As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Sunday, 21 May 2017

Fact or Fiction : The key is to make your money on the buy, not the sell


Read? Renting a home can be a savvy decision


Quote : "I looked to investment guru Robert Kiyosaki's Rich Dad Poor Dad blog, in which he wrote: "Repeat after me, your house is not an asset."

His line of thinking is that it matters little how much a property appreciates in price. What matters more is "whether it provides cash flow every month".

"The key is to make your money on the buy, not the sell," he said, so that one does not have to worry about whether the asset value goes up. Cash flow from a house would therefore come from the rent. So if you live in your own house, it cannot be considered an asset."


CW8888: How about holding a few stocks on good buy for cash flow and does not have to worry about the asset value up or down?

Fact or Fiction : The key is to make your money on the buy, not the sell


If you haven't personally experience it through your own investing journey; it is very hard to understand fact or fiction.

After more than one decade of receiving cash flow from these free hold stocks and Mathematically Infinity gains;  what else could he probably complain or unhappy about?

One time investing effort; not good as passive income for more years to come?





6 comments:

  1. That's why i say if you die,die, must invest bricks and motar, invest in REITS is better.

    No encumberance(aka sinking fund, property tax, propety maintenance, tenant's headache).

    Besides you will get all the rebates and what not from the G from time to time.

    If you own even a 3oo sq ft to 400sq ft (shoe box), you got ZERO from the G.

    And the ROI or cash flow is definitely much better or higher considering all the encumberances.

    Of course Reits may have rights issue but if it's yield or assets accumulative, why not?

    ReplyDelete
  2. But for asset allocation's wisdom then must consider whether owning Reits or FH property is better in the long run?

    Anyone like to share his idea/expertise?

    Thank you.

    ReplyDelete
    Replies
    1. FH is likely to be unaffordable investment class by average retail investors

      Delete
  3. FH govt also can take back by Land Acquisition Act if they think need to build MRT or highway or airport thru your FH property. Govt will compensate by market value, so if they take during recession or property downturn, then suay!! Many cases is road-widening, so govt will take away 30% or 50% of the garden. This type of case very suay coz govt valuer can give very low "market" valuation to small pieces of land. I think Ministry of Law and SLA changed their processes after some very unhappy cases a few years ago.

    Anyway good properties in SG and other major cities is a rich peoples game. Normal people don't have enough $$$$$$ to diversify properly with physical properties. Better to use REITs or property ETFs.

    And when the total asset value of stocks/REITs/ETFs have doubled by capital appreciation or dividend re-investment, then we can follow Uncle's example to take out 100% initial cost of investment, and create INFINITY yield. :) :) You can't do that easily with physical properties.

    ReplyDelete
  4. "The key is to make your money on the buy, not the sell,"

    I would said, the key is not losing money when you buy. By not losing money, downside is protected and enjoy the upside.

    ReplyDelete

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