For most people, their life looks like this:
First 20 years – ignorant, blur, unsure of what they want to do in their life.
Next 20 years – impatient, egoistic, proud.
Next 20 years – tired, frustrated, lost hope, given up their goals or dreams.
Last 20 years – loss of sight, hearing, movement, health, etc…
The happiest and action-oriented people will be guided by their friends, mentor or parents in the first 20 years. They will follow sound advice and work out their plans in the next 20 years by trial or error. The next 20 years they will begin to enjoy the fruits of their labor and the last 20 years will be just relax and enjoy their life.
Two of my friends are reaching the 3rd 20 years period. They are tired, frustrated, and may have given up their goals and dreams.
How many 20 year periods a person can have? Even though we have 4 of them, the first 20 years, we are in a state of blurriness. The last 20 years, we may suffer loss of hearing, movement etc…in actual fact, we only have 40 years of productive life in which we can pursue the things important to us. Thus, treasure and value these 40 years because, it will never come back again.
Tuesday, October 30, 2012
Wednesday, October 17, 2012
A tale of two condominium
Sunglade – located 3-5 minutes walk to Serangoon MRT, interchange for northeast line and circle line and bus interchange. 3-5 minutes walk to NEX shopping mall and HDB shops, market, coffeeshop and many amenities. Price - $1.2 Million for 1,200 square feet unit, $1,000 PSF. 10 year old unit, ready to occupy anytime.
Bliss@Kovan – located next 5-8 minutes walk to Kovan MRT, northeast line. 5-8 minutes walk to Heartland Mall and HDB shops, market, coffeeshops and many amenities. Price - $1.4 Million for 1,200 square feet, $1,200 PSF. New condominium under construction. Ready to occupy in year 2015, 3 years time.
Given a choice of two different units, which will you buy?
In this market, people go for Bliss@kovan because it is new. They forget the fact that Bliss@kovan is located further from amenities than Sunglade. If the buyers want a new unit, they can simply buy Sunglade and renovate it with $30,000-$50,000. This saves them at least $100,000.
Is it really worth it to buy a brand-new sparkling unit at a poorer location by paying $200,000 more?
Bliss@Kovan – located next 5-8 minutes walk to Kovan MRT, northeast line. 5-8 minutes walk to Heartland Mall and HDB shops, market, coffeeshops and many amenities. Price - $1.4 Million for 1,200 square feet, $1,200 PSF. New condominium under construction. Ready to occupy in year 2015, 3 years time.
Given a choice of two different units, which will you buy?
In this market, people go for Bliss@kovan because it is new. They forget the fact that Bliss@kovan is located further from amenities than Sunglade. If the buyers want a new unit, they can simply buy Sunglade and renovate it with $30,000-$50,000. This saves them at least $100,000.
Is it really worth it to buy a brand-new sparkling unit at a poorer location by paying $200,000 more?
Wednesday, October 10, 2012
A big gap in price
Newton once commented that he can understand the laws of physics but never understand the insanity of mankind. I too did not understand the sellers and buyers who price their houses recently.
For example, see the table of recently transacted condominium ( source: URA website) below:
Project name address house type price transacted area sq feet unit price $psf date of option exercised
TREVISTA LORONG 3 TOA PAYOH Condominium 1,485,000 1,098 1,353 Sep-12
TREVISTA LORONG 3 TOA PAYOH Condominium 1,400,000 1,141 1,227 Sep-12
SUNGLADE SERANGOON AVENUE 2 Condominium 1,130,000 1,087 1,039 Aug-12
BISHAN 8 BISHAN STREET 21 Condominium 1,320,000 1,163 1,135 Aug-12
The condominium above share similar traits like 5-10 minute walk to MRT station, about 10-15 minute train ride to town area, near shopping mall, wet market, shops, coffeeshops, in mature estate, near schools and other amenities, size and transaction period.
However, there is a big difference in price of condominiums in Toa Payoh and Bishan and Serangoon. The transacted prices show that buyers are willing to pay $300,000 more for a unit in Trevista against a unit in Sunglade. This is where I find ridiculous because the main difference in two of them is that Trevista is a new condominium versus Sunglade which is nearly 10 year old. If the buyers want to renovate Sunglade, it surely will not cost more than $100,000. Furthermore, there is no shopping mall near Trevista like Sunglade has. Another point to note is the buyers are willing to pay $160,000 more for a smaller unit in Trevista against Bishan 8 larger unit.
Perhaps, the buyers in Toa Payoh have deeper pockets. Perhaps the buyers knew that there is gold buried inside the condominium. Many other reasons exist. A key question buyers need to ask themselves is this: is this a good buy compared to similar units around the area?
The market is never efficient. There is always someone doing something foolish. In this case, the buyers of Sunglade and Bishan 8 seemed to be more prudent than the buyers of Trevista.
For example, see the table of recently transacted condominium ( source: URA website) below:
Project name address house type price transacted area sq feet unit price $psf date of option exercised
TREVISTA LORONG 3 TOA PAYOH Condominium 1,485,000 1,098 1,353 Sep-12
TREVISTA LORONG 3 TOA PAYOH Condominium 1,400,000 1,141 1,227 Sep-12
SUNGLADE SERANGOON AVENUE 2 Condominium 1,130,000 1,087 1,039 Aug-12
BISHAN 8 BISHAN STREET 21 Condominium 1,320,000 1,163 1,135 Aug-12
The condominium above share similar traits like 5-10 minute walk to MRT station, about 10-15 minute train ride to town area, near shopping mall, wet market, shops, coffeeshops, in mature estate, near schools and other amenities, size and transaction period.
However, there is a big difference in price of condominiums in Toa Payoh and Bishan and Serangoon. The transacted prices show that buyers are willing to pay $300,000 more for a unit in Trevista against a unit in Sunglade. This is where I find ridiculous because the main difference in two of them is that Trevista is a new condominium versus Sunglade which is nearly 10 year old. If the buyers want to renovate Sunglade, it surely will not cost more than $100,000. Furthermore, there is no shopping mall near Trevista like Sunglade has. Another point to note is the buyers are willing to pay $160,000 more for a smaller unit in Trevista against Bishan 8 larger unit.
Perhaps, the buyers in Toa Payoh have deeper pockets. Perhaps the buyers knew that there is gold buried inside the condominium. Many other reasons exist. A key question buyers need to ask themselves is this: is this a good buy compared to similar units around the area?
The market is never efficient. There is always someone doing something foolish. In this case, the buyers of Sunglade and Bishan 8 seemed to be more prudent than the buyers of Trevista.
Wednesday, October 3, 2012
SGX
Today, I took a look at SGX. With a share price of $6.90 and cash per share of 60 cents, it is definitely not attractive compared to my last buy at share price of $1.65 and a cash per share of $1. Furthermore, with a price to earning ratio of 25, it looks expensive compared to the market PE ratio of 10.
Well, looks like when you got a good buy, it pays to stick with the investment through the ups and downs of the economy. This applies to people around us and our interest. I will develop more patience and hold on to my great investment and let time do the rest of the work.
Well, looks like when you got a good buy, it pays to stick with the investment through the ups and downs of the economy. This applies to people around us and our interest. I will develop more patience and hold on to my great investment and let time do the rest of the work.
Monday, October 1, 2012
Conversation with the PM?
A few nights ago, we see the Prime Minister having a national conversation with fellow Singaporeans on housing, foreign workers issues. Although I find the program a good start, I was puzzled that there was no vigorous debate on those issues. Someone in the audience will raise an issue he is concerned and the prime minister will reply to his concern. There will be no further reply from others after the prime minister conclusion. It is as if thing are rehearsed. Another thing I find strange is all 3 ministers agree with the prime minister opinion. It is hard to find two persons to agree in all issues. Let alone 3 persons to agree all the time.
Why do we need this program if the chat or debate is not candid?
Why do we need this program if the chat or debate is not candid?
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