Yeap. Spot-on.
Without much consideration, might as well invest S$2M into the high dividend yield (10%) stock and get S$200K yearly. Why bother with property rental or other financial instruments?
Reason: 'Liquidity' & 'volatility'
-Cash: Most liquid
-Property: Not considered 'liquid'. [Fire sale price perhaps. Led to instant financial loss.]
-Stock/shares: Significant exposure to 'volatility'. [Can bear to stomach the ups & downs?]
'Flash in the pan' or persistent $26K monthly???
Reality check: Try getting a bank loan for his first house. The bank will drill down and all will be exposed.
Note: Owe $10K to the bank for your credit-line, you can be made bankrupt. *serious stuff*
Quote:
Originally Posted by Unregistered
What he is saying is $2 million though good money, is not enough to do the things that above poster recommend to do & I agree.
For starters to qualify for private banking, the lowest threshold I found so far is US$5m in investible assets, most are US$10m, so no way $2m can get you private banking. And the key thing is investible assets, taking up housing loan does not qualify.
There is no way to do all 3 things - get 2-3 condo, diversify into stocks, qualify for private banking all at once in a meaningful way with just $2m. Of course you can say buy cheapo condos and a few stocks here & there, but I dun think that's what he's saying.
An quite honestly, gearing up significantly for 3 condos is a bad idea, once the property market tanks, game over liao.
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