Jul 7, 2018

Cory Diary : Portfolio Building Plan 2018-0707

What a surprise Property Curbs. This time gives a big blow to the stock market on the day when almost everywhere else market is up and STI recorded -1.99% on 6th July on a cloud of Trade War up day internationally.

Looking back since last year on rising interest rate, Bank and Property Counters have very good run. This has become unhealthy to the nation and young people. So timing could not been better despite trade war overhanging the market which our government celebrated with an implosion. The curbs specifically targeted investment homes while keeping the supply of lands up.

For those who are interested in rough maths (else ignore this section), a million dollar 2nd apartment that only requires 3% before any ABSD, now requires 12% to top it up instead of 7%. That's means $120K ABSD. For annual saving of $30K, this will requires 4 more years to accumulate. And with LTV @75% ... that's another 1 more year.

Being in my late 40s, and my bad timing foray into OCBC, I am not happy but I could understand why they have to do it. Things do not look that bad considering my Reits counters and surprisingly Singtel managed to counter the down trend a little. This is further damped by Bonds/Pref. And this is where strength of portfolio comes in to bring me sanity. I am 4% up from STI after the death cross performance. For now, appears my portfolio is leveling off in Comparison Chart below.

2018-0707 Comparison Report

As in my earlier articles, I have been holding back on purchase in Keppel, DBS, STE and Ascendas Reit which are in my potential list. But I did procure a few lots of STI ETF. Despite the current negative sentiments on the property curbs my re-balance trades typically result in more investment cash as mentioned as I am still concern that the Trade War could escalate significantly and timing is critical to secure enough funds for dividend investments for the future.



Cash hits 15%. Bullets ready.


Cory
20180707












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