Quote:
Originally Posted by hedgie
Assuming 3% inflation p.a., the equivalent index number to achieve breakeven today is 136.9 X (1.03^15) = 213.
2 points here:-
1) If we bought a HDB flat in 1996, we would still not have achieved breakeven in real terms after 15 years (assuming a very conservative 3% p.a. inflation - we saw 4-6 % last couple of years). |
Talking about inflation, if you had put the money in the bank to earn interest, then your return in real terms will be negative. Hence
HDB flats are still superior investments!
Which bank pays your 3% interest or more to help you beat inflation, other than the one below? You want to buy? 5.25% beats inflation and very credit worthy some more with minimum rating -A!
Pinnacle Notes Series 2
12 Oct 2006
Yield: 5.25% pa
Tenor: 5.5 yrs (maturing in 16 May 2012)
Credit linked basket: PRC, Korea, Msia, DBS, Bank of China, Korea Dev Bank and Malayan Banking.
Credit rating: Minimum -A.
Denomination: S$5000
Callable option: Yes
On the other hand, if you had bought the other Pinnacle ... the one @Duxton ... hehehe ...