- I have invested most of wife’s usd 70k
- I have invested about sgd 40k + usd 16k of grandpa’s money
- luckily I have not invested any fund from grandma
I probably need more buffer and more contingency reserve now that my reserve is almost depleted. See Need to rebuild OPM reserve#NOT another shop
Many people seem to invest with over-sized optimism, and possibly over-zealousness and over-commitment:
- Many Bridge/Peak investors choose to buy $X when they only have half that amount on that day, planning to tap into future income… Me too if buying a 4th shop unit.
- Most property investors take loans, including Youwei. I know a few buyers who avoided loans and I admire them — Yinghui, XiaRong
- Raymond bought 2 units, more than he could afford
- Genn took such a huge loan
- Genn tends to borrow from me
- some invest the year-end bonus, even in advance
The Overzealous behavior is largely driven by hot money herd instinct, fear of getting left behind, irrational and emotional, very likely to /crash and burn/ (i.e. burn your finger).
— decisive .. rEstate investing involves checklists, and lots of boring, painstaking homework to do, but many buyers have no time for due diligence. They feel they need to be decisive when buying a hot unit. They are pressured by sales pitch like “last 2 units” or “price rising soon”.
— case: MIH .. I resisted the pressure of “last unit at this price level“. I visited showroom on-site and took a few days. I think I returned to Singapore to send the deposit check. Even though I missed a smaller unit, my decision-making was prudent.