Property bubble: Gold vs Property

[phantom_opera]

In 1997, gold was USD400, now is USD1,600

It takes 11y (1997-2008) for gold to double from 1997 to 2008 (about 6.5% rate) but after QE1/QE2/stimulus from central bankers, it only takes 4y for gold to double from 800 to 1,600 (18% growth), annual yield for 15y about 10% per annum

Is Singapore performing as well or close to gold?? Forget about SGD/USD exchange rate since about the same.

Take HDB, resale price index was 130 in 1997, now about 200, but rental yield is 5.5% per annum, factor in both you get slightly above 8% per annum

OCR PPI is roughly the same, except for slightly lower yield

If not because of all the CMs, property return would have matched that of GOLD ?? :spliff:

No consideration for leverage though

[Arcachon]

June 2006 2 Bedroom at Southbank SGD 535,000, now guess what is the selling price.

[phantom_opera]

June 2006 2 Bedroom at Southbank SGD 535,000, now guess what is the selling price.

This one I know but you cannot handpick a particular project at a lowest point and use a show case to say it outperforms gold ... the whole purpose here is to compare in general

Stocks could be undervalued now, STI in 1997 was 2,200 now only 3,000 ... with dividend yield the return is much worse ...

I am waiting to buy SSE50 too

[jwong71]

June 2006 2 Bedroom at Southbank SGD 535,000, now guess what is the selling price.

i met an ex-export businessman on vessel ytd,

from year 2000-2010 monthly export 200 cars, in 6 months time profit 1.2mio.

i ask him, why u don't want to buy properties in 2008 market low as advised by his frd to buy..

his reply, his business generate faster and more income profits..

conclusion: to some pple, their earning power more than properties. they see it no point to dip into it.

guess what he working now.?

[wind30]

This one I know but you cannot handpick a particular project at a lowest point and use a show case to say it outperforms gold ... the whole purpose here is to compare in general

Stocks could be undervalued now, STI in 1997 was 2,200 now only 3,000 ... with dividend yield the return is much worse ...

I am waiting to buy SSE50 too

duh why did you choose 1997 when the the HDB resale price index was at the previous peak?

Move it by a couple of years either way, you can see the index at 100...

[phantom_opera]

duh why did you choose 1997 when the the HDB resale price index was at the previous peak?

Move it by a couple of years either way, you can see the index at 100...

I know ... that will make the return almost the same as gold too as gold was 300 in 1995/1996 ...

[ikan bilis]

warren buffett's quote....

“[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”



=> hdb, you can stay in it, as that important roof over head, or rent it out
=> gold?... does not grow in weight, and where do you want to keep it ??.. cisco's safe deposit box ??..

[DC33_2008]

Do note the devaluation of $US between 1997 and now.
In 1997, gold was USD400, now is USD1,600

It takes 11y (1997-2008) for gold to double from 1997 to 2008 (about 6.5% rate) but after QE1/QE2/stimulus from central bankers, it only takes 4y for gold to double from 800 to 1,600 (18% growth), annual yield for 15y about 10% per annum

Is Singapore performing as well or close to gold?? Forget about SGD/USD exchange rate since about the same.

Take HDB, resale price index was 130 in 1997, now about 200, but rental yield is 5.5% per annum, factor in both you get slightly above 8% per annum

OCR PPI is roughly the same, except for slightly lower yield

If not because of all the CMs, property return would have matched that of GOLD ?? :spliff:

No consideration for leverage though

[Arcachon]

http://tv.sohu.com/20090216/n262274327.shtml

[phantom_opera]

Do note the devaluation of $US between 1997 and now.

1.4 vs 1.25 ... not much