06-01-2012 01:34 PM | ||
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Firstly Understand (then) Check Knowledge S$0.01 > U |
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04-01-2012 12:37 AM | ||
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Yeap. Spot-on. Without much consideration, might as well invest S$2M into the high dividend yield (10%) stock and get S$200K yearly. Why bother with property rental or other financial instruments? Reason: 'Liquidity' & 'volatility' -Cash: Most liquid -Property: Not considered 'liquid'. [Fire sale price perhaps. Led to instant financial loss.] -Stock/shares: Significant exposure to 'volatility'. [Can bear to stomach the ups & downs?] 'Flash in the pan' or persistent $26K monthly??? Reality check: Try getting a bank loan for his first house. The bank will drill down and all will be exposed. Note: Owe $10K to the bank for your credit-line, you can be made bankrupt. *serious stuff* Quote:
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03-01-2012 12:54 PM | ||
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For starters to qualify for private banking, the lowest threshold I found so far is US$5m in investible assets, most are US$10m, so no way $2m can get you private banking. And the key thing is investible assets, taking up housing loan does not qualify. There is no way to do all 3 things - get 2-3 condo, diversify into stocks, qualify for private banking all at once in a meaningful way with just $2m. Of course you can say buy cheapo condos and a few stocks here & there, but I dun think that's what he's saying. An quite honestly, gearing up significantly for 3 condos is a bad idea, once the property market tanks, game over liao. |
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03-01-2012 08:34 AM | ||
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03-01-2012 12:19 AM | ||
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. How many condos can be purchased with S$2M? [Random examples below.] - The Nautical: Dual-Key ($1.4- $1.5m) x1 & The Hillier (~$600K) x1. [Total: 2] - The Hillier: 1 bedroom (~$600K) x3. [Total: 3] - Cyan: (~$2M) x1 [Total: 1] Out goes the private banker. [Pvt banker wants 'investable' funds to be put into deployment. Not investED funds into housing loan.] Potential passive income: Yes. [Probably in the range of barely $10K monthly, nett off Property tax, Income tax, monthly charges, agent commission fees.] Capital gain: Wait long long. [Your guess as good as mine.] 10K *12 = $120K invested annually into "high" yielding stocks? [Assume 10%]. Outcome: From the Dividend payout perspective, we are looking at $12K positive cashflow from the entire year. Not sure if this chap [thread starter] is keen to: => From $2M (Beginning) => $120K (Annual Rental) => $12K (End point: Yearly 'touchable'/deployable funds). Quote:
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02-01-2012 03:34 PM | ||
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My advice is a little different from the above poster. With your high income from a low-effort (operationally) business, try to accumulate $2m cash in 5 years, and you will be much better off than 90% of the armchair critics here who have to literally slogged for that miserable $10k monthly income. With lots of cash, things become easier. You can easily qualify for private banking (you're not UHNWI, but still a HNWI nonetheless; try approaching the smaller less-atas consumer banks), and you can get reasonable loans. Then buy 2-3 condos and rent out, and you'll become a "traditional" investor with truly "traditional" passive income. To "diversity", buy and hold some of the high-yielding blue chips like Starhub and you're all set. |
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02-01-2012 10:20 AM | ||
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Hi. Let's begin by assuming this scenario is real/truthful. [Even if not so real, a good discussion point.] 1) Can't tell you what NOT to do. But you can consider these as starters. a) Do not gamble. [] b) Do not bet. [Horse racing etc] c) Girls & cars. [You know what I mean. High 'maintenance'] d) Being Punter in the Stock market DIY style. [Cheaper to 'pay for profesional lesons from SGX courses', learning to read the financial statements, financial indicators, etc.] 2) Without degree and solid track record. a) Suggest you 'try'/pretend to buy a Condo based on S$1M. [Fill in the necessary forms and provide your basic documents. In-principal approval from bank. Reality will set in when the bank(s) informed you that HDB is NOT a useful collateral. Also, try another bank and try to impress them with your e-biz financial statements. Likely they will ask/check if your biz is registered: Paid-up capital, Authorised capital. Sole sole proprietorship? In short, very 'weak' to convince the banks. Try and let us know.] 3) "Easy come, easy go". a) e-commerce [B-2-B, B-2-C, C-2-C] generally has low barrier of entry. b) Suggestion: Make hay while the shine shines. [If you can quickly accumulate the "seed" money for the next few business ventures, go for it. War chest?] c) Recommendation: Buy and pay in full 'insurance' endowment instruments. [$100K type.] d) Plan to be your own enemy. Try to 'cannibalise' your own biz. Set-up another entity that can do that. You will rather be your own 'competitor' then someone else. [In the process, you may be able to find weaknesses in your present biz model.] 4) What to do with the present 'free time'? a) Consider spending more time with your family. [Parents, siblings, etc. Travelling & learning.] b) Volunteering. CDAC, your old school, old CCA (NPCC, NCC, Scout, etc), SME associations etc, grassroots, Social work? [Do a been there, done that listing.] c) Sabbatical: Try going for a 6mths/12mths sabbatical. [See/test if you biz can still THRIVE without your presence. Be very careful!] d) Complete your degree oversess. [1 to 2 years.] Quote:
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31-12-2011 01:52 PM | ||
Unregistered | Sorry, I cant let you know cause too many copycats will show up once they know there is a market for this. | |
31-12-2011 10:25 AM | ||
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31-12-2011 01:30 AM | ||
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I am impressed with your e-Commerce businesses of 23k / month and manage to continue working with $45k/anum in IT. I am almost in the same situation as you but I do not earn as much as you are at the moment. I am 23, having an e-Commerce business of 5-6k / month and working with $14k/anum in IT(just 4hours a day.) I am taking my IT degree at moment. This has been going on for 2years since I ORDed. The reason I am still not giving up my job (the one with $14k/anum) is because it helps in my resume( it is a banking IT job) if i choose to stop the ecommerce business and go into the working force when i graduate. Currently, I am considering to give up either my job or the ecommerce business as it is too tiring to do all 3. ( work, business, studies). Personally, I wish to continue with the biz, but I am unable to make any growth since half a year ago. It will be great if you could provide me with some advices as you are the only few people who has similar experience as me. |
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