Last few years of Sell-One-Buy-Two Huat Big Big scheme create a lot housing loan business for banks….many banks are laughing with big big profits now

[k1976]

 

[k1976]

 

[joemartini]

i have seen the video on that 1 quadrant investment.
sell 1 buy 2.
or sell 1 and now own multiple properties.

basically is like unit trust investment or mutual funds or Collective investment schemes.
you buy shares in a company, say Microsoft over NYSE.
so now you are microsoft shareholder. you don't own microsoft 100%.

you buy a condo say 1.2mil. you pay up. so now you own the condo 100%. yes.

I quadrant investment. the money is pooled from several investors. say 10 individuals. each forking out 500k. so its 5mil.
5mil goes out to buy several residential /commercial / industrial properties... 2 condos, 1 office, 1 warehouse.
so now you and the other 9 individuals owns a portion of these 4 properties. expenses, profits, rental income, gains, losses are share equally among the 10 of you.

of course, very hong and misleading to say I sold my HDB or condo, and now I own 4 properties!!!
do you really own all 4 properties 100% fully paid???

I bought a unit trust fund. invested in numerous American companies. Coca cola, Mcdonalds, Philip Morris, Boeing, Intel, Morgan Stanley, Lockheed Martin etc...
so i go around and tell ppl I owned these companies???


pls dispute me if i am wrong.

 

[joemartini]

To illustrate this, let’s look at the same two scenarios:

Scenario #1

Income needed in 2020	3BR (Own Stay)	1BR (Investment)
Purchase Price (2020)	$1,500,000	$650,000
Loan Amount (75%)	$1,125,000	$487,500
Mortgage (Based on 3.5% floor rate, 30 year tenure)	$5,052	$2,189
Min income needed (Based on 60% TDSR)	$8,420	$3,648

Here, you see that with a 3.5% floor rate and a 60% TDSR back in 2020, you’ll need $8,420 per month and $3,648 per month to do this strategy.

Scenario #2

Income needed in 2023	3BR (Own Stay)	1BR (Investment)
Purchase Price (2023)	$1,905,000	$825,500
Loan Amount (75%)	$1,428,750	$619,125
Mortgage (Based on 4% floor rate, 30-year tenure)	$6,821	$2,956
Min income needed (Based on 55% TDSR)	$12,402	$5,374
Difference	47.3%	47.3%

With the increased rate from 3.5% to 4% and a reduction in TDSR from 60% to 55%, the same couple now needs to earn at least $12,402 and $5,374 based on the increased prices and increased cooling measures.

This resulted in an increase in income required of 47.3% which is much higher than the nominal increase in median wages between 2020 to 2023.

But rental prices went up during this time, prompting some to ask whether or not the investment portion of the sell 1 buy 2 still makes sense.

Here’s the difference if you had secured a 3-year rental contract and loan agreement in 2020 versus 2023.

Info	2020	2023
Purchase Price (1BR Investment)	$650,000	$825,500
Loan Amount	$487,500	$619,125
Monthly Rent (Source: SRI)	$2,387	$3,621
Annual Rent (Lock in 3 Years)	$85,932	$130,356
Less Agent Fees (1 Month)	$2,387	$3,621
Less Interest Expense (Lock in 3 Years at 1.3% vs 3.5%)	$18,247	$36,928
Cashflow	$65,298	$89,807

If we’re purely looking at the rental property, the increase in rent does outweigh the increase in interest rates. Thus, the investment portion still makes sense, provided you can still afford the property.

I thought interest now going down...its more easier to financially sustain your multiple condo mortgage payments...??

 

[k1976]

EDMW Fav song ….. Condo Condo Condo

 

[k1976]

I thought interest now going down...its more easier to financially sustain your multiple condo mortgage payments...??

Recap mah…..Our lifetime Big show starting liao

 

[k1976]

i have seen the video on that 1 quadrant investment.
sell 1 buy 2.
or sell 1 and now own multiple properties.

basically is like unit trust investment or mutual funds or Collective investment schemes.
you buy shares in a company, say Microsoft over NYSE.
so now you are microsoft shareholder. you don't own microsoft 100%.

you buy a condo say 1.2mil. you pay up. so now you own the condo 100%. yes.

I quadrant investment. the money is pooled from several investors. say 10 individuals. each forking out 500k. so its 5mil.
5mil goes out to buy several residential /commercial / industrial properties... 2 condos, 1 office, 1 warehouse.
so now you and the other 9 individuals owns a portion of these 4 properties. expenses, profits, rental income, gains, losses are share equally among the 10 of you.

of course, very hong and misleading to say I sold my HDB or condo, and now I own 4 properties!!!
do you really own all 4 properties 100% fully paid???

I bought a unit trust fund. invested in numerous American companies. Coca cola, Mcdonalds, Philip Morris, Boeing, Intel, Morgan Stanley, Lockheed Martin etc...
so i go around and tell ppl I owned these companies???


pls dispute me if i am wrong.

U are correct until now

Problem ish great changes coming in global finance industry, enjoy

Nobody know how big the game rules will change with new BRIC challenges US SWIFT and block chain tech

 

[k1976]

i have seen the video on that 1 quadrant investment.
sell 1 buy 2.
or sell 1 and now own multiple properties.

basically is like unit trust investment or mutual funds or Collective investment schemes.
you buy shares in a company, say Microsoft over NYSE.
so now you are microsoft shareholder. you don't own microsoft 100%.

you buy a condo say 1.2mil. you pay up. so now you own the condo 100%. yes.

I quadrant investment. the money is pooled from several investors. say 10 individuals. each forking out 500k. so its 5mil.
5mil goes out to buy several residential /commercial / industrial properties... 2 condos, 1 office, 1 warehouse.
so now you and the other 9 individuals owns a portion of these 4 properties. expenses, profits, rental income, gains, losses are share equally among the 10 of you.

of course, very hong and misleading to say I sold my HDB or condo, and now I own 4 properties!!!
do you really own all 4 properties 100% fully paid???

I bought a unit trust fund. invested in numerous American companies. Coca cola, Mcdonalds, Philip Morris, Boeing, Intel, Morgan Stanley, Lockheed Martin etc...
so i go around and tell ppl I owned these companies???


pls dispute me if i am wrong.

It is like 全真七子天罡北斗阵

Very powerful if every stakeholder is good, but one minor lobang, whole thing kaput

 

[joemartini]

U are correct until now

Problem ish great changes coming in global finance industry, enjoy

Nobody know how big the game rules will change with new BRIC challenges US SWIFT and block chain tech