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-   -   How much savings do you have? (https://forums.salary.sg/investments-net-worth/1199-how-much-savings-do-you-have.html)

Unregistered 01-12-2013 07:34 AM

Hi,

I am a multi-millionaire. If I may, let me share with you my life experience of becoming rich.

It is all about hard work and wisdom. I was and still am conservative when it comes to my finances. I have seen many lower class people who overleverage because they dream to strike it rich. When the tide turns, they are all naked and ended up staying in rented 2 room HDB flats for the destitute.

Looking at your case, I think you are borrowing way beyond your means. When the tide turns, you will definitely be standing naked. You may also lose your job and passive income. Your properties and stocks will all crash in value by 50% or more.



Quote:

Originally Posted by Unregistered (Post 45717)
I'm an average Joe, keen on picking the brains of the many successful people here.


Debt= 1.2 mil
Savings= 150k
Income= 120k p.a.
Passive income: 80 k p.a.


I wonder if this is the time to deleverage. As you can see, I'm rather highly geared vis--vis my relatively low (work) income.


Unregistered 01-12-2013 08:41 AM

Something to think about.

The gahmen has pointed out that the population is facing double whammy of decline and aging. If the current trend continues and without infusion of younger people and talents, the economy will collapse and the country will not progress. Your insurance, CPF money, investments may also disappear if no new members join and contribute.

They then tell you they need to increase birth rate, but not successful in convincing the locals. So they have no choice but to look outside. They tested water by telling you (through white paper) that the population will grow to 6.9 mil, counting both citizens and FTs. People protested, and they keep low profile.

Then you see and read news that the gahmen keeps releasing land for both HDB and private residences. The new master plan identified more new town centers catering for thousands of new homes. Mind you, each time the land tender cost is higher than the previous ones. Also the cost of materials, and labour to build these new homes keep going up. You ask yourself, are the trends pointing to lower home prices? Doesn't look like it does it? But more fundamentally, why the gahmen keep releasing more land for homes?

After losing a GRC in the last GE, the gahmen also controlled the rise of the HDB prices. Now more people are home owners. You ask yourself, do you think the new home owners want their home prices to go up or go down?

People who aspired to stay in private homes also complained that their dreams of enjoying the upper middle class lifestyle is getting out of their reach. Then 7 cooling measures were introduced, and the TDSR. All these artificial controls slowed down purchases locally, so more people can buy their condos. Do you think these new owners want to see their new home prices depreciate? Don't think so.

The CM also made rich investors take their money outside and buy properties in UK, M'sia and Oz. The gahmen also don't want that.

As long as the world (especially the US) economy is not floundering, and there is no big retrenchment, any property price movements locally will be artificially controlled by the gahmen through the CM and TDSR. And it is definitely not to the gahmen's benefit to see property price collapsing. They have the option to tighten or loosen the controls to adjust accordingly.

The gahmen is already feeling the negative consequence of "neglecting" the landed property owners, do you think they would want to make the many more thousands of condo owners unhappy by allowing their property prices to collapse? They could lose more than 1 GRC!

Unregistered 01-12-2013 09:34 AM

I want the property prices to collapse.
I have just sold my BTO flat, after the MOP.
I am now staying in my parent's landed house.
I made a lot of profit and now need to buy a condo.
I want the condo prices to collapse so that I can afford a Bukit Timah condo.
Can or not?

Quote:

Originally Posted by Unregistered (Post 45913)
Something to think about.

The gahmen has pointed out that the population is facing double whammy of decline and aging. If the current trend continues and without infusion of younger people and talents, the economy will collapse and the country will not progress. Your insurance, CPF money, investments may also disappear if no new members join and contribute.

They then tell you they need to increase birth rate, but not successful in convincing the locals. So they have no choice but to look outside. They tested water by telling you (through white paper) that the population will grow to 6.9 mil, counting both citizens and FTs. People protested, and they keep low profile.

Then you see and read news that the gahmen keeps releasing land for both HDB and private residences. The new master plan identified more new town centers catering for thousands of new homes. Mind you, each time the land tender cost is higher than the previous ones. Also the cost of materials, and labour to build these new homes keep going up. You ask yourself, are the trends pointing to lower home prices? Doesn't look like it does it? But more fundamentally, why the gahmen keep releasing more land for homes?

After losing a GRC in the last GE, the gahmen also controlled the rise of the HDB prices. Now more people are home owners. You ask yourself, do you think the new home owners want their home prices to go up or go down?

People who aspired to stay in private homes also complained that their dreams of enjoying the upper middle class lifestyle is getting out of their reach. Then 7 cooling measures were introduced, and the TDSR. All these artificial controls slowed down purchases locally, so more people can buy their condos. Do you think these new owners want to see their new home prices depreciate? Don't think so.

The CM also made rich investors take their money outside and buy properties in UK, M'sia and Oz. The gahmen also don't want that.

As long as the world (especially the US) economy is not floundering, and there is no big retrenchment, any property price movements locally will be artificially controlled by the gahmen through the CM and TDSR. And it is definitely not to the gahmen's benefit to see property price collapsing. They have the option to tighten or loosen the controls to adjust accordingly.

The gahmen is already feeling the negative consequence of "neglecting" the landed property owners, do you think they would want to make the many more thousands of condo owners unhappy by allowing their property prices to collapse? They could lose more than 1 GRC!


Unregistered 01-12-2013 10:47 AM

I share your frustrations. I also waited quite long already, hoping to buy my 3rd condo.
I believe the gahmen's plan is not to crash the property but to control the price increase to something reasonable like 3% a year instead of 3% per quarter.

Quote:

Originally Posted by Unregistered (Post 45914)
I want the property prices to collapse.
I have just sold my BTO flat, after the MOP.
I am now staying in my parent's landed house.
I made a lot of profit and now need to buy a condo.
I want the condo prices to collapse so that I can afford a Bukit Timah condo.
Can or not?


Unregistered 01-12-2013 11:24 AM

Quote:

Originally Posted by Unregistered (Post 45916)
I share your frustrations. I also waited quite long already, hoping to buy my 3rd condo.
I believe the gahmen's plan is not to crash the property but to control the price increase to something reasonable like 3% a year instead of 3% per quarter.

You can live in my condo.
Only thing we need to do is: sign a legal contract that if you dont pay me according to the terms below I will confiscate the property and it will be mine.

1. Tenure: Pay every day for ONLY 30 days.
2. First day: Pay me ONLY $2.
3. Next day: Pay me ONLY two times of previous day.
4. Cycle: Repeat point 3 for remaining 28 days ONLY.

Condition: If you default paying on any single day, you will be thrown out of the house and it will belong to me.

lazyplane 01-12-2013 11:08 PM

Quote:

Originally Posted by Unregistered (Post 45917)
You can live in my condo.
Only thing we need to do is: sign a legal contract that if you dont pay me according to the terms below I will confiscate the property and it will be mine.

1. Tenure: Pay every day for ONLY 30 days.
2. First day: Pay me ONLY $2.
3. Next day: Pay me ONLY two times of previous day.
4. Cycle: Repeat point 3 for remaining 28 days ONLY.

Condition: If you default paying on any single day, you will be thrown out of the house and it will belong to me.

Just for fun :
since you didnt state the currency, someone can choose to nominate it.
For anyone whom is keen, try Zimbabwean dollar.

The Financial Services Club's Blog: Zimbabwe's currency crisis and the 100 trillion dollar note

Unregistered 02-12-2013 10:36 AM

Quote:

Originally Posted by dives (Post 45895)
Depends, you have not revealed a very critical part and that is your overall net worth.

I won't go to exact figures but my level of debt is slightly more then yours and I have savings which amount to half the debt. My salary level is the roughly the same as yours. So if I portrayed it as you did it would seem that I am in some serious doo doo

However my assets which the debt is secured against enough to pay the debt of 2x over.

So without revealing your asset worth its hard to make a decent judgement on your situation.

Anyone who makes a judgement prior to knowing that is merely making an assumption.


Assets at current value are worth about 2.4 mil. Assuming they depreciate by half to 1.2 mil, I still won't be in negative equity.

Of course it would wipe out my life savings. Hence the question

AJ

Unregistered 02-12-2013 04:07 PM

Quote:

Originally Posted by Unregistered (Post 45926)
Assets at current value are worth about 2.4 mil. Assuming they depreciate by half to 1.2 mil, I still won't be in negative equity.

Of course it would wipe out my life savings. Hence the question

AJ

You are fine. We just have too many green eyed people here who wished they had taken advantage of the rising property prices a few years ago. Just remember, the property prices are being artificially suppressed by the govt with various measures at this point of time precisely because of growing demand. If the demand starts to fall drastically, the govt will do the opposite. Seriously, if most people believe that property prices are going to drop 50%, the govt wouldn't need all the cooling measures..

Unregistered 02-12-2013 04:43 PM

Quote:

Originally Posted by Unregistered (Post 45932)
You are fine. We just have too many green eyed people here who wished they had taken advantage of the rising property prices a few years ago. Just remember, the property prices are being artificially suppressed by the govt with various measures at this point of time precisely because of growing demand. If the demand starts to fall drastically, the govt will do the opposite. Seriously, if most people believe that property prices are going to drop 50%, the govt wouldn't need all the cooling measures..

what's the maximum that a young couple in their 30s could have made from the recent property boom? 1m? 5m? or 10m?

Unregistered 02-12-2013 04:47 PM

Quote:

Originally Posted by Unregistered (Post 45938)
what's the maximum that a young couple in their 30s could have made from the recent property boom? 1m? 5m? or 10m?

....few hundred grands to a few millions....what's your point?


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