Property is good for long term investment. But timing & location (MRT & Good school etc) must be right. If U are those "marginal buyers" property investors who invested in Property in late 2011/12. It is not easy to hedge against inflation in the next 10 yrs as you are buying at HIGH price. You may have a negative return after paying high property tax , high maintenace fee , hgh reno fee , high PUB bill , high mortgage fee later on etc etc.
A real property investor main is to buy a property with the intention of earning a return on the investment (purchase), either through rent (income), the future resale of the property, or both. If rental income will be weak (esp bad location) due to over supply in 2015 & property appreciation (CMs) will not be enough to hedge against inflation. Marginal buyers should hv not invested at all. Furthermore, Marginal buyers normally chose a location who is affordable (cheap) to them but location is not good.
Marginal buyers should look into Reit , Bond unit trust / individual bond ,stock with consistent dividend payout like singtel. DONT EVER TOUCH PENNY STOCK if you want to be a winner against inflation. Dont think 200k to 300k cash avail can invest in property. Job sercurities is not perpetual & One big illness can easy cost you $100k within a year. Unless U are wise enough to buy insurance.
I hv no knowledge in bond investing b4 2010. I start to find more about bond to hv alternative investing. Pls take note that I am just sharing what can be done for you with cash 100k to 300k avail to fit you with a alternative investing.
Evergrande (LTV40%) CNY 1.5m. Coupon int.7.5% (S$22k/yr)
bought@97. Price
now@101
Citi pacific perp (LTV 60%) US$200k Coupon int.7.875% (S$19.5k/yr)
[email protected]. Price
[email protected]
Shui ON Sing bond (LTV 50%) Due 2015 S$250k. Coupon int. 8% (S$20k/yr).
Bought@100. Price
now@104.
Central china real estate Sing Bond (LTV 50%) S$250k. Coupon int.10.75% (26.8k/yr)
[email protected]. Price
now@108.
Petra food Sing Bond (LTV70%) DUE 2016 S$250k. Coupon int 5% ($12.5k/yr) .
Bought@100. Price
now@100.
Hut Whampoa (LTV 60%) Due 2017. US$100k. Coupon int 6%. (S$15k/yr)
Bought@100. Price now @107.
Cheung Kong perp LTV60% US$100k. Coupon int.6.625% (S$8k/yr).
Bought@94. Price now @101.
Banyan Tree (LTV 60%) S$250k. Coupon int 6.25% (S$15.6k/yr)
Bought@100. Price now @103.
Lippomall (LTV70%) S$500k. Coupon int.5.875% ($29k/yr)
Bought@100. Price
now@105.
ABN bank (LTV55%) US$300k. Coupon int.6% (S$22k/yr).
Bought@100. Price
now@107.
Olam (LTV55%) US$200k Coupon 5.75% (S$S$11k/yr)
Bought@100. Price
now@95.
etc etc etc
Pls take note that half of my bond holdings is borrowed from bank @1.06% preferred rate. Usual rate is 1.38% (early 2012 was 0.95%) for USD & SG. Will slowly leveraging in 2014 my bond holdings. Pls buy "THE EDGE MAGAZINE". It has a list of SG corp bond with price & maturity date. Just be patience to wait for mkt to hv a big deep & buy GOOD SG bond if U a low risk profile investor.
rgs,
Vic