Monday, August 31, 2009

learning in progress

Super long never update as I am rather busy with school related stuffs.
Nevertheless, I am still very interested with $$ related stuffs. Took business Finance module.

Going to master..

-Bonds(convertible, callable, with/without warrant)
-stocks(common stocks...)
-Present value..future values.. annuity.. all formulas etc etc

Wednesday, July 15, 2009

My Paper: My Money [How to Diversify and conquer]

In today 15th July My paper, my money got this article.


Short summary:

qns: How can one diversify investment?
ans: 1. combine assets like stocks(growth and value options) with bonds.
2. Invest globally
3. Rebalance/evaluate portfolio perf regularly

qns: What impat does a divesified portfolio have on returns
ans: bonds often do well when stocks do poor

qns: what should the portfolio for a 30year old professional look like ?
ans: more equities and stocks when entering 40, include bonds.

Monday, July 13, 2009

Invest[property special] 2:

2nd article that caught my eye!

It teaches one to consider the interest rates and lock in period etc when consider a mortage package.

Francis Chan shares his story of when buying his first house... he is shocked when he received a letter from bank to say that '' due to the flutuaction of interest rate environment, his monthly installment would have to be increased.'' This is when he haven even unpack his stuff in the new house.

So... some important information in the article


  1. DBS

Sibor fixed rate (Sibor stands for Singapore Interbank Offered Rate)

Year 1- 1.99% Year 2-1.99% Year 3-1.99%

Thereafter 3- or 12-mths Sibor +1.75%


2. UOB'

Floating rate

Year 1- 3.5% Year 2 - 3.75%

Thereafter 4%



Floating rate

Year 1- 1.6% Year 2 - 1.6% Year 3-1.6%

There after 3.75%



3year fixed rate

Year 1-1.6% Year 2 -2.2% Year 3-2.9%

Thereafter 3.75%



2 year fixed rate

Year 1-1.5% Year 2- 2.5%

Thereafter 3-mth sibor +1.25%


Fixed rate means protected against the fluctuation of the market interest rate... Its good, thus you can see, no bank provide fixed rate throughout lo...

then the author also mentioned about locked in period. It refer to how long you are tied to the bank and allow it to penalise you if you decide to redeem your loan early.

Haha.. first time home owner, good luck!(haha, including me too!)

Invest[property special] 1: Current property RUN

After reading the Invest pages in Strait times 12th July, I am drawn to 2 articles. The first one, is the headline, the front page!

It starts with...

''Recession? What Recession? The residential property market is on a roll with owner-occupiers, speculators and investors...''

"Demand shot through the roof and prices are rising.'''

So, this article is about the increase in demand for private apartment...despite the so call recession, the property market is doing well

Property Correspondent Joyce Teo came out with some reasons. I shall summarise it here.

1. Suburban boom

As people missed the bull run after 2007, many are catching it now, having the thoughts that its at the bottom of the market.

The Caspian, 99year leasehold project in Jurong West sold 300 units over 3days. Then followed by other project. Thus, believe this spark the boom off.

2. Interest absorption.

Paying 20% of the purchase, and you will be the owner of the apartment!

More attractive, the Interest Absorption Scheme(IAS), requires you to take up a bank loan, but the developers absorbs the interest payments until the project has been finished!

3. Small is beautiful

Projects that offer smaller, affordable units

4. VIP previews

When one call to register interest, they will be invited to a special preview! Being among the first to buy and choose.. plus, preview price lower than launch one!

5. Where are the price now

Price have dropped but experts are saying it may not last long...

Being in Singapore, one very good news is that we are not very affected by the recession! I think most Singaporeans dont even care what period is this. As recently GSS(Great Singapore Sale), Mastercards purchases shot to highest among recent years. Hopefully, these are not unnecessary spending just due to the GSS.

Thus, I not very suprise by the article above . Also, for investors, it might really be a good time to go into property market! XD Before the demand shot so high and affect the pricing again.

Propery investment need be cautious as it involve large sum of money. Even if now is the best time, the bottom of the market, we need to consider some factors before jumping into it.

Factors to consider include(after study the market):

1. Location

2. Loans available

3. Interest rate

4. Ability to support the apartment if unable to resell

Cost to consider when buying a property:

-Mortage payment(<40%>

-Legal cost(<1.5%>

-Stamp duty (0.7% for first $180000 1.4% on next etc)

-Valuation report

-Insurance premium(life+fire)

-Property tax(ard 4% if owner occupied, 10% if rented)

-Maintanence and Operating expenses

People who are going to be first time home owner may be interested in the article I going to intro next:)

Wednesday, July 8, 2009

MY PAPER: The Bonds that Binds

In my paper, 8th July Wed.
Under My Money,
The Bonds that Binds, from Mr Koh. Brought by HSBC insurance.
It encourage people to invest in bonds, a loan statement from a company or government sector.
OF course, it promoting the Asian Bonds.

Reason #1
Greater variety of bonds available. Asian bonds form the 4th largest bond market. (1st is US, then Europe and Japan)

Reason #2
Higher long term growth
Asian economies are expected to have higher long term growth

Reason #3
Higher and steadier returns
Higher yields compared to Singapore dollar based deposits.

Bonds in my opinion dont really gives a high interest or high yield. In Singapore its more of a steady kind of investment. OF course, its higher than the 0.125% bank give which is eaten up by inflation...

Tuesday, July 7, 2009

Asian investment fair! TAKE NOTE investors!!

Asian Investment fair!
There is like 50 seminars held over 2days!

FOR FREE!!!!!!!!!!
Worth to go learn and listen to professionals point of views on investment..
The companies involved are SGX, standard chartered, moneysense, online trading academy, citigroup etc etc etc...
There are some seminars that held at the same time, so must really choose the one you more interested in.
For me, I looking forward to... (for the moment)
Day 1
`1. All you need to know about contra trading. BY DAVID GRANT CEO of city index asia(rmb? the one i posted on earlier...)
2. Investing with unit trusts and ETFs
3. Outlook on Singapore economy by Mr Kit Wei Zheng, Citibank
Day 2 planning for young families by Moneysense
2.Keeping financial fit...
3. Asset allocation by Mr Roger Tan, VP of SIAS research
etc etc
actually quite a lot of things seem quite vague, dunno what they going to talk about for day 2.. so make me a little curious...
Investors should go I think... no harm learning more..... though I think some will sure sell their products as the seminar goes..
Its first come first serve basis...think will attract quite a no. of ppl

Sunday, July 5, 2009

Straits Time: Invest

Bringing attention to Invest from The Sunday Times 5th July.

Haha... it says ' Where to park your hard earned cash'' Known fact that saving it all in bank may not be the best idea, with interest rate close to zilch.

The article suggested a few ways. 1) Saving and fixed deposits 2) Money market fund 3)cooperatives 4) Singapore government securities *SGS 5) structured deposits 6) endownment plans with fixed returns

What I think about the above suggestion is that generally they are rather low risk investment. Due to lehman brother, I think many think twice before investing. However, the inflation rate never change. One will always lose $$ with NOT INVESTING.

The low risk investments are really rather good in the market now.. where everyone is a little fear.. yet want to invest.. these may be the ways one can look out for


Another article that catch my attention is developers rush to catch buying wave.
(talking about the more condo launches are due this month but market watchers say the price recovery will not last)

more details..go read up oh