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?
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4 months ago
Actually i have downgraded from a HDB maisonette to a 4A HDB. due to some non-commercial reason.
ReplyDeletei 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!
Buy low sell high
ReplyDeleteBuy high sell higher