Calling it quits!

[whizzard]

From UBS Research - a summary of the main points.

Singaporean equities: Shelter from the storm

Singapore stands out as a safe haven relative to the region. Its improving economic data and currency strength contrasts with that of regional peers, who appear to be struggling with deteriorating economic data and investment outflows. We expect Singapore's equity market to outperform ASEAN's equity markets on the back of relative economic stability.

Global macroeconomic themes continue to drive Singapore's equity market. Investors should position their portfolios for an eventual rise in interest rates amid expectations of Fed tapering. Banks and cash-rich companies are beneficiaries of higher interest rates. Conversely, REITs and highly leveraged companies will be adversely impacted by higher interest rates.

It is too early to add cyclical exposure, as the earnings outlook remains poor. We prefer exposure to banks (rising NIMs, stable loan growth) and companies with strong balance sheets and sustainable dividend yields, while avoiding highly-geared cyclicals (e.g. commodity traders) and companies which face headwinds from domestic labor cost pressure.

[whizzard]

Is the residential rental market in Singapore softening? Well, recently one of my tenants will be vacating a unit at the end of this month as he will be transferred out of Singapore. He had stayed at the unit for more than 2.5 years.

My agent had to look for a new tenant for my unit. She had some viewings but the earlier offers were not where I felt they ought to be so I rejected those low bids. However, I was quite surprised as the other owners were very willing to lower their asking price, well according to feedback from my agent anyway. Also, one of the prospects was really haggling to lower the price and was simultaneously viewing a few units at the same development, trying to play off one owner agst the other. Eventually, afteer asking me to lower my price to her level (which I didn't agree), she asked for a 2nd viewing of my unit at my earlier negotiated offer price but the unit was already taken. I was happy with that outcome, it shows that she may not have managed to get it at the price she was trying to lowball.

To cut the long story short, it appears to be more of a tenant's market rather than a landlord's these days. Interest from tenants is still there as my unit had at least 5 viewings before I finally sealed the deal (with no diplomatic clause).

Hey Whizzard

Interesting to hear that, I heard similar stories from friends who find it increasingly hard to rent out their properties in the recent months. Most had to lower their asking price after leaving properties vacant for months. Luckily I don't have any tenancies due till some years time but the outlook does sound negative.

Colleague of mine was renting, has to find another place some months bank cause the landlord raise the rent, when he found a new place the original landlord called and asked if he wanted to prolong the rent with a discounted price.

Don't mind me asking where is your place at? 5 viewings is pretty decent and securing a tenant before your current lease was out is quite good.

Originally Posted by whizzard

Is the residential rental market in Singapore softening? Well, recently one of my tenants will be vacating a unit at the end of this month as he will be transferred out of Singapore. He had stayed at the unit for more than 2.5 years.

My agent had to look for a new tenant for my unit. She had some viewings but the earlier offers were not where I felt they ought to be so I rejected those low bids. However, I was quite surprised as the other owners were very willing to lower their asking price, well according to feedback from my agent anyway. Also, one of the prospects was really haggling to lower the price and was simultaneously viewing a few units at the same development, trying to play off one owner agst the other. Eventually, afteer asking me to lower my price to her level (which I didn't agree), she asked for a 2nd viewing of my unit at my earlier negotiated offer price but the unit was already taken. I was happy with that outcome, it shows that she may not have managed to get it at the price she was trying to lowball.

To cut the long story short, it appears to be more of a tenant's market rather than a landlord's these days. Interest from tenants is still there as my unit had at least 5 viewings before I finally sealed the deal (with no diplomatic clause).

[whizzard]

Originally Posted by dives

Hey Whizzard

Interesting to hear that, I heard similar stories from friends who find it increasingly hard to rent out their properties in the recent months. Most had to lower their asking price after leaving properties vacant for months. Luckily I don't have any tenancies due till some years time but the outlook does sound negative.

Colleague of mine was renting, has to find another place some months bank cause the landlord raise the rent, when he found a new place the original landlord called and asked if he wanted to prolong the rent with a discounted price.

Don't mind me asking where is your place at? 5 viewings is pretty decent and securing a tenant before your current lease was out is quite good.

Yeah, the market has been softening since the Lehman crisis.

I think the outcome was not as serendipitous as it seems but rather a realistic and practical asking price plus providing a good product, which managed to seal the deal. I have to give credit to my agent too, I guess. Having a pretty, eloquent and intelligent agent helps too.

My place is within walking distance of LKY's house.

Well, dealing with maturing tenancies is par for the course if you invest in properties.

Really thinking about it, I think the tenant has got a good deal considering the product she is getting vs the rent she is paying.

Hopefully the general business climate continues to improve and more hiring of frontline staff in the economy. Recently, there has been an increase in hiring activities in the financial sector for frontline staff. But, it is certainly harder for expats to secure their employment passes these days.

I was thinking your property would be nearer to central region, it has and always proven to be more resilient in harsher times.

I am in the finance industry and it seems banks in general are not hiring as much as they did previously. (not sure about the local banks though).

I do wonder what will happen when more developments come unto the market, I know a number of people who invested in these developments which go to the 1000 unit mark and it'll be interesting to see what happens once they TOP. Will the market be flooded with 100's of units looking for tenants?

The ones I can think off the top are D'Leedon, Interlace, Minton etc.

Originally Posted by whizzard

Yeah, the market has been softening since the Lehman crisis.

I think the outcome was not as serendipitous as it seems but rather a realistic and practical asking price plus providing a good product, which managed to seal the deal. I have to give credit to my agent too, I guess. Having a pretty, eloquent and intelligent agent helps too.

My place is within walking distance of LKY's house.

Well, dealing with maturing tenancies is par for the course if you invest in properties.

Really thinking about it, I think the tenant has got a good deal considering the product she is getting vs the rent she is paying.

Hopefully the general business climate continues to improve and more hiring of frontline staff in the economy. Recently, there has been an increase in hiring activities in the financial sector for frontline staff. But, it is certainly harder for expats to secure their employment passes these days.

[whizzard]

Originally Posted by dives

I was thinking your property would be nearer to central region, it has and always proven to be more resilient in harsher times.

I am in the finance industry and it seems banks in general are not hiring as much as they did previously. (not sure about the local banks though).

I do wonder what will happen when more developments come unto the market, I know a number of people who invested in these developments which go to the 1000 unit mark and it'll be interesting to see what happens once they TOP. Will the market be flooded with 100's of units looking for tenants?

The ones I can think off the top are D'Leedon, Interlace, Minton etc.

Hmm, don't really get you when you say nearer the central region. Property analysts and agents would describe the location as Core Central Region ("CCR"), being located in the Oxley-Orchard area.

Anyway, yes, I try to avoid large developments which do not offer a differentiated product generally. This particular development was designed by an international multi-award winning architect on a 250,000 sq ft area located on a high ground with a total of only 176 units. Being a low density development, it offers a green sanctuary within the heart of the city. The underground carpark has ample lots even for residents with multi car ownership and their guests. From the carpark, each unit has their own bio-metric controlled private lift lobby (which services only 5 units, 1 unit per floor) which only opens up at your private foyer. The probability of bumping into your neighbour is therefore very low - who you bring to your unit and what time you come and go is very private. I think I can be a property agent!

Was told that a number of prominent Singapore personalities which I shall not name, own a number of units there but I have never seen them there before.

Originally Posted by whizzard

Hmm, don't really get you when you say nearer the central region. Property analysts and agents would describe the location as Core Central Region ("CCR"), being located in the Oxley-Orchard area.

Anyway, yes, I try to avoid large developments which do not offer a differentiated product generally. This particular development was designed by an international multi-award winning architect on a 250,000 sq ft area located on a high ground with a total of only 176 units. Being a low density development, it offers a green sanctuary within the heart of the city. The underground carpark has ample lots even for residents with multi car ownership and their guests. From the carpark, each unit has their own bio-metric controlled private lift lobby (which services only 5 units, 1 unit per floor) which only opens up at your private foyer. The probability of bumping into your neighbour is therefore very low - who you bring to your unit and what time you come and go is very private. I think I can be a property agent!

Was told that a number of prominent Singapore personalities which I shall not name, own a number of units there but I have never seen them there before.

Belle Vue residences?

Belle Vue Residences Condominium Details in Orchard / River Valley - PropertyGuru Singapore

Hi Whizzard,

Sorry should have made it clearer but yes I was referring to the CCR region i.e River Valley, Orchard Road and the now the Marina Bay area etc.

I agree, I shun such developments as well. A lot of "investors" rush in due to the lower price points compared to other areas but given the competition for tenancy etc and lack of exclusiveness I can't see how the so called price bargain is really a bargain at all.

Your property sounds fantastic, sounds like a place I would love to live in Lol, ticks the right boxes exclusiveness, facilities, open spaces & good location. If you got it at a good price it would be a keeper.

Originally Posted by whizzard

Hmm, don't really get you when you say nearer the central region. Property analysts and agents would describe the location as Core Central Region ("CCR"), being located in the Oxley-Orchard area.

Anyway, yes, I try to avoid large developments which do not offer a differentiated product generally. This particular development was designed by an international multi-award winning architect on a 250,000 sq ft area located on a high ground with a total of only 176 units. Being a low density development, it offers a green sanctuary within the heart of the city. The underground carpark has ample lots even for residents with multi car ownership and their guests. From the carpark, each unit has their own bio-metric controlled private lift lobby (which services only 5 units, 1 unit per floor) which only opens up at your private foyer. The probability of bumping into your neighbour is therefore very low - who you bring to your unit and what time you come and go is very private. I think I can be a property agent!

Was told that a number of prominent Singapore personalities which I shall not name, own a number of units there but I have never seen them there before.

[whizzard]

An article from today's Straits Times.

Most people in Singapore dream of semi-retirement, according to a survey by HSBC. But some semi-retirees have to keep working part-time for financial reasons, it found.

The bank's study on retirement, Life After Work?, found that 61 per cent of respondents working in Singapore plan on semi-retirement - if they have not already achieved this. The study defines a semi-retired person as someone who works fewer hours but keeps up some paid work as retirement age approaches. Those who plan to semi-retire expect to do so at the age of 57, before retiring from all paid employment at 60.

Reasons for semi-retiring are largely positive, with 57 per cent wanting to keep active and 43 per cent doing so because they enjoy their work. But others do it out of necessity - 30 per cent cannot afford to retire fully and 23 per cent still need to work to bridge a shortfall in their retirement income. Some are not even sure if they can retire at all - 17 per cent expect to work their entire lives. People without spouses are particularly vulnerable: 30 per cent of those who are divorced or separated say they do not think they can afford to retire.

The head of customer value management, retail banking and wealth management at HSBC Singapore, Harmander Mahal, said: "Semi-retirement has unfortunately become the prevailing lifestyle for many who cannot afford to fully retire. Inflationary pressures, a rising cost of living and the desire to maintain one's pre-retirement lifestyle are driving people in Singapore to continue working."

He added that it is important for people to start planning and saving early so that they will have no retirement regrets.

But the survey showed that such lessons need reinforcement. Nine per cent of retirees here think that they have failed to prepare adequately for a comfortable retirement. Asked what was the best financial advice they have ever had, the most popular answer is to start saving at an early age. This was followed by saving a small amount regularly, developing a financial plan for the future and buying your own home as soon as you can afford to.

Those who have done their sums well expect to leave an inheritance. Among fully retired people, 70 per cent will leave an inheritance, with a median amount of around S$473,000 (US$379,340).

As for the source of their retirement income, Singaporeans are buying into the mantra of self-reliance. Savings form the largest proportion of the average retiree's income at 29 per cent, with investment income making up 18 per cent. State pensions or benefits make up 21 per cent of the retirement income, lower than the global average of 37 per cent.

HSBC surveyed about 1,000 respondents in Singapore via an online survey.


It's just a survey and may not be an accurate description of the general situation. However, I am not entirely surprised by the conclusions. Life in Singapore is expensive. We live in a cosmopolitan city where the inflationary environment is high and the temptation to spend is very great. As stated above, planning and starting to invest for retirement as early as possible is certainly the best advice.

Some traditional parents plan/expect their children to take care of them during retirement. This is not wrong, afterall filial piety is one of our cultural traits. However, I am concerned that my children may not have the ability to do so even if they have the willingness to do so. My own parents saw me through university and after that I was largely on my own. I think they have done a good job. I hope I can instill such values in my children too.

My parents are not very rich and we kids chip in to help finance them during their retirement years so that they can live out their retirement with some comfort and dignity. They have spent a great deal of their savings on our university education and we are grateful for the opportunities that have come our way.

However, I have consciously planned not to have to rely on my kids for our financial needs when we retire. I will be more than happy for them to spend time with us when we are retired. In today's ultra competitive world, even with a university education, they may find life much harder than me when I first started out work. I certainly hope they will be able to manage when its their turn to do so.

[whizzard]

I found this article on the internet. Interesting!


THE SIMPLE DOLLAR 2 Days Ago

Could You Quit Your Job on Monday Morning?

Think about it for a second.

Could you walk into your workplace Monday morning, look at your boss, and hand in your letter of resignation? Could you do this without entering into an absolute financial apocalypse at home?

It’s a dream a lot of us have.

It’s something I actually did in February 2008, not because I disliked my boss or coworkers or even the interesting parts of my job, but because I felt like I was becoming the father I didn’t want to be and because I was really frustrated with bureaucracy.

I didn’t do it without a plan, though. I had spent the last two years pretty much planning non-stop for that moment, throwing everything but the kitchen sink at that plan. Sarah and I had turned around our financial situation. I had built up a side gig (The Simple Dollar) that could provide enough income to make a difference. I also had enough savings in the bank to make sure that if things went awry, we could find a new path quickly.

So, I walked. I don’t regret it, though I do miss the people, particularly the “elderly” fellow who was my office mate for six years.

The point is that quitting your job tomorrow is a very powerful yardstick by which you can figure out whether or not you’re truly financially independent.

If you could walk out on your job without panic, then you’re at least independent from your job, which is, in all likelihood, your primary method of earning income.

There’s something even more important than that, though.

Knowing that you could walk out in that way changes the balance of power at work.

If you know you can’t walk out in that fashion, then you’ve ceded power – a lot of it – to your boss. If you don’t do what your boss demands of you, you might just see a pink slip in the very near future, which would be devastating for you.

Your boss knows it, too. They recognize that many of their employees need this job and thus can be pushed when it’s warranted.

You don’t want to be that employee.

On the other hand, if you know you can walk out at any time if you wish, then the tables are turned. You have the power. That doesn’t mean that you can or should slack off at work. What it does mean is that you don’t have to sit back and take mistreatment.

It means you have far more power to have input about your job.

It means you don’t have to be afraid to raise your hand in a meeting and speak your mind.

It means you don’t have to have cold sweats about a challenging project failing; you can just focus on achieving it.

It means you don’t have to go into full panic mode when there are whispers of layoffs at work.

It’s not easy getting there, but achieving that level of financial independence completely turns the tables on your relationship with your job. It becomes drastically less stressful and much more fulfilling when you’re in the driver’s seat.

The first step is up to you.