CASH RECEIVED FROM MY HDB SALE! I've Gone On An Investment Buying Spree...

[@stanjs]

Book value of REITS are inflated by decades of low-interest rates.

[@joshconsultancy]

Their NAV maybe yes. Cap rates need to change. But I view the discount to NAV as factoring it in already

[@yongym3536]

How about buying SIA share? Tourism is going to pick up soon

[@joshconsultancy]

Ive called SIA expensive wrongly for too long. But thats still my view looking at its eps now vs to a shareholder in 2019. Im hopeful also that tourism will pick up =)

[@tanjem]

Singpost is actually quite a horrible blue chip ... I wouldnt even touch it ..

[@joshconsultancy]

It has fallen on hard times its true

[@jamesk6673]

I am looking for kaki to go Manulife US REIT 😁

[@joshconsultancy]

Ah? Covered this in BIG SALE - more than 10% yield kzbin.info/www/bejne/eavVYYulhtGDr5o

[@Wira8]

Hey Josh seems this video recording has more echoes than usual ?

[@joshconsultancy]

Audio setting error. Apologies

[@abdulhalimmohamedanwar1087]

Thanks Josh! Last year we managed to sell our EC at a tidy profit too. I agree that we need to have a plan cos it was so tempting to spend and spend!! Good thing I have been following your channel and other finance channels and have made several good investments..

[@joshconsultancy]

Thank you for the high praise and happy for you too =)

[@tanjem]

if i got windfall money ,, i will retire straight and put my money into 5 % treasury ... so .... that is my thoughts ..

[@joshconsultancy]

oh you might like this ALL YOUR MONEY IN JUST BANK DEPOSITS?? | Can You Retire? How Long Can The Money Last In Retirement? kzbin.info/www/bejne/fXy9lGVmhq2leK8

[@tanjem]

@@joshconsultancy A long time ... yes. cost management is a thing ..

[@Kelberi]

Walaoeh maituliao hantum all in nvda and buy protective puts. Simple right?

[@joshconsultancy]

no no no

[@wbt625]

If a person is 55 year old, does he need to pay back the accrued interest to Housing Board after he sold his house?

[@joshconsultancy]

In my understanding , yes If there is full retirement sum in the oa w the refund, the person above 55 can withdraw that excess in cash. Hope it helps and do always double confirm w CPF 👌🏻👍

[@user-ff2kd8ex8g]

@@joshconsultancy Yes, you're right in this instance. Sold my flat in September last year, received my proceeds in January this year. If you're above 55 (like I am), all your liabilities are paid for first i.e. the outstanding loan, interest accrued, topping up into your CPF Retirement Fund. Then, any other excess is paid direct into your bank account (How come you received a cheque, Josh?). I did not purchase another HDB or private property, as we are able to live in a relative's vacant house. Immediately upon receiving my proceeds, we cleared ALL debts, reinvesting into quality REITs, and took advantage of the bank collapse in March to purchase local bank stocks at a good discounted rate.

[@jianchao88]

Thanks Josh ! I love your video with numbers.

[@joshconsultancy]

Glad it was useful jianchao =)

[@bennylim9302]

Sure win in renter Buy stock no sure win.

[@joshconsultancy]

hmm ... maybe? =)

[@bennylim9302]

@@joshconsultancy I also sell my condo to buy dbs in covid time. Not now. Is all about time.

[@joshconsultancy]

@@bennylim9302what motivated you to sell then

[@bennylim9302]

​@@joshconsultancy is plan few years back before covid. Not sudden. When covid come just action to buy dbs only. No wrong to sell your house. Only the time is not right. Bank is expensive. interest to high.bad for riet.

[@donlee474]

Hey josh, is that your residential unit? Are u gg to rent or buy your next residence?

[@joshconsultancy]

No no. Home is home, dont touch safer. I own another place. Follow - THIS HOW MY OLD HOUSE LOOKED - Explaining why I sold my HDB flat in 2023 instead of collecting rent - kzbin.info/www/bejne/hWbPhYqGeLd2edk

[@KelvinKing]

I too have been DCAing into SG REITS for the last 2 years. I believe that most Singaporeans are basically "Locked In", and will do whatever humanly possible (sacrifice health to keep their jobs etc...) to maintain their current lifestyle and home loans. Hence, office space and malls will continue to run at close to full capacity for at least the next 3 to 5 years.

[@joshconsultancy]

Oh yes. In SG (at least), we can safely observe office and malls doing well. Rent numbers declared have been growing consistently also

[@gabrielng05]

Hi Josh, I have substantial position in Mapletree Industrial too, maybe one of my biggest. This SREIT together with Ascendas are probably 2 of the most well managed in SREIT market 😊

[@joshconsultancy]

They have some overlap in asset class so I only picked MIT only. But yes they are well managed :)

[@Xamael666]

Thanks Josh! 2 questions tho: 1) Why not just go all in on S&P500 since it is already very diversified & gives better returns over the long run? 2) If u use CPF OA for housing & have to refund it back to OA after u sell yr flat, shouldn't u be paying back the principal amount + accrued interest of 2.6% instead of 2.5% if u took the HDB loan?

[@joshconsultancy]

Hi, no probs At 6:25 I mentioned my view on US equities. They have given better returns over the last 10y BUT may not give better returns moving forward. Hard to fathom but thats how asset valuations work. Back in 2006 US equities were boring. It was all about china and its immense growth. Today, people think china is unstable and US has immense growth. Accrued interest is opportunity cost. which means it compounds at 2.5%. 2.6% is HDB loan rate which is interest cost (real losses) if one takes a HDB loan. I had used a bank loan back then as HDB loan has qualifying income criteria. Still there is interest cost. Outstanding loan needs to be cleared off first before proceeds are calculated

[@tcmelvinlee4804]

Good luck to you should reinvest in property instead!

[@joshconsultancy]

haha, some time in future, patience

[@kevin-4507]

Accrued interest aka opportunity cost as you mention is simply the cost of borrowing money from yourself.

[@benk7177]

Truly appreciate your transparency and straight advice 👍

[@joshconsultancy]

Thank you for the high praise

[@shazamman8153]

Thanks for sharing

[@joshconsultancy]

No probs =)

[@goheechoo]

why not the 3 local banks?

[@joshconsultancy]

Banks are not bad, I view the reits I bought as cheap that’s why

[@lambo88]

why dont collect rent (make use of red hot rental market) and wait for the property to further appreciate, then cash out the capital gains? It's like selling your golden goose IMO. or are you expecting the property market to tank hence you're selling now to fund your other investments?

[@joshconsultancy]

I know the data but I am turning bearish on residential property early, shared here I SOLD MY HDB FLAT ... Bearish On Singapore Properties But Why? kzbin.info/www/bejne/gmiqinWno7-Zpa8

[@DonYang73]

Congrats

[@LonganLee]

Lets discuss What is Rich? Is there are definition? Lets say a person runs a company, in debt of 1million and lives in a bungalow on mortgage. So is this in finance terms Rich?To me, a person is rich if has zero debt and has cash of 1million at least. Thats logically true rich but i think in laymans terms rich is visual: you base on what a person wears, what house he lives in and what car he drives or job he does. As long as the debt is not paid off, and gains or yield not realised, i do not regard people in debt as rich. Furthermore, using loan to pay debt is based on an assumption and interest rates fluctuate and so further uncertainty and risks. But monkey follow monkey. We can see what English is. It is art. Affordability depends on who defines it. Language is oral masturbation.

[@joee2743]

Any company with generals being parachute in as CEO cannot be considered blue-chip... Unique SG problems and I think generally the companies they run ... the results have not been outstanding.

[@joshconsultancy]

blue chip in general is just a term for big cap company. But I understand the dismay

[@tanjem]

@@joshconsultancy It is already proven ... generals being parachute sinks 2 Blue chip companies .. NOL and SPH ..

[@mynameisusedz]

Actually I think the sentiment on data centres should be even more bearish. 1.Chips cost have dropped, lowering barrier of entry, increasing competition, lowering revenue. 2. Increased energy costs. Electricity costs will remain higher for longer. 3. Increased rental costs, partly due to higher interest rates and higher inflation. 4. Increased interest costs for data centre operations, extremely capex heavy. 5. Sustainability..data centres want to go green or are forced to and are willing to pay more for renewables. Its definitely coming out from the distributable income. so...whats the angle for data centres?

[@joshconsultancy]

think my first answer is these are already known which is why data centre reit prices have been sliding for 2.25years already. Will be giving an update v soon on it, stay tuned

[@denverchee4861]

Is triple nett so energy and electricity cover by tenants

[@mynameisusedz]

@@denverchee4861 not all are triple net. Besides, it just means that the REIT manager, in taking less risk, will have locked in lower margins that might be longer than a standard lease. At least in the near term these triple net lease margins will be strained by high interest rates and it remains to be seen if it will remain high for much longer than expected. Either way, the biggest hyperscalers and SAAS cloud businesses all faced lower than expected growth. For these reasons, I see far more headwinds than tail winds.

[@joshconsultancy]

@@denverchee4861 good point

[@BuildingWealthWithRajeev]

supports my view as well. its contrarian ... but meaningfully contrrian

[@joshconsultancy]

Thanks Rajeev

[@yipkf18]

Very clear explanation and info for me if I want to sell my HDB flat.

[@joshconsultancy]

Happy that it was helpful

[@andrewie4]

Congratulations to your big chq towkay

[@joshconsultancy]

hey thanks thanks haha

[@mrrealengineer]

So you sold fully paid real estate to invest a leveraged real estate? You are giving away interest free rental but paying for interest and management fee for reits

[@joshconsultancy]

Im trading real estate that are in different market cycles and market price

[@mrrealengineer]

You will be better off keeping the hdb and rent out. Reits cannot give you 10% yield. And the correlation between commercial and residential real estate is quite high

[@joshconsultancy]

The above has an assumption that I went in un-informed which I disagree but its ok, your view noted

[@JRambonian]

Another perspective is that reits has corrected due to rising interest rates whereas residential price is ATH

[@kyralim3742]

Which platform you use to buy these shares?

[@joshconsultancy]

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[@joee2743]

If one did not receive grants for BTO. Is there still a resale levy charged?

[@joshconsultancy]

yes if a second subsidised flat is purchased. From my understanding only, please always double confirm w HDB. A subsidised housing is: - BTO/SERS - A resale flat bought with a CPF housing grant - An EC unit bought from a property developer You have to pay when you: Sell your subsidised flat and buy another subsidised flat from HDB, or; Sell your subsidised flat and buy an EC from a developer

[@joee2743]

@joshconsultancy thanks for clarifying. It's a learning journey. Given tt SG govt can happily change the rules and these days they don't give warning if any. Today announce, tomorrow implement. As an investor I prefer not to deal with such uncertainty. When govt realise too many people are making money from a certain loophole, they will try to close it. One ruling not in the investor's favor can screw up years of planning. Especially when property involves large sums of money.

[@bigno1900]

huat ah!

[@miklee4834]

The current environment is friendly to reits and property companies. Interest rate is likely to climb after Powell testimony. I rather put a large portion into risk free fixed deposit. Yes Financial prudent and ues it wisely.

[@joshconsultancy]

"unfriendly" you mean? I am aware. But thats where good value is because it is ahead of consensus

[@miklee4834]

@@joshconsultancy unfriendly meaning rising interest rate. Capital loss is more likely than gain. That's my personal opinion. 😀

[@jalanjalan7099]

@@miklee4834 buy when others are fearful right?

[@miklee4834]

@@jalanjalan7099 ha! Not at this moment. Rate is going higher and stay high for longer . There will be further weakness for reit and real estate . Yields are attractive enough for now. Trade with caution

[@connietan5012]

Three rooms flat?

[@joshconsultancy]

ya a 3rm HDB

[@PatrickLam30]

Consider JEPI, SVOL

[@joshconsultancy]

Would advocate to avoid products w embedded derivatives actually. Simplify the approach