thats why i do both for different reasons.

[Throttle]

took some profits and reduced exposure.

Edited January 31, 2012 by Throttle

[iknowuwanthislah]

depends on amount of money and horizon and how much one values instant liquidity

stocks are more volatile but instant liquidity.

property generally more stable but stuck with low liquidity.

 

there isnt exactly a fair comparison to make.

thats why i do both for different reasons.

 

yes, i do get what you mean. i already do have a stock portfolio.

just thgt of diversifying. and i always believe sgp property will always hold its value.

assuming time horizon is >10yrs.

the aim is rental yield and capital appreciation.

 

any good adivce for the first property invesment?

[Throttle]

yes, i do get what you mean. i already do have a stock portfolio.

just thgt of diversifying. and i always believe sgp property will always hold its value.

assuming time horizon is >10yrs.

the aim is rental yield and capital appreciation.

 

any good adivce for the first property invesment?

 

rental yield?

 

there is little at this point haha becos rental yield is about 3% now.

after taxes, maintenance, interest payments, you can forget about any real yield.

the only think you can hope for is capital appreciation.

i estimate that one can only borrow 60% to 70% max on the price of the property otherwise, your rental wont be able to cover your expenses.

 

For my second property, i downed 30% and with a 4% rental, i just managed to cover everything.

i guess for 99yrs and smaller units the yield will be a bit higher but wont be too much better.

 

so be careful in investing in property, make sure yo have a fairly good buffer.

be ready to. continue paying the mortgages even if you dont have rental.

if your only means of paying for mortgage is your rental, i advise you not to even think about property as an investment.

 

irresponsible agents like to trick people into thinking that they can support a second property just with a small bit of cash and a small income

 

to afford a second property, the bear minimm is to be able to pay for the instalments even without the rental income. on top of that, you need a bundle of cash to tackle any unforseable circumstances.

and that doesnt guarantee you anything as prices may come off as they may go up.

 

so at the end of the day, go in with full knowledge. and make an informed decision

 

only bite what you know you can chew.

dont just bite what you think you should be able to chew.

becos when it chokes, it could mean your last bite

[CSV]

rental yield?

 

there is little at this point haha becos rental yield is about 3% now.

after taxes, maintenance, interest payments, you can forget about any real yield.

the only think you can hope for is capital appreciation.

i estimate that one can only borrow 60% to 70% max on the price of the property otherwise, your rental wont be able to cover your expenses.

 

 

For my second property, i downed 30% and with a 4% rental, i just managed to cover everything.

i guess for 99yrs and smaller units the yield will be a bit higher but wont be too much better.

 

so be careful in investing in property, make sure yo have a fairly good buffer.

be ready to. continue paying the mortgages even if you dont have rental.

if your only means of paying for mortgage is your rental, i advise you not to even think about property as an investment.

 

irresponsible agents like to trick people into thinking that they can support a second property just with a small bit of cash and a small income

 

to afford a second property, the bear minimm is to be able to pay for the instalments even without the rental income. on top of that, you need a bundle of cash to tackle any unforseable circumstances.

and that doesnt guarantee you anything as prices may come off as they may go up.

 

so at the end of the day, go in with full knowledge. and make an informed decision

 

only bite what you know you can chew.

dont just bite what you think you should be able to chew.

becos when it chokes, it could mean your last bite

 

spoken like a true master.

 

you could always consider unit trusts that invests in REITs only. then again, it might not be your cup of tea since Unit trust and Reits operate on different principles. just saying.

[Throttle]

spoken like a true master.

 

you could always consider unit trusts that invests in REITs only. then again, it might not be your cup of tea since Unit trust and Reits operate on different principles. just saying.

 

far from being any master, just my kiasu principles.

 

bought my first private property in 2000 and then another in 2005, sold one in 2007 and bought another in 2008, then sold my first one in 2008 and finally bot another one in 2010.

 

currently only have two private properties. am ready for the third if it does come along.

but will stop at 3 properties. i do like the action and liquidity of equities so after the third property, will strive to build up a passive 6 digit dividend and coupon portfolio base.

 

i see a horizon of 10 to 15 yrs to achieve all this with my continued hard work and consistent saving and investment

 

maybe can shorten the process with a trip to the Singapore pools, haha.

something that i dont do.

[econbizer]

hypotetically, if you have money for only one, which would you choose? and why?:

 

invest in stocks or property...

 

Invest in property if you have the money. Freehold landed. But watch out for declines the residential mkt in the short-term. Government's 10% ABSD on foreigners is curbing demand from developers & buyers. Foreigners own about 16% of our private residential properties as at end Sep 11. Government likely to intervene on price increases inline with their commitment to sustainable property prices. Therefore any upside in the short-term of 1-2 yrs is likely to be capped.

 

If I had enough, I would buy a topographic map of Sg, plot out freehold landed properties on higher ground. May be a pot of gold for your descendants given rising sea levels due to global warming. Within 2-3 generations when the situation becomes real, such higher grounds will become more valuable 'enbloc'/ govt acquisition troves.

 

'Investing' in stocks right now is more difficult, since we are always paying more than what the companies make. P/E of 10 = pay $10 for every $1 earnings coys make. So an easy gauge is to watch P/E relative to historical peaks & troughs. I don't have the figures now.. do some hw & calculate these P/Es.

 

Also, S&P500 is v near a supply zone 1,325ish. No time to plot chart now. Go yahoo finance & you will see a big drop in prices near this level.

I will only go long US mkt in general if I see prices clearing this levels. QE3 announcement not likely on 15 Feb by fed. Could be in May or the Aug Jackson Hole annual conference.. but you never know. On STI, We are very near a pivotal price zone which was previously a demand zone turned supply zone. A few days back, a bullish daily bar was totally engulfed by a bearish engulfing daily bar.

[iknowuwanthislah]

rental yield?

 

there is little at this point haha becos rental yield is about 3% now.

after taxes, maintenance, interest payments, you can forget about any real yield.

the only think you can hope for is capital appreciation.

i estimate that one can only borrow 60% to 70% max on the price of the property otherwise, your rental wont be able to cover your expenses.

 

For my second property, i downed 30% and with a 4% rental, i just managed to cover everything.

i guess for 99yrs and smaller units the yield will be a bit higher but wont be too much better.

 

so be careful in investing in property, make sure yo have a fairly good buffer.

be ready to. continue paying the mortgages even if you dont have rental.

if your only means of paying for mortgage is your rental, i advise you not to even think about property as an investment.

 

irresponsible agents like to trick people into thinking that they can support a second property just with a small bit of cash and a small income

 

to afford a second property, the bear minimm is to be able to pay for the instalments even without the rental income. on top of that, you need a bundle of cash to tackle any unforseable circumstances.

and that doesnt guarantee you anything as prices may come off as they may go up.

 

so at the end of the day, go in with full knowledge. and make an informed decision

 

only bite what you know you can chew.

dont just bite what you think you should be able to chew.

becos when it chokes, it could mean your last bite

 

thanks for the sound advice.

 

typically, how much % of the monthly income should be used for repaying the mortgage?

[iknowuwanthislah]

Invest in property if you have the money. Freehold landed. But watch out for declines the residential mkt in the short-term. Government's 10% ABSD on foreigners is curbing demand from developers & buyers. Foreigners own about 16% of our private residential properties as at end Sep 11. Government likely to intervene on price increases inline with their commitment to sustainable property prices. Therefore any upside in the short-term of 1-2 yrs is likely to be capped.

 

If I had enough, I would buy a topographic map of Sg, plot out freehold landed properties on higher ground. May be a pot of gold for your descendants given rising sea levels due to global warming. Within 2-3 generations when the situation becomes real, such higher grounds will become more valuable 'enbloc'/ govt acquisition troves.

 

'Investing' in stocks right now is more difficult, since we are always paying more than what the companies make. P/E of 10 = pay $10 for every $1 earnings coys make. So an easy gauge is to watch P/E relative to historical peaks & troughs. I don't have the figures now.. do some hw & calculate these P/Es.

 

Also, S&P500 is v near a supply zone 1,325ish. No time to plot chart now. Go yahoo finance & you will see a big drop in prices near this level.

I will only go long US mkt in general if I see prices clearing this levels. QE3 announcement not likely on 15 Feb by fed. Could be in May or the Aug Jackson Hole annual conference.. but you never know. On STI, We are very near a pivotal price zone which was previously a demand zone turned supply zone. A few days back, a bullish daily bar was totally engulfed by a bearish engulfing daily bar.

must be very free to plot on topo map..

[Throttle]

thanks for the sound advice.

 

typically, how much % of the monthly income should be used for repaying the mortgage?

 

actually no such thing as typical. just how kiasi you are.

some people huff and puff , some people like it easy like myself.

 

although I use much less than that, I think about 30% of your monthly income dedicated to an investment property is fine.

i mean if the property is left vacant, and you bear the full brunt of the instalments, it should be kept within 30% of your monthly

if you have family and other commitments , again the equation will change.

 

I keep a surplus becos I didnt want to be so invested in properties at such prices.

when prices are more realistic, i will use up my surplus.

but I will always have a buffer of 2 years expenses for personal comfort

 

 

at the end to each his own, but just dont regret when getting choked.