Jun 26, 2010
Probably no property bubble here yet: MM
THERE is probably no bubble in Singapore's property market, Minister Mentor Lee Kuan Yew said yesterday.
The sharp price rises that have been seen are 'part of the total liquidity in the whole world system', said Mr Lee, noting that interest rates are low, and foreigners still see properties as affordable.
'Even if we cap our excess, people in Hong Kong, Indonesia, will say, compared to what I have to pay, Singapore is cheap, let's buy it,' he added.
'And apart from landed properties, they can buy into any condos.'
Mr Lee, who was speaking at a dinner hosted by the Association of Banks in Singapore, said that the Government is convinced that there is real underlying demand for residential property.
'So it's probably not a bubble yet,' he added.
Still, he pointed out that the Government has taken measures to address concerns relating to the market overheating, including releasing more land to developers and putting in place more stringent rules for buyers when borrowing from banks to finance property.
'More land is being released, to dampen the enthusiasm of everybody rushing for the latest release, and we've told the banks to be more prudent and have a higher downpayment,' said Mr Lee.
'These are the precautions we can take, but it does not stop the Indonesians or the Thais or the Malaysian Chinese or the Filipino Chinese from coming here and saying, 'Compared to what I have to pay in my country, this is cheap'.'
Mr Lee was responding to a question by a Standard Chartered banker who had asked about whether he was worried about property prices here.
Above is a part of the report extracted from The Straits Times on June 26, 2010.
MM uses the word PROBABLY, hence probably there is indeed a property bubble forming, but not big enough to burst yet? Nobody knows.
I agree the statement that he make in the middle and last part, "Compared to what I have to pay in my country, this is cheap." He mentioned this statement twice!
I have been noticing that the property prices in the neighbouring countries and that includes Hong Kong and China, that their property prices are much higher than our homeland.
So what happens when the housing prices, or the 'bubble' burst in those countries?
Singapore property prices will follow suit as the investors will go back to their country to buy the properties there. But where do they find the money? By selling the properties here.
This is another example of the simple theory of "Supply and Demand", the most important topic in economics.
As the number of people to buy properties are limited, the buying craze must stop somewhere, hence demand drops. Then it will come a day when those people who follow blindly to buy, will have to sell the properties at a loss. This will slowly translate to more supply over demand and hence prices must fall.
Meanwhile, let's continue to build our warchests.
Friday, June 25, 2010
Tuesday, June 22, 2010
Are property prices going to hold or ready to experience free fall?
22 June 2010
Two independent reports from straits times and channalnewasia.com commented on recent property sales showing signs of slowdown. This two reports were written only two weeks from the last news that developer sales slowed by almost 60%.
The straits times wrote:
Residential property sector takes a breather
Channelnewasia.com wrote:
Caveats lodged in May 2010 dropped 41%
These two reports once again gave us evidence that the number of buyers out there are exhausted by the recent sales since January. We must remember that the number of people buying properties are limited, hence the buying craze must stop somewhere.
Property agents are still saying that prices will not drop. What kind of sales tactic is this? It comes to show that these agents are only interested to push sales. They do not care if the buyers will profit after that. If they are so sure that the prices are going to go up further, why don't they buy a few units each?
Of all the property showflats that I have seen, I would only consider one that is of value. If you want to know which property and why, email me.
There is another one property that I am looking forward to the launch, that I feel also have value. I will update you once I have seen it.
Meanwhile, just build our war chests and wait patiently.
Two independent reports from straits times and channalnewasia.com commented on recent property sales showing signs of slowdown. This two reports were written only two weeks from the last news that developer sales slowed by almost 60%.
The straits times wrote:
Residential property sector takes a breather
Channelnewasia.com wrote:
Caveats lodged in May 2010 dropped 41%
These two reports once again gave us evidence that the number of buyers out there are exhausted by the recent sales since January. We must remember that the number of people buying properties are limited, hence the buying craze must stop somewhere.
Property agents are still saying that prices will not drop. What kind of sales tactic is this? It comes to show that these agents are only interested to push sales. They do not care if the buyers will profit after that. If they are so sure that the prices are going to go up further, why don't they buy a few units each?
Of all the property showflats that I have seen, I would only consider one that is of value. If you want to know which property and why, email me.
There is another one property that I am looking forward to the launch, that I feel also have value. I will update you once I have seen it.
Meanwhile, just build our war chests and wait patiently.
Wednesday, June 16, 2010
After building your warchest with cash and CPF monies, then what?
Just a month ago, on 19 May 2010, I wrote that it's time to get ready money to invest in property, or to upgrade to a higer value property. Today's business times and straits times reported that developers' sale of new units has slowed by almost 60%. It comes to show that supply of new units have excess over demands from the buyers.
Yesterday, an agent sms me to consider a $1.355 million 16th floor 3+1 unit 99 years unit in Kovan Residences. Upon receiving that sms, I checked the ura website for transacted prices and found that the units with similar sizes of 1760 sqft was sold only at about between $1.08 to $1.2 million. The asking price is about 20% or 30% above what was transacted about a year ago. That's ridiculous, isn't it?
Well, if you never forget what Mr Buffett said, "Be fearful when people are greedy and be greedy when people are fearful." I feel that this is the time when people are greedy. This "greed" started 5 months ago in January. This is the time to be more patient as before, and to gather all our ammunitions, i.e. $$$, so that we will be able to strike when people are fearful. This time should come soon, maybe by the end of this year.
There has been reports that smaller units were snapped up the very day it was launched. Don't these people have to really consider the direction and facing when buying properties? These may be the reasons:-
1. If I do not buy now, I will miss the boat.
2. Since everyone else is buying now, the price should be going up later.
3. It's still under construction, hence my monthly installment is peanuts.
It's right that one has to pay only a few hundreds of dollars monthly under the progressive payment scheme. For example, if an individual buys a $1.1 million property, the first three years of payment is about $350 to $900. Only upon TOP, the buyer will need to pay $2600. However, think twice, will I be able to pay the $2600 monthly after TOP?
Let's think about it. The properties under the deferred payment scheme a few years ago will get their TOP this year. Those properties were launch 2 to 3 years ago. That was the time when people just buy the properties without considering, because they have the mentality that I only to pay 5% cash, and 15% from CPF monies, and the rest after TOP. I am currently following a few properties that were on deferred payment scheme, and are going to TOP this year. I believe these properties will be the ones that will create panic selling towards the end of this year.
So what am I doing now? Just need building up my warchest and ammunitions and have the patience to wait for the right time to strike.
Yesterday, an agent sms me to consider a $1.355 million 16th floor 3+1 unit 99 years unit in Kovan Residences. Upon receiving that sms, I checked the ura website for transacted prices and found that the units with similar sizes of 1760 sqft was sold only at about between $1.08 to $1.2 million. The asking price is about 20% or 30% above what was transacted about a year ago. That's ridiculous, isn't it?
Well, if you never forget what Mr Buffett said, "Be fearful when people are greedy and be greedy when people are fearful." I feel that this is the time when people are greedy. This "greed" started 5 months ago in January. This is the time to be more patient as before, and to gather all our ammunitions, i.e. $$$, so that we will be able to strike when people are fearful. This time should come soon, maybe by the end of this year.
There has been reports that smaller units were snapped up the very day it was launched. Don't these people have to really consider the direction and facing when buying properties? These may be the reasons:-
1. If I do not buy now, I will miss the boat.
2. Since everyone else is buying now, the price should be going up later.
3. It's still under construction, hence my monthly installment is peanuts.
It's right that one has to pay only a few hundreds of dollars monthly under the progressive payment scheme. For example, if an individual buys a $1.1 million property, the first three years of payment is about $350 to $900. Only upon TOP, the buyer will need to pay $2600. However, think twice, will I be able to pay the $2600 monthly after TOP?
Let's think about it. The properties under the deferred payment scheme a few years ago will get their TOP this year. Those properties were launch 2 to 3 years ago. That was the time when people just buy the properties without considering, because they have the mentality that I only to pay 5% cash, and 15% from CPF monies, and the rest after TOP. I am currently following a few properties that were on deferred payment scheme, and are going to TOP this year. I believe these properties will be the ones that will create panic selling towards the end of this year.
So what am I doing now? Just need building up my warchest and ammunitions and have the patience to wait for the right time to strike.
Wednesday, May 19, 2010
Get your cash ready for property investment
Investment in the properties is not as difficult as you may have thought.
There may be some fears that's holding you back. There fears includes "No money", "No experience", "The price is too high", "What if there is a recession?"
Do you experience one or more of these fear?
If you do, then it's quite normal. Everyone will have to start something, somewhere at sometime. Once you start and gain experience, you will eliminate all those fears that we mentioned above.
Now it's the time to get ready your cash and CPF to buy an investment property. We'll wait for a good chance to buy the property at a bargain. Meanwhile, it's always good to look at the papers and websites to search keep track of the property prices.
Step 1: Choose a few areas that you would like the investment property to be.
Step 2: Check the transacted prices through http://www.ura.gov.sg/
Step 3: Check the newspapers' classified, Internet (http://www.propertyguru.com.sg/ or http://www.iproperty.com.sg/ or http://www.st701.com.sg/) once a week.
Step 4: Get a very reliable property agent, who also has experience, to look out for fire sale out there.
Step 5: Get ready your cash, to pay the 5% and stamp duty. Always be ready to grab one property whenever possible.
Step 6: Wait patiently if you cannot find one now or in the near future.
The 6 steps above can help you grow your assets and cash till you retire.
If you would like to know how much returns you can get investing properties, kindly email to desjac@yahoo.com
Have fun searching.
There may be some fears that's holding you back. There fears includes "No money", "No experience", "The price is too high", "What if there is a recession?"
Do you experience one or more of these fear?
If you do, then it's quite normal. Everyone will have to start something, somewhere at sometime. Once you start and gain experience, you will eliminate all those fears that we mentioned above.
Now it's the time to get ready your cash and CPF to buy an investment property. We'll wait for a good chance to buy the property at a bargain. Meanwhile, it's always good to look at the papers and websites to search keep track of the property prices.
Step 1: Choose a few areas that you would like the investment property to be.
Step 2: Check the transacted prices through http://www.ura.gov.sg/
Step 3: Check the newspapers' classified, Internet (http://www.propertyguru.com.sg/ or http://www.iproperty.com.sg/ or http://www.st701.com.sg/) once a week.
Step 4: Get a very reliable property agent, who also has experience, to look out for fire sale out there.
Step 5: Get ready your cash, to pay the 5% and stamp duty. Always be ready to grab one property whenever possible.
Step 6: Wait patiently if you cannot find one now or in the near future.
The 6 steps above can help you grow your assets and cash till you retire.
If you would like to know how much returns you can get investing properties, kindly email to desjac@yahoo.com
Have fun searching.
Thursday, May 6, 2010
Stockpiling Time
Last night, 6 May 2010, DOW went down more than 3% and the Greece situation has caused panic selling around the world. This is the period we like. It's time to stockpile some value stocks now.
In Singapore today, 7 May 2010, people are panic selling too. Popular is trading between $0.145 and $0.150, banks are worse hit. All the three banks are down, despite reporting better than expected results.
In the US, Citigroup is trading below $4, for the first time in 3 months. It is reported that Citigroup is not involved in the technical glitch in NYSE last night, and they are expanding everywhere outside US, except Europe. I still agree with other analyst that Citi will reach $12 by 2012. Earnings in Citi are solid and they have already firm the company and earnings are coming in.
Popular's new MD maded an announcement that Popular will have a single digit earnings growth this year. I think people have forgotten about this annoucement and panic selling Popular too. At $0.15, it's really a steal. Dividend yield is at 13.3% (if according to historical dividend of $0.02 annually). Popular will announce annual result in late May or early June, therefore I feel that this is a good time to stockpile.
The above is just some personal thoughts, it still depends on yourself whether to buy or not.
Cheers.
Investment Courses for teachers on 31 May and 1 June.
Sign up now.
In Singapore today, 7 May 2010, people are panic selling too. Popular is trading between $0.145 and $0.150, banks are worse hit. All the three banks are down, despite reporting better than expected results.
In the US, Citigroup is trading below $4, for the first time in 3 months. It is reported that Citigroup is not involved in the technical glitch in NYSE last night, and they are expanding everywhere outside US, except Europe. I still agree with other analyst that Citi will reach $12 by 2012. Earnings in Citi are solid and they have already firm the company and earnings are coming in.
Popular's new MD maded an announcement that Popular will have a single digit earnings growth this year. I think people have forgotten about this annoucement and panic selling Popular too. At $0.15, it's really a steal. Dividend yield is at 13.3% (if according to historical dividend of $0.02 annually). Popular will announce annual result in late May or early June, therefore I feel that this is a good time to stockpile.
The above is just some personal thoughts, it still depends on yourself whether to buy or not.
Cheers.
Investment Courses for teachers on 31 May and 1 June.
Sign up now.
Thursday, March 25, 2010
Be a savvy value investor!!!
To all the teachers out there:
Be a savvy value investor.
Course fee: S$400
Date of course: 31 May 2010 and 1 June 2010, 4 pm
Venue: Jac's Learning Centre @ The Jelutung CC
Send an email to admin@jlc.com.sg to book your place.
*Reservation fee of S$100 applies.
Be a savvy value investor.
- Use timeless investment strategies to grow your savings at unbelievable rate.
- Grow your savings at a rate 10 times faster than leaving the money in your savings account.
- Plan for early retirement.
- Your route to financial freedom starts now.
Course fee: S$400
Date of course: 31 May 2010 and 1 June 2010, 4 pm
Venue: Jac's Learning Centre @ The Jelutung CC
Send an email to admin@jlc.com.sg to book your place.
*Reservation fee of S$100 applies.
Monday, March 15, 2010
Popular Holdings Limited, is it a payback time stock?
Recently, when I was catching up with an ex-colleague and we happened to talk about Popular Holdings stocks. He said nothing buy give negative views on the company. And the reason? Well, he said that his wife bought it at $0.30 and until now has dropped to hovering around $0.155 and $0.16. So, my next question was, does she know what she is buying into? His reply, "Nope, just know that it's popular bookshop and that it's cheap at $0.30. Now, you know what I mean by know the right price to buy a stock/own a business.
Well, let's see if Popular Holdings qualifies as a payback time stock?
Level 1 Check
Does the company mean anything to me? Well, I know it sells books and properties.
Does the company has a strong moat? I know that they have 132 bookstores in Singapore, Malaysia and Hong Kong. And I also know that when people think of buying books or stationaries, they will think of Popular Bookstore.
Does the Management do a good job with investor's money? From past records, returns on Equity has been above 12%, hence I think the Management has done a good job.
Level 2 Check
Now that the company has passed the level 1 check, what should we do now?
We look at these numbers for the past 5 years. Sales, Net Profit, Equity and Debt
Sales rises from $347mil to $450mil.
Net Profit rises from $11mil to $22mil (doubles in 5 years, hence 15% compounded for past 5 years)
Equity rises from $125mil to $154mil.
Debt is currently at $19mil, where they can actually paid back within 1 year. (must be less than 3 years)
Looks like Popular Holdings is a payback stock to me.
Market Cap for Popular now is approximately $100 million (Share price x Number of shares).
Now with this $100 million and current net income of $22mil and growing at rate of 10%, the payback time is slightly less than 4 years. Wow, that's a very good business to own. Hence, it's a good company to stockpile!
Last but not least, Popular Holdings reported their 3Q results, ending 31 Jan 2010, on 12 March 2010. It's net profit soars by a whopping 47.5%. Her EPS for the first 3 quarters added up to S$0.035. Her Returns on Equity is 14.7%, according to equity of 23.75 cents per share.
Anyway, it's current price of $0.16 is already a discount compared to it's equity of 23.75 cents.
Now, you can try to buy 10,000 shares at $1,600 and see if you can double that in 4 years. Or else just let it pass.
Cheers.
Well, let's see if Popular Holdings qualifies as a payback time stock?
Level 1 Check
Does the company mean anything to me? Well, I know it sells books and properties.
Does the company has a strong moat? I know that they have 132 bookstores in Singapore, Malaysia and Hong Kong. And I also know that when people think of buying books or stationaries, they will think of Popular Bookstore.
Does the Management do a good job with investor's money? From past records, returns on Equity has been above 12%, hence I think the Management has done a good job.
Level 2 Check
Now that the company has passed the level 1 check, what should we do now?
We look at these numbers for the past 5 years. Sales, Net Profit, Equity and Debt
Sales rises from $347mil to $450mil.
Net Profit rises from $11mil to $22mil (doubles in 5 years, hence 15% compounded for past 5 years)
Equity rises from $125mil to $154mil.
Debt is currently at $19mil, where they can actually paid back within 1 year. (must be less than 3 years)
Looks like Popular Holdings is a payback stock to me.
Market Cap for Popular now is approximately $100 million (Share price x Number of shares).
Now with this $100 million and current net income of $22mil and growing at rate of 10%, the payback time is slightly less than 4 years. Wow, that's a very good business to own. Hence, it's a good company to stockpile!
Last but not least, Popular Holdings reported their 3Q results, ending 31 Jan 2010, on 12 March 2010. It's net profit soars by a whopping 47.5%. Her EPS for the first 3 quarters added up to S$0.035. Her Returns on Equity is 14.7%, according to equity of 23.75 cents per share.
Anyway, it's current price of $0.16 is already a discount compared to it's equity of 23.75 cents.
Now, you can try to buy 10,000 shares at $1,600 and see if you can double that in 4 years. Or else just let it pass.
Cheers.
Wednesday, March 10, 2010
Payback Time
I have just received my book Payback Time: Making Big Money is the best revenge! by Phil Town. I pre-order this book in December 2009.
I have just finished the first 2 chapters and find it very interesting. I was shock to read that how much money were actually wasted if we were to put our money with some mutual fund companies. For the past 15 years, only 4% of the hundreds and thousands of are able to beat the S&P index each year. What happen to the 96% of them?
Hence, it is important to manage your own money and do your homework. It is not difficult to do the calculations.
There is an excel template done up. All you need is just to key in the numbers, where you can find easily on the internet, either MSN.com or Yahoo.com.
I would like to share what I have learnt, through my own reading, with any friends or relatives, for free. I would charge others for $399. From 2010 to 2015, it will really be payback time as these 5 year will be bullish.
Cheers and let's make big money.....
I have just finished the first 2 chapters and find it very interesting. I was shock to read that how much money were actually wasted if we were to put our money with some mutual fund companies. For the past 15 years, only 4% of the hundreds and thousands of are able to beat the S&P index each year. What happen to the 96% of them?
Hence, it is important to manage your own money and do your homework. It is not difficult to do the calculations.
There is an excel template done up. All you need is just to key in the numbers, where you can find easily on the internet, either MSN.com or Yahoo.com.
I would like to share what I have learnt, through my own reading, with any friends or relatives, for free. I would charge others for $399. From 2010 to 2015, it will really be payback time as these 5 year will be bullish.
Cheers and let's make big money.....
Monday, March 8, 2010
Goldman and Citigroup to push to higher stock price?
Goldman Sachs (US:GS) was reported to push through $200. I do agree with it. Goldman is a fundamentally sound company and has earnings of $22 per share in 2009. Multiplying that EPS by a P/E between 10 and 12, the share price should be between $220 and $262. Goldman Sachs is a steal at current P/E of only 7.73.
What about Citigroup?
Citigroup (US:C) is currently strong and healthier after restructuring by selling off assets that are not core to Citi. I believe that C will turn into black when they report their 1Q 2010 results on 19 April 2010, 8am ET.
Another reason to buy C is because George Soros, one of the investment legends, has buy in C shares in the last quarter where the price was between $3.20 to $3.40. I think that C will breakthrough $7 buy end of this year.
Quote from CNBC (Mad Money) http://www.cnbc.com/id/35732415/site/14081545
He praised the company for selling off its unessential divisions at good prices and focusing on the products that work. Cramer also commended CEO Vikram Pandit for turning the company around, something he gets little credit for. In fact, Cramer thinks Citi [C 3.56 0.06 (+1.71%) ] will reach $12 in 2012 largely because he knows Pandit is there steering the ship.
“Now that we know Pandit is here to stay,” Cramer said, “you want to buy all the Citigroup you can when the government starts selling its huge stake.”
“This may be the last great bargain left in the banking business on Wall Street,” he said. “Take it.”
Cheers!
About Goldman Sachs
Goldman Sachs Group Inc. (The). The Group's principal activities are to provide global investment banking, asset management and securities services worldwide to diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. The Group operates in three segments: Investment Banking, Trading and Principal Investments and Asset Management and Securities Services. Investing Banking segment underwrites equity and debt instrument and provides financial advisory services for acquisitions and mergers. Trading and Principal Investments and Asset Management segment facilitates customer transactions and trading of fixed income and equity products, currencies, commodities and derivatives. Asset Management and Securities Services segment provides investment strategies, advice and planning across all major asset classes and provides prime brokerage, financing and securities lending services. The Group operates offices in over 25 countries.
About Citigroup
Citigroup Inc.. The Group's principal activities are to provide financial services through five divisions: Global consumer includes consumer franchise encompassing, banking, lending, credit card services and wealth management services. The Global Cards segment is a global issuer of credit cards through the MasterCard, Visa, Diners Club, Private Label and American Express platforms. The Consumer Banking segment includes a global, full-service consumer franchise delivering a wide array of banking, lending, insurance and investment services . Institutional Clients Group segment provide corporations, governments, institutions and investors. The Global Wealth Management segment is composed of the Smith Barney Private Client businesses and Citigroup Private Bank and Corporate/Other includes net treasury results, unallocated corporate expenses, offsets to certain line-item reclassifications.
What about Citigroup?
Citigroup (US:C) is currently strong and healthier after restructuring by selling off assets that are not core to Citi. I believe that C will turn into black when they report their 1Q 2010 results on 19 April 2010, 8am ET.
Another reason to buy C is because George Soros, one of the investment legends, has buy in C shares in the last quarter where the price was between $3.20 to $3.40. I think that C will breakthrough $7 buy end of this year.
Quote from CNBC (Mad Money) http://www.cnbc.com/id/35732415/site/14081545
He praised the company for selling off its unessential divisions at good prices and focusing on the products that work. Cramer also commended CEO Vikram Pandit for turning the company around, something he gets little credit for. In fact, Cramer thinks Citi [C 3.56 0.06 (+1.71%) ] will reach $12 in 2012 largely because he knows Pandit is there steering the ship.
“Now that we know Pandit is here to stay,” Cramer said, “you want to buy all the Citigroup you can when the government starts selling its huge stake.”
“This may be the last great bargain left in the banking business on Wall Street,” he said. “Take it.”
Cheers!
About Goldman Sachs
Goldman Sachs Group Inc. (The). The Group's principal activities are to provide global investment banking, asset management and securities services worldwide to diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. The Group operates in three segments: Investment Banking, Trading and Principal Investments and Asset Management and Securities Services. Investing Banking segment underwrites equity and debt instrument and provides financial advisory services for acquisitions and mergers. Trading and Principal Investments and Asset Management segment facilitates customer transactions and trading of fixed income and equity products, currencies, commodities and derivatives. Asset Management and Securities Services segment provides investment strategies, advice and planning across all major asset classes and provides prime brokerage, financing and securities lending services. The Group operates offices in over 25 countries.
About Citigroup
Citigroup Inc.. The Group's principal activities are to provide financial services through five divisions: Global consumer includes consumer franchise encompassing, banking, lending, credit card services and wealth management services. The Global Cards segment is a global issuer of credit cards through the MasterCard, Visa, Diners Club, Private Label and American Express platforms. The Consumer Banking segment includes a global, full-service consumer franchise delivering a wide array of banking, lending, insurance and investment services . Institutional Clients Group segment provide corporations, governments, institutions and investors. The Global Wealth Management segment is composed of the Smith Barney Private Client businesses and Citigroup Private Bank and Corporate/Other includes net treasury results, unallocated corporate expenses, offsets to certain line-item reclassifications.
Thursday, March 4, 2010
Is it a good time to buy Citigroup now?
Citi CEO says the megabank is "different," "healthier" since it needed US$45 billion bailout - CNBC
Make your choice after reading what Pandit said by clicking on the above link.
Make your choice after reading what Pandit said by clicking on the above link.
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