Author: The Unnecessary Job

Is now a good time to enter the Property Market?

It is a question I ponder repeatedly. Property seminars routinely pop up on my facebook feed with catching captions like – “how to turn 1 property into 4 on a median income salary.” I tend to take investment advice from property agents with a (huge) pinch of salt. As AK loves to say, Never ask a barber whether you need a haircut. Property agents will always tell you that the “only way the market moves is up”. “The developer will never reduce price.”  If the development they are selling is large, they will say how the large number of...

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Keeping my faith with AIMS APAC REIT

Used about half my proceeds from the Ascendas Htrust sale and added 100 lots of AIMS to my portfolio when it went XD @ 1.44. In hindsight, could have waited a bit longer. The next day, it went as low as 1.41/1.42. Then again, thousand gold cannot buy early know. I continue to be quite optimistic on AIMS. Compared to ESR REIT, AIMS is arguably a safer play due to its comparatively lower gearing (33% vs 39% of ESR REIT).  Furthermore, there is a lot of untapped GFA for AIMS properties.  One DBS Treasures report puts it as 600,000...

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Market on sale again – what are you buying?

Feeling a bit like Moses every morning when I log into my trading account and review my watchlist. Huge sea of red. Only difference being, I cannot part a road through it with a wave of my staff. Ascendas HTrust I sold all of my ascendas htrust on 25 July @ 1.05.  Happy to take the money off the table basically. And certainly, did not think that Ascott BT REIT is worth the 1.30 issue price. I was up about 53k on capital gains alone, not including dividends received since 2017. So I am rather pleased with the outcome....

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The Infantilisation of the Poor

Over the weekend, I became vilified on Facebook. For the crime of daring to own an opinion. A respected friend of mine had posted a link to a book published by Liyana Dhamirah, Homeless. This book is basically a feel-good, comeback story, about someone who overcame great odds, to re-plant her feet firmly on the ground.  In an interview with Mothership, the author recounts being pregnant with her first at age 16, and tolerated an repeatedly infidel husband. Both her and husband were eventually cast out by her mother-in-law on Hari Raya no less, and ended up on Sembawang...

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Ascott Residence Trust (ART) buys Ascendas Htrust (AHT) for S$1.0868 per share

AHT last traded at 0.975. My average entry was 0.82 for 235,000 units. The purchase price of 1.0868 represents about a 32.5% gain over what i paid for the shares, excluding dividends received. Including dividends, the XIRR rate of return would be about 26.7% – possibly one of my best performance in 4.5 years of investing. -141432.15 0.267298812 The low down The purchase would be paid in both cash and Ascott units. I would have preferred an all cash deal.  ART’s units are severely over-valued and AHT holders are being shortchanged by being paid in ART shares, which appear...

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The Search is Over – FCOT lands Google

I previously blogged about FCOT being a mixed bag of goodies but perhaps one that is worth the wait. It didn’t take that long for the bells of good fortune to start ringing. From OCBC broker’s report: Good things come to those who wait Last evening, Frasers Commercial Trust (FCOT) announced that it has entered into a lease agreement with Google Asia Pacific Pte. Ltd. (Google) for the latter to take up space at Alexandra Technopark (ATP). The total leased area will be ~344,100 sqft, or ~33.3% of ATP’s total NLA. As of 25 June, this will bring ATP’s...

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Portfolio and Dividend Update Q2 FY19

For the three months Apr 2019 – Jun 2019, the total amount of dividends received was: $21,592. Breakdown of Contributors: Keppel – 750DBS – 900FCOT – 5616First REIT – 1075Starhill – 990Cache – 203AA REIT – 3338.5Ascendas Htrust – 7567OCBC – 1150 Performance against Q2 2018:Dividends received in Q2 2018: 16045Dividends received in Q2 2019: 21592Change: +34.6% For the month ending June 2019, my total assets under management stand at: S$ 1,354,652 Breakdown of Current Portfolio: June 2019 Value AIMSAMP Cap Reit 121400 1.45 $176,030.00 Ascendas-hTrust 235000 0.985 $231,475.00 Cache Log Trust 13600 0.79 $10,744.00 CapitaR China Trust 35000...

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Mitigate the effects of inflation on your passive income

Hypothetical: Say the year is 2019, you have accumulated 2M in investible assets and retired at a ripe old age of 40. Let’s further say you are a somewhat conservative but competent investor, returning an average of 6% on your capital, i.e., 120k a year, or 10k a month. In 40 years time, at a 2% inflation rate, 10k a month would be more or less be equivalent to having around 5k a month in today’s value. As you can see, inflation is a real issue that wipes out the true value of your passive income, and with that,...

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FI is good; RE – not so much

This is not going to be one of those insipid articles telling you to pursue your passion after you FI. Or to warn you about the perils of the paralyzing boredom. Oh please no. You know, because I understand perfectly that we are all wired differently, and not every one has a calling to save dolphins, write novels, build schools in Cambodia, start a music band, etc. Some of us simply have no (great) passion for anything in particular. Like ASSI, i reckon my retirement would consist mostly of MMORPG-ing and trying out yet another build in Skyrim (only...

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DBS – a song of ice and FIRE

Oh how suddenly the mood has turned. Around one month ago, I had contemplated selling DBS. Before you know it, the window has closed and the tide has turned. I am still up around 11% including the dividends, so it is not entirely doom and gloom. If DBS sinks further below the $24 mark, it might be a chance to accumulate more. The $24 mark is where DBS’s $1.20 per share yield makes it a 5% yielding local SG bank. And history suggests that such occurrences are rare and one should never squander opportunities like these (thanks Trump!) to...

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Frasers Commercial Trust – Mixed Bag but with potential candies?

FCOT released results late April, which appears to be a mixed bag. The share price has been dented slightly, retreating below its 1.5+ level, and also partly due to the share going XD. THE BAD: 1) Microsoft is preterminating its lease at AHT 2 years  ahead of the original expiry date. The microsoft lease is 3.1% of gross rental income of FCOT. 2) The limp AUD continues to be a revenue drag for its Australian properties. FCOT has three AU properties, which represents around 50% of FCOT’s NPI. See factsheet here. 3) FCOT 2QFY19 NPI decreased 10% from 22M...

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Stocks that pay you to wait

What is better than earning a capital gain on an investment? Stocks that pay you to wait for that gain. SINGTEL is one example of a stock that is currently paying a relatively handsome “waiting fee”. SINGTEL If you had caught Singtel in early January, you are potentially holding a stock yielding 6.12% on your invested capital based on a $0.175 per share dividend payout. If you hold the stock for a single dividend cycle, at current share price ($3.15), you would have made about 9% capital gains + 6% yield for a total return of over 15% ....

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Is it time to consider selling DBS

This recent rally has been phenomenal. At last traded price (27.1), DBS has an effective yield of around 4.4%(@ $1.20 per share).  Based on an EPS of 2.14, that represents around a 55% payout ratio, which seems reasonable and sustainable to me.  It seems that a lot of investors may be looking to hold on to DBS at least until 2 May 2019, when the share will go XD. Once XD, the share price should theoretically correct to 26.5 (0.60 dividends). The big question on everyone’s minds is naturally: Will this seemingly unstoppable rally continue? Will we see DBS...

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How long will the S-REIT rally last

The current sentiment on S-REITs appears to be quite bullish. “Reits have been very resilient and consistent in outperforming the broader Singapore market,” Mr Wong said, highlighting the defensiveness of the sector. “In uncertain times, they are pretty defensive because of the leases that are locked in. In bull markets… underlying property asset values and underlying rentals of the Reits also benefit from the up cycle.” The article further notes that OCBC is quite bullish on the retail sector, mentioning specifically the rejuvenation plans for Orchard road.  (As of writing, Starhill is trading at S$0.74 – heh).  Maybank...

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Q1 2019 Dividends

Another 25% of the year has gone by. The fleeting passage of time is sometimes worrying. Every year, I feel my general fitness going down.  By the time I stop working, would I lack the requisite health or energy to enjoy the activities financial freedom was meant to provide? This is a constant debate raging in my head.  Delayed gratification is good but how much delay is reasonable? Time is wasting away and FI cannot come soon enough to remove the shackles of work from my callused wrists. Time to take stock of where my passive income levels are...

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