35-year limit set on home loans

I work for a company that own properties and stock among other things.

Stock(Local).
Not easy, strategy needs fine tuning all the time.
If buy and hold, not many companies will do well over a prolonged period of time.
Most of the them will shine over a short period of time and fade away.
Figured it would be best to be a long term trader rather than a buy and hold forever investor.
There just isn't many great companies in Singapore that you can buy and hold.


Property

Residential
Not our cup of tea, some folks have made good money from it via capital appreciation.
If buying for rental yield, chances are that it is low(unless the property was bought at a huge discount)
and tenant turnover is high. Too much hassle dealing with these residential tenant folks.

Commercial/Industrial

Now we're talking. There's so much more depth to these properties.
A good understanding of the property and its potential is essential.
We can smell an inexperienced/incompetent property agent from miles away.
Floor loading/electrical loading/layout/parking/traffic/etc etc etc
Many businesses will look for very specific needs and if we spot something
very rare at a good price, our company will snap it up, irregardless of the property cycle.
Tenants tend to be very sticky and stay for many years,
especially if your property is rare and they cant find something similar.
But having said that, spotting and getting the right tenant also takes skill/experience.

(14-10-2012, 11:23 PM)Temperament Wrote: Leverage or no leverage a stock can reduce to zero value but a property should have some value no matter what happens.

True, true. Only fear is being over-leveraged, the ppty would go to the lender i.e. bank in the event the borrower can't pay up. This applies to stocks bought on leverage too.

(14-10-2012, 11:30 PM)pianist Wrote:

(14-10-2012, 11:23 PM)Temperament Wrote: Leverage or no leverage a stock can reduce to zero value but a property should have some value no matter what happens.

this to me may also mean an opportunity to pick a valuable stock at near zero value while is not the case for property.

Ha! Ha!
Agreed.
A hardy investor never rules out anything in any type of investment. But if everything being equal, a company can go bankrupt but not a property. That's why some property in your portfolio is recommended. Even some AAA bonds. Though i dislike bond, i count my money in CPF (CPFIS) as a very special "bond" which i can withdraw anytime just like my money in current account in a bank.
Bonds just like stocks can suddenly become worthless.

I kind of agreed. There are many advantages to invest in property.

1. No capital tax
2. Low cost to hold property
3. No inheritance tax
4. Physical so will not collapse to zero or disappear.
It will always come back especially in asia countries due to low cost to hold property.
5. Gov and many people have an interest in it.
6. Low Interest and ease of getting loan
7. Gov focus on internal economy

Cory

(15-10-2012, 08:34 AM)Muck Wrote:

(14-10-2012, 11:23 PM)Temperament Wrote: Leverage or no leverage a stock can reduce to zero value but a property should have some value no matter what happens.

True, true. Only fear is being over-leveraged, the ppty would go to the lender i.e. bank in the event the borrower can't pay up. This applies to stocks bought on leverage too.

Agree.
So i always think the best investment you can make in anything is the investment you already work out or estimated all possible eventualities. Another words you are prepared for everything. Therefore you should have the power to survive in your investment no matter what happens.
Just like when we (me&wife) were DINK, i wanted to upgrade to a private property, and were prepared to downgrade if one of us lose our job. But my wife was just contented and never keen at all.
So i don't own any private property till now. But it's O. K. i do quite alright with stocks.
Amen.

(15-10-2012, 09:08 AM)corydorus Wrote: I kind of agreed. There are many advantages to invest in property.

1. No capital tax
2. Low cost to hold property
3. No inheritance tax
4. Physical so will not collapse to zero or disappear.
It will always come back especially in asia countries due to low cost to hold property.
5. Gov and many people have an interest in it.
6. Low Interest and ease of getting loan
7. Gov focus on internal economy

Cory

My replies in brackets in relation to equities.

1. No capital tax (equities also has no capital gains tax)
2. Low cost to hold property (No cost to hold equities, unless you are on CFD or margin)
3. No inheritance tax (none that I know of for equities)
4. Physical so will not collapse to zero or disappear. (equities can go to zero if the company goes bankrupt, but then again property is subject to physical risks as well - acts of God, natural disasters etc)
It will always come back especially in asia countries due to low cost to hold property. [Side Note: why is this so?]
5. Gov and many people have an interest in it. (many people also have a vested interest in the stock market, but there's no guarantee it will always be an upward trajectory)
6. Low Interest and ease of getting loan (equities do not require loans most of the time, and this assumption of low interest and easy loans applies only to current times)
7. Gov focus on internal economy (Govt focuses on growing businesses and helping SMEs, which acts as a boost for equities).

Regards.

(14-10-2012, 07:51 PM)pianist Wrote: what about direct ownership over nearby agricultural land? anyone has experience care to share?

Guess you must have bought it dirt cheap long ago? If so, you must be sitting on a gold mine! Ahaha! Btw, how big is your piece of land?
Can it be converted to residential or industrial/commercial land use?

May I ask: Did you buy under personal name or company name? From what i know, all land based purchases must be bought under a registered company name, with at a Malaysian owning 51% of it?

(15-10-2012, 09:08 AM)corydorus Wrote: I kind of agreed. There are many advantages to invest in property.

1. No capital tax
2. Low cost to hold property
3. No inheritance tax
4. Physical so will not collapse to zero or disappear.
It will always come back especially in asia countries due to low cost to hold property.
5. Gov and many people have an interest in it.
6. Low Interest and ease of getting loan
7. Gov focus on internal economy

Cory

Quote:1. No capital tax

SSD (Seller’s Stamp Duty) rates of 16%, 12%, 8% and 4% for residential properties which are bought on or after 14 January 2011, and are sold in the first, second, third and fourth year of purchase respectively.

Quote:2. Low cost to hold property

Property Tax = 10% for Investment Properties
Fire Insurance
Monthly Maintenance Fee for Condo
Regular Maintenance required eg. Sewage / Sink choke/leak, Electrical (Lights, Appliances,..), Re-paint, Furnitures (if fully furnished for rental),.. Pest control for landed,....

Quote:4. Physical so will not collapse to zero or disappear.
It will always come back especially in asia countries due to low cost to hold property.

Don't assume the same in Singapore for other Asian countries. Investors have lost $$ in China, Malaysia, Indonesia,... when they don't deal with established developers / not familiar with local laws.

What i stated is in Singapore context relative to elsewhere. Holding property for 4-5 years are not long so i do not think is an issue. Which is why Property Investment in Singapore is so viable.

If you hold US property in specific states, the cost is a lot higher. The total taxes I heard from my colleague is like 3%+ of the property value that have to be paid annually. If this is applied in Singapore, local property sure bust.

(14-10-2012, 08:11 AM)Muck Wrote: I don't own an investment ppty either. My f-u cash (as hyom has described it) was put to good use last year to let my employer know I'm not to be exploited
That feeling of having a choice is indescribable.

same here, i dont own any investment property now. i just think that there are some property stocks that offer more upside than downside today; the odds of making a 20-30% returns is higher in property stocks than residential properties in the next 1-2 years

isnt value investing all about odds and margin of safety?