Saturday, July 28, 2018

From hero to zero but hero will rise again

Hello everyone!

From hero to zero, three years ago I started my saving journey for my wedding and purchasing my very first property and today I have accomplished these goals that I have set for myself. I am really happy living together with my Wife (but not ready for hold Ren yet as we are working towards our financial goal first before having our first kid)

You might be wondering why hero to zero? The reason is very simple, previously I have set my 150k goal which has the sole purpose of purchasing my first property and for my wedding. Now, all these are accomplished so it will also mean that my saving have gone down from high to nearly nothing. Yes, you might say that it is too risky to deplete all your savings just to purchase property, should have waited for one year or so before purchasing so that you will have some emergency fund. Truly agree, but I still go ahead and purchase since I want to have my own nest and also children in the near future, so decided to purchase it

So now I am Low level hero, what now? In life there is no shortcut, so deal with it, start from scratch, both my cpf and my cash savings are similar to fresh grad (maybe I win them through my SA account and MA account).

Because I have a shared account with my Wife and most of my savings is there however this is an individual goal that I laid for myself, I shall exclude the shared account and only focus on mine personal 私房钱, and share some of my goal by end of this year, 3 years later and 5 years later.

It been 5 months and my own personal saving/ investment has hit $7,000. Most of my cash is in shares and is in pool of red except for one so by the end of this year, I target myself to save at least $12,000 in shares and $2,000 cash. Not sure if I can hit the target but if possible I shall go for it (why set a lower target with no challenge right)

How about 3 years later? If the saving trend is stable, I shall hit $36,000 in shares and $6,000 in savings but no, shall go for a bit higher, $42,000 in shares and $8,000 saving. With $42,000 and yearly returns of dividends of 5.5%, I should be able to reinvest another $2,000.

How about 5 years later? If everything is stable, should be able to hit $60,000 in shares and $10,000 in cash. That's too little for a target, I shall aim for $80,000 shares and $10,000 cash. This will give me a rough return of investment per year of around $5,000. I won't touch the dividends portion for personal use, only for re-investment. Because that's the way for me to grow my passive income in a shortest way. With this plan, by 40 years old (10 years from now) I should be able to hit at least $180,000 in shares alone. Which gives me the yearly return of around $9,900 per year. But of course, stock market isn't simple math, there are ups and down so constantly have to re-adjust my portfolio if required.

Do you have the same goal as me? Or don't have goal yet? Can leave a comment below if wish to do the same monitoring and see if we can compete with each other to see who can reach our goal earlier. Winning or losing doesn't matter, the most important thing for this proposal of tracking each other is to motivate oneself to Ensure that you don't derail from your own goal. Is a health competition.

Thank you for reading!

Thursday, July 12, 2018

Savings and Expenses Tracking

Hi everyone, it seems that my savings website is currently down due to unknown reason. Could be because it is a free platform and they decided to take it down Since the human traffic isn't that much. Well is okay, I am looking at some other expenses tracking Apps which can do the same job and if found, I will post the Apps information here and will do the same thing as what I have done previously (taking the screenshot of my updates and post it here)

If you follow my post, you should know that I have recently bought a condo and spend a Sum of money on renovation. So now basically my savings is equal to those who just start working without much savings. But well that was 4 months ago but now I have slowly build my own saving and turn back to stock market to invest in dividends shares. At the end of this month I will provide a update on my progress and do keep a look out at my goals page to see if I am able to hit any of the goal by the end of this year.

Thanks for reading!

Saturday, February 3, 2018

Building my stocks portfolio

Hi everyone!

After a Long period of time, finally I have some spare cash to build my own portfolio from scratch. Previously I divested all my holdings due to purchasing of property and renovation (of course keeping sufficient emergency funds as well).

This week, I have been loading up some shares which I believe is still in fair value despite the rise in STI (from 2600 level to 3500 level) really impressive jump. Although I did missed the opportunity to make some capital gain but still no regret as I am really happy with my new home.

I am more towards building dividend portfolio rather than capital gain portfolio as I prefer to build a stable passive income through dividends. So currently I have bought some shares to start off with my portfolio. Below are the shares

1) SingTel - 300 shares
2) Netlink NBN trust - 1000 shares

Just bought a small amount as I am just getting ready to purchase and currently the market seems like going down (bear market) so will buy more if the price is right. I am still aiming for some shares like Keppel DC REITs, FCT and etc. These are some of the shares that I plan to have in my portfolio. Hopefully can get it but this year, with the best price of course!

Slow and steady wins the race, no need to rush all in. Just follow your pace and you will naturally build your own desired portfolio.


Wednesday, January 24, 2018

My Journey Of Purchasing My First Property [Part 2]

Hi Everyone!

This is the continuation from the "My Journey Of Purchasing My First Property [Part 1]" post, whereby I wrote about the first portion of my journey of purchasing my first property.

1) Process of Purchasing a property

So after we decided on the property to purchase, we got our agent to conduct the next course of action, which is negotiation. We did negotiate quite a substantial amount as the seller wants to follow the valuation price and forgo the listed price. However, we still manage to get the property a bit lower than the valuation. So after negotiation, we will need to do the following

 - Pay 5% down payment (cash only)
 - Pay 15% payment (cash + CPF)
 - 3% or 7%(depending on ABSD, ABSD only applies to buyer who purchased second property, be it HDB or private property)
 - Lawyer fees
 - Valuation fees
 - insurances (if needed)

So we paid the 5% to the buyer to exercise the OTP (option to purchase), along with the caveat. So many might asked, what's OTP and what is a caveat? An OTP, occurs when you want to exercise the purchase by making the 5% deposit. A caveat is a legal binding to both buyer and seller, especially to seller. This would means that the seller must adhere to this purchase, and cannot accept any other offers within the purchase period unless buyer backed out. Buyer does not have any effect on this caveat, just that the buyer will lose the deposit.

After which, you will need to hire a lawyer to help you to settle the legal stuff and payment stuff including signing the contract, passing the 5% down payment and inform the amount that you wish to deduct from CPF for the 15% down payment. Until then, will have to wait till 8 weeks to 12 weeks for the completion exercise to end.

So how about lawyer fees, valuation fees and stamp duty? is it counted inside the purchase price? Unfortunately, these are the addition fees that you have to pay on top of the purchase price. The lawyer fees should be around $2500 to $3500 (depending on what kind of service you expecting), of course we go for the lower one. For the valuation fee, I think is a standard fee, this will be done by the bank that you loan money from (to pay the 80% of the property).

For Stamp duty, it is 3%, the calculation is at this website (stamp duty calculator) - https://www.propertyguru.com.sg/mortgage/calculators/stamp-duty, if you have existing property then you will have to pay the ABSD.

2) Bank to loan money for purchasing property

Next step is to get a bank where you can loan money from. there are many banks in Singapore (UOB, OCBC, DBS, Maybank and etc.) Each bank will have different ways to calculate the amount to loan you. You need to submit your income statement, credit card information and etc. from there, they will calculate how much that you can get a loan from. Do note that they take into consideration of the number of credit cards you have (it doesn't matter if you didn't use - that's what I think)

So after a few assessment done by different banks, I decided to go for UOB for the housing loan, as they go by fixed deposit rate, which is quite low (which means good!).

So after which, they will bring along an insurance agent while signing the housing loan contract. Do note that you do not need to obligate to sign the housing insurance from the agent (it's optional).

So with this, I have conclude the chapter of purchasing the property. Soon, we will update about the renovation process.