I think some windfall-focused property investors are hoping to build a legacy for their kids.
Legacy is valuable to some extent but is a low priority to me. It’s good to understand these kind of individual differences, so I can get a better picture of my own priorities.
Over the long horizon, Property markets and my offspring’s priorities are too hard to predict.
I feel most of the big fund houses probably avoid the high-yield, high-risk stocks such as U.S. REITs.
I guess for them, 4% div is considered high. I assume the fund dividend payout comes strictly from stock dividend, not position liquidation. Therefore, a typical “high-income” equity fund can only pay 5% average. In reality it could swing between 3% and 7%
I am now slowly influenced by Chinese fellow parents, and have developed a biased perception of the correlation between poverty and a host of other issues like school performance, street safety, street cleanliness, kids’ behavior among my son’s friends.
If I can’t find a safe, conducive environment for my son, then we must move home.
Therefore, I appreciate the flexibility of renting.
U.S. healthcare is more expensive than Canada partly becasue individual income tax is lower.
However, SG is superior in both tax rate (much lower) and healthcare cost (lower). I think this is a huge advantage that my U.S. peers can’t dispute.
I have always agreed to the prudent advice that as we age, our risk appetite drops and we should rationalize/adjust our rEstate portfolio to less risky countries. Every country has risk factors, but SG remains the least risky.
— geo-concentration risk .. minor concern as SG is my home country.
Q: if I were to invest 300-600k in a SgCP, which existing property would I sell to create a higher allocation to stocks like 200k? Net effect is worse concentration to rEstate, worse geo-concentration to SG, but it is probably prudent, esp. in my retirement.
A: perhaps BGC
I am already more geo-diversified than most peers. See %%riskTolerance: which countries feel OK