2013 Portfolio Review

2013 Measure
SG Stock XIRR figure for the year ended up 11.74%.Compared to STI which is -0.85% (2 Jan'13-2 Jan'14) excluding dividends, performing above after taking into account STI 2-3% dividends.

Annualized Performance since 2007 will be 11.6%.
Dividends received this year $28, 940.

Did well in expanding my dividends and performing above STI. Another key area is the punch (Invest amount) approximately doubled. Net Worth reached a new milestone despite spending is up significantly.

Another area i am happy with is that Reits did not do significant damage to my portfolio. Looks like trading them helps to negate their impacts this year. They will remain a key segment for re-balancing my portfolio for a long time.

Portfolio details
Reit returns flat after consideration of capital loss. In the aspect, on the bright side, they will be position to be better in 2014.
Fixed return continues to maintain good stability.
Growth and SME stocks see large rises.

2014 Focus
Still under invest last year despite some step-up in absolute amount added, my wish is to add more counters and depth for specific counters. However i will continue to exercise caution steps.
Goal : 20% more

Dividends wise, with tapering reduction, contribution from Reit can be lesser. Higher business cost may also means lesser distribution. Goal: Maintain 2013 at minimum.

To reduce impact from any single stock, number of counter has to increase but this will tax my mental bandwidth. Therefore stock selection has an angle of less risk priority.

Re-balancing of my portfolio still required and needs to be watched closely.


Cory
1st Jan 2014

$1M Home Goal

Over this weekend, i have decided $1M (Today Price) home features will be the goal i hope to achieve. So this is what i want.

- Private Condo
- More than 1K sqf
- OCR
- Retirement and Recreational facilities
- Low Pollution and Traffics will be ideal
- Close to ammenties
- Reasonable rental income is a nice option

Next is can i afford ?
- 20 Years Loan (Using 20 for this example. There is a constraint on age: 65. So if you are 45, only 20 years)
- 1.5% Interests Rate

With 20% Cash and CPF, i will need $800K loan to be re-paid in 20 years with interests.
And about 3% stamp duty with cash. Assuming i have no problem with cash and cpf on the 20% and fees.
At 1.5% rate, monthly payment : $3,860
At 3% rate, monthly payment : $4,437 (up 14.9%)
At 5% rate, monthly payment : $5,280 (up 32%)

Total Cost excluding stamp duty, renovation and lawyer fees.
At 1.5% rate, $926,400. Total interests paid = $126,400.
Effective compound rate : 0.74%

At 3% rate, total interests paid = $264,880.
Effective compound rate : 1.26%

At 5% rate, total interests paid = $467,200. Almost half my condo price. I love Banks. :)
Effective compound rate : 2.33%

Investment Return
If I can achieve 3% on average annual property appreciation long term and with rental support bonus, this deal may makes sense. Anything more, else what am i waiting for ?


Cory
20th Jan 2013