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Thursday, 2 May 2013

One Of The Best Negative Yield Asset We Can Buy

Before you read on, can you think of one yourself?

It's interesting to hear more and more people are now telling their friends how silly to put money "rotting" in the bank getting real negative yield after you factor in inflation.

But there are a few asset class that are good investments even when it's earning no or negative yields.

Today, I'll share one asset class in which 80% of Singaporeans live in them. 

Yes, it's HDB Singapore flats!

Unless you have paid your HDB flat in full with cold hard cash, most of us would have taken out a HDB or bank mortgage to finance this one of the biggest big ticket purchase of our lives. 

And by taking out a mortgage, aren't you paying interests instead of receiving one? It's negative cash flow and negative yield some more!!!

Just ask your parents - either they bought directly from HDB or from the resale market.

It's better to get your info from real people you trust than from statistics. 


Some may say HDB flats are 99 years leasehold and is not an asset and all that crap (pardon my french).    

Eh... Then why are you not renting instead? I listen to what you do; not what you say.

We are limited by our own imaginations and the lies we tell ourselves.

Some retired or retrenched HDB owners have discovered renting out a few spare rooms can generate some useful rental income.

Some who were posted overseas were happy to discover they can rent out their whole HDB flat and finally practice what they have learned from reading "Rich Dad; Poor Dad" - generate positive cash flow from their properties! (All theory no practice is...)  
Some Singaporeans have sold their HDB flats and uprooted themselves to landed properties in some of our neighbouring countries. With lower cost of living to boot! (Isn't it nice to have options? Unless of course you consider yourself a true blue Singapore born and bred vegetable. Last I heard, people are mobile; like our ancestors)

Now, who says great assets must have yields?


  1. you and your HDB again.

    yesterday over heard they play this beautiful song tribute to 黃文永.


    its another japanese song, 黃文永 also recorded this song before.

    1. coconut,

      Friend, I am singing for my coffee. At the very bottom, there is "advertorial".

    2. $20 can buy some atas kopi... ;p

    3. Hello AK,

      She definitely has approach you first ;)

      Yes! $20 can definitely buy a lot of kopi - especially at the traditional coffee shops :)

  2. CW,

    So sorry! Was trying to delete your extra "author deleted" comment and deleted your other comment too!?

    As for your question - yes, my HDB flat is a 3 bagger.

    How I wish I can sit tight for my equities as well!!!

  3. Hi SMOL,

    I forgot to congratulate you earlier. ;)

    You are closer to not holding back. You are closer to stripping totally naked. I think you are holding on only to that thong of yours in this blog post!


    No more hiding in cryptic messages and less of a peek-a-boo kind of guy, I see. ;p

    1. Merdeka!

      I am liberation!

      I am power!

      I am MAN!

      (Burning my singlet)


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