tag:blogger.com,1999:blog-6259191659248487997.post5583720043819701564..comments2024-01-22T19:41:19.744+08:00Comments on Real Estate Fund: D' LeedonMr. IPOhttp://www.blogger.com/profile/16449331327581040185noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-6259191659248487997.post-26203321894930100742013-04-06T20:55:26.829+08:002013-04-06T20:55:26.829+08:00Nice................Nice................Sumithttp://www.newlaunchadvisor.comnoreply@blogger.comtag:blogger.com,1999:blog-6259191659248487997.post-54920478862744452092013-01-07T23:43:01.268+08:002013-01-07T23:43:01.268+08:00re : MR IPO : Let's see how the story unfold...<br /><br />re : MR IPO : Let's see how the story unfold in the coming years. The question is "are you prepared for that inevitable day?"<br /><br />=======<br /><br /><br /><br />Let's see how to deal with this question.<br /><br />a. If property prices rise by another 10% in 2013, then the economy will have another extra boost of only 0.5%pts, and inflation will be say 5-6%. These are estimates.<br /><br /><br />b. But if property prices fall by 10% instead, apparently, all chaos will break loose. <br /><br />The economy will supposedly collapse.<br /><br />The developers will urge the government to "take measures". <br /><br />The property buyers will grumble and complain and decide not to vote for the government, all sorts of stupid things, etc etc.<br /><br /><br />In short, this is no way to run an economy. The risk-reward ratio is lousy.<br /><br /><br />b. As for me, yes, of course I'm prepared for price falls.<br /><br />Paradoxically, if everyone is prepared for price falls, then the fall will not be too great.<br /><br /><br />c. I see that people in singapore and asia generally, may have been generally unprepared for a surge of liquidity. <br /><br />Liquidity that came in from outside asia (yes, you know the money printing central banks!), as well as internally generated loans and liquidity.<br /><br />Is Singapore and Asia generally now prepared for a capital outflow?<br /><br /><br /><br /><br /><br />d. I'd leave the last word, for now, with Norman Chan. He may be right about something.<br /><br /><br />URL : http://www.zerohedge.com/news/2012-12-11/hong-kong-feds-epiphany-bernanke-wrong-about-everything<br /><br />Hong Kong Monetary Authority Chief Executive Norman Chan <br /><br /><br />"Yet, since such increases are not supported by economic fundamentals, any increase in wealth will be seen as transient... (and asset prices might drop sharply and remain volatile). As a result, households are unwilling to increase spending and in the end, the real economy fails to rebound"<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6259191659248487997.post-86798726334062032312013-01-06T22:48:16.477+08:002013-01-06T22:48:16.477+08:00Thanks for the comments and taking the time to exp...Thanks for the comments and taking the time to explain what you mean. <br /><br />The government has a big balancing act to do. Cool the market with crashing it. <br /><br />Some govt are printing $$ irresponsibly and that inevitably will result in a global asset inflation.<br /><br />I don't want to sound "heartless" but it is usually when there is a bubble (and subsequent burst), then there are bargains to be found. <br /><br />Under current market conditions, it is tough to find bargains. The days of hefty capital gains are probably over and everyone is currently "equally poor"....<br /><br />Let's see how the story unfold in the coming years. The question is "are you prepared for that inevitable day?"Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-6259191659248487997.post-52809492538844065332013-01-06T22:07:03.015+08:002013-01-06T22:07:03.015+08:00Let me give an example of what I mean. With some ...<br /><br />Let me give an example of what I mean. With some dollars and cents figures. Let's look at what sense there is in the figures.<br /><br /><br />Say I collect $12,000 in rent / passive income / whatever you wish to call it.<br /><br />If property prices are $600 per sq foot (psf), my rent buys me 200 sq foot of additional property a month.<br /><br /><br /><br />If property prices are $1200 per sq foot, even with swimming pool, BBQ pit / sauna /and various nonsense like that, my rent only buys me 100 sq foot of additional property a month.<br /><br />So, what's the sense in that?<br /><br />People may say to me : Oh, your existing property has gone up in price! How wonderful!<br /><br />But, I think : yes, you probably are deluded.<br /><br /><br />When I buy property for passive income, I really mean passive income for me. For me.<br /><br /><br />What I do not want is to borrow from the bank, and to provide passive income for the bank as well. So there is a difference.<br /><br /><br />~Further more, I know that if somebody pays me $12,000 per month, it means they are paying me.<br /><br />But can they afford this rent? Will it cause a problem later on down the line?<br /><br />When I want passive income, I mean I want passive income that is troublefree, and troublefree for a long time. <br /><br />What I don't want is high rent paid by others who cannot afford it. Or high rent that will only increase their costs. <br /><br />Which causes problems for them later on, and thereby for me eventually.<br /><br /><br />Whenever I see property prices rising like this, I don't think : oh, I have a fortune. <br /><br />I tend to think : oh, there may be a problem on its way, its just a question of time.<br /><br />As I said, I think the government has done a good job of slapping down the property developers and some of their buyers.<br /><br />So, that's my little contribution to the debate. I hope to have added more dimension to the "passive income" debate.<br /><br />It is some dimension that "newer" property buyers do not always initially see.<br /><br /><br />I should thank Mr IPO for setting up this blog. I think it is generous-spirited of Mr IPO.<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6259191659248487997.post-19470214402583123812013-01-06T21:19:21.319+08:002013-01-06T21:19:21.319+08:00"These government cooling measures are much w..."These government cooling measures are much welcome, and are much welcome."<br /><br /><br /><br />These government cooling measures are much welcome, and are long overdue. <br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6259191659248487997.post-30737883833978581882013-01-06T21:17:45.952+08:002013-01-06T21:17:45.952+08:00The game I'm talking about is all this relentl...<br /><br />The game I'm talking about is all this relentless, yes, games, developers and buyers are playing with each other.<br /><br />The competitiveness I'm talking about is the overall competitiveness of the economy which is reduced when property prices, be they residential or commercial or industrial, become "too high".<br /><br />Left to their own devices, developers and buyers tend to run amuck. And have to be given a serious slapping down.<br /><br /><br />And when even existing property owners themselves cannot quite believe the prices that are being set, then I think there is something in this.<br /><br />After all, bear in mind, existing property owners may themselves wish to buy more property. If so, what is the benefit of having to chase the market against themselves.<br /><br />Borrowing more and more money against supposedly increasing property "values" is not a sound game.<br /><br />The property that can be purchased gets more expensive, and gets smaller and smaller. OK, there is a tennis court, OK there is a small swimming pool, but so what? <br /><br /><br />One day, the bubble would pop, and there will be chaos all round.<br /><br />Not something we want.<br /><br /><br />These government cooling measures are much welcome, and are much welcome. <br /><br />As I said, when even existing property owners think this, well, there is something in it.<br /><br /><br /> Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6259191659248487997.post-58129058917565306962013-01-06T10:49:26.874+08:002013-01-06T10:49:26.874+08:00Hi, Not sure what you meant by "game" or...Hi, Not sure what you meant by "game" or competitiveness. <br /><br />The gist of what I am saying is consider your options if you want to buy a property now. Some good locations are selling cheaper than the outskirts. <br /><br />This is not a game to me. No one knows where the market is heading in the next 5 years. I am looking for a property can generate passive income to me...Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-6259191659248487997.post-24620406129991860882013-01-06T09:46:26.925+08:002013-01-06T09:46:26.925+08:00Well, MrIPO, you said it yourself :
Singapore pro...<br /><br />Well, MrIPO, you said it yourself :<br /><br />Singapore property prices ended 2012 with a big bang and at record prices.<br /><br />But yet ..... <br /><br />many high end condos not sold yet and it is going to run foul of its deadline and have to pay for extension charges.<br /><br />And with ..... <br /><br />gimmicks of "tiered discounts". <br /><br /><br /><br />Seriously, is this a game that adults should be playing?<br /><br />High property prices only damage your competitiveness. <br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6259191659248487997.post-49286917622299905672013-01-04T16:33:26.530+08:002013-01-04T16:33:26.530+08:00but wat if the property mkt is going to hit the bo...but wat if the property mkt is going to hit the bottom already?<br /><br />http://www.singaporepropertycycle.com.sg/market-trends/singapore-property-price-index-and-hdb-resale-index/Anonymousnoreply@blogger.com