All posts tagged Money

How Successful Property Investors Think

Posted on Mar 3, 2013 in Articles, Investment Strategy by 0 Comments

 

I recently ran across this book titled How Rich People Think by Steve Siebold.  I was immediately struck by the similarities between thoughts & actions of the “World Class” investor and the “Middle Class” investor.

In the book, Steve listed 21 ways how the wealthy think differently from average people, and he divides people between “World Class” and “Middle Class” thinkers. In the interest of sensitivity, I will call the 2 investor groups the 99% and the 1%.

I’ll list 9 out of his 21 Rules here (I’m sure you’ll have the decency to go read the book and educate yourself on the rest) and briefly explain the similarities on some of the rules in the arena of property investment.

4 Fundamental Rules of Property Investment

Posted on Feb 18, 2013 in Articles, Fundamentals Of Real Estate, Investment Strategy by 5 Comments

In any investments especially in property due to its high illiquid nature, there are 4 fundamental rules of property investment any ordinary investors have to adhere to, no matter what. We want to make sure our money:

  1. Must Be Capital Preserved (the ability to at least preserve the initial investment capital without losing it),
  2. Must Be in Constant Velocity (generating immediate returns)
  3. Must Be In Control (YOU Control the investment, not the other way)
  4. Must Never Invest in Something We Don’t Understand Well

These are the 4 rules which have I followed religiously ever since embarking on my property investment journey 10 years ago and these crucial rules have helped cushioned my property investments in the ups and downs since 2003-2012. These rules are not entirely created by me, but rather they have always been used by successful investors and entrepreneurs whom I have the privilege to learn from. One of them is my late wealthy grandfather who had built a multi-million dollar business and property empire by simply adhering to these 4 fundamental investment rules.

Diary of a Sudden-Rich – What should Adam do?

Posted on Oct 15, 2012 in Articles, Singapore Property Investment by 1 Comment

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. Robert G. Allen – Creating Wealth

Excerpts from the previous article on The Diary of a Sudden-Rich:

“..my home value has recently appreciated and doubled in value! I am thinking of selling it so that I can upgrade my home. And my property agent friend has also calculated that I will have some spare cash to purchase another smaller unit for investment purpose since I don’t have any other investments. So this is my plan: I will sell my home, upgrade to a bigger unit and purchase a smaller unit for investment. The government is building an MRT system near the location. I know that the price is high today but with the new MRT under construction, I think the price will not depreciate much in a downturn. Years later, when my children grow up, I will sell away the bigger home, take the proceeds upon capital appreciation and move into the smaller unit for retirement.”

If you remember yourself reading the article, you must be thinking about Adam’s investment plan. Adam is 45 years of age and a Chief Operating Office of a MNC. I met up with Adam recently and get to know some details about the two properties he may want to purchase:

  1. A 4 bed room unit that he is eyeing on (recently TOP) will cost at least $1.7m. This will be his new home.
  2. A 2 bed room unit (an older project estimated to be about 7 years old) will cost about $850k. This will be his ‘investment property’.
  3. Currently Adam has outstanding loan of about $300k for his current home. He bought his current home for about $650k during the low times of 2005.

The Diary of a Sudden-Rich

Posted on Sep 10, 2012 in Articles by 0 Comments

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. Robert G. Allen – Creating Wealth

My name is Adam.

I am a working professional, with a steady monthly pay check and a 13th month yearly bonus, if not more. I thank my bosses for the job security but hope to retire early. My total savings in my bank accounts today stands at $100k plus and wonder if it’s enough to support my wife and I during our retirement years. The good news is – my home value has appreciated and doubled in value!

 My plan: Sell my home, upgrade to a bigger unit and purchase a smaller unit for investment on the advice of my ‘experienced’ property agent friend. With the MRT coming up in the next few years, I think the price will not depreciate much in a downturn. Years later, when my children grow up, I will sell away the bigger home, take the proceeds upon capital appreciation and move into the smaller unit for retirement.

Invest time to learn, then money

Adam is one of the many people that I know of with ‘sudden’ riches from property appreciation in recent years. Many people are like him. They are employees we see every day who are happy working not-to-lose and turning their savings or ‘sudden riches’ to financial or property ‘experts’ rather than learning to be their own financial expert. Investing their money is secondary. Adam belongs to the group of people known as “passive investor” who invests no time to learn but invests money.

Say Say Only, All Up To You!

Posted on Sep 5, 2012 in Coffee Talk by 0 Comments

coffee-talkDreams vs Goals

A goal has a process.

Many people wants to get rich, buy that house, buy that car, get out of the rat race, lead that life, but why do they fail? The reason is most people have dreams but do not focus on the process necessary to achieve their dreams. For example, many people want to lose weight but what gets in their way of achieving their goal is the process of change in diet and exercise.

Most people dream, complain, whine, and give excuses. So instead of achieving their goal, their dream of a healthier, more attractive body remains a dream.

The other day, my fitness trainer said how envy he was with me, “How I wish to be like you and not have to worry about work on a weekday afternoon!”

Thanking him for his compliment, I asked, “How do you plan on making your dreams come true?”

His reply was, “I don’t know. I guess I’ll just keep dreaming.”

The process is as important as the goal. So any goal without a process is just a dream. And any goal without a change in one’s daily routine is also a dream.