How much are you earning per annum?

Originally Posted by Unregistered

You don't have to be concerned at all. Many people are getting rich by flipping their BTO flats. Here's the steps:

1. Buy first BTO flat at $200k.
2. After MOP, apply for 2nd BTO flat for $200k.
3. When 2nd BTO flat ready, sell first BTO flat for $450k and get profit of $250k.
4. Use $50k cash for new car downpayment and $200k to pay for 2nd BTO, paid in full.
5. Use savings and any other CPF balances to pay for transaction costs and any resale levy.
6. This allows them to get new car and new fully paid BTO flat.

A lot of jokers around in this thread. How to sell a 200k BTO for 450k? A 200k BTO is likely to be a 2 room flat only, and maybe only worth 300k after 5 years. And if after 5 years you're still eligible for a BTO flat, I don't think you will be thinking of buying a car.

As of this Friday, all the companies which I hold stocks in, have announced their results and more importantly (for me at least) announced the dividends payouts as well. The dividends will be paid out at various times throughout this month. Some of the stocks have already gone XD.

As I totaled up the dividends for the month of May, I couldn't suppress the excitement welling up. The total came up to a princely sum of $19,850!, bringing the total dividends for this year including the month of May close to $40k. Looking forward to the next big payout in August.

The $19.8k dividend payout in a single month is the highest I have ever had so far. It has been one long journey to reach this point, starting with one lot of SIA shares that I bought after receiving my first bonus 30 years ago. I still remembered my bonus together with my monthly salary then was a GRAND total of $12k! I was equally trilled then.

To the Huat guy, as I already bought my car with my passive income last year, I will NOT be buying a car, but reinvesting the dividends. Before that, I will bring the whole family out for a good meal at a good restaurant.

People usually say HUAT to these kind of things, not when COE prices go up!

Originally Posted by Unregistered

A lot of jokers around in this thread. How to sell a 200k BTO for 450k? A 200k BTO is likely to be a 2 room flat only, and maybe only worth 300k after 5 years. And if after 5 years you're still eligible for a BTO flat, I don't think you will be thinking of buying a car.

Go to hdb website. There are 4 rooms BTO flats selling at $200k. Do your research before posting. You look less of a fool. Sorry for saying that.

Congratulations. You have done well. How old are you and when do you plan to retire? How much passive income do you think a retired couple needs to retire, assuming a simple retirement (i.e. eat hawker or home cooked food, live in a paid up HDB flat, no car, no maid, short holidays to Malaysia and Thailand, lead a healthy lifestyle). Thanks.

Originally Posted by Unregistered

As of this Friday, all the companies which I hold stocks in, have announced their results and more importantly (for me at least) announced the dividends payouts as well. The dividends will be paid out at various times throughout this month. Some of the stocks have already gone XD.

As I totaled up the dividends for the month of May, I couldn't suppress the excitement welling up. The total came up to a princely sum of $19,850!, bringing the total dividends for this year including the month of May close to $40k. Looking forward to the next big payout in August.

The $19.8k dividend payout in a single month is the highest I have ever had so far. It has been one long journey to reach this point, starting with one lot of SIA shares that I bought after receiving my first bonus 30 years ago. I still remembered my bonus together with my monthly salary then was a GRAND total of $12k! I was equally trilled then.

To the Huat guy, as I already bought my car with my passive income last year, I will NOT be buying a car, but reinvesting the dividends. Before that, I will bring the whole family out for a good meal at a good restaurant.

People usually say HUAT to these kind of things, not when COE prices go up!

Originally Posted by Unregistered

As of this Friday, all the companies which I hold stocks in, have announced their results and more importantly (for me at least) announced the dividends payouts as well. The dividends will be paid out at various times throughout this month. Some of the stocks have already gone XD.

As I totaled up the dividends for the month of May, I couldn't suppress the excitement welling up. The total came up to a princely sum of $19,850!, bringing the total dividends for this year including the month of May close to $40k. Looking forward to the next big payout in August.

The $19.8k dividend payout in a single month is the highest I have ever had so far. It has been one long journey to reach this point, starting with one lot of SIA shares that I bought after receiving my first bonus 30 years ago. I still remembered my bonus together with my monthly salary then was a GRAND total of $12k! I was equally trilled then.

To the Huat guy, as I already bought my car with my passive income last year, I will NOT be buying a car, but reinvesting the dividends. Before that, I will bring the whole family out for a good meal at a good restaurant.

People usually say HUAT to these kind of things, not when COE prices go up!

Congrats Sir, you have truly done well.

Can you share some of the companies you are holding? Mainly blue chips?

The Dynamics of the COE market in Singapore


Demand for new cars and COEs = fn (replacement demand, household income, stock market, property market, unemployment rate, job security, political and social stability, good government, economic growth, population, consumer preference and attitudes)

Supply of COEs and new cars = fn (replacement COE (determined by car deregistrations) + 0.25% annual growth rate)


Price of COEs is therefore determined by BOTH demand and supply functions (fn) and NOT just supply.

We have seen recently why even though the supply of COEs released into the market has increased, prices of COEs did not fall much and in fact continue its rising trend. This is not strange or unbelievable. Many commentators, who may not be trained in the Economics sciences, just look at the supply of COEs to wrongly conclude that prices of COEs will fall.

The fact that COE prices continue to remain firm and continue rising concludes that DEMAND is STRONG, VERY STRONG. It shows that people who scrapped their old cars will buy new cars. This REPLACEMENT DEMAND takes up the REPLACEMENT COE SUPPLY. The fact that COE prices rise means that ADDITIONAL DEMAND for new cars and COEs is GREATER than the 0.25% annual growth of COEs.

What determines the strong REPLACEMENT DEMAND and ADDITIONAL DEMAND for new cars and COEs?

There are many factors and these are listed in the demand function above.

1. Household income – A rising household income in Singapore means that households can afford to own cars. Household incomes have generally increased over the past 10 years. It is common today for households with working couples to earn a combined $100,000 per annum. With such income, owning a $100,000 brand new car is not difficult as this means they are only spending $10,000 per year to own a car. This is only 10% of their income. If they spend another $10,000 per year on road tax, ERP charges, insurance, parking and petrol, this is another 10% of income. Therefore the total cost for owning and using their car is only 20% of income. Compare this with taking the taxi. If each person spends $40 per day (go to work and back including booking fees), the couple would have to spend $19,200 per year. So, the opportunity cost of owning a car versus taking the taxi is small. On top of that, they will benefit from convenience and time savings.

2. Stock market and property market – When the stock market and property market do well, households can monetise their gains and use proceeds of their gains to buy new cars. Many people flip their properties, especially those who bought highly subsidised BTO flats, to earn big profits and hence enabling them to buy new cars. Eligible Singaporean households can buy cheap BTO flats TWICE. So lucky.

3. Low unemployment rate, job security, political and social stability, good government and healthy economic growth – These factors have given Singapore consumers the confidence to buy new cars.

4. Population – Higher population will translate to higher demand for new cars.

5. Consumer preference and attitude – New cars are generally seen as luxury goods for most people. Many people aspire to own cars, in particular new cars. Families with new cars gain respect from neighbours and family members. To be able to own a new car is a manifestation of success and social status. This has always been the case and will always be.

I hope this brief economic analysis helps those with little or no Economics knowledge in understanding how COE prices are determined. In summary, COE prices are determined by BOTH demand and supply and NOT just supply. Hence, COE prices will likely continue to remain firm and continue rising, assuming no major global economic shocks in the foreseeable future.

Originally Posted by Unregistered

As of this Friday, all the companies which I hold stocks in, have announced their results and more importantly (for me at least) announced the dividends payouts as well. The dividends will be paid out at various times throughout this month. Some of the stocks have already gone XD.

As I totaled up the dividends for the month of May, I couldn't suppress the excitement welling up. The total came up to a princely sum of $19,850!, bringing the total dividends for this year including the month of May close to $40k. Looking forward to the next big payout in August.

The $19.8k dividend payout in a single month is the highest I have ever had so far. It has been one long journey to reach this point, starting with one lot of SIA shares that I bought after receiving my first bonus 30 years ago. I still remembered my bonus together with my monthly salary then was a GRAND total of $12k! I was equally trilled then.

To the Huat guy, as I already bought my car with my passive income last year, I will NOT be buying a car, but reinvesting the dividends. Before that, I will bring the whole family out for a good meal at a good restaurant.

People usually say HUAT to these kind of things, not when COE prices go up!

Huat ah! Huat ah! Huat ah! Huat ah! Huat ah!

To the idiot property agent, moron car dealer and seow Lang "huat ah", buzz off!

I can share with you some of my "darling" stocks but I also want to highlight that these shares were bought and accumulated over many years. Holding the stocks long term have worked for me. They are my "darlings" because they grew in value many times over, in addition to the yearly dividend payouts.

The stocks are Jardin C&C, Jardin Matheson Holdings, KepCorp, Starhub, ComfortDelgro, DBS and OCBC and more recently some Reits.

Looking at the stocks nowadays at their current prices, I must admit it is hard to pick potential multi-baggers. Stocks that can grow in value multiple times. In the 90s, many blue chip stocks have splitted or given bonus shares. Their value initially dropped because of the growth in the number of shares, but eventually picked up and surpassed their values before the stock split and bonus share issue. Some good examples were SIA and ComfDelgro.

If i had not invested in the shares earlier, and you asked me now whether I dare to invest in those shares, I would be hesitant. For example I would not touch those Jardin related stocks.

Originally Posted by Unregistered

Congrats Sir, you have truly done well.

Can you share some of the companies you are holding? Mainly blue chips?

If you have a paid up hdb flat, then your expenses will only be (for two persons)

Food & groceries $1000 pm
Utilities $100 pm
Public transport $100 pm
Holidays (pro rated) $300 pm
Misc $200 pm
Total $1700 pm or $20.4k pm

So, if you have passive income of $30k pa or $2.5k pm, you can retire.

Originally Posted by Unregistered

Congratulations. You have done well. How old are you and when do you plan to retire? How much passive income do you think a retired couple needs to retire, assuming a simple retirement (i.e. eat hawker or home cooked food, live in a paid up HDB flat, no car, no maid, short holidays to Malaysia and Thailand, lead a healthy lifestyle). Thanks.