Just want to share something from my personal experience on housing.
Used to own HDB Maisonette years ago and sold it for slightly more than 100K profit only to see it go for another after. As I am often based overseas, decided to acquire a Private home later if I decide to return for good.
Here's my previous thoughts. How my thinking change over time and steps I took.
1. Link on My Home in Year 2014
This basically say how I felt about rising property prices is not helping us socially. Rising price.
2. Link on Shrinking and Integrated Property in Year 2015
With prices running above income, shrinking property size. Value of integrated property thoughts. The situation.
3. Link on Money in Gaming in Year 2015
Money is continuously shrinking. The inflation.
4. Link on Million Dollar home in Year 2017
In Year 2013 I blogged about $1M home goal which post I have moved to draft to clean up.
However my 2017 article basically summaries. Acted.
With that, I realised that it does not make sense for me to hold Gold as property can be a good hedge against inflation. In Year 2019 today, my value of my home has increased by 25% approximately. This is based on current similar property price on location and estate. As is only 20% down with roughly 5% expenses. Maybe I can do a similar XIRR on the returns and it works out about 21% annually. Kind of surprise.
This explain the power of housing leverage unlike typical stock investment. The other benefit is the diversification from stock market.
Cory
2019-0531
Throughout history when something reaches it's peak, downhill is the way to go. From Tang Dynasty to Mongol Empire. Roman to British Empire. Even in science, Quote by Isaac Newton: “What goes up must come down.”
So question in our minds ... Have Reits reached it peaks ?
The question will be on the questioner on why the question. When it comes, it will come.
Till it comes. Meantime .... enjoy our Golden Era. It has been 10 years already since last GFC. Whatever has been gained, easily doubled. Buffer not enough ?
Something to cheer your Tuesday.
Cory
2019-0528
Cory Dividend Report tracks Cumulative and Annual Dividends.
Cumulative (Right Axis) has reached $294,000. With the rate we are going, it will only takes 3 to 4 more years to hit $500K mark and probably another 5 years to accumulate to $1M theoretically. This comes with Dividend Strategy.
For Annual Dividend perspective, accumulated $22K in 5 months. This amount only include counter that has ex-dividends in 2019. If my annual salary saving is also $22K, my saving has speed up by 100% by now isn't it ? That's the power.
However, all this is meaningless if over time which I mean portfolio value (realized and Unrealized) has decreased. So is important we track them as well as in below chart from SG Equity mainly.
One thing I did that helps with increasing portfolio size is to minimize the draw down. This provide a good boost. To manage risk, the portfolio which are mainly SG Equity is one of my future Retirement support. In addition to Pension, I also have Cash, Property, Gov securities and Fixed deposits which are growing in tandem. One thing which I agree, that we have to watch carefully is Insurance as well.
Cory
2019-0526
