Hi Caroline,

You impressed me with your breadth of knowledge, honesty (and impeccable English… rare among Asian professionals in Singapore).

I have a habit to jot down my reflections and send them by email. No obligation to reply.

* over-concentration in properties — perhaps 80% of my money is in properties (all in Asia) so am gradually increasing allocation to stocks.
* language barrier — Japanese government, agents, tenants … would be harder to engage, but how bad is the language barrier? I’m sure your past clients have (positive) answers to this question.
* currency hazard in overseas properties — I experienced it to some extent. I prefer SGD and USD assets because I have expenses in SGD and USD.
* leverage (loan) — feels very dangerous in overseas markets, esp. cross-currency. I never use leverage for investment.

I can’t imagine myself servicing a foreign currency loan using SGD salary. Therefore, the interest-only installment scheme (positive cash flow) can help if I do take a mortgage.

* net rental yield — can be 50% below the notional gross rental yield. We didn’t go through the numbers. We need to consider vacancy periods, local agency fees, taxes, repairs, insurance, etc. So I guess Japan is 2 to 2.5%, perhaps slightly higher than Singapore condos.

In contrast, the 10Y GRR (guaranteed rental return) in Phnom Penh is very high in terms of net rental yield. I think it reflects the risk premium in that market — Cambodia is dangerously dependent on China’s hot money (One-belt-one-road).

Am exploring s-Reits (i.e. SGX listed Reits) after buying some US Reits. I think typical dividend yield on cost (comparable to net rental yield concept for properties) is 5% a year, meaning 5k payout every year for every 100k
invested. Looks like much better than Japan (or SG condo) rental yield.

* my current sentiment as a semi-retired investor — lower risk appetite, more attracted to (reliable) nonwork income rather than windfall appreciations.

Note nonwork income is not completely passive. A lot of my dividends and rental incomes require active management.

* relocation to the U.S. — Suitable homes are becoming too costly in greater New York. so I have devised plans to earn rental income in Asia and use that to offset my rent in the U.S. I may also decide to buy a rental property in the U.S.

Recently, my wife has managed to change my sentiment about our relocation timeline, but my long-term plan has not changed. My son is 13. After NS, he probably needs to enter college. There are many choices in the U.S.

Despite all the negatives about the country, American colleges remain a bright spot. American companies and job opportunities therein are another bright spot (as reflected in U.S. stock market). My son may not be the most compatible with Singapore’s education system or Singapore’s job market.