As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons 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

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Wednesday, 17 October 2012

Home for Living and not for profit taking (9)

Read? Home for Living and not for profit taking (8)

Read? A prudent taxi driver

He shared the experience of a neighbor who sold the first HDB flat, took out the profit and spent it away. The neighbor took a full loan on the resale HDB flat and now had to pay $1,000 a month up to age 75. This was very stressful.

Another friend sold the HDB flat on two occasions and took out the profit. He invested in the stock market and lost the money entirely. He could not pay the mortgage on the 5 room HDB flat which was repossessed. Now, he had to downgrade to a 3 room HDB flat, and was in a worse condition than the taxi driver.

The Moral of the Story

Is your only residential home as an investment instrument and for profit taking?

Like any drivers on the road, they believe that they are above-average drivers.

Same as for many retail investors, they too believe they can compound their investment return well above inflation and interests rate over market cycles.

How many retail investors can afford to lose substantial capital and still manage to recover and build up enough retirement fund for next 25-30 years?


  1. Actually i have downgraded from a HDB maisonette to a 4A HDB. due to some non-commercial reason.
    i think if you repeat downgrading until when you are alone with your wife only so now you would have downgraded to HDB studio apartment. i not sure HDB allows you to buy their studio apt. from them. Then maybe rental or resale HDB 2 room apt.
    The capital realized should be beneficial but you have sacrificed housing comfort with some other comforts the realized money can buy.
    i believe some people have done it already.
    We heard of some short-cut from HDB Dwellings to Changi beach camping dwellings. Of course in Sinkapore you need a permit for almost anything. So rule out Changi camp dwelling. Ha! Ha!

  2. Buy low sell high

    Buy high sell higher


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