Young investors

[Poorlittlerichdude]

hi everyone, im new to this forum.

im 26 yo, bought my first property - a 2 bedrm condo in RCR - 2 years ago and am currently awaiting its TOP. since im a working professional, a large proportion of my income goes to servicing the loan. i do not own a car, unlike many of my peers.

i would like to hear from u guys, especially those who started investing at a young age, and hopefully pick up some tips along the way. i have just started on my journey in property investment and thus have much to learn. tell me your success stories as well as your mistakes. thanks!

[Arcachon]

The apartment you are staying is not your asset, it your liability. When it start to generated positive cash flow or when you sell at a profit, it became your asset.

e.g. If you have a HDB which 80% of SC have it is their liability, every month they have to pay charges, maintain it, pay property tax...... it only become their asset when they rent it out, but if they have only one HDB where will they stay.

[DC33_2008]

Congrats on starting early. I only started at 30 but greatest regret is not able to buy a HDB flat.

hi everyone, im new to this forum.

im 26 yo, bought my first property - a 2 bedrm condo in RCR - 2 years ago and am currently awaiting its TOP. since im a working professional, a large proportion of my income goes to servicing the loan. i do not own a car, unlike many of my peers.

i would like to hear from u guys, especially those who started investing at a young age, and hopefully pick up some tips along the way. i have just started on my journey in property investment and thus have much to learn. tell me your success stories as well as your mistakes. thanks!

[august]

Good move not to own a car.

[DMCK]

At your age I was still partying

[Wolverine23]

Great age to start.

- Keep leveraging and accumulating till 40 years old. (remember you need critical mass/ many properties to have a sizable cash inflow)
- Always monitor your cashflow
- Become rich.

Simple.

hi everyone, im new to this forum.

im 26 yo, bought my first property - a 2 bedrm condo in RCR - 2 years ago and am currently awaiting its TOP. since im a working professional, a large proportion of my income goes to servicing the loan. i do not own a car, unlike many of my peers.

i would like to hear from u guys, especially those who started investing at a young age, and hopefully pick up some tips along the way. i have just started on my journey in property investment and thus have much to learn. tell me your success stories as well as your mistakes. thanks!

[thomastansb]

You have done well. Buy an asset and ignore the biggest liability in Singapore (car).

You won't go wrong in the long run unless singapore collapse. There will be up and down so don't worry too much. Work hard, save up some money and buy your second property for rental when the market is down. Once you pay finish both units, you can retire.

hi everyone, im new to this forum.

im 26 yo, bought my first property - a 2 bedrm condo in RCR - 2 years ago and am currently awaiting its TOP. since im a working professional, a large proportion of my income goes to servicing the loan. i do not own a car, unlike many of my peers.

i would like to hear from u guys, especially those who started investing at a young age, and hopefully pick up some tips along the way. i have just started on my journey in property investment and thus have much to learn. tell me your success stories as well as your mistakes. thanks!

[Arcachon]

Why stop at Two, Government encourage more than Two and why pay full, leverage max and de leverage when retire.

[VS]

Why stop at Two, Government encourage more than Two and why pay full, leverage max and de leverage when retire.

with the ABSD, buying the 2nd and 3rd properties also bo hua.

[Arcachon]

with the ABSD, buying the 2nd and 3rd properties also bo hua.

What if I tell you, your money in the bank depreciate faster than the ABSD and as the year pass it get larger.

They have to stop you from buying, else how to buy enough for 80% of the SC.

When you buy property, you pay the max deposit the rest loan.

30 loan the value of the money depreciate after 30 years and it look cheap when your take the loan earlier.

Ask yourself this question what is the value of your money 30 years ago and now and you will get the answer.

1988 4 Room HDB cost SGD 83,000. 26 year ago
1995 5 Room HDB cost SGD 250,000. 19 years ago
2006 2 Bedroom PC cost SGD 535,000. 8 years ago
2011 3 Bedroom PH cost SGD 1,305,800. 2 years ago.

[Jonathan0503]

The apartment you are staying is not your asset, it your liability. When it start to generated positive cash flow or when you sell at a profit, it became your asset.

e.g. If you have a HDB which 80% of SC have it is their liability, every month they have to pay charges, maintain it, pay property tax...... it only become their asset when they rent it out, but if they have only one HDB where will they stay.

I would still call it an asset as long as the market value is more than the outstanding loan amount (at least in accounting term).

Furthermore it is also generating tangible economic benefits by providing you with a roof to reside in. Otherwise, you would need to rent a place and pay rental...

[ironmanpower]

26 and bought a 2 bedroom RCR condo?

When I was your age, I was still looking into getting my first set of wheels! I only bought a PC when I was 31.

[Poorlittlerichdude]

I would still call it an asset as long as the market value is more than the outstanding loan amount (at least in accounting term).

Furthermore it is also generating tangible economic benefits by providing you with a roof to reside in. Otherwise, you would need to rent a place and pay rental...

My parents are firm believers in property as a hedge against inflation hence they supported me in buying a condo when I was 24. I'm now servicing the loan myself and intend to rent it out in the future and use the rental to cover the loan repayments. I did not buy a hdb cos I'm single and my household income is likely to surpass the ceiling when I do get married in the future.

It is difficult seeing my friends driving nice flashy cars that cost upwards of 120k but again, the depreciation is quick and after 10 yrs that amounts to nought.

I know dreams are dreams but I hope to get a second property in my mid 30s, about 10 years from now.

[Arcachon]

I would still call it an asset as long as the market value is more than the outstanding loan amount (at least in accounting term).

Furthermore it is also generating tangible economic benefits by providing you with a roof to reside in. Otherwise, you would need to rent a place and pay rental...

https://sg.finance.yahoo.com/news/hd...160000570.html

http://www.consumerismcommentary.com...-or-liability/


A house, like any other object that comes into your possession, is classified as an asset. An asset is something you own. A house has a value. Whether you assign the value as the price at which you purchased the house or the price at which you believe you can sell the house, that amount is how much your house is worth.

You can offset the value of the asset with the value of the mortgage, your liability. Your house, an asset, subtracted by your remaining mortgage, your liability, results in your wealth due to your house. That’s commonly called your “equity,” but that has a murky definition, too.

So why do so many people claim that your house is a liability if it’s clearly incorrect from a financial standpoint? Most of this stems from one personal finance “guru.” Robert Kiyosaki, a successful marketer of products, believes an asset is anything that provides cash to you, while a liability takes your cash away. These are not the traditional meaning of the words, but this establishes a framework for the ideas Kiyosaki tries to sell. Kiyosaki believes you should strive to increase the assets that provide positive cash flow (Kiyosaki-assets) and reduce the assets that require negative cash flow (Kiyosaki-liabilities).

The concept is sound, but Kiyosaki’s use of the words “asset” and “liability” angers those of us who understand finance and prefer not to confuse the general public by redefining words. But taking a step back from finance, consider this:

There is at least one other legitimate definition or “sense” of liability. In a broader sense, a liability is anything that puts an individual at a disadvantage. Yes, debt is a liability, both financially and generally. You may love your children, but if they’re chronic behavior problems, they may be a liability.

If you own a business that makes millions of dollars each year — and wouldn’t that be nice — chances are you could sell that business if you need to, and command a very high price. That business is a good example of an asset (even if the business itself contains assets such as buildings and liabilities such as debt). But if that business is legally risky, and there is possibility of being arrested for operating it, you could argue that the business is a liability to your ability to continue living freely.

Once you start looking at the big picture, the line between asset and liability, usually neatly drawn down the center of the balance sheet, looks a little fuzzier.

Ask anyone with a financial background whether your house is an asset or liability, and they will unequivocally tell you that it is an asset, contributing to the total of your net worth. but that definition only takes you so far. If owning your house prevents you from using your money for better purposes, you could argue that it is a liability in the broader sense of the word.

Just don’t try to put the value of the house on the right side of your balance sheet.

Question What is money?

[hyenergix]

My parents are firm believers in property as a hedge against inflation hence they supported me in buying a condo when I was 24. I'm now servicing the loan myself and intend to rent it out in the future and use the rental to cover the loan repayments. I did not buy a hdb cos I'm single and my household income is likely to surpass the ceiling when I do get married in the future.

It is difficult seeing my friends driving nice flashy cars that cost upwards of 120k but again, the depreciation is quick and after 10 yrs that amounts to nought.

I know dreams are dreams but I hope to get a second property in my mid 30s, about 10 years from now.

Don't you have study loan to repay?

[Arcachon]

I know most people have been led to believe that a house is an asset, which is why so many thought they should buy a huge home. The bigger the home, the bigger the asset. But it's not so. Think about this: assume you buy a home and don't put a dime into it for 30 years. You don't paint it, repair it, or update it. You just let it sit there. How much do you think that home will be worth at the end of 30 years? Not much.
You can get a sense of how quickly a home's value will decline if you don't take care of it by visiting a few foreclosed homes in your area. The value can fall 30% to 50% with just a few years' of neglect.
To maintain the value of your home, you have to constantly put money into it. A good estimate is about 2% to 3% a year of the cost of the home. If you bought a $300,000 home, consider that it'll cost $6,000 to $9,000 a year on average to keep it up. Now you won't spend that every year, but that's what you should be budgeting for the costs of maintenance. At some point, the furnace blows, the air conditioner dies, the water line breaks, the roof needs to be repaired, the windows need to be replaced, the kitchen needs to be updated, and the list goes on.

Then you have to pay taxes on your home. While tax rates vary by locality, a fair estimate is 1% a year. When you add it up, the house is costing you 3% to 4% a year just to keep. And over the last 80 to 100 years, housing costs on average have increased by about 3% to 4% a year. During some cycles they've gone up faster than that, and during others slower (such as now). If you look at the 60 or so years that you'll probably own a home, you're likely to get the average return, which is in the 3% to 4% range.

http://www.cbsnews.com/news/is-your-...r-a-liability/

[Arcachon]

When Asked “Is a House and Asset or a Liability”, Normal People Vote Asset

If you walked up to your neighbor and asked them if their house is an asset or not, they would look at you funny and say, “Of course it’s an asset – .” It’s true. If you had the option to rent an apartment or buy a house, it is probably wiser to buy the house. Sure, you’ll have to make improvements once in a while, but typically your house will gain value through the years and may even earn you more than the rate of inflation. This is why for most people a house is most definitely considered an asset.

Use Your Business Mind

If you had to make a guess, what would you say the definition of an asset is in the business world? Well, let’s step back for a minute. What is the number one goal of any business? It’s to make money. If they didn’t make money, then there would be no business, which makes it pretty apparent that it’s the top goal out of everything else. So, if your goal is to make money and your business was in producing bicycle frames, your number one asset would be those machines that are used to produce the product right? Right.

Why are those machines considered to be an asset to the business? Well, they are an asset because they are directly helping the company make money, which is their number one goal. Without them, the company would be sunk. So, let’s step back in again. What is the definition of an asset in the business world? It’s any tangible object within the company that has value and that helps the company make money.

Is Your House an Asset or a Liability?

So what do you think? Is your house still an asset? From a business standpoint, the answer is absolutely not. What does your house do for you? It constantly costs you money in repairs – the water heater, the landscaping, the roof, and let’s not forget the plumbing – all of these things cost you money each and every year, but what kind of cash flow do you see from your house? Sorry to tell you, but there is none. Your house is a place for you to live, but it is not a money-making machine and should not be thought of as one. If you want to get ahead in life, I would purchases houses to rent out to others – turning a house into an asset. Suddenly, that property is earning you an income each month and can be valued as an asset and an investment.

Do you consider your house an asset or a liability?

http://suburbanfinance.com/is-your-h...r-a-liability/

[Arcachon]

My parents are firm believers in property as a hedge against inflation hence they supported me in buying a condo when I was 24. I'm now servicing the loan myself and intend to rent it out in the future and use the rental to cover the loan repayments. I did not buy a hdb cos I'm single and my household income is likely to surpass the ceiling when I do get married in the future.

It is difficult seeing my friends driving nice flashy cars that cost upwards of 120k but again, the depreciation is quick and after 10 yrs that amounts to nought.

I know dreams are dreams but I hope to get a second property in my mid 30s, about 10 years from now.

Why limit yourself to be a millionaire, a English teacher can be a Billionaire in 15 years.

http://en.wikipedia.org/wiki/Jack_Ma

If you work for others, you make others rich. If you work for your dream, you make yourself rich.

[minority]

I know most people have been led to believe that a house is an asset, which is why so many thought they should buy a huge home. The bigger the home, the bigger the asset. But it's not so. Think about this: assume you buy a home and don't put a dime into it for 30 years. You don't paint it, repair it, or update it. You just let it sit there. How much do you think that home will be worth at the end of 30 years? Not much.
You can get a sense of how quickly a home's value will decline if you don't take care of it by visiting a few foreclosed homes in your area. The value can fall 30% to 50% with just a few years' of neglect.
To maintain the value of your home, you have to constantly put money into it. A good estimate is about 2% to 3% a year of the cost of the home. If you bought a $300,000 home, consider that it'll cost $6,000 to $9,000 a year on average to keep it up. Now you won't spend that every year, but that's what you should be budgeting for the costs of maintenance. At some point, the furnace blows, the air conditioner dies, the water line breaks, the roof needs to be repaired, the windows need to be replaced, the kitchen needs to be updated, and the list goes on.

Then you have to pay taxes on your home. While tax rates vary by locality, a fair estimate is 1% a year. When you add it up, the house is costing you 3% to 4% a year just to keep. And over the last 80 to 100 years, housing costs on average have increased by about 3% to 4% a year. During some cycles they've gone up faster than that, and during others slower (such as now). If you look at the 60 or so years that you'll probably own a home, you're likely to get the average return, which is in the 3% to 4% range.

http://www.cbsnews.com/news/is-your-...r-a-liability/

Well if u can generate rental on the property and that 6-7K spend to up keep the place forms as a overhead on the return on investment from rental. then the house is a asset.

leave it empty and it would be come a liability if the person cannot service the loan.

[Poorlittlerichdude]

Why limit yourself to be a millionaire, a English teacher can be a Billionaire in 15 years.

http://en.wikipedia.org/wiki/Jack_Ma

If you work for others, you make others rich. If you work for your dream, you make yourself rich.

No I think it's important to be realistic. For my generation, buying a landed property like a semi d or bigger is almost impossible. Even for a couple with a dual above average income, how are u going to afford a $4-5 mil house? This however was not the case during my parents' generation. While landed houses then were expensive too, the proportional rise in home prices has far exceeded our rise in salaries over the years. It is easy to say how I'm aiming to get a second property in time to come but reality is not the same.

Ps: my parents paid for my studies. That being said, currently 10-15% of my monthly salary goes to them.

[Arcachon]

No I think it's important to be realistic. For my generation, buying a landed property like a semi d or bigger is almost impossible. Even for a couple with a dual above average income, how are u going to afford a $4-5 mil house? This however was not the case during my parents' generation. While landed houses then were expensive too, the proportional rise in home prices has far exceeded our rise in salaries over the years. It is easy to say how I'm aiming to get a second property in time to come but reality is not the same.

Ps: my parents paid for my studies. That being said, currently 10-15% of my monthly salary goes to them.

It all begin in the mind, when you say cannot who can say can.

44K Two PC one HDB can or cannot.

[minority]

No I think it's important to be realistic. For my generation, buying a landed property like a semi d or bigger is almost impossible. Even for a couple with a dual above average income, how are u going to afford a $4-5 mil house? This however was not the case during my parents' generation. While landed houses then were expensive too, the proportional rise in home prices has far exceeded our rise in salaries over the years. It is easy to say how I'm aiming to get a second property in time to come but reality is not the same.

Ps: my parents paid for my studies. That being said, currently 10-15% of my monthly salary goes to them.

Dont say cannot. my parents are blue collar my wifes too. Only thing my parents did for me is put me through school and I worked to pay 50% of my overseas studies while my parent pay the other 50% with thier saving.

I can say I own > 4 property now. When I got my 1st place I thought me and my wife would have to work all our lives to pay much less think of a 2nd property.

long story short its possible and dont underestimate the possibility if you are determine and willing to work for it.

As long economy are chucking a long there will always be opportunities.