This article is a must read if you are interested in real estate investments

to all my richie sammyboy bros only:


No need to spend thousands of dollars attending seminars. Just need an open mind to observe and learn from others, even their mistakes. Some precious gems that I've learned just from this article. 1. Think long term and be willing to be a contrarian. 2. Have the conviction to double down if the opportunity presents itself. 3. Focus on supply, not demand. Demand is extremely difficult to forecast (but many analysts still most of their time on it. As an example, just look at how they model their spreadsheets which is always built on revenue forecasts). Supply is way easier to forecast. When there is oversupply, price will follow accordingly. 4. Adopt a dual track strategy. Keep some property for long term capital gains, and "Buy, Fix, Sell" for income. 5. Manage your risks carefully and structure your debt properly. 6. Recognise what is the life source of your business / investment and structure it properly. 7. Stay humble. Remember Icarus.

http://www.ft.com/cms/s/0/e2e00d74-e76e-11e5-bc31-138df2ae9ee6.html#axzz44ppHwiTp

krafty said:

to all my richie sammyboy bros only:


No need to spend thousands of dollars attending seminars. Just need an open mind to observe and learn from others, even their mistakes. Some precious gems that I've learned just from this article. 1. Think long term and be willing to be a contrarian. 2. Have the conviction to double down if the opportunity presents itself. 3. Focus on supply, not demand. Demand is extremely difficult to forecast (but many analysts still most of their time on it. As an example, just look at how they model their spreadsheets which is always built on revenue forecasts). Supply is way easier to forecast. When there is oversupply, price will follow accordingly. 4. Adopt a dual track strategy. Keep some property for long term capital gains, and "Buy, Fix, Sell" for income. 5. Manage your risks carefully and structure your debt properly. 6. Recognise what is the life source of your business / investment and structure it properly. 7. Stay humble. Remember Icarus.

http://www.ft.com/cms/s/0/e2e00d74-e76e-11e5-bc31-138df2ae9ee6.html#axzz44ppHwiTp

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Hi Kraft, cannot see the ft article, can you help to post it here...... Thanks!

pdf enclosed, cheers!

View attachment Property Investment strategy_ The new property barons - FT.pdf

krafty said:

pdf enclosed, cheers!

View attachment 26135

Click to expand...

Hi Kraft, hahahaha, just did a short read.....its for the big boys type of article....
Thanks a lot to post it too.

It is going downhill... What goes up must come down.

I would be near impossible for normal SG citizens to make money on real estate nowadays, especially with the property curbs.

In SG, the only way to make money in real estate is to flip when the market is rising. Even so, only the experienced flipper would know how to get in earlier and exit the market altogether somewhere near the peak.

The only way to make money is to take risks and go against the herd mentality. Seen so many people KPKB about prices getting expensive, only to go in too late and then pray like mad that prices don't drop when the music stops.

Then there is the other who NATO, KPKB as prices go up and then laugh at others misfortune when prices go down, all the while being a spectator.

Another one would be the chiongster who claims innate knowledge and brags about it, but is likely to be so highly leveraged, to the point of putting deposit with credit cards and ready credit, feverishly transferring balance from one maxed out credit line to another, that would then lose his pants the second a slight correction takes place.

Finally, the new bird is one who loses his investing virginity with beginners luck or jinx, and then ends up as one of the class above. Then again, its from the lessons learned the hard way that can forge a person's resolve to succeed too.

If I have learned anything, investing is a psychological game between me, myself and I based information available at that time. No banker, property developer, guru can define for me the time to invest, how much risk, how much capital and how much holding power can I commit to an investment. The key is, all information should be carefully considered, and the final trigger to go or no go lies with me.

So unless one can maintain an investment mindset without succumbing to peer pressure, better to put money in CPF or pay off your HDB, the rest can just park in a bank.

aiyah. u.s. article for u.s. real estate market. the laws in the u.s. are different from those in sg, although basic principles of real estate investment apply.

in the u.s., the main benefit of owning multiple properties is tied to tax reduction or avoidance. building equity (not necessarily capital gains) with real estate over the long term is a trustworthy, tried and true method. for example, a ww2 veteran returned to palo alto and bought a humble 1300 sq. ft. home with 6000 sq. ft. of land for $27k in 1947, and now the same home without upgrades nor remodeling is selling for over $2.7m. it's not capital gains as seller doesn't pay capital gains tax on the profit. when owning and renting out properties, landlord can also depreciate value of home over 20 years and deduct amortization to tax filings. with rent collected, the deduction can offset the rental income - results in negative tax in some cases if amortized value of home far exceeds rental income, which is typically the case in sillycon valley. the few major exposures with owning and renting out properties are upkeep or repairs, local or parcel tax (can be as high as $20k per year for a $1.5m property depending on state, county or city; in nj, it's 4 times that), errant or hostile tenants.

I wonder if anyone here can comment on how people make money with this "negative gaining" policy thing that they have in Oz?

Apparently, losing money on property can help achieve astronomical rates of return???

WTF?

MadrigalWheel said:

I wonder if anyone here can comment on how people make money with this "negative gaining" policy thing that they have in Oz?

Apparently, losing money on property can help achieve astronomical rates of return???

WTF?

Click to expand...

i think this article will explain about negative gearing in OZ:

http://www.taxpayer.com.au/article/...gative-gearing---pros--cons--and-how-it-works

MadrigalWheel said:

I wonder if anyone here can comment on how people make money with this "negative gaining" policy thing that they have in Oz?

Apparently, losing money on property can help achieve astronomical rates of return???

WTF?

Click to expand...

You don't make any money. Its just being "offset" by your income tax. You "Earn" astronomical returns when you sell the place. Predicated by the rise in your property value. The risk is that your property might stay flat or dropped in value, in that case you need to pay the difference to maintain your LVR should that happen.