Monday 4 November 2019
Property - not about Buy-and-Hold is it?
These Singaporeans won the housing lottery
Well, I let you decide whether the same can be applied to equities or other investment classes. Wink.
Maybe its my retail background.
Those outside the industry may think a Buyer's main task is to buy or procure?
That's farther from the truth!
LOL!
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Residential home is our asset of last resort.
ReplyDeleteCW,
DeleteYes. That's the nuclear, "bo bian", no choice, last of the last solution.
That's why once in a while we hear of people staying in landed properties asking for welfare support...
Rather go cap-in-hand to big daddy and suffer the slings and arrows of HDB heartlanders than to sell and downgrade.
Hi SMOL,
ReplyDeleteFor residential purpose the overriding factor should be affordability (how many months can sustain if lose job?) and fitness-for-purpose (e.g. desired schools, amenities, safety, convenience to workplaces etc).
For investment it will be current valuation (does it make sense?), cashflow & income, one-time refurbishment costs, ongoing operational costs, taxes, competing units, growth of target tenants.
For lottery purpose, need to study ura master plan, current versus potential plot ratio, current versus maximum GFA, current valuation, current age of lease, number of units (too many means trouble), plot size (too big also difficult). After that go tua pek kong temple to pray daily.
Spur,
DeleteYou know what?
I have a niggling feeling that the lucky senior property owners did NONE of the things you talked about above ;)
Its like being competent in poker or mahjong, yet lost to beginner players once in a while!?
With humility, I rather be lucky than smart :)
LOL
Oh my 3 scenarios are more for current generation. :P
DeleteFor previous generations, they struck lottery liao ... even their consolation group 3 & 4 prizes also good! LOL!
They were "lucky" to be born at the right time & place ... SG was a high risk, low valuation, potentially high growth asset back then.
In stocks, it's like deciding whether to find "lotteries" in HK, Vietnam, China, UK or go with winning stocks like blue chip REITs or the Amazons & Microsofts.
Spur,
DeleteShhh...
Don't let the Singapore stocks only Koala bears or Pandas hear you!
You die!
How many can say the same thing 30 yrs later? π
ReplyDelete2000+ units at 700k sqft land area with max GPR?
Sometime i really need to talk to these buyers to understand what are they thinking? Maybe they know something I don’t.
WolfT,
DeleteWe can say the same about equities ;)
Or cryptos. Wink.
I like to poke myself whenever I caught myself using straightline extrapolation to la la land...
Luck isn't a super power.
Yes, it is.
"Buyer's main task is to buy or procure" - not buy or procure but to negotiate?
ReplyDeleteRainbowgirl,
DeleteIn retail, we buy with the intention to SELL at a profit ;)
Imagine the sales merchandise we buy cannot sell... We'll be shown the door pretty quickly!
And what's the point of selling merchandise at BELOW COST in order to move inventory?
See that door over there?
Hi SMOL,
DeleteYup a purchaser's job is to sell.
Heard of a major supermarket chain where buyers' lifespan & turnover is pretty brutal.
And an atas European retail outfit where the purchaser was given immediate termination with security escort. π¬
When you are in a company where the delivery driver or technician is able to propose or promote the company's products & services, you know the culture is onz!
Spur,
DeleteImmediate termination with security escort is likely "eat money" case.
Curse or "fringe benefit" of buyer's job - "cash back".
Except instead of passing the savings to "Ah Kong", you pocket it into your pocket :(
And big daddy a few years back made it crystal to their underling CEOs, Chief of this and that, "services-in-kind" (pleasurable and naughty naughty) - even when money is not involved - is a big no no.
Will still get prosecuted one ;)
That kind of companies where you have ALL employess as willing brand ambassadors, they are usually Values driven - led by charismatic founder/entreperneur.
Companies run by professional shepherds/managers are usually KPI driven - got vision they won't be working for others ;)
On the flip dark side, that's also why we see victims of MLM scams acting as brand ambassadors bringing new fools into the fold.
The scam founder has the same charisma and super power to maniplulate minds...
2 sides of the same coin.