Property Investment for Retirement?

[3C]

Read a couple of books and strait times. Some gurus claimed that they made quite a bit through properties some even collecting thousands just on rental alone every month.

As a small time conservative investor, thinking of investing in few properties(not talking about multiple) for passive incomes upon retirement. Any "Lao Jiao" has gone through this path and willing to share their experience or give their thoughts in current environment or just bull shits by this so-called
gurus' claims, taking into accounts the current high price and CMs and they
claimed that they could make it in good or bad time.

At least one has claimed that is bad time to invest, property dropping 50% and will jump down dying-very scary So is it too late to invest?

[radha08]

Read a couple of books and strait times. Some gurus claimed that they made quite a bit through properties some even collecting thousands just on rental alone every month.

As a small time conservative investor, thinking of investing in few properties(not talking about multiple) for passive incomes upon retirement. Any "Lao Jiao" has gone through this path and willing to share their experience or give their thoughts in current environment or just bull shits by this so-called
gurus' claims, taking into accounts the current high price and CMs and they
claimed that they could make it in good or bad time.

At least one has claimed that is bad time to invest, property dropping 50% and will jump down dying-very scary So is it too late to invest?

ha ha i know who is the 1 person...

[Arcachon]

Read a couple of books and strait times. Some gurus claimed that they made quite a bit through properties some even collecting thousands just on rental alone every month.

As a small time conservative investor, thinking of investing in few properties(not talking about multiple) for passive incomes upon retirement. Any "Lao Jiao" has gone through this path and willing to share their experience or give their thoughts in current environment or just bull shits by this so-called
gurus' claims, taking into accounts the current high price and CMs and they
claimed that they could make it in good or bad time.

At least one has claimed that is bad time to invest, property dropping 50% and will jump down dying-very scary So is it too late to invest?

There is no good time and bad time to invest. Invest only when you can afford to loss. It is good to start early and learn others mistake and not to make the same mistake.

In 2006 I have a little cash and have been holding it for almost 10 years. I decided to buy a 2 Bedroom at Southbank and my plan is to sell my 5 room HDB upon TOP. The reason I brought property are
1. Government investment on the infrastructure e.g. MRT the land can't be cheaper thus property should go up.
2. In the worst case I sell my 5 room and move to the 2 Bedroom or sell the 2 Bedroom and loss the 20%.
Fast forward to 2011, I don't have to sell both and get to buy another one. The same reason I have 5 years earlier is still the same, the amount of investment on the infrastructure in Singapore the price of the property can't be cheaper and what do I have to loss when I already get my 20% deposit back through rental income.

[focus]

I think cashflow is the most important in retirement income.
Unless you think you can get capital gains from the property market now, if not, I don't know investing now will get enough cashflow.
Those who bought in 2006 and 2009 .. will dfinitely have very enviable cashflow position in terms of rental yield(based on their purchase price).

I did a chart that if i were to invest now, what i would be getting with $1.5mil cash. I think putting interest rate at 2% is prudent if we were rates to stay low till 2014 and subsequently rises in 2015. I took 70% LTV for my example.





If your $1.5m is invested into bonds/equities averaging 4.5% yield, you will take home CASH $60,000 (without tax) versus $25,000 for property after deduction of costs.

[3C]

I am not thinking so much of capital gain but rather accumulating
eg. 4 to 5 MM(leasehold & need not FH) over the next 10 years buying high and low time so that all paid up (using own salary & rental income to leverage) by the time I retire, collect rental and tour round the world.

Am I dreaming?

[new2mondrian]

I think cashflow is the most important in retirement income.
Unless you think you can get capital gains from the property market now, if not, I don't know investing now will get enough cashflow.

If your $1.5m is invested into bonds/equities averaging 4.5% yield, you will take home CASH $60,000 (without tax) versus $25,000 for property after deduction of costs.

Hey bro, what kind of equities and bonds yield 4-5% yield? I am a newbie in this area. TIA!

[hyenergix]

Better not play with $ near retirement. Just be contented. At retirement age, it is prob okay to invest in this house that is useful in the long run: http://www.flickr.com/photos/16962349@N06/5139085590/

[radha08]

Better not play with $ near retirement. Just be contented. At retirement age, it is prob okay to invest in this house that is useful in the long run: http://www.flickr.com/photos/16962349@N06/5139085590/

bedok reservior house...

[focus]

Hey bro, what kind of equities and bonds yield 4-5% yield? I am a newbie in this area. TIA!

You can asked your RM to give you a list of all corporate bonds yielding >4%.
For equities, you can buy those blue chips yielding >4%, but reits will have >5%.

But again.. cannot buy blindly.. all will have capital loss as well if not done properly. It's like property.

[3C]

There is no good time and bad time to invest. Invest only when you can afford to loss. It is good to start early and learn others mistake and not to make the same mistake.

In 2006 I have a little cash and have been holding it for almost 10 years. I decided to buy a 2 Bedroom at Southbank and my plan is to sell my 5 room HDB upon TOP. The reason I brought property are
1. Government investment on the infrastructure e.g. MRT the land can't be cheaper thus property should go up.
2. In the worst case I sell my 5 room and move to the 2 Bedroom or sell the 2 Bedroom and loss the 20%.
Fast forward to 2011, I don't have to sell both and get to buy another one. The same reason I have 5 years earlier is still the same, the amount of investment on the infrastructure in Singapore the price of the property can't be cheaper and what do I have to loss when I already get my 20% deposit back through rental income.

I guess is also luck and timing. You started well and with a little guards and you striked the bull eye. Should have learnt about leveraging early.

[Ringo33]

Read a couple of books and strait times. Some gurus claimed that they made quite a bit through properties some even collecting thousands just on rental alone every month.

As a small time conservative investor, thinking of investing in few properties(not talking about multiple) for passive incomes upon retirement. Any "Lao Jiao" has gone through this path and willing to share their experience or give their thoughts in current environment or just bull shits by this so-called
gurus' claims, taking into accounts the current high price and CMs and they
claimed that they could make it in good or bad time.

At least one has claimed that is bad time to invest, property dropping 50% and will jump down dying-very scary So is it too late to invest?

It is getting harder these days to do that because owning multiple properties has become much harder due to the 60%LTV and ABSD for 3rd property.

[3C]

It is getting harder these days to do that because owning multiple properties has become much harder due to the 60%LTV and ABSD for 3rd property.

Agreed but these people invest in all short of property including a long time friend of mine which I did not probe how he did it. Very recent he even went up to Penang to look for property. Gosh! how he got the time and energy with a full time job He must be familiar as not to be cheated.

[Ringo33]

Agreed but these people invest in all short of property including a long time friend of mine which I did not probe how he did it. Very recent he even went up to Penang to look for property. Gosh! how he got the time and energy with a full time job He must be familiar as not to be cheated.

rule no 1. Only invest in things which you are familiar and you understand. All it take is one bad investment to wipe out the gain you accumulated for years.

[3C]

rule no 1. Only invest in things which you are familiar and you understand. All it take is one bad investment to wipe out the gain you accumulated for years.

Thats also the reason why I prefer sgp properties which means I have to accumulate the 40% dpyment or wait for CMs to be removed when corrects.
To me still prefer sticking to properties rather that other investments which need to monitor regularly. Think properties long term still ok and worst case pass on to children even if left 60, 70 years and let them continue paying.

[Arcachon]

Read a couple of books and strait times. Some gurus claimed that they made quite a bit through properties some even collecting thousands just on rental alone every month.

As a small time conservative investor, thinking of investing in few properties(not talking about multiple) for passive incomes upon retirement. Any "Lao Jiao" has gone through this path and willing to share their experience or give their thoughts in current environment or just bull shits by this so-called
gurus' claims, taking into accounts the current high price and CMs and they
claimed that they could make it in good or bad time.

At least one has claimed that is bad time to invest, property dropping 50% and will jump down dying-very scary So is it too late to invest?

Did you listen to this.

http://www.youtube.com/watch?v=OBPsd...eature=related

[Laguna]

My view :

1. shall not put all monies in just properties which is the worst in term of liquidity
2. timing is ultra critical, not buy just for the sake of buying, at time, other investment class is even better
3. have at least 40% in liquid investment in the form of bonds and equity. Timing again.
4. look for constant high yield passive income, if needed, go for low cost leverage which I am doing now.

[3C]

Thanks guys for all the inputs.
Its a real challenge to maximize ones capital in current low interest, unsettling economic environment. Seeing cash getting smaller each day due to inflation is a pain in the neck.

[gn108]

Beats getting oneself in real trouble when you're over-leveraged and asset prices plunge...then instead of pain in the neck, you'll be sweating and having insomia

Thanks guys for all the inputs.
Its a real challenge to maximize ones capital in current low interest, unsettling economic environment. Seeing cash getting smaller each day due to inflation is a pain in the neck.