How much are you earning per annum?

Originally Posted by Unregistered

2009 - Upturn is not sustainable
2010 - Prices will drop 10%
2011 - Prices will drop 15%
2012 - Prices will drop 15%
2013 - Prices will drop 20%
2014 - Prices will drop 20%

In reality,

2009 - Prices went up 20%
2010 - Prices went up 10%
2011 - Prices went up 10%
2012 - Prices went up 10%
2013 - Prices went up 5%
2014 - Prices remain firm
://forums.condosingapore.com/showpost.php?p=485756&postcount=3

Do you know if you total up property value in Singapore now, you can buy up entire Malaysia's land and property ?
This is similar to total value for property in Japan during 90's was equal to the whole of US's.
How is Japan compare with US now ?
Similarly 20 or 30 years down the road, similar things will happen here.
Singapore property cannot and should not keep on inflating, couple with rise in exchange rate. It will one day price itself out from the free market.
Also for those who think salary in Singapore will just keep on inflating, one of these days all the services and manufacturing will move to neighboring countries esp Malaysia.
High income means high cost of living.
High income also make people like you more complacent.
When Sing dollar is still very strong, try to diversify to lesser countries like Batam, selected places in Malaysia, Australia, NZ, Canada or US.

Wrong comparison.
Malaysia is a less developed country.
Malaysia has a high crime rate, esp in JB. High levels of corruption.
Why not you compare value of London's real estate with the whole continent of Africa?

Originally Posted by Unregistered

Do you know if you total up property value in Singapore now, you can buy up entire Malaysia's land and property ?
This is similar to total value for property in Japan during 90's was equal to the whole of US's.
How is Japan compare with US now ?
Similarly 20 or 30 years down the road, similar things will happen here.
Singapore property cannot and should not keep on inflating, couple with rise in exchange rate. It will one day price itself out from the free market.
Also for those who think salary in Singapore will just keep on inflating, one of these days all the services and manufacturing will move to neighboring countries esp Malaysia.
High income means high cost of living.
High income also make people like you more complacent.
When Sing dollar is still very strong, try to diversify to lesser countries like Batam, selected places in Malaysia, Australia, NZ, Canada or US.

Age: 33
Total income (2013): 127K (job) + 37K (rental income) = 164K
Property: condo (home), investment property 1 (rented out), investment property 2 (rented out). Value of all properties: 3.2M. Mortage remaining for all properties:0.85M
Cash + shares: 100K
CPF (OA+SA+MS): 155K
Car: NIL
Children: NIL

Proud of: Not owning a car despite the pressure to, from image point of view - Its only thru not buying a car that I could have owned multiple properties at 33 and with a not v high paying job.

Worries: Everyday I think about how to reduce my tax, and how to grow my nest egg. Its going to be more difficult to have children.

Regrets: I should have had children earlier. I should have spent less on branded goods, holidays and dining out when I was younger. Then could have bought another property ~

Tired of: walking and taking bus when it is raining

Digressing,

Yesterday I went to the Jurong East area (JEMS) to look at gold jewellery. Observe that the jewellers hold the price at $61/g (same as last week) despite the price of gold spot dropping considerably in this last week. Conclusion - better off Not buying gold jewellery as an investment. Although it would be nice to wear your investment !

Also observe that service levels at JEMS is much worse than in Orchard - sales staff cannot speak good English, cannot understand what I am asking, don't bother to be polite or to smile. Unlike in Orchard where the same jewellery brands are present, but the staff make the effort. Or maybe because i was a relatively young looking, lone shopper dressed casually, they did not take me seriously thinking I do not have the $$$.

In Jurong East, the malls are beautiful and new, the same decent brands are present in Orchard e.g. Marks & Spencer, those jewellery brands (Poh Heng, SK, Goldheart), Paris Baguette. But I would rather shop at Orchard than Jurong, as the service is so much better. The crowd is also, hmmmmm, how to put it, different.

Lesson learnt: Image matters. Where u shop matters. So, where u buy a property also matters. Because the lifestyle of a tenant matters, which in turn matters to you as a landlord trying to rent out your property.

To be honest if you like driving and want a car and have the finances for it then just go ahead, why so concern about what others think or image etc. You're only young once and just do what you like so long as its within financial reason.

From your income I don't really see how you can acquire that many properties thru the cost save of one car (unless you wanted to buy a Lambo). Did you coinvest with others or with relatives or have other sources of income?

Ps Like you I'm similar aged, hold a regular job 100Kish job, multiple property with parents assist. I got a car cause I like driving. My colleagues don't even know what I drive unless out of good will I give them a lift.

I will say your current asset base for your age is something to be proud of. But I don't agree with the part you mention about not driving though. To me its no connection.

Originally Posted by Unregistered

Age: 33
Total income (2013): 127K (job) + 37K (rental income) = 164K
Property: condo (home), investment property 1 (rented out), investment property 2 (rented out). Value of all properties: 3.2M. Mortage remaining for all properties:0.85M
Cash + shares: 100K
CPF (OA+SA+MS): 155K
Car: NIL
Children: NIL

Proud of: Not owning a car despite the pressure to, from image point of view - Its only thru not buying a car that I could have owned multiple properties at 33 and with a not v high paying job.

Worries: Everyday I think about how to reduce my tax, and how to grow my nest egg. Its going to be more difficult to have children.

Regrets: I should have had children earlier. I should have spent less on branded goods, holidays and dining out when I was younger. Then could have bought another property ~

Tired of: walking and taking bus when it is raining

Why no car? In SG, its constantly depreciating purchase, expensive, and can only be used for 10 years. From a financial point of view, not a good buy. From a necessity point of view, does a couple with no children really need a car? But from a convenience and image point of view, yes having a car has its advantages.

Property #1 was acquired with parental help. But the other properties 2 and 3, were fully acquired thru the savings from our income (spouse and I), and the savings from not buying a car. Do remember that a few years ago, property was much cheaper than now, no such thing as TDSR or ABSD either. So, its possible.

At the end of the day, it's about balance and moderation. All my life, I have lived a frugal life and saved. Then you asked yourself what is enough and what is it you are saving for?

We had no car for a long time, and we had to wait for / take cabs wherever we want to go as a family of 5. It was not convenient in our humid climate and children are not as patient as you hoped. Then we got a car, and our quality of life went up. Everyone was happy.

Then we moved into a condo, and our quality of life went up a few more notches. As we are older now, we are more aware of our mortality as we are at that age where you do see former classmates passing on. We are also not as physically fit as before. Then we looked at our savings and returns from our investments and said yes, we should indulge in ourselves a little more. Now we got 2 cars. The 2nd car was fully covered by one year of passive income.

Balance is key. We need to know why is it we are saving money for. It is so that we can have a comfortable and enjoyable life while on earth.

Originally Posted by Unregistered

Why no car? In SG, its constantly depreciating purchase, expensive, and can only be used for 10 years. From a financial point of view, not a good buy. From a necessity point of view, does a couple with no children really need a car? But from a convenience and image point of view, yes having a car has its advantages.

Property #1 was acquired with parental help. But the other properties 2 and 3, were fully acquired thru the savings from our income (spouse and I), and the savings from not buying a car. Do remember that a few years ago, property was much cheaper than now, no such thing as TDSR or ABSD either. So, its possible.

Well Done, impressive net worth at a young age

Prudent not to buy a car. It constantly amazes me how much Singaporeans are willing to splurge on cars. When I used to stay at hdb, there were a large number of fancy mercs and bmw in the hdb car park. These cars probably cost 50 to 75 percent of the value of the hdb flat the owners stay in - this is for a depreciating asset that has only 10 years lifespan!

Once you have kids, would probably make sense to get a car though

Originally Posted by Unregistered

Age: 33
Total income (2013): 127K (job) + 37K (rental income) = 164K
Property: condo (home), investment property 1 (rented out), investment property 2 (rented out). Value of all properties: 3.2M. Mortage remaining for all properties:0.85M
Cash + shares: 100K
CPF (OA+SA+MS): 155K
Car: NIL
Children: NIL

Proud of: Not owning a car despite the pressure to, from image point of view - Its only thru not buying a car that I could have owned multiple properties at 33 and with a not v high paying job.

Worries: Everyday I think about how to reduce my tax, and how to grow my nest egg. Its going to be more difficult to have children.

Regrets: I should have had children earlier. I should have spent less on branded goods, holidays and dining out when I was younger. Then could have bought another property ~

Tired of: walking and taking bus when it is raining

Originally Posted by Unregistered

Why no car? In SG, its constantly depreciating purchase, expensive, and can only be used for 10 years. From a financial point of view, not a good buy. From a necessity point of view, does a couple with no children really need a car? But from a convenience and image point of view, yes having a car has its advantages.

That would be a clearer perspective as opposed to the initial point about image and pressure. Its all about needs vs affordability (just like an iphone really). My first car in SG was a 30K 8 yr Mazda with a crappy gearshift. Still I drove to many places in SG and Msia with fond memories something that I would not do now due to age and commitments. I don't disagree with your point but have a think about where I am coming from.

Originally Posted by Unregistered

Property #1 was acquired with parental help. But the other properties 2 and 3, were fully acquired thru the savings from our income (spouse and I), and the savings from not buying a car. Do remember that a few years ago, property was much cheaper than now, no such thing as TDSR or ABSD either. So, its possible.

Great investment approach, mine was similar to yours except I have a mix of commercial / Industrial / residential. This was before the TDSR as well which blew the pricing way out after (goody for me), would be interested to know what you look for in property investment but that would likely piss off the peeps who want to keep this on topic. Probably another thread would be more appropriate like what to invest.

Forget about buying a car

HDB flat price crashing, no more COV
Condo price crashing
Property oversupply, no tenants, empty ghost town condos
Interest rate going up
All these will lead to COE crashing to $20k (Cat A) and $25k (Cat B)
Car prices will be crashing in 2015 & 2016

All the engineers can then renew the COE of their 10 year old cars