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Thread: What will you do if you have 1mil on hand?

  1. #1
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    Default What will you do if you have 1mil on hand?

    Hi guy,

    What will you do if you have 1mil spare cash on hand? Invest in property, bond, share, REIT ...etc? How and what is your strategy?

  2. #2
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    I will buy a new 2 BR OCR condo 99LH which has just TOP-ed and rent it out.

  3. #3
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    ABSD is a turn off .... I will invest in REITS and shares that give dividends as a form of passive income...

    Otherwise transfer the money between different banks every few mths and u get freebies like ipads, notebooks, vouchers (of substantial amt) etc.... Cash is King.

  4. #4
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    Put in a bank and 百萬get萬free? interest rate so low... Looks like buying quality property is way to go...

  5. #5
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    Quote Originally Posted by Kanarazu
    Put in a bank and 百萬get萬free? interest rate so low... Looks like buying quality property is way to go...
    With everything going up and up..... no need quality property .... any type of property also can.

  6. #6
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    Diversify your investment. May be a little after this afternoon and better tomorrow.

  7. #7
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    Contribute to Cpf yours, spouse, children, parents, in laws, let them work for u lol
    Ride at your own risk !!!

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    Quote Originally Posted by zeamybro
    ABSD is a turn off .... I will invest in REITS and shares that give dividends as a form of passive income...

    Otherwise transfer the money between different banks every few mths and u get freebies like ipads, notebooks, vouchers (of substantial amt) etc.... Cash is King.
    It would be 100% property for me. 2 studios in CCR / city fringe with 40% downpayment each if eligible for the remaining 60% loan for both or if not eligible, then 1 studio in in CCR/city fringe. Relatively new or about to TOP. LH 99 ok but must be near MRT.

    I would not wait for ABSD or cooling measures to be replaced as it might never happen. Possible for prices to remain firm or continue going up with cooling measures remaining intact or even more being introduced. The CMs may become a permanent feature.

  9. #9
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    Like many bros and sis here, i do agree that buying properties is the way to go, and i have many friends who feel that its the best investment for today.

    But i also do have a handful of friends who are believers in stocks, as they feel it is more 'liquid' and they could cash out easier in times of emergency ... some more tax-free and dont have to go through the hassle of managing rentals etc

  10. #10
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    get a HDB and a RCR/OCR 2 or 3BR resale unit with a good location.

  11. #11
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    if you are 45+, CPF SA is the best investment for you

    where else can u find risk free 4% return in this dark age of low return? first 60k is 5% btw

    10y SGS bond is 1.3x % fyi so 4% is 3X more return than 10y SGS

    The secret is every time you make a huge profit, allocate 20% and pump into your CPF SA or your spouse's CPF SA (if you are young, first target is to fill up SA + MA to 60k to enjoy the risk free 5%)

    When you gradually approach retirement, shift more and more of your profit into CPF SA

    Ride at your own risk !!!

  12. #12
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    Quote Originally Posted by zeamybro
    Like many bros and sis here, i do agree that buying properties is the way to go, and i have many friends who feel that its the best investment for today.

    But i also do have a handful of friends who are believers in stocks, as they feel it is more 'liquid' and they could cash out easier in times of emergency ... some more tax-free and dont have to go through the hassle of managing rentals etc
    Only 5% of investors will make good money in stocks over long terms, the remaining 95% will see their fortune going around in circles but have lots of exitement. Property majority will make money over long term though less exciting. I will stick to property after going around in circles in the stock market.

  13. #13
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    Quote Originally Posted by nav14
    Only 5% of investors will make good money in stocks over long terms, the remaining 95% will see their fortune going around in circles but have lots of exitement. Property majority will make money over long term though less exciting. I will stick to property after going around in circles in the stock market.
    Thats interesting! Thanks for sharing and will take note of this valuable advice

  14. #14
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    Quote Originally Posted by CondoWE
    Hi guy,

    What will you do if you have 1mil spare cash on hand? Invest in property, bond, share, REIT ...etc? How and what is your strategy?
    If you are talking about your own situation and since you are already vested in condos, my suggestion is to stick to property but diversify a bit by buying a landed and gearing up to take advantage of the low interest rates. Although yields may not be so good as a condo/apt, it is less volatile and holds its capital value better and in my personal opinion, has much better longer term prospects.

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    Quote Originally Posted by proper-t
    If you are talking about your own situation and since you are already vested in condos, my suggestion is to stick to property but diversify a bit by buying a landed and gearing up to take advantage of the low interest rates. Although yields may not be so good as a condo/apt, it is less volatile and holds its capital value better and in my personal opinion, has much better longer term prospects.
    if you can park your money in an aussie bank, it's easily 5+%.

  16. #16
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    Quote Originally Posted by eng81157
    if you can park your money in an aussie bank, it's easily 5+%.
    Sorry, but currencies and paper money are what I trust least in these times. Tangible assets are the way to go.

  17. #17
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    if really believe in the foregone conclusion ppty can only go one way up, then might make sense to buy blue chip property stocks loh. faster liquidity and definitely easier to collect dividends compared to rental income. if really super garang, can gear up via margin trading somemore.

  18. #18
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    Quote Originally Posted by proper-t
    If you are talking about your own situation and since you are already vested in condos, my suggestion is to stick to property but diversify a bit by buying a landed and gearing up to take advantage of the low interest rates. Although yields may not be so good as a condo/apt, it is less volatile and holds its capital value better and in my personal opinion, has much better longer term prospects.
    1mil is too little to buy a decent fh/999 inter terrace now.

    40% downpayment + renovations.

  19. #19
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    Quote Originally Posted by proper-t
    Sorry, but currencies and paper money are what I trust least in these times. Tangible assets are the way to go.
    currencies depend on which pair u choose mah. currency value is relative... choose wisely and u may huat until buay jin chu. but all investment carries risk lar.. ppty or stocks or bonds or fx or anything that can make $$.

  20. #20
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    Quote Originally Posted by phantom_opera
    if you are 45+, CPF SA is the best investment for you

    where else can u find risk free 4% return in this dark age of low return? first 60k is 5% btw

    10y SGS bond is 1.3x % fyi so 4% is 3X more return than 10y SGS

    The secret is every time you make a huge profit, allocate 20% and pump into your CPF SA or your spouse's CPF SA (if you are young, first target is to fill up SA + MA to 60k to enjoy the risk free 5%)

    When you gradually approach retirement, shift more and more of your profit into CPF SA

    The extra 1% is not a permanent feature.

    It is always good to top up MA. Tax relief and earning 4%

  21. #21
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    Quote Originally Posted by Rosy
    The extra 1% is not a permanent feature.

    It is always good to top up MA. Tax relief and earning 4%
    MA is $ u can't touch unless choy u are sick or u are on your deathbed.

  22. #22
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    My two cents:

    1. If it is the first property, then no objection to be in property
    2. If it is your second property and u must assess what are the asset classes available to u.

    Property now is almost at all time high, as such, down side risk is greater, and couple with the fact it is illiquid, thus may not be a wise choice.

    The best option is perhaps REIT, there is property as well.

    $1m at 6% yield, with $1m leverage at cost of about 1.5%, net yield is 4.5%, so u have an overall net yield of 10.5%, tax free.

    The other option is bond or bond fund.

    Those have a $1,000,000 spare cash can always have party with me to share share.

  23. #23
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    Quote Originally Posted by Vincegoh
    MA is $ u can't touch unless choy u are sick or u are on your deathbed.
    It is inevitable when one age.

    Having said that, MA ceiling is pretty low. You cannot pump as much as you like.

  24. #24
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    Agree. Put in CPF is one way traffic with little flexibility of use.
    Better earn less interest for awhile but have full use of it when you want.

    I think Equities will be a good game for the next 5 years and Bonds will be a loser's game.

    Quote Originally Posted by Vincegoh
    MA is $ u can't touch unless choy u are sick or u are on your deathbed.

  25. #25
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    Quote Originally Posted by phantom_opera
    if you are 45+, CPF SA is the best investment for you

    where else can u find risk free 4% return in this dark age of low return? first 60k is 5% btw

    10y SGS bond is 1.3x % fyi so 4% is 3X more return than 10y SGS

    The secret is every time you make a huge profit, allocate 20% and pump into your CPF SA or your spouse's CPF SA (if you are young, first target is to fill up SA + MA to 60k to enjoy the risk free 5%)

    When you gradually approach retirement, shift more and more of your profit into CPF SA



    Yah hor, by the way how to save in CPF to get the 4% interest? monthly or lumpsum? thanks

  26. #26
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    Quote Originally Posted by Vincegoh
    currencies depend on which pair u choose mah. currency value is relative... choose wisely and u may huat until buay jin chu. but all investment carries risk lar.. ppty or stocks or bonds or fx or anything that can make $$.
    yep, no doubt can make a lot in currencies but too much monitoring for me plus the decision of when to buy or sell can be too taxing sometimes. At least in property, can just rent out and get some cash in each month. Wait a few yrs, nice gain, sell and move on. If you have a nice property, you can even live in it. That is something that other assets cannot provide.

  27. #27
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    Quote Originally Posted by gn108
    Agree. Put in CPF is one way traffic with little flexibility of use.
    Better earn less interest for awhile but have full use of it when you want.

    I think Equities will be a good game for the next 5 years and Bonds will be a loser's game.
    same view bro.. same view.

  28. #28
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    Quote Originally Posted by Laguna
    My two cents:

    1. If it is the first property, then no objection to be in property
    2. If it is your second property and u must assess what are the asset classes available to u.

    Property now is almost at all time high, as such, down side risk is greater, and couple with the fact it is illiquid, thus may not be a wise choice.

    The best option is perhaps REIT, there is property as well.

    $1m at 6% yield, with $1m leverage at cost of about 1.5%, net yield is 4.5%, so u have an overall net yield of 10.5%, tax free.

    The other option is bond or bond fund.

    Those have a $1,000,000 spare cash can always have party with me to share share.
    Reit and bond fund have potential capital risk and their yield is not guaranteed.

    I do not have the risk appetite to leverage on these.

    However, fixed income instrument is a must-have in today's climate. How many % to allocate depends on individual risk appetite and capacity.

    My 2cents.

  29. #29
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    Quote Originally Posted by proper-t
    yep, no doubt can make a lot in currencies but too much monitoring for me plus the decision of when to buy or sell can be too taxing sometimes. At least in property, can just rent out and get some cash in each month. Wait a few yrs, nice gain, sell and move on. If you have a nice property, you can even live in it. That is something that other assets cannot provide.
    i value liquidity turnaround... ppty takes way too long to release if things go awry. as such, i believe in having a nice roof to live in and then for investments go for alternative sources for portfolio diversification. but that's just my personal view. i know many here are landlords who did extremely well.. juz tat i'm too noob to dare put all my eggs in 1 basket (ppty as an asset class).

  30. #30
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    Quote Originally Posted by Rosy
    Reit and bond fund have potential capital risk and their yield is not guaranteed.

    I do not have the risk appetite to leverage on these.

    However, fixed income instrument is a must-have in today's climate. How many % to allocate depends on individual risk appetite and capacity.

    My 2cents.
    same goes for ppty mah.

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