Quote:
Originally Posted by Unregistered
What's the point of comparing apples with apples, or oranges with oranges? You must compare lemons with oranges with apples with durians, then you will know which fruit is the best. Let's use the Pinnacle Notes' 5-year period from Nov 2006 to Nov 2011.
Investment 1 - Pinnacle Notes (loss 100%) investors lost court case in Singapore, now fighting in New York (lost money plus wasting time and legal fees and energy worth another 100%) total nominal lost is 200%. Benchmark against inflation of 3% p.a. or 16% for 5 years, investors of Pinnacle Notes suffer real term loss of 216%.
Investment 2 - Singapore stock index STI 5-year period from 13 Nov 2006 (STI 2813.18) to 11 Nov 2011 (STI 2790.74), nominal loss 0.80%. Real term loss after factoring inflation is 16.8%.
Investment 3 - Fixed Deposit (1% p.a.) or nominal gain of 5% over 5 years. Against inflation of 16%, real term loss of 11%.
Investment 4 - HDB Flat!!! Q4 2006 Index 103.6 to Q3 2011 Index 187.2 nominal gain 80.7% or real term gain of 64.7% after factoring inflation.
Conclusion, Pinnacle@Duxton is the best! Pinnacle Notes is the worst! |
haha ... I agree with your point above -
hdb pinnacle is definitely better than pinnacle notes!
As you have very adequately proven above, real estate or specifically resale
hdb can outperform other asset classes over a chosen period of time.
my point basically is that the decision to buy a
hdb resale flat
(i) is not a sure thing regardless of timing as some have implied, as illustrated by my prior examples (buying a long dated high grade bond in the late 90s will give you c. 4% return annually), and
(ii) should still be a considered investment proposition, and the buyer should perform the necessary analysis and due diligence before entering into the decision, just as they do before they enter into any other investment decision, and
(iii) given that timing is critical, now is not an optimal time based on all the fundamental indicators i.e. why buy in 1996 when you have the option to buy in 2002?
I entirely agree that your 4 fruits approach above, if conducted prior to the investment decision, is the appropriate approach