How much are you earning per annum?

We're a young graduate couple (30 and 28). Our combined annual income is ~200k currently and has the potential to increase in the future.

We bought a 5 room HDB a few years ago for ~400k and we intend to stay there for the foreseeable future. Currently only have about 7-8k passive income per year (from shares' dividends and bank interests). Could be a bit more as I've not included returns from all our insurance policies. Intend to save up a bit more before investing in commercial property in an attempt to build up further passive income in the coming years.

42/43, combined income not much, only $115k pa. Our timing to upgrade from our HDB flat to a condo was good. In 2006, at the bottom of the property market, we sold our flat and upgraded to a condo. We paid only $500k for the 3 bedroom condo and took a mortgage loan of $300k. Now our condo is worth $1m and our loan has dropped to only $100k. Plus our cash and CPF savings, our total net worth is now $1.3m.

In buying property, we must be clever and time our purchase properly. You must not follow the crowd and must do your own research on when and where to buy.

Hi,

Just wanted to share with you all that, after 30 years of working super hard non-stop, we finally decided to retire in KL. We are both 55.

Over 30 years, we worked very, very hard, saved a lot and invested. We now own a fully paid prime condo and stocks.

Here is our plan:

1. We will rent out our prime condo at $6k pm and we get stocks dividends. Our passive income will be about $100k pa. After conversion, we will get RM260k pa or RM21k pm.

2. We will rent a nice high end luxury condo in KL for RM5k pm and spend RM10k pm for food, utilities, maid and transport. We will save RM6k pm (or RM72k pa). We will retire like rich Malaysian tycoons.

3. When we reach 65, we will get an additional $28k pa from our CPF retirement payout.

Originally Posted by Unregistered

You were forced to sell at a loss. Too bad right? Its bad timing, you knew the risks and you went ahead.

DBSS didn't turn out as profitable as you expected? Too bad right? You expect the govt to hand hold you and guarantee your expected returns? In the market there are winners and losers. Too bad if you are in the loser camp

I did not expect govt to hand hold me. I just dont expect the govt to sell a new HDB flat to me at such a high price just to make a U turn and give a low valuation to the same flats in the resale valuation!

Its HDB Design and Build Plus, designed by HDB architects! Not private like the DBSS. There are only 2 such developments in Singapore. A scheme HDB experimented had decided not to carry on.

Originally Posted by Unregistered

There are people who are good investors, who timed the market intelligently. And there are people who timed the market wrongly. You and most people belong to the latter group. Not many in the first group, these are the true investors and they are millionaires by now.

We did not buy a HDB for investment. We bought for housing. We also did not time the market. We bought a flat because we got married and need to set up family.

What we find incomprehensible is the resale valuation of our flat by HDB valuers.

We are also not referring to resale flats in the market, we are talking about new flats bought direct from HDB back in 1996.

It's just so frustrating to know that a 90sqm standard 4 flr flat at say Sengkang bought from HDB at less than $170k being valued at almost $460k now while our high floor 140+sqm premium flat at another estate bought from HDB at more than $425k being valued at less than $580k now.

Really wish to know what yardstick does HDB valuer used.

You are fortunate to have such a big passive income. There are people who retire in JB with much less. They rent out their 5 room HDB flat for $3k pm and they convert to RM and get RM8k pm. They may have bought a house there and so they happily spend the RM8k to retire with, this is a lot of money for a retired couple living in JB.

Originally Posted by Unregistered

Hi,

Just wanted to share with you all that, after 30 years of working super hard non-stop, we finally decided to retire in KL. We are both 55.

Over 30 years, we worked very, very hard, saved a lot and invested. We now own a fully paid prime condo and stocks.

Here is our plan:

1. We will rent out our prime condo at $6k pm and we get stocks dividends. Our passive income will be about $100k pa. After conversion, we will get RM260k pa or RM21k pm.

2. We will rent a nice high end luxury condo in KL for RM5k pm and spend RM10k pm for food, utilities, maid and transport. We will save RM6k pm (or RM72k pa). We will retire like rich Malaysian tycoons.

3. When we reach 65, we will get an additional $28k pa from our CPF retirement payout.

Be happy that you have a home. There millions of people in the world who are homeless or living in slums. You are living in luxury by comparison. Be grateful and stop complaining.

Originally Posted by Unregistered

We did not buy a HDB for investment. We bought for housing. We also did not time the market. We bought a flat because we got married and need to set up family.

What we find incomprehensible is the resale valuation of our flat by HDB valuers.

We are also not referring to resale flats in the market, we are talking about new flats bought direct from HDB back in 1996.

It's just so frustrating to know that a 90sqm standard 4 flr flat at say Sengkang bought from HDB at less than $170k being valued at almost $460k now while our high floor 140+sqm premium flat at another estate bought from HDB at more than $425k being valued at less than $580k now.

Really wish to know what yardstick does HDB valuer used.

Originally Posted by Unregistered

Mind you, not all Singaporeans are as lucky. There is a minority of us who are played out by HDB!!!! I am forever angry to be one of them.

We bought a design and build executive flat direct from HDB in 1996 at $425k (outskirt), no 1st timer grant, waited 3 years for it to be built. Meanwhile, bought a resale 3 roomed hdb flat for $160k, stayed for 3 years and forced to sell at a slight loss when we took possession of our new flat and shifted in 1999.

The resale price of comparable units at our development were as low as $330K through the years and are now around $530k. Valuation had been done by HDB approved valuer.

Why? Why? Why!!!!!! It has been more than a decade. I have no answer!!!! I brought up once, many years ago when my MP came knocking at my door, house visit. Apart from smiling at me, no answer, no reply, just look a little bit surprised at the high price we bought the house direct from HDB.

Why? Still so angry!!!!!

Dont be angry man. You win some lose some. You must have the mentality of possible potential losses. You are angry because you thought you sure make money. This mentality is bad for your emotions if you are keen to invest in the future. Not healthy ah.

[lazyplane]

I am not an expert on valuation of flats. And i can understand why you are angry. When u said u bought at 1996, i recall the price then was really high.
This chart shows it.


HDB Resale Price Index and PPI


In fact, you can see it was like a peak for a long long time and only in recent years that the peak was surpassed.

If it will give you any comfort, think about the fact that now young couples are paying more than what you are paid and salaries have not increased that much despite the many poster on high salary here. Will what you faced be what younger generation be facing ? Dunno and time will tell. For the short term at least, I am not too confident that the price will remain strong.

2 % gain on property is not fantastic in Singapore. And yes, there is a sense of opportunity loss. But look and ask yourself, imagine u were in US when the subprime broke and own a property. Slapped that on with retrenchment and high cost of living, the folks there then and maybe now are having real prolong nightmares.

Originally Posted by Unregistered

We did not buy a HDB for investment. We bought for housing. We also did not time the market. We bought a flat because we got married and need to set up family.

What we find incomprehensible is the resale valuation of our flat by HDB valuers.

We are also not referring to resale flats in the market, we are talking about new flats bought direct from HDB back in 1996.

It's just so frustrating to know that a 90sqm standard 4 flr flat at say Sengkang bought from HDB at less than $170k being valued at almost $460k now while our high floor 140+sqm premium flat at another estate bought from HDB at more than $425k being valued at less than $580k now.

Really wish to know what yardstick does HDB valuer used.

I'm 47 earning 160k/pa, wife age 43 earning 59k/pa.
Have 2 schooling children.
Stayed in fully paid 4 rm HDB which worth around $440k
CPF has around 700k combine
Cash on hand around 600k
Yearly expenditure not much, estimated around 60k


Sadly, i do not have any passive income except those mere 1% interest getting from my cash on hand, which is really not much.

I'm envy to those successful ppl who can get passive income of 100k and above, i will be happy if I can get 50k/pa eventually. Wanted to invest in blue chip / REIT and get dividends but not sure where to get started.

If you have any book or tips how to get started in investing stock and get dividend, I'm all ears.

Thanks