Calling it quits!

From this thread, it's clear that one can borrow off your primary residence to invest. If you bought your house 20 yrs ago, there is quite a lot of equity that you can utilize safely, say by borrowing up to 50% of the value of the house. Does this mean that the concept of net worth should include primary residence, since you can utilise the equity in your house?

Originally Posted by Unregistered

From this thread, it's clear that one can borrow off your primary residence to invest. If you bought your house 20 yrs ago, there is quite a lot of equity that you can utilize safely, say by borrowing up to 50% of the value of the house. Does this mean that the concept of net worth should include primary residence, since you can utilise the equity in your house?

Of course, the best and fastest way to make money here is to take up as much mortgage loan as possible. Anyway for most mult-millionaires the primary home is such a small part of their net worth dun think they really care whether it is counted or not.

Originally Posted by Unregistered

Of course, the best and fastest way to make money here is to take up as much mortgage loan as possible. Anyway for most mult-millionaires the primary home is such a small part of their net worth dun think they really care whether it is counted or not.

I have net worth of $4+million exclude home. The current condo I saty in is worth $1.8million almost fully paid. DBS refuse to upgrade me to private banking even though if include my home would have easily bring me way above their $5mil threshold...

The stupid part is if I just mortgage my condo and free up some cash, then suddenly I am considere >$5mil and can qualify for pte banking.

Originally Posted by Unregistered

I have net worth of $4+million exclude home. The current condo I saty in is worth $1.8million almost fully paid. DBS refuse to upgrade me to private banking even though if include my home would have easily bring me way above their $5mil threshold...

The stupid part is if I just mortgage my condo and free up some cash, then suddenly I am considere >$5mil and can qualify for pte banking.

why is DBS Private Bank so stringent? is there another bank that is less stringent?

I think the concept of net worth to exclude primary residence is started or at least propagated by the likes of private banks and wealth advisors. Since you cannot invest your primary residence with them, it's no good to them so they exclude from the definition.

Originally Posted by Unregistered

I have net worth of $4+million exclude home. The current condo I saty in is worth $1.8million almost fully paid. DBS refuse to upgrade me to private banking even though if include my home would have easily bring me way above their $5mil threshold...

The stupid part is if I just mortgage my condo and free up some cash, then suddenly I am considere >$5mil and can qualify for pte banking.

All the answers above are wrong! For DBS Private Banking you have to have investible assets of $5m with DBS, NOT net worth. If you have $20m net worth and have only $3m of investible assets with DBS, they still won't give you PB status.

They don't count your real estate as investments, even 2nd, 3rd properties and they don't count loans. They don't count CPF or Investments (held with DBS) under CPF or SRS. What they count are fixed deposits, shares held by them (i.e., you have to move from CDP to DBS Nominees) and other things that they sell you. There are 3 levels:

$200K - DBS Treasures
$1.5m - DBS Treasures Private Client
$5m - DBS Private Bank

From Treasures to Treasures PC, there is quite a jump of the products that they offer you assuming you sign as a sophisticated investor. However, there is not a high level of personalised service. For PB, they will assign a RM and all your banking is on a personalised level. You can stop using internet banking. Actually to me, there isn't much difference between Treasures PC and PB since I like to manage things myself with internet banking.

Originally Posted by Unregistered

I have net worth of $4+million exclude home. The current condo I saty in is worth $1.8million almost fully paid. DBS refuse to upgrade me to private banking even though if include my home would have easily bring me way above their $5mil threshold...

The stupid part is if I just mortgage my condo and free up some cash, then suddenly I am considere >$5mil and can qualify for pte banking.

I use both DBS private banking and Citigold private (roughly equal to DBS Treasures Private) and in terms of products, access and personalization Citigold private is almost as good as DBS private although it is suppose to be 1 notch lower.

I strongly recommend you consider making a switch since you only need US$1mil to qualify with Citi. Unless you really anal about getting the private banking status, it is better to split your banking needs into $1-2 million each with 2-3 banks as a form of diversification.

Originally Posted by Unregistered

All the answers above are wrong! For DBS Private Banking you have to have investible assets of $5m with DBS, NOT net worth. If you have $20m net worth and have only $3m of investible assets with DBS, they still won't give you PB status.

They don't count your real estate as investments, even 2nd, 3rd properties and they don't count loans. They don't count CPF or Investments (held with DBS) under CPF or SRS. What they count are fixed deposits, shares held by them (i.e., you have to move from CDP to DBS Nominees) and other things that they sell you. There are 3 levels:

$200K - DBS Treasures
$1.5m - DBS Treasures Private Client
$5m - DBS Private Bank

From Treasures to Treasures PC, there is quite a jump of the products that they offer you assuming you sign as a sophisticated investor. However, there is not a high level of personalised service. For PB, they will assign a RM and all your banking is on a personalised level. You can stop using internet banking. Actually to me, there isn't much difference between Treasures PC and PB since I like to manage things myself with internet banking.

Most PB state they want 2M, 5M, 10M min, but in actual fact, they would accept you so long as they think you have that money with other banks or that your income/potential will allow you make that deposit soon. Key is to get one of their existing clients to recommend you. Then sure can join. I was referred into current banks and have since then referred customers who clearly did not invest the ratecard amount at the start. And btw, banks care only about total assets with them. this includes leverage which is business for them too. So 2.5M leveraged 100% is 5M.

As for internet banking, totally disagree. I have been bugging the banks to upgrade their system so that everything is available for viewing online. Otherwise you get stupid monthly statements that are so thick and which end up killing trees and less sense of control.

As for private client and other treasures/priority segments. They are not as good simply because they charge more. Bond commissions are half. Leverage costs 20% cheaper at PB. So i think if you can, should quickly upgrade to PB. Not for service but to save money on commissions and other fees. And be active enough and no custodian fees even.

Since so many rich tycoons here just ask around anyone got experience setting up a family company not managed exclusively (dun have enough assets yet, ~USD50mil only)?

Right now I have a many accounts with various private bankers and it is very confusing and hard to do estate planning and have a holsitic view of the situation. One of my bankers recently left and set up a consultancy specialising in non-exclusive famco and try to get me to sign up. Just want to know if anyone got experience can clarify the pros and cons?

[whizzard]

Originally Posted by Unregistered

why is DBS Private Bank so stringent? is there another bank that is less stringent?

Actually, all you need is USD1 mil and UBS will accept you. PM me if you need an intro so I can get the referral incentives

Most banks would say they need a minimum of so and so but usually, USD1 mil for starts ought to get you there.