Property agents feeling the pinch as market cools

[blackalley]

Rich people pay cash, no need to bother with loans or TDSR.

Ah Tiong like to transact in this manner but the rest take loans especially now when the interest rate is low.

 

[Seee3]

The richer you are, the more loan you will take. It is called leveraging. They will never pay full cash

Ya the limited rich guys I know always advise me to use others money to make money and if there is any loss, it must not be your own money. One of them even took the route of bankruptcy to ensure that the loss is others but he is still very rich, using a merz cab as personal car.

 

[Runifyouhaveto]

bro run, i think you are one of the richie rich, if i am not wrong, you talk and very savvy about bonds and private property, how much is your portfolio worth? can let me know...frankly, just curious and how old are you? you shall be my living example in life, i aim to reach your level in 10 years time.:o

My opinions are from these 3 sources:
- Polytechnic education
- My glorious past investment losses, in excess of $400K.
- Work Experience - Serving customers and rich business associates



Brother, RUN is just a poor church mouse. You are my senior. You are talking to a defeated soul in life. Don't be like me. I took prozac seroxat and Venlafaxine.

Property: NIL

Shares: Realized loss $400K.
I sold 40% so far this year, will sell another 20% by Oct and keep remaining 40% with Indonesia & India exposure

Unit Trust: 11% loss
Funded by CPF-OA

Precious Metals: Gold/Silver/Palladium
Physical and Paper sitting on 20% loss, except Palladium 25% gain

Bonds: small capital gain + yields.
Holding shorter maturity bonds from good issuers.

Others: FX, Insurance & Fixed Deposits:
Wifey will get $600K from insurance payouts when I die. Children will have $250K each when they reach legal age for university education or emigration.

 

[zeebjii]

Rich people pay cash, no need to bother with loans or TDSR.

Maybe they're afraid of the taxman?

 

[Runifyouhaveto]

Rich people pay cash, no need to bother with loans or TDSR.

I guess you could be quite young. When I was young, I used to think like this. When I am older now, I realize that I was very wrong.

The rich only pay with full-cash when SIBOR is more than 3-5%.

 

[bigboss]

...The rich only pay with full-cash when SIBOR is more than 3-5%. Interest rate is so low now, rich can make a lot more money by using these cheap funds that the poor do not have access to (not qualified to borrow). Rich gets richer; the rich even borrow $$$ from banks at 1.5%pa to buy bank preference shares that gives them 4-5%pa. The more they borrow, the more wealth they create.

1.5% pa? Cannot be fixed rate, leh. Certainly it is floating rate. The bankers do not go "lelong" to do business. They know when to screw you.

 

[Runifyouhaveto]

Maybe they're afraid of the taxman?

Outstanding point.

The richest LCP in my NS unit is a purchaser for Korean govt in third world countries, if you don't have plenty of ang kongs, you don't have the balls to do this job. He has very high income, not necessary to declare. One day he told RUN he bo bian, went to buy a kopitiam to generate some income so that he can buy a BMW and house with some loan. Imagine if he had paid in full cash for a >$3m property, he is asking for trouble.

So for this type of people, they wanna take bank loan but their declared income is too low to TDSR requirements. This is why we will see huge sell down in the >$3m properties this year. In the current low interest environment, only foreigners who wanna launder their money will pay full-cash for a multi-million property.

 

[Runifyouhaveto]

1.5% pa? Cannot be fixed rate, leh. Certainly it is floating rate. The bankers do not go "lelong" to do business. They know when to screw you.

Yes, flexi financing for bonds is 1.2-1.5%

in the bond example, if the bonds are all investment-grade and held in bank custodian account, you can get LTV 70-80%. Fixed at appx 2% for 3 years.

 

[bigboss]

Brother, RUN is just a poor church mouse. You are my senior. You are talking to a defeated soul in life. Don't be like me. I took prozac seroxat and Venlafaxine.

What are these drugs for? To prevent hallucination during the day and to stop nightmares at night?

 

[Runifyouhaveto]

The richer you are, the more loan you will take. It is called leveraging. They will never pay full cash

Excellent point. Interest rate is so low now, rich can make a lot more money by using these cheap funds that the poor do not have access to (not qualified to borrow). Rich gets richer; the rich even borrow $$$ from banks at 1.5%pa to buy bank preference shares that gives them 4-5%pa. The more they borrow, the more wealth they create.

If you are not there, you will never be there.

 

[Runifyouhaveto]

What are these drugs for? To prevent hallucination during the day and to stop nightmares at night?

hahahaa, these medications can make me a little smarter.
Yes good brother, did too much bad things in life.
If only we can turn back time and restart like computer game.

 

[bigboss]

Outstanding point.

The richest LCP in my NS unit is a purchaser for Korean govt in third world countries, if you don't have plenty of ang kongs, you don't have the balls to do this job. He has very high income, not necessary to declare. One day he told RUN he bo bian, went to buy a kopitiam to generate some income so that he can buy a BMW and house with some loan. Imagine if he had paid in full cash for a >$3m property, he is asking for trouble.

So for this type of people, they wanna take bank loan but their declared income is too low to TDSR requirements. This is why we will see huge sell down in the >$3m properties this year. In the current low interest environment, only foreigners who wanna launder their money will pay full-cash for a multi-million property.

Sinkieland is not the place to throw cash around unless you are connected. Always take bank loans to show you are average guy. Pay cash and spotlight will be on you from the taxman right down to you know who.

 

[Runifyouhaveto]

I think Krafty shared this article yesterday, really interesting
http://www.financialexpress.com/new...ire-row-as-luxury-house-prices-plunge/1283557

 

[bigboss]

hahahaa, these medications can make me a little smarter.
Yes good brother, did too much bad things in life.
If only we can turn back time and restart like computer game.

Nothing to be ashamed of. Every one of us has done something bad in life. No one is pure like an angel. Unfortunately, we cannot talk to God or get him to talk to us to turn back the time for us, unlike that CHC guy who said that God spoke to him.

 

[Runifyouhaveto]

Nothing to be ashamed of. Every one of us has done something bad in life. No one is pure like an angel. Unfortunately, we cannot talk to God or get him to talk to us to turn back the time for us, unlike that CHC guy who said that God spoke to him.

I read that he has many properties
http://www.sammyboy.com/showthread.php?156642-Pastor-Kong-Hee-s-list-of-properties

If you are willing to be a Satanist, you can be richer than many of us

 

[bigboss]

...if there is any loss, it must not be your own money.

Precisely the philosophy of that CHC guy, who threw away money that did not belong to him.

 

[bigboss]

I read that he has many properties
http://www.sammyboy.com/showthread.php?156642-Pastor-Kong-Hee-s-list-of-properties

If you are willing to be a Satanist, you can be richer than many of us

Selling your soul to Satan to become wealthy? No way. You can keep the money which is useless when you depart but your soul will at least give you another chance to get re-born and become the son and heir of someone filthy rich like Warren Buffet.

 

[krafty]

sorry to hear...but at least you learnt from experience. the saying no one plays for free, i hope that you grasp the words. i like trading cos' it's pitting psychology and it's a ever learning process.

My opinions are from these 3 sources:
- Polytechnic education
- My glorious past investment losses, in excess of $400K.
- Work Experience - Serving customers and rich business associates



Brother, RUN is just a poor church mouse. You are my senior. You are talking to a defeated soul in life. Don't be like me. I took prozac seroxat and Venlafaxine.

Property: NIL

Shares: Realized loss $400K.
I sold 40% so far this year, will sell another 20% by Oct and keep remaining 40% with Indonesia & India exposure

Unit Trust: 11% loss
Funded by CPF-OA

Precious Metals: Gold/Silver/Palladium
Physical and Paper sitting on 20% loss, except Palladium 25% gain

Bonds: small capital gain + yields.
Holding shorter maturity bonds from good issuers.

Others: FX, Insurance & Fixed Deposits:
Wifey will get $600K from insurance payouts when I die. Children will have $250K each when they reach legal age for university education or emigration.

 

[Runifyouhaveto]

sorry to hear...but at least you learnt from experience. the saying no one plays for free, i hope that you grasp the words. i like trading cos' it's pitting psychology and it's a ever learning process.

Thanks good brother, that's why i have more to learn from u.

actually, we only live once; there isn't so much time and chances for us to learn from mistakes.
thread carefully bro.

 

[krafty]

bro run, thanks for advice...i play small, no big bets, i just make to get by, enough for a bottle of martell at ktv. trading will not get you anywhere to be a millionaire, it's no longer peter lim's era.

Thanks good brother, that's why i have more to learn from u.

actually, we only live once; there isn't so much time and chances for us to learn from mistakes.
thread carefully bro.