ARE YOU ALL CASH?

An acquaintance was discussing with me on the recent 'plunge' of China markets and its ramifications.

I cooed that I was 'all cash' at the moment and he threw me a look and said, "I am not so sure if it is good to be all cash now'. 

I went away not thinking about it for another 6 hours. At the end of the night, I concluded it was a good time to be all cash.

Why? Here's 4 possible reasons:

1.  The absolute edge in life is buying power. 

2.  Markets are presenting good opportunities to enter several sectors, including equities and bonds, but not Singapore properties.

3.  This is further exacerbated by political woes and turmoils in Europe, Middle East, East Asia and South America.

4.  And unless you are buying properties or cars in SG now, deflation seems to be trumping inflation.

So why are people not in an all cash position? Here's 4 possible explanations:

1.  They have already vested their money with no cash to deploy.

2.  They have debts from home/car loans to service.

3.  They have a fear of missing out. They perceive the need to get more out of their cash instead of leaving it in the bank and gnawed away by inflation.

4.  They do not have that much cash to begin with.

The good thing about being a young retail investor is you have time on your side. Work hard, save up the money, deploy them in tranches at significant corrections and wait it out. Do be patient. 

Cheerios.

all cash, stock market, inflation, deflation, are you all cash?, retail investor, 

HOW CAN A YOUNG COUPLE GET A UNIT AT BIDADARI BTO...AT A HIGHER CHANCE?

Now that everyone is gunning for the Bidadri BTO, how can you, as one half of a young couple ensure that you have a higher chance at getting a unit?

This checklist comes in handy:

1. Are you a 2nd-timer as a HDB home buyer?
2. Do you intend to have a child at all?
3. Do you intend to have a child within the next 5-10 years?
4. Do you intend to live with your parents/siblings/grandparents at Bidadari?
5. Do you intend to sell your unit when the Minimum Occupation Period is up?

If you had answered 'No' to all four questions, then you should right-size now to a 3-room. This enables you to have a higher chance of getting a better shot at a unit at Bidadari.

95% of 3-room units at a Mature estate BTO are allocated to 1st timers. That's you. And that's the reason why there is currently 10 units for every 6 applicants in the current BTO exercise as of now.

Judging from history, the application numbers for 3-roomers may go up a bit at the end of the close of applications, but it sure beats the low chances of the 4 and 5-room applicants.

I half-suspect the higher pricing of the overall Bidadari exercise is turning off some people too.

So, there you have it. Right-size and stand a higher chance. You have less than 24 hours.

Good luck.

2015, august, august 2015 bto, bidadari, bidadari estate bto, BTO, HDB, hdb bto, hdb bto 2015, hdb bto aug 2015, hdb bto august 2015, potong pasir, Singapore, toa payoh, toa payoh town, woodleigh mrt, 

WRONG MOVE #2: BUYING A CAR IN SINGAPORE

Some time in mid-December 2015, I would have to make a decision to i) scrap my car, ii) renew the COE for 5-years, iii) buy a new car or iv) buy a PARF car.

It is not an easy decision to make. The main consideration is plonking good money into a depreciating asset.

Let's do the sums for a Honda Fit to be scrapped.

(Installment + usage/maintenance) per month = $1,083. This sum includes petrol, parking at home & work, ERP, insurance, road tax and regular servicing, changing of parts. 

PARF rebate at scrap = $9,500.

So, after scrapping the car in December I get an 'increment' of $1,083 per month and a $9,500 bonus? 

OK, take my car.