I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



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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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Thursday, 27 August 2020

BTO as investment asset class. 92% ROC i.e. close to 2 baggers profits over 12 years

Read? Punggol HDB loft unit sold for S$900,000 to couple who viewed it only once

A HDB loft at Punggol Sapphire estate was recently sold for S$900,000.

The previous owner had purchased the flat directly from HDB for S$468,000 in May 2008





3 comments:

  1. Hoho shiok! 😁

    Property agent will tell you ... Wait! There's more!!!

    92% is return on asset ROA. Return on capital is much higher!

    Why?

    Coz property can leverage mah!

    Down payment only 20% ($93,600).

    Borrow 80% from HDB 2.6% loan (assume they unsavvy dunno about bank loans larr).

    Monthly $1,693 mortgage.
    After 12 years paid $243,800.

    Using primary school / property agent maths (ignoring time value of money):

    ROC = 900,000 / (93,600 + 243,800) = 166% Song song gao jurong! LOL!

    Ok lah ... need to pay back remaining loan:

    ROC = (900,000 - 224,000) / (93,600 + 243,800) = 100%

    ReplyDelete
    Replies
    1. Hmm .. so 61% who can count voted for MIW! LOL!

      Delete
    2. CW,

      LOL!

      I guess the owner who sold that Punggol flat is not in the camp complaining HDB flats "too expensive"; or after 99 years, our flats will go to ZERO ;)

      No need 2 bites of the cherry. One bite can already!

      $900K is more than enough down payment for a private apartment or condo ;)


      Sometimes its luck; sometimes its skill.

      Instead of whining, its better to focus on playing the hand we were dealt as best as we could ;)

      Delete

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