What You Will Learn: 1) Different forms of Income & why most passive income isn’t really passive? 2) Different forms of expenses and how to prevent your expenses from going up? 3) Different types of assets and how much should you allocate to investments? 4) Different forms of liabilities and what are the two hidden liabilities everyone has? 5) Financially free and retirement and … [Read more...]
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Why people pay top dollar for a short remaining HDB leaseshold?
Recently there was a few news articles on people who bought old HDB at high prices (Buyers who pay high prices for old flats face reality check). One person was quoted by Straits Times paid a whopping $700,000 3-room flat at Whampoa which has a remaining HDB leasehold of only 55 years. Apparently, it was the third highest price paid last year in terms of psf for HDB with less than 60 years of … [Read more...]
Singapore property cost 5 times of median household income. How to cope?
According to a survey by United States urban planning researcher Demographia, Singapore’s housing is considered ‘seriously unaffordable’. If Singapore is ranked against the 367 metropolitan areas in nine countries, Singapore was found to be 270 / 367 or at 73th percentile (the higher the percentile the more expensive it is). Housing in Singapore cost 5.0 times of the median household … [Read more...]
Majority lacks a written comprehensive financial plan, says FPSB
FPSB recently conducted a global survey among 19 markets. A total of 19,092 adults took part. Among those surveyed in Singapore, it was found that: Only 1/3 have a written comprehensive financial plan. The top two priorities are: owning your own home (60%) and free from debt (58%). Only 4% were willing to pay fees for financial planning services in excess of S$1,500. Majority (68%) were … [Read more...]
Case study on CPF valuation limit
Question from an existing client (figures changed): I want to know how much CPF monies I can use for the mortgage with the aim to reduce amount of interest paid over time. I've done some calculation and I still am not really sure! On top of my $1987 monthly installment which is using CPF, can I make lump sum payments of perhaps $35K from the CPF? Will this cause my usage to exceed the CPF … [Read more...]
Danger of Foreign Property Investments
It was reported in the newspaper that a number of investors’ investments turn sour in foreign property investments. For example, one person invested a whopping $1 million into two hotel projects only to find he was owned four months of rents because the hotel went into administration. Others who invest in residential properties are also in danger of investing at the peak. Recently, a … [Read more...]
Money woes to avoid in marriages
"One couple were quarreling every other day, but did not reconsider their engagement, having borrowed heavily from relatives to finance a new house. Another couple could not afford to put food on the table, yet had one child after another. A third had a six-month whirlwind romance that crumbled within six months as the wife wanted to control the purse strings. These three couples had two things in … [Read more...]
New home sales plunge 35% from year ago
It was reported that: Sales of new private housing dropped by almost 35% in January 2015 compared to a year ago. However, sales were up by 62% if compared to the previous month. Source: http://www.propertyguru.com.sg/property-management-news/2015/2/84077/new-home-sales-plunge-35-from-year-ago- My comments: It’s definitely a buyers’ market out there. Happy are those with large amount … [Read more...]
More private properties sold at a loss
The property cooling measure continues to take effect on private properties. It was reported that: 4.2% of secondary market transactions in 2014 suffered losses. In 2013 it was just 1.96%. In 2012, it was 1.5%. In 2011 it was 1.8%. The biggest losses were mainly in districts 4, 9 and 10. There was an apartment at Idyllic Residences which was sold at $565 psf in August 2014. The purchase … [Read more...]
When it becomes illegal to lend money to family members and friends?
There was a case in which a mother and her daughter quarrelled over $200,000. They went all the way to the court. At the center of the dispute was whether the money was a loan or a gift (“Court orders woman to return $200k to mother”, Straits Times on 6 December 2014). Lending money to family members can be a sensitive topic. If this is not done carefully, it could result in quarrels. In … [Read more...]
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