How much are you earning per annum?

Poor investors always make the mistake of not cutting their losses early and only when things get worse and they had no choice but to sell, then they panic and incur huge losses. Typical weak investors.

Originally Posted by lazyplane

While i think the advice is good, it will be hard for anyone to let go an investment property at this stage esp if they are receiving rental income.

Prices have come off quite a bit. For this guy, he is probably counting the loss opportunity cost by missing the boat to sell earlier and which can be estimated to be a sizeable S$100-200k

Can he hold ? Well, as he is receiving rental income and he holds just 3 years, he will "recover" this loss . And who knows what will happen in 3 years time ? If it recovers, then he would have made a bad call by putting himself out of the capital gains + rental income.

I know this because i have friends in similar situation. It is easy to say cut because prices etc but this is a very difficult call to make when it is your own
money and you dont really have a "burning" bridge situation.

Having said that, when a burning bridge situation comes, getting out is near impossible. We can only place our bets as best as we can see.

[lazyplane]

Originally Posted by Unregistered

Poor investors always make the mistake of not cutting their losses early and only when things get worse and they had no choice but to sell, then they panic and incur huge losses. Typical weak investors.

I will tend to agree if this is was a pure equity play.
It is not so easy to see the property cycle.

I am a typical middle class guy in my late 40s earning a gross income of $160k pa. Spends my money on home mortgage (shared), car loan payment and car related expenses, taxes, utilities, broadband, financial support to aging parents, kids' tuition, my personal expenses, holidays, etc. Managed to save only $40k pa. Spouse is in her early 40s earning $125k pa. She spends on groceries, home mortgage (shared), children's pocket money, taxes, financial support for her old parents, her personal stuff, branded bags, etc. She saves $45k pa.

We live like any middle class family, living in a condo and drive a car. We still have loans on both the condo and car. Our home loan is about $360k left and our car loan is about $40k left. We go out to eat at restaurants once a week and we go for overseas holidays twice a year.

Our total net worth (which includes the condo home equity, cash, stocks and CPF funds) is about $1.7m in total. Are we doing ok?

Let's assume you are 48 and your spouse is 42 and you both will retire at 65. Based on your savings rate of $40k pa, you would have saved an additional $680k when you retire at 65. Your spouse would have saved $1.035m when she is 65. Your condo mortgage would also be paid off by then. So, your net worth in total would have increased by $2.075 and your net worth would be $3.775m. You will be multi millionaire couple. You can retire happily.

Originally Posted by Unregistered

I am a typical middle class guy in my late 40s earning a gross income of $160k pa. Spends my money on home mortgage (shared), car loan payment and car related expenses, taxes, utilities, broadband, financial support to aging parents, kids' tuition, my personal expenses, holidays, etc. Managed to save only $40k pa. Spouse is in her early 40s earning $125k pa. She spends on groceries, home mortgage (shared), children's pocket money, taxes, financial support for her old parents, her personal stuff, branded bags, etc. She saves $45k pa.

We live like any middle class family, living in a condo and drive a car. We still have loans on both the condo and car. Our home loan is about $360k left and our car loan is about $40k left. We go out to eat at restaurants once a week and we go for overseas holidays twice a year.

Our total net worth (which includes the condo home equity, cash, stocks and CPF funds) is about $1.7m in total. Are we doing ok?

In the first April 2015 COE bidding starting tomorrow, I predict COE prices will continue to rise. This is most likely so for Cat A COE as replacement demand is very, very high. We can expect the number of bids for Cat A (demand) to be more than 2000 whereas the number of Cat A COE available (supply) for bidding is less than 1000.

So, with demand so much greater than supply, Cat A COE will likely rise to $68 or more. Don't forget it was $90k plus in recent years. So, with high demand, expect prices to eventually go back to that level especially since there is no clawback announced thus far. I predict it will go to $100k by 2018. So, it is best to change to a new car now if your car is 4 years old or older. COE at $70k and below for Cat A is consider cheap, in my opinion.

Many families are richer today than 10 years ago. Many are also buying their second or third cars as their needs increases. For instance, the wife will want to buy a new car for herself for work convenience and the son will need a new car to go to Uni so he does not spend too much time traveling. So as family needs rise, so will demand for new cars. And with prosperity from higher family income, from gains in the stock market and property market, more people are richer and so demand for new cars will increase by a lot.

[jamxz19]

great info!

Originally Posted by Unregistered

In the first April 2015 COE bidding starting tomorrow, I predict COE prices will continue to rise. This is most likely so for Cat A COE as replacement demand is very, very high. We can expect the number of bids for Cat A (demand) to be more than 2000 whereas the number of Cat A COE available (supply) for bidding is less than 1000.

So, with demand so much greater than supply, Cat A COE will likely rise to $68 or more. Don't forget it was $90k plus in recent years. So, with high demand, expect prices to eventually go back to that level especially since there is no clawback announced thus far. I predict it will go to $100k by 2018. So, it is best to change to a new car now if your car is 4 years old or older. COE at $70k and below for Cat A is consider cheap, in my opinion.

Many families are richer today than 10 years ago. Many are also buying their second or third cars as their needs increases. For instance, the wife will want to buy a new car for herself for work convenience and the son will need a new car to go to Uni so he does not spend too much time traveling. So as family needs rise, so will demand for new cars. And with prosperity from higher family income, from gains in the stock market and property market, more people are richer and so demand for new cars will increase by a lot.

Get lost lar!

Good analysis. Indeed many families now own two or more cars, especially if members of the family are working professionals who need cars for their work. Husband, wife, sons, daughters, will each need their own cars for their work, especially to show they are successful high flying professionals among their peers. To them the car is a necessary and affordable expense as they each earn at least $200k pa. If they amortize the cost of the car, it is only a fraction of their annual income. So, a $100k car cost only $10k pa to own (excluding operational costs of course) and that represents only 5% of their annual income of $200k pa. Many professionals nowadays earn at least $200k pa.

Originally Posted by Unregistered

In the first April 2015 COE bidding starting tomorrow, I predict COE prices will continue to rise. This is most likely so for Cat A COE as replacement demand is very, very high. We can expect the number of bids for Cat A (demand) to be more than 2000 whereas the number of Cat A COE available (supply) for bidding is less than 1000.

So, with demand so much greater than supply, Cat A COE will likely rise to $68 or more. Don't forget it was $90k plus in recent years. So, with high demand, expect prices to eventually go back to that level especially since there is no clawback announced thus far. I predict it will go to $100k by 2018. So, it is best to change to a new car now if your car is 4 years old or older. COE at $70k and below for Cat A is consider cheap, in my opinion.

Many families are richer today than 10 years ago. Many are also buying their second or third cars as their needs increases. For instance, the wife will want to buy a new car for herself for work convenience and the son will need a new car to go to Uni so he does not spend too much time traveling. So as family needs rise, so will demand for new cars. And with prosperity from higher family income, from gains in the stock market and property market, more people are richer and so demand for new cars will increase by a lot.

Originally Posted by Unregistered

Good analysis. Indeed many families now own two or more cars, especially if members of the family are working professionals who need cars for their work. Husband, wife, sons, daughters, will each need their own cars for their work, especially to show they are successful high flying professionals among their peers. To them the car is a necessary and affordable expense as they each earn at least $200k pa. If they amortize the cost of the car, it is only a fraction of their annual income. So, a $100k car cost only $10k pa to own (excluding operational costs of course) and that represents only 5% of their annual income of $200k pa. Many professionals nowadays earn at least $200k pa.

Be ethical, don't quote your own post and say good analysis.

Get lost. This thread is about how much are you earning per annum, not about cars. Get lost, thanks

Originally Posted by Unregistered

Good analysis. Indeed many families now own two or more cars, especially if members of the family are working professionals who need cars for their work. Husband, wife, sons, daughters, will each need their own cars for their work, especially to show they are successful high flying professionals among their peers. To them the car is a necessary and affordable expense as they each earn at least $200k pa. If they amortize the cost of the car, it is only a fraction of their annual income. So, a $100k car cost only $10k pa to own (excluding operational costs of course) and that represents only 5% of their annual income of $200k pa. Many professionals nowadays earn at least $200k pa.

Oh wow such insightful analysis.

I think that means I and everyone else better go buy a car tmr!!!

There's no time to lose. Buy now!!!!!