Tuesday, July 12, 2016

Square 1

Haven't been blogging much, and i actually missed the Brexit drama, as I exited all my holdings prior to that.

I don't profess to have good foresight. I simply needed the money for the down-payment of my new home, so basically I have to sell off everything to come up with the cash requirements.

I got to say, it means i am starting all over again... no retirement portfolio, starting from scratch again. I consoled myself thinking that it's like giving up everything to be an entrepreneur, like Dividend Warrior selling off everything to open a tuition center, and rebuilding his portfolio from scratch.

At this time of uncertainty, why did i enter the property market? A lot of people are still very cautious, am i being foolish to be overweight on property?

(edit: and just nice one of my long time friend just posted about property http://investmentmoats.com/wealth-building-2/singapore-home-condo-landed-and-hdb-property-prices-grow-over-time/ and i quote "I came out of this exercise reinforced why wealth building through properties will always be a better option for many because of the low probability of people losing money.")

Prices have slightly cooled (though definitely nowhere near a crash have happened). It is a brand-new unit as it was unsold by the developer when it TOP 2 years back. To push sales this year, discount was given to buyers this year for them (or us) to bite. Effectively, I got it cheaper than those who purchased it earlier.

Also, I did not view it purely from an investment perspective as I am buying a home to live in. It really does check the boxes we are looking for for a home, being near good schools, quiet residential environment and being near MRT.

On the positive side, I am glad for this chance to clean up my portfolio as well. Going forward, i will be building up a pure ETF portfolio.

Starting from last month, I placed $300 into STI ETF (100 shares, with some leftover), and would be doing that every time I get my pay.
I did not choose to pay off the loan with the extra 300 as it would really not reduce it all that much, and building up some portfolio provides me with flexibility for liquidation next time.

In any case, it's back to square 1 from now on! After being debt free for some time, it's back to having a mountain of debt on my buttocks!


  1. Hi,

    I also face the same situation as you. I will be making my purchase of my home next year, and will have to start from scratch as well. At least you started to build your portfolio this year. Jia You!

    1. thanks, jia you too!!! it's exciting to be able to call a place your own. :D

  2. No worries! You can always re-build your portfolio over time. Pure ETF portfolio sounds good and I have been focused on increasing the size of our ETF portfolio too!

    1. yea, hope you managed to take advantage of the post-brexit surge!

  3. hi dowz
    nothing missed, really if you learn to see things in a different perspective. If things are all measured rationally, the world would be a different place today. Like you say, you need a roof over your head and if the timing has come to commit, then go for it (of course taking into consideration your financial planning). Look at your property as ownership first before labelling it as a form of investment. Without the stress of comparing, you would be emotionally better off and can focus on the next area of growth.

    Hopefully interest rates remain low and your investment returns can break even or exceed the interest coverage so you can shed off those debts. With the job market not expecting to improve and many industries still shaky, i am of the opinion we have to be mentally prepared and acquire consistent and usable life skills , trading is one example.

    Being young is your asset, use it wisely, manage your time and you will be fine.
    God bless you

    1. thanks Mr Chua - let's march on towards financial freedom!