Author: A Singaporean Stockmarket Investor (ASSI)

Have a fully paid HDB flat and make money.

A friend told me he is seriously considering selling his fully paid 5 room HDB flat in RCR to buy 2 shoebox apartments so that he could stay in one and rent out the other for cash flow. Hopefully, property prices would go up and he could benefit from capital gain by selling one. I told him that he would be moving from being debt free to being indebted. There is no guarantee that the monthly rental could cover the mortgage payments (plus the much higher monthly maintenance and property tax of a condo). He says he just wants...

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Dividend for FY 2016 and for life is a waste of time?

Most of us are not born with a silver spoon in our mouth. We have to find our own way in life and, hopefully, we do not end up in hole full of snakes or spikes. Snakes are natural while spikes are man made. Yes, there are people out there who are hunting other people. We have to learn and avoid such holes. How to get rich quick? Don’t ask me. How to get rich slow? See this? Yes, it is something I am reminded of on a yearly basis. This is money I stashed away donkey years ago...

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Old Chang Kee recorded a big loss in Q4.

I received a small handful of messages regarding Old Chang Kee’s latest results and this is a quick blog about the matter. Old Chang Kee is a fantastic cash flow generating machine and it remains one of my better although smaller investments. I have no intention to let go of my investment because nothing has changed. Of course, when I saw the article in The Business Times declaring a huge loss for Old Chang Kee in Q4, I took notice. I spent one minute looking at the financial statement and decided that all is well. One minute? Yes, only one minute....

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Hock Lian Seng should be 69c a share.

Reader: A senior of mine at work told me about your blog when we chatted about stocks. I mentioned Hock Lian Seng and he said AK blogged about it. I bought this because my broker told me it was worth at least 69c and that there was a special dividend. I paid 62c but the price has plunged. I wonder if I should hold or sell or buy more. If you are wondering, I just started investing this year and I don’t know who to trust now. AK: Trust yourself. Trust no one else, not even AK. I have...

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Still making money in Croesus Retail Trust. Peace.

Hi AK, I wrote to you a few months ago and told you a prominent blogger sold all his investment in Croesus. I asked you if you would be selling too. You gave me one of your typical AK answers. Now, a few months later, I am kicking myself because I sold half of my investment since I was not sure if I should stay fully invested. It was my biggest investment. If I had your conviction, I would have avoided this loss… Hi R, I have the feeling that you might not have understood the investment enough to...

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Accordia Golf Trust and lower DPU.

Reader: Hey AK, what do you make of Accordia Golf Trust latest results? Looks pretty dismal, all important numbers are down. Any positives to it at all? AK: eh… you say leh? Reader: From the numbers I don’t see anything good. But management says that tourism may have a positive impact in mid to long term And they said there was bad weather, maybe the weather might improve. That’s about all the good I could see from the report AK: I would ask if the dip in results is due to something more enduring. If so, the decline would become...

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Sino Grandness and rights issue.

Reader: Just checking can you comment on SINO GRANDNESS rights issue? Is it worth subscribing to the rights? Thanks AK: Always ask what is the reason for issuing rights. It seems like they have trouble repaying debt and, hence, the rights issue. If so, the rights issue does not add value for investors. Subscribe if you believe that the company is able to do much better in future. Reader: ok thanks for the advise. AK: If you are putting in more money but the performance declines, it is a bad deal. Reader: yeah Remember, not all rights issues are...

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Buying a freehold property in Singapore is still worthwhile.

Reader: Hi AK,         Hello! I only found out about your blog in Jan this year and have benefitted a lot from your analysis and sharing.          I have been reading your recent posts about upgrading to private housing. I happen to work in a landuse planning agency, hence i would like to share my views.  While i agree that one should not upgrade to a condo if it means overstretching your finances, i think getting a freehold property might be the only way to preserve the value of your property. For 99 year leasehold properties, they would eventually...

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When the lease on my HDB flat ends.

What happens to our CPF money used to buy a HDB flat when the lease ends? Reader: can I assume that whatever has been used to pay for the flat will be forfeited and we still need to pay back the accrued interest? I have friends who are paranoid over the lease issue cuz they keep on reading the anti hdb and anti CPF articles. End up frightening themselves. AK: Tell your friends it is the same anywhere in the world. Leasehold means there is a limited life. Once it is gone, it is gone. Money from CPF used in...

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When will I have as much passive income as you?

As my blog’s readership grows, a question that gets asked more and more often is: “When will I have as much passive income as you?” Of course, one of the things I would say is that we have different circumstances and that financial freedom is not a race.  All of us who reach our goals are winners. Some might take longer than others but they are still winners at the end. Distilled to a word, patience. In my retirement, I spend quite a bit of time gardening and, a few months ago, I took three cuttings from the mother...

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Centurion Corporation Limited and pricing power.

Businesses can either be price setters or price takers. In a fiercely competitive environment where there is perfect competition, businesses are mostly price takers. Customer: “How much is this?” Shop: “$20.00” Customer: “Aiyoh, internet selling $10.00 only.” Shop: “Oh… OK, $10.00.” If I were the shop owner and if this were to happen on a daily basis, I have something to worry about. Of course, businesses could engage in anti competition moves and set prices if there are only a few players in the industry. So, in an oligopoly, there is always a temptation to fix prices. This, by...

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Prudent retirement funding strategy for elderly parents.

Reader: Hi AK, apologies for the multiple questions from me. 🙂 I am looking to help my parents with their retirement planning and hope you could shed some light. For convenience of calculation and discussion, assuming the following hypothetical figures, can you share how you would do the planning? Parent A – 500k cash parent b – 300k cash, Zero CPF for both, No existing loans at all Children all financially independent Require about 2k per mth for expenses Occasional traveling Given the above I was thinking of topping up their retirement account to the ERS and opt into...

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Nano apartments less than 200 sq ft in area for Singapore?

Do you know that a car park lot in Singapore must be at least 124 sq ft in area? That is the rule by LTA. Do you know how big is the smallest flat in Hong Kong? According to an article in The Sunday Times, it is 61.4 sq ft! That is smaller than the smallest hotel room I have ever stayed in! There are more and more homes which are less than 200 sq ft in size being built in Hong Kong and they cost about HK$4 million or S$725,000 each. Now, for those who wonder how I...

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The best insurance in life revisited.

Reader: I like your view on how to see term insurance as paying a sum of money for the protection from the accidents in life. Also how passive income is an alternative to paying for disability insurance.  I like to seek your views, since it take time to build up passive income, would u view buying disability insurance as an temporary expense before we reach our passive income targets? CPF Dependants Protection Scheme. Start watching from 1.40 minute. AK: The best insurance in life: http://singaporeanstocksinvestor.blogspot.sg/2014/07/the-best-insurance-to-have-in-life.html But before we get there and if we need our earned income, yes, please be...

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Choosing a primary school for your child.

Reader: i need your self talk about my situation. My only child, a girl, will be P3 next year, likely she will have a chance to attend the good primary school like RGPS or NYPS…after GEP selection by the end next year. However she feels dizzy whenever sitting inside a public bus or school bus… from my home BTO to these schools takes 1 hour by bus and i don’t wish to own a car due to not enough budget. So I thought of buying a tiny condo 300~500 square ft due to up to $750k max budget in...

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