One of the challenge will be how to Simplify my operation while achieving the Diversification needed. This means reducing errors, market volatility with poor quality assets and getting better in my investments. And therefore more time for family and work.
To combat inflation, having investment returns and also a shelter over my head when needed, I decided to invest in Property. This allows me to sold off all my gold position which serve inflation purposes. In my earlier article I have worked out the Math on why property investment is attractive due to Rental income and leverage. TDSR and ABSD have also limited over speculation so one is unlikely impacted by installment arrears. Even if one got their timing wrong, over the long term the return from rental or own stay which avoid paying rents, will likely gives property buyer a high chance in the black and probably good returns on average.
To add for residential property, I feel is very unlikely to have EHT or Noble events that we see in stock market as long we can hold our property. Being in equity market over decades, property is certainly the easier path to go and imo for most people who can afford, within the current regulatory constraints that interesting help largely minimize the risk of default. The stock market is not a level playing field even though over the years we are getting better. Is much tougher to profit from it with many learnings needed to stay in the game even though I have profited some amount.
Why all the write up above with the subject line. I just checked URA transactions, and PSF wise there is another increase on recent month. Is a surprise. Covid ? What Covid ? This bring my Net Worth to another magical milestone level. Interesting just yesterday, I told my wife that if I hit the Net Worth milestone, we can afford to buy another larger de-humidifier. It was a passing remark as it will be our 3rd in the home. So if we going to get it, and the stock market doesn't look like will push it that far in the next month or so, it could be far fetched. Looks like is not far enough ....
Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.
Interesting decision to buy a property. Will you be going into greater detail about why you chose a property vs more investment into REITs?
Property can leverage. 1M property, maybe only need 250k cash. And you can generate say 25k annual income. You are the manager and no rights issue but tenant issue. With Reit for same amount of cash at 5% yield is 12.5k. So why need to choose. Get both worlds.Delete