How to be rich?

Originally Posted by chnrxn

Is property still viable as a way to build wealth in Singapore, in the light of the current situation?

With the large numbers of fresh new HDB BTO, DBSS, EC, and private developments being launched since 2010 till now, what are the chances by 2013-2014, of:

1. the supply of housing exceeding demand, leading to a fall in prices and rentals,

or

2. the population or number of foreigners increase more than the new supply, continuing to prop up the prices and market?

What are your views?

Yes buy now. All the printed money in the world has to go somewhere and assets is the best place. But make sure you can exit quickly when the Fed and others reverse their monetary stance.

I would go for commercial properties cos there are no 'cooling measures' imposed. Residential is too sentiment driven and government seems keen on pleasing the crowds by imposing funny restrictions that don't seem to work (I think it will create a crash instead but not so soon).

[chnrxn]

Originally Posted by Unregistered

Yes buy now. All the printed money in the world has to go somewhere and assets is the best place. But make sure you can exit quickly when the Fed and others reverse their monetary stance.

I would go for commercial properties cos there are no 'cooling measures' imposed. Residential is too sentiment driven and government seems keen on pleasing the crowds by imposing funny restrictions that don't seem to work (I think it will create a crash instead but not so soon).

But none of the extra printed money is coming to me!

Originally Posted by chnrxn

But none of the extra printed money is coming to me!

It will come to you if you invest in the right things at the right time. Didn't you know that the rich got very much richer during these 2 years? Even those who barely scraped through to be called an "investor" benefited lots.

It's those who don't invest at all - the poor, the uninformed, the stubborn ones - who lose out lots.

[financialfreedom]

Originally Posted by Poor millionaire

I bought a property at age 24 in 2004 for 400k, with 80k (cash + cpf) from 3 years working as an lowly paid auditor who saved all 70% of her income to invest in stocks. With 80k cash from savings + profits from stocks, I bought the 400k property with 80% gearing.

Then I sold this property in late 2009 at 800k. Then with the 500k (profit and equity) released from this property, I bought another two properties. I sold one in December 2010 after holding it for 16 months with a small profit of around 180k (net of all expenses). The property I held onto it with about 200k equity in it. Altogether I have 500+180k = 680k made from property investments.

I have another 400k in the bank that was a mix of salary savings as well as passive income from trading on NASDAQ. I just buy only a few stocks, namely RIMM, AMZN and APPL. However these stocks are so volatile and so popular that I made a total of 200k profits from just day trading these stocks from 2009 to 2010.

With that, I made my first million (or around 1.08M) in SGD.

Now, the dilemma is that I have one property left but that is a studio apartment (the one with 200k equity in it). HOwever, I need a bigger space. Currently with the new ruling where I have to fork out 40% cash for the second property, I will have to exhaust my entire 1 M for say a 2.3M semi-D or Corner terrace in today's market.

I just wish I know when the property market will start to soften again so I can make my purchase!

Any clues?

Hey, just wondering, you bought your first private property for 80k down payment? For current property prices, will need about at least 200k down payment for 3-room condo (1M - 1.2M)

I find it so hard to achieve $200k

Originally Posted by financialfreedom

Hey, just wondering, you bought your first private property for 80k down payment? For current property prices, will need about at least 200k down payment for 3-room condo (1M - 1.2M)

I find it so hard to achieve $200k

That's why there are HDB flats - why subject yourself to such burden if you can't even raise the down payment?

You should consider a more modest property as a start, say a 4-room flat, and then upgrade when you earn more and have more savings.

Don't overstretch.

[financialfreedom]

Originally Posted by Unregistered

That's why there are HDB flats - why subject yourself to such burden if you can't even raise the down payment?

You should consider a more modest property as a start, say a 4-room flat, and then upgrade when you earn more and have more savings.

Don't overstretch.

Yeah, but in Singapore's law, individual have to be 36 years old before they can purchase a HDB. (FYI, i'm 24 this year and not getting married soon)

Originally Posted by financialfreedom

Yeah, but in Singapore's law, individual have to be 36 years old before they can purchase a HDB. (FYI, i'm 24 this year and not getting married soon)

stay with your parents, or buy a micro-studio apartment in the outskirts.

you can also downgrade to become a PR so you can buy a HDB before 35:

HDB policy on singles: Singaporean vs Permanent Resident | The Online Citizen

sorry i meant "UPGRADE" to become a PR.

citizens are second-class. PRs are first class in Singapore.

[financialfreedom]

Originally Posted by Unregistered

sorry i meant "UPGRADE" to become a PR.

citizens are second-class. PRs are first class in Singapore.

Yeah, staying with my parents. But hoping to buy a property in the near-future for investment.

Care to elaborate what you mean by micro-studio apartment in the outskirts?

Originally Posted by financialfreedom

Yeah, staying with my parents. But hoping to buy a property in the near-future for investment.

Care to elaborate what you mean by micro-studio apartment in the outskirts?

a small condo unit in an non-prime area such as pasir ris or jurong west.