Healthy cash flow is most important.

Reader says:

Time flies and I'm glad to have taken your advise previously to do well in studies. 

I am currently reaping what I've sow for my study & career.

Good news is that i have gotten a job that pay me well compared to my first job 3 years ago; i got close to 50% pay increment!

However, my life had been quite a drama due to conflicts at home. 


So, i end up moving out, renting a room to keep myself in peace. 





With that, expenses increased and i am having difficulty sustaining it.

As i am single (28 years old) and I have to wait to reach 35years old to be eligible for a hdb bto 2 room flat (considering the waiting time for BTO or higher price of resale flat). 

I am currently thinking of getting private property (studio) which if possible, i would like to save enough downpayment before committing to own one.

i calcluated at least 3-4 years of saving to reach that goal. 

Do share with me your opinions too to handle my current situation






AK says:

Whether to buy or rent a property, especially if buying a property is going to strain your finances, the Rule of 15 helps you to stay grounded.

http://singaporeanstocksinvestor.blogspot.sg/2017/05/to-rent-or-to-buy-rule-of-15-revisited.html

Think carefully what is the financially most prudent thing to do when it comes to housing for you now.





Reader says:

That is a interesting rule to use as a guide, but does other factors affect the outcome if we factor in the inflation, demand & supply of housing and uncertainty of the house value in future?


AK says:

It is about cash flow.

How can we tell what the demand and supply situation is going to be like in future?

The Japanese didn't know they were going to suffer 2 decades of decline in housing prices.

The Americans didn't know they were going to suffer a huge crash in housing prices that wiped out 10 years worth of wealth.

If cash flow is going to be an issue, forcing ourselves into buying a private property because we fear prices are going up higher in future is silly.

Too many people have too much of their wealth stuck in their homes. 

This is why so many people in a wealthy nation like Singapore must work till the day they die.





Reader says:
I see, thats is a very good insight for me to learn. 
i trust your experience in this.

AK says:
Alamak. 

Don't trust me. 

I don't have a crystal ball. 

I cannot see what the future is going to be like.

I am just saying that we should stay prudent especially if cash flow is tight.

If you have plenty of money lying around and cash flow is not an issue, then, if you want to take a bet on property, go ahead.

Having healthy cash flow is always important.





Related posts:
1. Property market.
2. Slaving to stay in a condominium.
If to stay in a condominium, we are forced to live like paupers, the price is too high.

HWZ says AK "self-victimise himself".

A friend read something in hardware zone and thought I would like to know. He had a good laugh and I had a good laugh. 

I am sharing it here so that maybe many more people would have a good laugh.




Now, read this with an open mind. There could be some truth in what the person says.

Oh, and this video clip is just for dramatic effect.



HWZ forumer, w1rbelw1nd:

I dont think very positively on local bloggers, frankly. Yes, most of them may be altruistic and do it out of interest and passion, but also because of doing it for interest they have a tendency to interact with people of the same mindset (a sinkie tendency, no doubt), rather than challenge their own thinking. 

Just take a look at ASSI facebook page.

Quite recently there was a reader commenting that he should share more on his failures and bad picks. 

ASSI immediately (IMO) self-victimise himself and say things like "yea maybe i should take a break from blogging, since my sharing has adverse impacts on readers" and lol all the ASSI white knights come in and comfort him. 

The point is, under an environment where like-minded people seek each other, and just parrot each other, can these bloggers give a truly learned, informed and balanced view? 
(Source: HWZ)





Well, it is the truth. What? True?

Yes, it is true that I am blogging because I enjoy it.

I am not blogging because I have to. 

I am blogging because I want to. 

So, I don't have to give in to the demands of the audience. I do what I like.

Remember, I am just talking to myself here in my blog. I don't give advice.




If you want to eavesdrop although I don't know why you want to, take whatever I say with a pinch of salt (unless you suffer from high blood pressure).

Alamak! Did I just give some medical advice? 

Die lah. How like that? I blur.

Related post
AK the teacher or the mental blogger?