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A Chasing Sunsets Fund – A Better Way to Plan Nice-to-Haves in Financial
Independence.
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One of the spending needs that many of you would consider as part of the
income needs for your financial independence (FI) or FIRE, is to have
enough mon...
10 months ago
Buying HDB BTO is like buying in-the-money European-style call options that can only be exercised 5 years later.
ReplyDeleteResale HDB? That's like slightly out-of-the-money Euro-style call options! LOL!
Frankly for own residential property --- I view as combination of consumption & savings.
Consumption because you need to spend to have shelter anyway.
Savings because for most of your lifetime, you can still get a good savings rate of return after minusing off base expenses, if you sell.
The very good property "savings rate" of 10%p.a. if you bought in the 1970s & early-80s is a reflection of high inflation then. You would have done better buying local stocks & companies. ;)
Good one!
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