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Old 16-10-2016, 06:44 AM
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You can also afford to own a new car from capital gains. You can sell your home and then buy a cheaper home. Use capital gains to buy a new car, pay in full or pay downpayment.

We Singaporeans are very lucky. Can buy cheap BTO flat and then flip after 5 years MOP. Then buy another cheap BTO flat. Not surprising why many families can afford to own a car. It is because of our cheap BTO flat system. That's why demand for BTO flats is so high.

One way for COE prices to go down is to only allow buying BTO flat only once and make MOP longer, maybe 15 years. Then there will be lesser capital gains from flipping BTO flats to drive demand for new cars.


Quote:
Originally Posted by Unregistered View Post
I am of the view that Singapore has a very well connected public transport system comprising MRT, bus, taxis and now Uber and Grab services. Singapore is also a small city state. There is no need to own a car, and I have not even talked about the cost of owning one.

But if it's your aspiration to at least own one in your lifetime, how about owning it through passive income? At least it would not be so painful. Paying for it with money that was earned by your investment rather than by your own "blood and sweat" will make owning a car sweeter.

Of course, this will take some time. Instead of plonking down payment for that car, you could start by investing that money. Build up the investment year by year (be patient) and see the passive income grow. You will also see that newer car models look better than older ones. As you wait, you can get a newer model than your friends/colleagues who bought earlier.

Once your passive income grow to $2k to $3k pm, and you really cannot hold back anymore, you can proceed to buy your car. At least the passive income will have to cover the monthly installment.

For us, we are fortunate that our passive income from last year was sufficient to pay for the popular, mass market Jap car outright. Use that car for 10 years, don't change car unnecessarily and while letting your passive income accumulate - for your next newer model.

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