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(15-07-2012, 08:26 AM)Musicwhiz Wrote: My first investment was a semi-detached house in Bukit Timah. I bought it in 2007 for $1.7 million and sold it six months later for a profit of $500,000. It was a big risk then as other houses in the area were selling for $1.2 million to $1.3 million.
I was 26 and $500,000 was a lot of money. But, with hindsight, I realised that I was short-sighted as the house may now be worth about $5 million.
PPty agent words...you believe???
At 26 diploma holder able to get a loan for a 1.7 million ppty, I dun think so, must be from their parent or co-invest maybe only 10%-20% share. This co-invest was popular before the implemention of SSD. Now, all these flippers are gone. Frankly, these flickers are high debt person, they normally dun reveals their liabilities
Re-mortgage to get fund and reinvest, (to me these people are like have 10 holes with only 5 covers) well your existing ppty must be fully paid..nowadays (since 2010 onwards) many young newbies make easy money from ppty flickings & never face recession before (like those in 1985, 1997, etc...) wow they tot ppty investment sure go-up , 100% never come down......well when the market crash,and follow by interest rate hikes to say 7%, these are the 1 first to go bust....the cash rich will be the next millionaire.
Dangerous to have more of this young punks in ppty market making tons of easy money without contributions to the economy...market sure burst 1 day. But I noticed this category people nowadays gone underwater....in fact I see many middle-class now surface out to buy private ppty, due to sub 1% interest rate, it look like this are the 1 stabilized the market.
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the govt should not protect these flippers/speculators if ever the property turns bad.
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(15-07-2012, 08:26 AM)Musicwhiz Wrote: I just had to leave some comments when I read this one.
1) He seems to idolize those who drive a sports car and who appear successful, from what I read. The Uni grad who is taking the bus/MRT may just be rich but thrifty; while the real estate agent may be simply flashy but is loading on a lot of debt. I feel appearances can be very deceiving, but apparently if he idolizes such flashy characters then it's no wonder he also aspires to own a sports car (and now he owns one which costs nearly half a million $ - almost the entire profit from the sale of his first property in 2007!).
2) If I read correctly, it seems he is taking out an equity loan on his existing property as its appraised value has gone up. Isn't this a very risky move? It's like taking additional loan on your collaterized property in order to buy another - basically increasing your gearing. These people interviewed always leave out the liabilities section of their Balance Sheet, but with such gearing it can be significant.
This is why the industry attracts similar-minded people. Young property agents with flashy cars is almost a de rigueur 
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(15-07-2012, 08:26 AM)Musicwhiz Wrote: 2) If I read correctly, it seems he is taking out an equity loan on his existing property as its appraised value has gone up. Isn't this a very risky move? It's like taking additional loan on your collaterized property in order to buy another - basically increasing your gearing. These people interviewed always leave out the liabilities section of their Balance Sheet, but with such gearing it can be significant.
With Helicopter Ben giving him assurances of low interest rates till at least 2014, and the Eurozone crisis just dragging on without an outright default (that precipitates in another global recession), it may NOT be a risky move after all.
The property folks think equities are risky - but the more seasoned equity investors know it is not so much so, because of their experience and insight into the world of equity investing. So, maybe the same goes for equity investors like u and me looking at the moves made by those property insiders?
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It doesn't matter to me whether you invest in property or equity. What matters is your liquidity or cash flow during a downturn or economic recession. If you depend on the stability of your job to service the property's mortgages and still can sleep well at night, well you are a brave man. I can't therefore i do not invest in property during my rat race. Well, we are all different. 
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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(15-07-2012, 12:47 PM)pianist Wrote: the govt should not protect these flippers/speculators if ever the property turns bad.
Agree whole-heartedly. If ever our govt would bailout ANYBODY, it would create a moral hazard and I'd say that would be the end of capitalism here.
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(15-07-2012, 03:33 PM)Muck Wrote: (15-07-2012, 12:47 PM)pianist Wrote: the govt should not protect these flippers/speculators if ever the property turns bad.
Agree whole-heartedly. If ever our govt would bailout ANYBODY, it would create a moral hazard and I'd say that would be the end of capitalism here.
Wow, it sound very scaring...
In Singapore, the bank is regulated and are managed very conservatively. So we should not worry on bailing them out.
Any others warrant for the GOVT to bailout if needed? I doubt so.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Who is really getting behind all of the Singapore banks anyway? How many of them are listed and performing well?
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(16-07-2012, 09:00 PM)sportsinvestment Wrote: Who is really getting behind all of the Singapore banks anyway? How many of them are listed and performing well?
The big-3 banks are listed, and perform reasonably well at least. I am previously a long-term shareholder of OCBC. It performs pretty well.
Who is behind them? I believe it is shareholders.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Is there is sudden change of govt , what will happen to stock market? Hot money flows out?
(16-07-2012, 09:32 PM)CityFarmer Wrote: (16-07-2012, 09:00 PM)sportsinvestment Wrote: Who is really getting behind all of the Singapore banks anyway? How many of them are listed and performing well?
The big-3 banks are listed, and perform reasonably well at least. I am previously a long-term shareholder of OCBC. It performs pretty well.
Who is behind them? I believe it is shareholders.
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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