Where And What To Invest If You Have 100k?

[bepgof 20]

- better know what's product life cycle, seasonal trends.

- Breakeven analysis, taxation structure, related legistation, PR, contacts, retails? walk in? wholesale?

- Public promotion know-how

- CPF rules, MOM rules, NEA rules,etc etc

100K? Not enough lah. Can only setup a stall to sell chicken rice.....

frankly 100k, i would go do biz. our sgd is strong, go walk ard our neighbour countries see if can bring things back to sell. aft working 10yrs, i kinda burnt out and sick of corporate life. in fact, im prob going to do it myself aft getting bonus.

[eiffel76 1]

- better know what's product life cycle, seasonal trends.

- Breakeven analysis, taxation structure, related legistation, PR, contacts, retails? walk in? wholesale?

- Public promotion know-how

- CPF rules, MOM rules, NEA rules,etc etc

100K? Not enough lah. Can only setup a stall to sell chicken rice.....

depends on biz n good preparation on the above u mentioned, 100k is good enough...ironically 100k may not b enuff for good chicken rice, F&B restaurants.

in my case, planning a distribution model, the good leadtime fr the suppliers helps, capital is less than that.

[godloveyou 0]

For those who are planning to do business whether solo or in partnership, be reminded:

Before "jumping into" operation:

- Do cost(M.O.L)(direct & variable) and breakeven analysis first for first 12 months.

- Wise to allot "reserve"$ for at least 12 months.

- Prepare first 3 months for teething problems. Prepare to work hard yet mentally sound.

- Study human traffic flow, if do retail.

- Study and implement feasible ways & means for promotions, allocae some $ for this.

- Establishing contacs.

- If business not as good as expect(3,6,9,12 month), implement changes

- Draft black & white and sign for partnership, otherwise friends ebded no friend. Relatives become enemies.

- Sound $ and cents minds, operation, actions & behaviours.

- Recommend to study 陶朱公理財十二則 and ‧孙子兵法十三篇.

depends on biz n good preparation on the above u mentioned, 100k is good enough...ironically 100k may not b enuff for good chicken rice, F&B restaurants.

in my case, planning a distribution model, the good leadtime fr the suppliers helps, capital is less than that.

[Jgal 0]

hmm.. depends on when you think you may want to use the $$ as well as the risk you are willing to take.

Last wk, went ard CBD to check out the banks offers for "guarantee" principle investments. These are the better offers that was given, worth considering.

1. SGD FD by HL bank , giving out 0.91%pa for 1 yr

2. AUS FD , 4-5% pa depending on tenor. SC relationship mgr told me that if I'm going to put alot , he can offer better than published exchange( over the counter).

3. Duo FD, pairing SGD/AUS. hmm.. Duo FD has higher risk, however, noting that currently AUS FD has high interest rate. It's not as risky as it seem.

4. HDB Bond - 250k per piece, 3++% pa.

5. Bank shares lor

[Jgal 0]

depends on biz n good preparation on the above u mentioned, 100k is good enough...ironically 100k may not b enuff for good chicken rice, F&B restaurants.

in my case, planning a distribution model, the good leadtime fr the suppliers helps, capital is less than that.

hmm differnt to do trading bussiness now lah., unless your pdt cannot be replicated and supplier wont sell to others that come along. Alot of ppl are bring things from oversea to sell in singapore, more ppl are buying online.

[logger 0]

hmm.. depends on when you think you may want to use the $$ as well as the risk you are willing to take.

Last wk, went ard CBD to check out the banks offers for "guarantee" principle investments. These are the better offers that was given, worth considering.

1. SGD FD by HL bank , giving out 0.91%pa for 1 yr

2. AUS FD , 4-5% pa depending on tenor. SC relationship mgr told me that if I'm going to put alot , he can offer better than published exchange( over the counter).

3. Duo FD, pairing SGD/AUS. hmm.. Duo FD has higher risk, however, noting that currently AUS FD has high interest rate. It's not as risky as it seem.

4. HDB Bond - 250k per piece, 3++% pa.

5. Bank shares lor

Would it be better to buy a small private apartment for rental yield or use the $ into your mention investment.

What is this AUS FD that you mentioning? Is it a guarantee return of 4-5% pa?

[vios07 0]

hmm.. depends on when you think you may want to use the $$ as well as the risk you are willing to take.

Last wk, went ard CBD to check out the banks offers for "guarantee" principle investments. These are the better offers that was given, worth considering.

1. SGD FD by HL bank , giving out 0.91%pa for 1 yr

2. AUS FD , 4-5% pa depending on tenor. SC relationship mgr told me that if I'm going to put alot , he can offer better than published exchange( over the counter).

3. Duo FD, pairing SGD/AUS. hmm.. Duo FD has higher risk, however, noting that currently AUS FD has high interest rate. It's not as risky as it seem.

4. HDB Bond - 250k per piece, 3++% pa.

5. Bank shares lor

What is bank shares? How to invest?

[bepgof 20]

Public listed shares, DBS, UOB, OCBC,etc etc in singapore stock exchange. Buy, keep, sell though broking firms. Must have CDP account, stocking firm account, best with bank account, so receive & transfer $$$ is just a button away. Need no signing cheque, posting, etc etc..

http://www.sgx.com/wps/portal/marketplace/...EvZ0FBIS9nQSEh/

What is bank shares? How to invest?

Edited March 28, 2011 by bepgof

[bepgof 20]

Best is a freehold "shoebox" at "excellence" loacation. Niece & her husband would be got a hdb resale 4 rm as well as a 1rm FH pte at Holland rd for rental.

Fix deposit = timed deposit.

Convert SGD into Aus $ and put in the account for certain time (timed deposit, 3, 6, 9, 12 months etc). Different amount of deposit earn different interes rate. Bear in mind the risks of conversion loss (banks sell high, buy back low), as well as the exchange rate loss/gain over time. As long as you have holding power, can consider. Aus $ is now in its highest, not advisable to buy. Can consider NZD, now quite low. See past 5-10 historical data.

http://www.uob.com.sg/personal/deposits/fi...urrency_fd.html

Would it be better to buy a small private apartment for rental yield or use the $ into your mention investment.

What is this AUS FD that you mentioning? Is it a guarantee return of 4-5% pa?

Edited March 28, 2011 by bepgof

[blue_skies 3]

Let me qualify - be careful what you invest. As in any investment, timing is key - not what you invest.

Absolutely agree! How nice it would be if we had a crystal ball to look into the future

Btw I posted something on overseas (London, UK) ppty investment on this thread in case anyone is interested. But need more than 100k (abt 140k) cash outlay.

http://www.renotalk.com/forum/index.php?sh...mp;#entry623562

Edited March 29, 2011 by blue_skies

[Jgal 0]

Would it be better to buy a small private apartment for rental yield or use the $ into your mention investment.

What is this AUS FD that you mentioning? Is it a guarantee return of 4-5% pa?

Currently, pty does not as much liquidity. Best if you could pay fully or low mthly repayment for apt that is to be rent out. This will take out the unneccessary risk if high mortagage interest and failure to rent out. Must remember pty will take a few mths to sell if you need $$ urgently or unable to pay mortagage due to unforesee circumstances. Also even though pty will appreciate over time, if you need to rush to sell or sell during a downturn, you may sell below valuation.

Those options that I mentioned above is more liquid and gurantee principle to a good extent.

FD is fixed deposit, you may lose $$ due to exchange rate though.

[Jgal 0]

Best is a freehold "shoebox" at "excellence" loacation. Niece & her husband would be got a hdb resale 4 rm as well as a 1rm FH pte at Holland rd for rental.

http://www.uob.com.sg/personal/deposits/fi...urrency_fd.html

Need to be careful with shoebox units. Many hotels are turning into service apartment business, if corp can rent a service apartment for $4k a mth, you need consider how much you can rent our a shoebox unit. So you need to ensure that demand for the units you are buying. Rental may fall in 2012 due to tsunami of completed proj. Already now, the rental yield for new developments are quite low because of the high price.

[random_username 0]

Need to be careful with shoebox units. Many hotels are turning into service apartment business, if corp can rent a service apartment for $4k a mth, you need consider how much you can rent our a shoebox unit. So you need to ensure that demand for the units you are buying. Rental may fall in 2012 due to tsunami of completed proj. Already now, the rental yield for new developments are quite low because of the high price.

tend to agree with rental yields not being very attractive at the moment, jmo. remember also that when the agent calculates the yield for you, do ask if it's net or not (net being less maintenance, mortgage interest, costs if the unit lays idle, other costs involved such as fees for renting out, sprucing up the place etc etc).

btw, even if you pay in full for a pty, it might pad against the pain of interest rate increases, if any, but it's still opportunity cost of putting money into one single investment that could be used elsewhere for other returns. but, everybody's investment approach differs. correct timing would be wonderful, but, in general, how correct a time is is seen after the time has passed and hindsight is 20/20 vision

do your sums and ask good informed questions as much as possible. all the best!

[Plastic3 0]

tend to agree with rental yields not being very attractive at the moment, jmo. remember also that when the agent calculates the yield for you, do ask if it's net or not (net being less maintenance, mortgage interest, costs if the unit lays idle, other costs involved such as fees for renting out, sprucing up the place etc etc).

Agents usually calculate gross, I have also started to calculate only gross yield, as I realise everyone have their own approach to calculating net yield.

For Agents it is better to just calculate gross yield than to risk being accused of "misrepresentation" if the net yield calculation differs.

Best,

Mark

Edited March 29, 2011 by Plastic3

[random_username 0]

Agents usually calculate gross, I have also started to calculate only gross yield, as I realise everyone have their own approach to calculating net yield.

For Agents it is better to just calculate gross yield than to risk being accused of "misrepresentation" if the net yield calculation differs.

Best,

Mark

oh, interesting. i had never thought of it that way. i had always been (more) impatient with agents who keep repeating gross yield to me without catering for maintenance etc. Now i understand better i'll be more patient and do my own sums.

good of you to share this insight, Plastic3! thanks!