COE vs COV

COE is Certificate of Entitlement of renting a car for 10yrs.
After 10 yrs, COE is worth nothing!!
Dec'2010, COE price is at 10yrs high: $47k for Cat A and $62k for Cat B.
I bought my Honda Airwave in Apr'2008 at $65k (inc COE at $14k), I don't think I make a lost if I sell when COE moves to $60k as 'experts' predicted. 3 yrs of free ride!

COV is Cash Over Valuation when buying a property.
Due to Govt cooling measures, COV have dropped across Singapore.
Buying sentiment is bad after the measure is announced in 30-Aug.
I quickly sold at 38k COV (My neighbour sold at 50k before the announcement) and bought a 5-rm flat at just 5k COV. Act quickly to ride the down trend as 5k COV is unheard of in town area for a 7yrs old fully renovated flat!!

Car Prices = COE + Machine Price
House Prices = COV + Valuation
Both COE and COV have something in common. They are perceived value.... speculative.

Car is depreciating asset.... in fact is a liability if it is not for work purposes.
It set me $12k back per year to maintain my car installment, parking, maintenace, Rd tax and insurance.
Petrol is $300 to $400 per month. Total cost may add up to $16k+
If not for the nature of my work which require me to have a car....where car allowance is provided, I rather take taxi everyday. Total taxi cost only $600 per month.

Housing is an appreciating asset.... get the right house at the right price can easily double your investment in 5 to 10yrs.
Location is the key. Buying a worst house in the best location is always better than buying the best house in the worst location.
To be double sure of making $$$, buy near valuation. Avoid paying 100k COV!!!
During bull market, high COV is very common. There are many rich people to push up the market.
Personal opinion is 10% of valuation price as COV is reasonable.

People always like to chase market!!! Why!!
When COE is low, people just wait..... When COE is getting higher, they panicked to buy and push up the price higher..... now experts think that it will go another 20k higher.
When COV is high, everyone is buying.. housing transaction is very active and high volume. Up bidding each other offer.... counter offer counter offer till crazy COV!!
Now that sentiment is low, everyone wait & see again.... instead of snapping up great deals.
What a joke!

Haven't the COE teach us a great lesson?
A deprecating asset yet everyone is chasing after. This tell me that there is excessive $$ in the market. Everyone is expecting job security and good economy.

Based on this expectation, what makes people think that housing prices will go lower?
To me the current low COV is the best opportunity to do house upgrading or move to a better location.

Many Property Experts keep on talking that prices may go down in the next 6 months.....
Will it really go down??? COV may have come down to more realistic level but valuation is still moving upwards.

Govt certainly does not welcome property bubble but will also not do anything stupid to crash the market as these will create thousand of bankruptcy overnight.
Just Imagine you bought at 1 mil and the property become 700k overnight due to govt new policy. How much you will lost? The banks will chase after you to top up the difference.
If you are bankrupt, can you support S'pore through income tax?
Will S'pore receive more property taxes if property prices is higher or lower?
Will there be more social problems? Will S'porean have confidence in S'pore property?

Other than flipping private properties, most HDB investment is for mid term 5 or more years.
I think this is a good vehicle to fight inflation. Can your salary raise faster than housing prices?
Bare in mind that HDB already cross 1Mil.
There will be many more HDB millionaires when Duxton is selling.

Land is limited in Singapore and population is growing, properties price can only go up.
Population increase is supported by the PRs and most of them have the money to push up the prices.
Further more, developers have increasing cost from land price and constuction cost due to high material and labour cost. All these will factored into their selling price to you.

Is Singapore current housing prices expensive?
Singapore GDP is higher or comparable to places like Japan, Hong Kong, Shanghai, Taipei and so on.
Gen X in these countries can barely afford their own 'shoe size' houses and many are staying with parents or renting a house.
Gen X in Singapore still can afford a house.... consider ourselves lucky.
But the same cannot be say on our next generation. I wonder if my children can afford to buy their own houses in future?

Personally, I think bigger flr size unit will be seeing huge value in future.
Why?
Singapore new flats is getting smaller in size so bigger flr area will be rare in future.
If next generation cannot afford to buy their own house, they will live in with parents whom may need to pool up their resources and upgrade to bigger hse.
Current HDB ruling is using MOP to discourage buyers from changing HDB flats and many buyers may buy bigger flats straight away (Instead of upgrading later)

So is Car or Housing more important to you?
Would you invest in COE or COV?
Are you still waiting? Waiting to enter when everyone is chasing up the market??
Take your pick.

Do you Love $$$

Isn't it obvious??? Who doesn't love $$$.

Contary to your belief.... In fact most of the people HATE $$$.
If you love something.... wouldn't you treasure it, cherish it and improve it??
However, most people when they have spare cash..... they feel the need to get rid of it!
they will splure on the luxury.... usually unimportant or simply boh liao things.

Is this familar??
This is going to be the last bag.... I Love this bag.... this suit me very well.
My Replies: U got over 20 bags of different sizes and styles and brands....
Which one you don't like during the point of purchase? Last BAG??? u really think so....

How to define between a rich person and a wealthy person?
A) He earns 10k per mth with expenses of 9k.
B) She earns 3k per mth and save/invest 2k per mth
He is rich as he have high spending power.... drive sports car..... but dun even have 2k to lend u!
While she is wealthier as the money is kept and grow bit by bit.

To change your fortune, you can apply 3 little steps:
1) Must start to love money - understand the importance of $$
2) Be wealthy and not rich - control expenses
3) Learn to grow your $$$

20 months back, Ms Wealthy have to decide between saving $200 per mth or invest?
She then decide to save $100 and invest the other $100 in fund ($1 per unit) by RSP.
Now, after going through the Yr2007 crisis. Current fund price is $0.8 per unit.
A) Saving is $2003.59 (include interest)
B) Fund is $2046.68 (After deducting the 1k capital for comparison purposes)

Fund is 2% higher than saving even in BEAR market!!
Why is that so??? Fund price from $1 to $0.80....
Isn't it a 20% lost?? Yes, it is..... if using a Buy and Hold strategy.....
The trick is using RSP to DCA!!! (Regular Saving Plan to Dollar Cost Averaging)

Using RSP to invest over a period of time (10 to 30 years), the return will surely beat savings, endowment plans and inflation... while reducing the risk and volatilty compare to "Buy and Hold".

Personally, I think RSP should be the way to grow my daughter education fund rather than endowment. However, being kiasi..... can opt for both way.

Ok, hope all my love ones will start to un-hAte $$ and start to lOvE them!!
By applying the 3 little steps!!

Of course...... If u want to buy this buy that...... u can..... just find ways to earn more $$$.
Perharps this solution is easier!

Year 2010.... Yr of Tiger.... is it good?

After yrs of no action since my one & only post..... I decided to write something tonight.
I guess its a good way of sorting out your thoughts when your brain is so full of them....
It also does leave a record.....

Why I choose that title.... well a lot of things happen in the first Q.... mostly bad....
My relative die at the age of 34... no health history..... so sudden!
A customer of mine also passed away.... below 40.
Many many more....not so good stuffs.......

Have u ever thought of what is your greatest regret should you just disappear tomorrow?

Though I had fulfilled most of my little goals.... enjoy life to the fullest... experience parenthood.
Being a greedy person, I can't help but feel that I want a lot more.
Now, I feel that I have to set higher targets and achieve more in the shortest time.
But is this the way to be happy.... I also understand the fact that "Happiness is being Contented"
Just that I haven't reach such kind of enlightment and contented with what I have.

I believe in "Its fair to be unfair" meaning I don't wanna wait long long until things turn to be fair to me OR always complain... grumble why others is better off!
I will fight for what I think I'm deserve.....in everything I do.... every effort I put in.

We should make every experience an educational one!
Though I did not experience the hardship or suffering others had gone through but I always put myself in their shoe..... What IF... Am I prepared?

Quote for example:
In market, you see old man/women pushing a cart to collect plates. Do u think they enjoy doing that? or work to pass time?
Susposed we go back 30 yrs..... do you think this person will thought of doing such kind of jobs in future.
What went wrong? Lack of planning?

If u fail to plan, you plan to fail!!

So what is my goal in Year 2010?
1) Promotion (I fight for it... I knock the door on my VP, GM and Manager)
I know the company is freezing pay and so on..... But I can't wait for clear sky as Time waits for no one.
2) Make 81% profit when sell of my current flat.
3) Reinvest in 2 properties
4) Manage a 50k to 100k stock portfolio through leveraging
5) Join property agency as safety net in case of bad times
6) Take financial papers to enable me to cross industry if i want to
If I leave my current job, it will be for the better..... creating more value.... Being a good broker or property agent will bring you more cash than being a good Manager.

How many of my plans will succeed?
I can't say how much time or hard work I can put in... but who cares.... Just Do It!
Let's see by the end of the year.
Anyway, one thing is for sure..... Ken of Yr 2010 will be better than Ken of Yr 2009.

Year of Tiger.......... I not going to groan.....I going to ride you.....

Finally I'm Blogging...

Hi All....... at last I write something.
For those who know this blog jinzuiwei (meaning a lot to talk).... it is created.... dunno how many weeks or months ago.
Not that I nothing to write.... just that forever there is something more important for me to do. (Excuses!! I'm just plain lazy)
To make sure jinzuiwei live up to its name..... I will write something every week.

Why blogging??? I see my wife spending dunno how much time & effort doing her blog....
I start to evny her engness (Very Free).
So for me to enter her world.... I decided to blog together with her!! (At this moment, she blogging now)

I think every blog must have some pics..... but u know that i been lazy but intelligent... i decide to leverage & send this link to u. http://www.verybubbleee.blogspot.com/
My blog will purely be based on daily stuffs, investments, gambling, money, ideas, inspiration stories, complaints, gossips, gals, nonsense and so on........& on.......

Today, I finally tidy my table and clear up some paperwork.... coz beyond my tolerance level.
In the process, I found a story for me to share with u.


In Your Hands

A young man once thought to confound the elder of his village.
The old man was said to be exceedingly wise.
But the young man was certain his own wisdom exceeded that of the fail old man.
He caught a yound bird and carrying this bird hidden in his hands.
He approached the older gentleman.

Here is a riddle for you, old man.
I have in my hands a bird.
Is it alive?
Or is it dead?

He thought there was no way the old man could win.
If he guessed "dead"
The boy would open his hands and release the living bird.
But if he guessed "alive"
The young man would crush the bird in his hands.
When he open them..... there would be a dead bird.

But the old man looked into the young man's eye and said,
"The answer: my son. IS IN YOUR HANDS."


Well this IS IN YOUR HANDS is meaningful to me.
In life, most thing is within our control.... Its whether we wanna take responsibilities or not.
Or take the easy way out.... give excuses.... blame the sky, god, luck, destiny and everything and everyone else except yourself.

If your goals are easy to fulfill.... then its not worth doing....
Stretch yourself and find a harder to achieve but more rewarding goals.

My favourite quote: "WINNERS DON'T QUIT & QUITTERS DON'T WIN"
(But pls dun tell me that u dun wanna stop watching the korean series now.... because u dun wanna be a quitter!!)

Ok.... jinzuiwei need to stop liao... coz need to sleep.
Actually I still got jinzuiwei to talk......!!!!!!
hummm so what's my next topic??? "DO YOU LOVE MONEY???"

BYE..