Whats your net worth

This is the best answer to my brother's problem. Yes, he doesn't need to downgrade to a HDB flat, it will be too big an adverse impact on his social status and esteem. Quite surprised to find that there are still many condos selling below $1m. He has to sell his prized condo and settle for a cheaper one. I think he also needs to cut his expenses. Selling his 3 series would be a good start. And stop the maid's employment too. He just has to learn to do the household chores, no more ordering around.

Thanks everyone for your ideas.

Originally Posted by Unregistered

Your brother's situation is not so bad as he still has his condo, which is a big asset for him, especially since there is no more mortgage. He need not go all the way to the extreme of downgrading to a HDB flat, which understandably will be a big blow to his ego and status. Living in a HDB flat is of a lower standing, in society's view. This is a fact. What he can do to lessen the impact of society's perception is to downgrade to a cheaper condo. There are still many condos selling at $1m or less, he can go to propertyguru and set the search parameters and do the search. He can then sell his $1.7m condo and buy a $1m condo. This condo may be smaller or older or located is a lesser district but it is still better than staying in a HDB flat, which has a much, much lower status for him and his family. He can then invest $700k in a 5% dividend stock, which gives him $35k pa. Together with his wife's income and perhaps reducing his total expenses, his family will still be able to function well financially, without impacting much their social status. I think this is a more "middle of the way" approach. He can then continue to focus on his job search. With the new employment policy, he now stands a better chance of getting employed again.

This is fine for children - keeping free from debt and disciplined saving.

But when you begin your adult working life, you need to move up several levels of sophistication in terms of wealth building. For one, there are good debts and there are bad debts. Buying your own home and taking a loan to pay for it is a form of good debts. And if you are in business, taking loans to buy equipment and even a car can be good debts.

At this day and age, simple saving is not enough to build wealth.

Originally Posted by lordlad

mine...working for past 9 years...31 this year, in IT..

Cash = around 15k
Share = around USD20k
CPF = around 100k for ordinary

Single, no house or car but absolutely zero debt. No installment and no late credit card payments (this is something i am very strict about...i have excellent credit rating and always obsessed about remained zero debt.)

What I earned, what I have, is what i got...Not a gross value but true net value.

[lordlad]

Originally Posted by Unregistered

This is fine for children - keeping free from debt and disciplined saving.

But when you begin your adult working life, you need to move up several levels of sophistication in terms of wealth building. For one, there are good debts and there are bad debts. Buying your own home and taking a loan to pay for it is a form of good debts. And if you are in business, taking loans to buy equipment and even a car can be good debts.

At this day and age, simple saving is not enough to build wealth.

you lost me at saying car is a good debt...i knew too many people that bought cars just to boost their ego (and easier to get girls) and they are in a worst financial situation than me......

Also, call me pessimistic but i called my pragmatic......

most of the ppl here taking loans for their 'investments' are very tied to their job...most don't admit it but they are basically on 'leverage' with their company....they assumed retrenchment is a far-off concept and even it hit, it will never hit them. I am personally in Deutsche Bank during the 2009 crash and saw more than enough AVP & VP getting cut and I don't feel sorry for them because they overestimated themselves due to their payscale.....these late 30/mid-40s middle managers are never 'experts' in their particular field and are only earning that much not due to ability but due to circumstances (I am in Investment banking and i have to admit this field overpaid way too much)...


I am not really in the mindset of increase my wealth or asset but rather my value.....I have been on 3 jobs since 2009 and none of the job is found by me but was rather headhunted...

My goal and motto in life is clear....rather than hoping that you can find a company that can fulfilled your salary expectation, i will create enough value (and reputation) for myself that the company that is willing to pay me my expected amount will come to me...

And so that has been the case for me so i don't think these generic 'wealth management' will ever work for me...

Ps. I think one should work with a goal and the goal is not to make money. The goal is to be the best in your field and provide the best value for your company and reputation for yourself. The money is the RESULT of that goal, and should not be the goal itself.

30, works in FO IB, $250k pa, net worth $1.8m
Wife, 28, works in MO IB, $150k pa, net worth $0.8m
Lives in a D10 condo, bought in 2009. Drives a E Class
We plan to retire by 45, our target net worth in total by 45 is $6m

I also agree that this is the best idea. The forummer who suggested this combined good ideas from others. Your brother's $1.7m condo is very valuable asset that he can now monetize given his circumstances. What he needs to do is to identify cheap, undervalued properties so that when he buys, he can tell his friends and family that he is positioning himself to take advantage of potential capital appreciation in locations with strong growth potential. One region where there is very high capital growth potential in the long run is the West region of Singapore. With the Jurong Lake District plan, the Jurong Region MRT line, the Downtown Line, etc, the West's property prices will go higher in the long run.

Some new condos your brother can look at are: Hundred Trees in West Coast (just TOP in 2013), Caspian (JLD growth story, next to Lakeside MRT station), Lakefront Residences (JLD growth story, next to Lakeside MRT station, TOP in 2015), Tree House (exclusive Chestnut area, Downtown Line 2 opening in 2016 (near Hillview MRT station), just TOP in 2013). There are 2 room units your brother can consider, priced at about $1m only. Hope this info will help your brother in his new property search.

Originally Posted by Unregistered

This is the best answer to my brother's problem. Yes, he doesn't need to downgrade to a HDB flat, it will be too big an adverse impact on his social status and esteem. Quite surprised to find that there are still many condos selling below $1m. He has to sell his prized condo and settle for a cheaper one. I think he also needs to cut his expenses. Selling his 3 series would be a good start. And stop the maid's employment too. He just has to learn to do the household chores, no more ordering around.

Thanks everyone for your ideas.

Originally Posted by Unregistered

I also agree that this is the best idea. The forummer who suggested this combined good ideas from others. Your brother's $1.7m condo is very valuable asset that he can now monetize given his circumstances. What he needs to do is to identify cheap, undervalued properties so that when he buys, he can tell his friends and family that he is positioning himself to take advantage of potential capital appreciation in locations with strong growth potential. One region where there is very high capital growth potential in the long run is the West region of Singapore. With the Jurong Lake District plan, the Jurong Region MRT line, the Downtown Line, etc, the West's property prices will go higher in the long run.

Some new condos your brother can look at are: Hundred Trees in West Coast (just TOP in 2013), Caspian (JLD growth story, next to Lakeside MRT station), Lakefront Residences (JLD growth story, next to Lakeside MRT station, TOP in 2015), Tree House (exclusive Chestnut area, Downtown Line 2 opening in 2016 (near Hillview MRT station), just TOP in 2013). There are 2 room units your brother can consider, priced at about $1m only. Hope this info will help your brother in his new property search.

Property agents are very free and have to hard sell their products now.. Guess you are the same poster for the above "good idea" post. Just tell him you are property adviser and able to help the bro, don't pretend to be a HNW guy here giving opinion.. and be smart in that, it is too obvious...

Originally Posted by Unregistered

What he needs to do is to identify cheap, undervalued properties so that when he buys, he can tell his friends and family that he is positioning himself to take advantage of potential capital appreciation in locations with strong growth potential.

This property agent is gaining my full respect based on the points he/she shared...
People are talking about property bubble now, as price has soared and property prices are too overvalued and overpriced. Yet this desperate agent is asking to identify cheap, undervalued properties to buy?? in Sg? And tell his friend, I am stupid to invest at the peak of the market..

But is normal for agent, when they meet buyers, they will tell "oh, this area is very undervalued and will boom 3 folds in the next 3 years, buy now before late", when they meet seller, "oh, your area is too overvalued, better sell before bubble, and buy back later".

And this agent can memorise all the new condos as though he is saying it few hundred times everyday to MRT commuters..

Thanks for the tips. It is timely that he sells his current condo for $1.7m to take profit as he bought the condo for only $780k in 2006. So after selling at $1.7m and buying a $1m condo, he still owns a condo and have $700k cash for investment. Also, his current condo is now older (12 years old) so good reason to tell his family and friends that he is buying a newer condo with better design.

Originally Posted by Unregistered

I also agree that this is the best idea. The forummer who suggested this combined good ideas from others. Your brother's $1.7m condo is very valuable asset that he can now monetize given his circumstances. What he needs to do is to identify cheap, undervalued properties so that when he buys, he can tell his friends and family that he is positioning himself to take advantage of potential capital appreciation in locations with strong growth potential. One region where there is very high capital growth potential in the long run is the West region of Singapore. With the Jurong Lake District plan, the Jurong Region MRT line, the Downtown Line, etc, the West's property prices will go higher in the long run.

Some new condos your brother can look at are: Hundred Trees in West Coast (just TOP in 2013), Caspian (JLD growth story, next to Lakeside MRT station), Lakefront Residences (JLD growth story, next to Lakeside MRT station, TOP in 2015), Tree House (exclusive Chestnut area, Downtown Line 2 opening in 2016 (near Hillview MRT station), just TOP in 2013). There are 2 room units your brother can consider, priced at about $1m only. Hope this info will help your brother in his new property search.

Originally Posted by Unregistered

Thanks for the tips. It is timely that he sells his current condo for $1.7m to take profit as he bought the condo for only $780k in 2006. So after selling at $1.7m and buying a $1m condo, he still owns a condo and have $700k cash for investment. Also, his current condo is now older (12 years old) so good reason to tell his family and friends that he is buying a newer condo with better design.

Wonder why people are so free to worry for someone who has net worth of few millions SGD. Take care of yourself and make sure you earn that amount of money first before worrying for someone who is much richer than you..

[Jeff]

That 29 yr old was lucky. One of my interns came to my bank that time 2009 crisis, MAS was paying their fresh grad salaries and asking banks to take them in as national service. Of the thousands of outstanding cvs on the table, we had to pick someone. At any time, there has got to be a lucky person, the outlier. So it's nothing to be discouraged about.

Originally Posted by Unregistered

I feel discouraged when I read the Sunday Times this morning, there is a story of a 29 year old who already earn a monthly 5 figure salary. I am already 50 and yet earning only $5k per month. The guy already bought a $1.3m condo whereas I am still living in a 4 room HDB flat. He drives a BMW but I only take Bus, MRT and Walk. With so many young high income earners nowadays, not surprising why property prices continue to rise. My dream condo will remain a dream.

My HDB flat is now worth $400k with remaining loan of $100k. My CPF savings and other savings in total about $150k. So my net worth is only $450k. I think I cannot retire in Singapore, I may need to sell my HDB flat when I reach 65 (hopefully I can sell it at $800k in 15 years time) and retire in Thailand or Malaysia. I hope our property market will not crash by the property oversupply. Our policies must change to prevent a crash or else I will have to work till I die. My HDB flat is my only precious retirement asset.