How much is enough for retirement in Singapore?

[zbear]

shawnlim88:

i have a couple friend, DINKs ( Double Income, No Kids)...

when they first married, they bought a resale 5 rm HDB in AMK.

after staying there for few years, they sold off that 5rm HDB 2 years ago and downgraded to a 4 rm HDB, few years later, they fully paid up for the HDB flat.

just sharing

With double income n no kids, shouldn't they be upgrading instead of downgrading?

[zbear]

pirated:

starlight1968sg:

[quote=\"MrsKiasu\"]If don't mind sharing the house with strangers and there are no restrictions on it, I think renting the spare room(s) out is also a way to generate passive income when we are old..

I would prefer to downgrade to a small, small flat.

Won't be easy to get used to it[/quote]
Why not?

[kyith]

shawnlim88:

i have a couple friend, DINKs ( Double Income, No Kids)...

when they first married, they bought a resale 5 rm HDB in AMK.

after staying there for few years, they sold off that 5rm HDB 2 years ago and downgraded to a 4 rm HDB, few years later, they fully paid up for the HDB flat.

just sharing

this is somewhat called a geo arbitrage sometimes. you can purchase a 4 room queenstown flat at 600k, and then when it appreciate, downgrade to a 4 room in yishun valued now at 350k. because of the difference in growth rates in 2 places, you gain an amount of money.

of course this works if you are somewhat location independent. i am surprised not a lot of thing about this

[kyith]

property is what everyone thinks about when they think retirement, but it has its downsides as well.


the prevailing thought is that inflation heals all wounds. the folks that bought in 1997 only seen their values back in 2010. if you manage to earn rental income then it gets better.

in property soul’s no BS on real estate, she cites one of the property she sees in 2003, at $400k, a condo. the existing neighbour came and chit chat and ask about the purchase price. they commented it is somewhat close to when they bought it.

when did they buy it? 1983 or so. so she went and see if its a property downturned then. it wasn’t

it is shocking that the price remain the same

while many have many to ride up the proeprty cycle from the doldrums in 2003 to now, in this asset inflation cycle with cheap money, it is our children who will have difficulty now.

i believe the growth rates mean revert, that is to say for this 15 years the growth rate is higher at 7%. it may be likely for the next 10-15 years it is 2-3%.

what happens for the new 20-27 year old wealth builders is they need to earn well, get a own property, then free up enough money to buy a 1 mil to 1.5 mil investment property.

there is great concenration risk there. it is good when there is tailwind, but if things do not go your way…

[starlight1968sg]

my concern abt investing in a private property is it is illiquid and not that easy to change to cash when urgently required.

[zbear]

starlight1968sg:

my concern abt investing in a private property is it is illiquid and not that easy to change to cash when urgently required.

Safest is to have spare cash to invest in properties, otherwise, it is very risky.

[MyPillow]

starlight1968sg:

my concern abt investing in a private property is it is illiquid and not that easy to change to cash when urgently required.

invest in a property within our means. N keep some liquid spare cash that can take out anytime . For me , ideally will be 1 to 2yrs living expenses as liquid cash

[pirated]

zbear:

pirated:

Won't be easy to get used to it

Why not?

From big ppty to small ppty - every direction you turn you seem to knock into walls or something .... hahaha

[MrsKiasu]

Maybe a good idea to go for the zen type of furniture and renovation when we get older

[hophlng]

I disagree about property being a good retirement investment.


Those who purchased private property in 2007 is crying now. They have not even break even.