Rising interest rate.....property owner headache????

[babuSingh]

no wonder now working class singaporeans are so stressed....with condo repayment,car loan,credit card,insurance,kids expenditure,enrichment classes,daycare,maid.....all for people to envy how good their life is....why wrong with leading a simple life

 

[blissquek]

be careful....don't envy these guys too much. Some of them don't own the properties...instead the properties own them. They have to work and worry like shit to pay their mortgages and now they may find tenants hard to come by.

Both of them are professional...so cannot afford to lose their job.
So at work have to abide and kow-tow to boss for fear of job loss..

Same, same as PAP elite...kow-tow to their supremo and remain satiated...just like what Ngiam Dong Dow has said...even their wives would object if they wish to leave their well paid cushy job.

These two groups of people will not rock their boats.

So at Parliament, these MP would keep their mouth shut or take 50 winks.

 

[MovieStar]

Still better than me.
I use all my saving. 500k to buy shares. Now incur huge paper losses.

Well. No eyes see.

If I buy property. Probably will be better than now.

 

[lifeafter41]

Still better than me.
I use all my saving. 500k to buy shares. Now incur huge paper losses.

Well. No eyes see.

If I buy property. Probably will be better than now.

Well looking from my friend rationale, he is of the thought that property is more stable. As to whatever that means from his point of view.

I don't think he is able to even buy his 3rd property now, with the tdsr.

 

[johnny333]

...I use all my saving. 500k to buy shares. Now incur huge paper losses.

That is more than what I put into the market & in my case I diversified my investments into Spore, US, & Malaysia. Have tried forex, unit trusts & shares. Found that I made the most $$ from my US investments & lost big in forex. For me investing in Spore has been disappointing.

That is why I don't recommend anyone go into forex.

The important thing is that people start getting into the habit of investing. It's a long term thing & you won't see the results overnight. Don't blow all your $ buying cars, holidays,.... Spend only if you can afford it. I've seen too many people over leverage themselves.

I don't consider myself wealthy even though I have a few million because I know how easy it is to blow all of it. That is why I'm looking for a cheaper place than Spore

 

[MovieStar]

That is more than what I put into the market & in my case I diversified my investments into Spore, US, & Malaysia. Have tried forex, unit trusts & shares. Found that I made the most $$ from my US investments & lost big in forex. For me investing in Spore has been disappointing.

That is why I don't recommend anyone go into forex.

The important thing is that people start getting into the habit of investing. It's a long term thing & you won't see the results overnight. Don't blow all your $ buying cars, holidays,.... Spend only if you can afford it. I've seen too many people over leverage themselves.

I don't consider myself wealthy even though I have a few million because I know how easy it is to blow all of it. That is why I'm looking for a cheaper place than Spore

I agree that us market can give us more capital gain.
One lucky thing is most of my holding are blue chips.
So lower risk. But doesn't mean no risk.

you are still better than me. I left nothing now.
No more cash.

 

[johnny333]

I agree that us market can give us more capital gain.
One lucky thing is most of my holding are blue chips.
So lower risk. But doesn't mean no risk.

you are still better than me. I left nothing now.
No more cash.

Unfortunately only the PAP are able to become instant millionaires.
For the rest of us it is a long road. Investing is a long term endeavor. Some investments go nowhere while others do fantastically well. It may take a while.

I have invested in ALL the blue chip IT companies e.g. DELL, HP, IBM, CISCO, LUCENT,....
However my best investment took almost 5+ years to improve. I bought Apple shares when Gil Amelio was CEO. At that time Apple shares was only about $15 & the company was not giving dividends.

I of course made losses along the way e.g. Lucent. However I never gave up & consistently put aside $ for the market rather than spending on big ticket items like cars, property, girl friends,... I even hesitated before finally deciding to buy a condo to stay & not as an investment & always worried about the mortgage until I was finally able to pay it it all off.

I don't have a lavish lifestyle & live within my means. I've seen some friends who live dangerously, servicing loans for a few properties & cars. However you don't have to take such risks to get ahead. It may take time & don't get caught up with trying to keep up with the Jonses.

 

[MovieStar]

Unfortunately only the PAP are able to become instant millionaires.
For the rest of us it is a long road. Investing is a long term endeavor. Some investments go nowhere while others do fantastically well. It may take a while.

I have invested in ALL the blue chip IT companies e.g. DELL, HP, IBM, CISCO, LUCENT,....
However my best investment took almost 5+ years to improve. I bought Apple shares when Gil Amelio was CEO. At that time Apple shares was only about $15 & the company was not giving dividends.

I of course made losses along the way e.g. Lucent. However I never gave up & consistently put aside $ for the market rather than spending on big ticket items like cars, property, girl friends,... I even hesitated before finally deciding to buy a condo to stay & not as an investment & always worried about the mortgage until I was finally able to pay it it all off.

I don't have a lavish lifestyle & live within my means. I've seen some friends who live dangerously, servicing loans for a few properties & cars. However you don't have to take such risks to get ahead. It may take time & don't get caught up with trying to keep up with the Jonses.

only have one HDB for own stay, then no car.

and seldom take taxi...

may rather spend those money to enjoy life rather than lose in share market. phew

 

[cocobobo]

Matrimonial home from hdb then upgrade to condo, that was many years ago.
2nd property,he was saying bought for if I recall correctly, 1kk, down payment of 250k. Now loan still has about 600k. Monthly payment coming to 4k. Rental just enough to cover loan and condo maintenance.
3rd property, bought for about 1.9kk, minimum down payment of 380k. Loan at 1.5kk, 20 years, monthly payment now 7.8k. Rental is about 6000. Now have to come out of pocket of almost 2200 for interest increase and condo maintenance. If rate increase some more, property number 2 might also be negative cash flow.
Yes you are correct, they are thrifty that they do not anyhow spend. Though they do own 2 cars. Both being professional
Both in late 40s, with 3 children.

Math does not compute.
I smell bs

 

[lifeafter41]

Math does not compute.
I smell bs

Hahahaha. Not sure about the bs though, as this is the figure given by friend.
I see no reason why he want to bs as he is in better shape, financially, than me.

 

[lifeafter41]

I agree that us market can give us more capital gain.
One lucky thing is most of my holding are blue chips.
So lower risk. But doesn't mean no risk.

you are still better than me. I left nothing now.
No more cash.

What bluechips are you in?. Banks, ocbc, dbs or kep Corp, or sia, city dev? Etc?
You hiong, 500k all in stocks!!!

 

[MovieStar]

What bluechips are you in?. Banks, ocbc, dbs or kep Corp, or sia, city dev? Etc?
You hiong, 500k all in stocks!!!

semb corp, keppel corp, singtel, dbs, ocbc, uoi, HL finance , capitaland, thai beverage etc.

 

[gingerlyn]

sembcorp marine is in 5yrs low brother

 

[mojito]

No such problem if you pay all using cash. :o

 

[lifeafter41]

Just saw this in an earlier post, http://sbr.com.sg/economy/news/char...x-year-high-in-september#sthash.ybpclgn9.dpuf

I guess his nightmare on interest rate is coming true.

 

[johnny333]

Just saw this in an earlier post, http://sbr.com.sg/economy/news/char...x-year-high-in-september#sthash.ybpclgn9.dpuf

I guess his nightmare on interest rate is coming true.

Only if you have outstanding loans.

For those holding cash they can get higher returns.
If interest rate goes up I'll probably sell my shares & put money in the bank & collect interest. Otherwise I'll keep my shares & get dividend income.

 

[lifeafter41]

Only if you have outstanding loans.

For those holding cash they can get higher returns.
If interest rate goes up I'll probably sell my shares & put money in the bank & collect interest. Otherwise I'll keep my shares & get dividend income.

He has outstanding loan of 600k and 1.5kk on his 2nd and 3rd property. The 1st one is fully paid.
I did tell him he is stretching it too tight and the increase in interest is going to crush them.
There is always the danger of either of them losing their job and that will even be worse.
Did tell him to consider selling one of it, maybe with a little loss, rather than being dragged down

Not sure he will listen to me though........

 

[MovieStar]

Only if you have outstanding loans.

For those holding cash they can get higher returns.
If interest rate goes up I'll probably sell my shares & put money in the bank & collect interest. Otherwise I'll keep my shares & get dividend income.

still good can sell the shares, i am super dumb.

bought so much shares and then convert some of my currency to MRY before sgd:myr 1:3 now.

sai.

 

[cocobobo]

Hahahaha. Not sure about the bs though, as this is the figure given by friend.
I see no reason why he want to bs as he is in better shape, financially, than me.

The math is not possible unless he struck inheritance, 4d or their 3 kids only need water to live.

 

[xebay11]

Only if you have outstanding loans.

For those holding cash they can get higher returns.
If interest rate goes up I'll probably sell my shares & put money in the bank & collect interest. Otherwise I'll keep my shares & get dividend income.

Holding cash is never good, holding fully paid property has better returns and capital appreciation.