One of the 20 punches on my punch-card. The amount is bigger than all Blk177, #1173, Beijing home, all my Cambodia investments [1]
- [1] However, I know the location, the legal system very well.
- [1] However, career longevity has bigger impact on family livelihood
- [1] However, health and family unity have even bigger impact on family livelihood.
— Biggest risks are
- overpaying .. (a misstep) overestimate of appreciation + yield,
- missing a good opportunity to satisfy wife’s needs at a reasonable price.
- neglecting hidden issues
— rental yield decline .. pretty much inevitable whenever we go upsize. Rental increase is slower than resale price. If this decline is a misstep, then just about any upsize would be a misstep.
— depreciation .. (short term or long-term) is a well-accepted risk. I have always accepted the risk in PAP government including SGD, cpfLife, Singtel stock… So when I imagine HDB depreciation after I buy, I basically feel “Fine. That was my own judgement, evaluation and assessment.”
— overpaying .. With #1173, I actually overpaid compared to subsequent price level. This is basically another aspect of the depreciation risk described earlier.
Q: Did I feel the pain of misstep? Not really.
A: (jolt) in 2012, I had a good change of home overall. Even though #1173 was overpaid, it was dwarfed by my Blk177 good sale.
When I eventually sell, I guess my profit could be $30k vs $100k profit of a neighbor who bought lower.
My rental yield is currently, say, 4%, vs 5% of that enviable neighbor.