Don’t Think It won’t happen to you! Real Case Study

So there's been some measures to keep the Singapore Property Market under Control, namely the ABSD and the BTOs. In spite of this, there are still some people that are trying to do investment in property. Because of the leverage that is used in the process, Mr Loo has not been a huge proponent of investing big into this asset beyond the one that he stays in. On the woke salaryman, came out a picture story on a very normal story in recent times regarding this. What are Mr Loo’s thoughts?
Find out with Mr Loo in today's video!
The story comes from the woke salaryman. We are thankful for the continued financial learnings that are embedded in these pictorials, that we are able to share with more people.
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[@chanfm1]

Actually, this has nothing to do with property investment. This is about foolish overleveraged consumption. Consumption could be about properties, cars or holidays.

[@Mike-e1n]

Property forum will keep bragging about leveraging is the best thing… very dangerous 😊

[@voyage8431]

Many forgot that the high ROI from property is a leverage game. Stocks can go down the zero, but property could go negative if one bought at the wrong time. Thank you Mr Loo for the timely video. Financial prudence is important.

[@zerodegreescelsius]

I completely agree with the bad luck chain. When nothing happens, nothing happens. When something happens, everything happens at once.

[@sl7864]

But we think it's unrelated. But it's actually related. E.g take expensive loan in the middle of a bubble when everything seems nice and rosy. Bubble burst, job loss but high mortgage still remain

[@zerodegreescelsius]

@@sl7864 thing is, good times rarely last as long as the bad. It's really a case of making hay while the sun shines.

[@gg-yl9ek]

When it rains, it pours.

[@leonleong9863]

A good lesson for us, reminding us to manage our greed and over-optimism. Appreciated!

[@carnesir]

When someone says no bashing of property investments, they are about to bash property investment...

[@user-pc4wb6md6p]

Yes, agree we shud always live within our means, not worth the nitemare and life too short for regrets!!❤❤

[@rayang2059]

Been through similar difficult times. He could have rent out the property. Then, rent a smaller unit to get by.

[@yoyolexy]

I agree with you in every aspect other than the part about buying furniture from Taobao. We should support the companies in Singapore. If the companies in Singapore cannot survive, people will lose their job. It's a chain effect.

[@genosypheus]

Misleading clickbait title. The subject home buyer simply bought something he cannot afford in the long run. This content got nothing to do with property investment, rather, it has everything to do with spending within one's financial means.

[@wahkwanggan8088]

Agree this has nothing to do with property investment. This is poor financial planning 😅

[@JamesDean6133]

I have better story. In my kampung, house prices have not increased after 18 years. Everybody with a mortgage pay interest every day for no financial benefit

[@DanyeoLivia]

Greed & pride precede a downfall. Yup, we should always commit to what we can afford and NEVER overstretch. This is a very good video and sound advice for everyone!

[@alistan2002sg]

Thank you, Mr. Loo. A timely reminder to live within our means.

[@leeaaron7856]

Excellent video. Thanks.

[@ryanyoutube7315]

This is exactly what I'm looking for in order to learn

[@frederickho348]

Loo, well said. Yes financial prudence is important.

[@starbreath76]

Nice sharing Mr loo! Life lessons cannot be underestimated ❤

[@cheekengkok4879]

Well explanation, I shared your views.

[@sunaksuka5106]

there is another lesson in this video that you overlooked: Never lend your retirement money to your children to help them buy their assets. This unfortunate guy would not be where he is today if not because of the 'help' from his parents.

[@1m65]

Good point!

[@lidna82]

lol but true!

[@cutecuteoldold]

I hope that man has picked up the pieces and his entire family is restored. God bless them We thank him for being unselfish TQ for your input ✨

[@MARS-ob7eg]

Some friend buy expensive and luxury is to wait appreciate the value over time and become millionaires. I ask them and they shared, they can’t afford to be retrenched

[@kaiseng8394]

thank you Mr Loo for the great reminder.

[@Jeff-sm8of]

Bad luck comes like a tsunami. Good luck is a gentle blessed shower.

[@stloh3475]

I bought a presentable home thinking of visiting relatives or friends. What actually happened is that quality relatives or friends never drop by. Who drop by is those, don't know from where and asking for items that i hardly use.

[@choonsengteo9694]

Don’t worries too much.

[@boliaohill6595]

agree, being laid off isn't just about income loss, and it also isn't just about face-loss, self doubt (why was I the chosen one). If you had built a community in workplace over years, and also built something at work (e.g. a pet project that went very well), suddenly being cut off from these can take a toll on mental health. It's like a big hole that is impossible to backfill and you'll feel very disorientated, although it can be mitigated partially by being mentally prepared for being laid off. If add to this toll, you have to deal with a large mortgage and a family to feed, with very little cash in bank to lubricant daily life, it will be terrible. I hope the person who shared this story managed to get out of this situation. Not easy and no joke.

[@Ynwa-80]

It’s all the nonsense of “upgrading”.. why would moving from a 5 room Hdb to a small condo considered an “upgrade”? In terms of living space. I would rather drive a Toyota estima than a Audi A3

[@jillong3703]

Mr Loo is giving us very good advice based on his experience and feedback. Other than the economy affecting job numbers, there are many other factors that can affect anyone at any time, such as change in regulation, taxation, family structure, health and so on. It's wise to live below and within our means, build up emergency fund and retirement fund with consistency.

[@jessiejames7492]

Great advice.

[@MARS-ob7eg]

Afford the house likely loan - high income but we don’t know whether job is secured or not.

[@eiooops]

Never sell that has been bringing you luck all these while.

[@rommeltan5150]

I have been in the real estate industry for 30 years and i see the up and down. Buy within your mean. Some agents will tell you that Singapore property will only goes up and will not go down. Property is a big investment and you need to think twice before making the decision.

[@janng7802]

I m a retiree with pension which totally used to pay for 2 property installment.. it is a matter of sound financial planning.

[@Longtermalwayswins]

@@janng7802 who in the world still get pensions? your time is over, regardless how sound you are, pensions are a thing of the past

[@aaraonhon]

Works for past generations with pension and much lower loans

[@jkalmon]

@aaraonhon always giving excuses and avoiding the truth. Keep up the stagnation!

[@user-es5jk8sz9r]

I think it is holding power, not over leveraged and over time it will go up. Real-estate cannot go zero and stocks if bad asset allocation, will never recover. Property bad time still give cash flow during retirement assuming no more loan. Stock during bad time cannot draw money. Also with loans, the loan value become cheaper due to inflation

[@fanlie1576]

I agree that the holding power is very important, it is a safety nets when the "not so good" time happen.

[@chkoh2457]

I think this is not about property investment but about upgrading beyond affordability (borrowing from parents). The one that is more damaging is Sell One, Buy Two. In the end, the property agents are the one got away without risks.

[@lidna82]

Property investment is all about holding power - not about how much one is earning but how long the savings can last before re-employment.

[@steventay5834]

Don't be greedy. No short cut to success

[@jennifer-oc6io]

Just renovate your HDB till it looks like a condo, then you get a condo look alike apartment without the financial burden

[@royng9401]

Join club membership to enjoy the status and facilities . Change according to your interest and needs.

[@jvo248]

lesson learned. Appreciated! Also proofed by planning was correct till date. CASH is KING! but knowing how to use it and to earn more is very important. "Nobody is indispensable"

[@Longtermalwayswins]

then the king you have now will be worthless by inflation. not so king afterall

[@ivansee-toh3256]

There's a everything bubble now. The government has already tried to prevent people from losing capital when property drops. Now property is already past the recent peak n trending down slowly- at the moment. Property all around the world has dropped by at least 20%.

[@limliza992]

Property is a form of investment with inherit risks. People also burnt from stocks and bitcoins.

[@Longtermalwayswins]

buy bto risk is low. buy index funds risk is low. done

[@user-db4ko2gq6y]

Mr loo, wise comment you should suggest, the person should opt for fixed rate home loan

[@KristyQuek]

Mr Loo mentioned some people who are retrenched have to check into hospitals. Some thing even worse can happen. Heard of someone who committed suicide because of his retrenchment 😢

[@MARS-ob7eg]

Ppl profit from property will show out, ppl who lose will not mentioned.

[@EvilSaigon]

Speaking of spending within your means, anyone knows how we can find foreclosed/firesale houses in Singapore? =X

[@lesliefoo838]

Why dream home must be private property? Could be hdb marionette or DBSS or one of those $1mil flat

[@hengsweemeng1698]

We all need to work out the finances and don’t over leverage to buy big house. Borrow and buy within our means. We have policies to take care of that in Singapore. For the above example , since tis guy is so sway/bad luck and i hope not everyone has 2 source of income, took huge loan and eventually end up the same fate as him and losing both. But i tink if he is willjng to right size back to his 4 room hdb and maybe should be fine. Who knows he might even make some money. Cos property prices for all property types usually grow or fall in tandem in Singapore. So property investment in Singapore is quite safe especially we have a good government (Mr Loo in other video also mentioned). Based on statistics, Singapore property prices grow upwards overtime. The risk is lower compare to overseas property.

[@eyulipng1780]

What sort of property the person buy? Sentosa cove? Cascaden?

[@EventH]

HDB (no loan if possible) still the best. Reasonablely priced for the size... stay rent free, maybe still appreciate after a couple of years. After MOP can rent out, and perhaps 'migrate' to JB, still got spare cash to lim kopi.

[@lidna82]

HDB usually still has the best layout since they are build for own stay and not for rental income. So no mutiple balconies, dry kitchens, tiny rooms... unlike private condo

[@user-xb8kz2my7d]

during asia financial crisis, many jumps cos of over leveraging

[@Agogo-ki7kc]

Yup few remisiers committed suicide too

[@markhuang4921]

He lost both Singapore and USA jobs because he was dividing limited time among both jobs, making him “low ranking performer” in both companies. When businesses are good, companies tolerate lower performers, but when time is bad, they cut them immediately. If he had not been greedy and focused on Singapore job, his performance ranking will likely be higher and he won’t lose that iob

[@coins_investmentsg]

I think he should monitor the market and sell off this expensive ppty and downgrade to his previous HDB

[@coins_investmentsg]

I think he upgraded to a $3-4m ppty from 4rm HDB, $6600 mortgage is 2m + his 4rm HDB sale + cash + cpf + personal loans.

[@lidna82]

am sure he must be very happy at the point of purchase until the first instalment loan payment kicks in!

[@charlesmenzies8153]

Truth of the matter is u can't trust anyone or anything everyone scamming everyone

[@88_JJW_88]

wanna stay in condo, own a big cc car, have maid, have few kids, and go 2 long holidays travels a year and worst wanna speculate in stock mkts/cryptos...not surprise a handful in this category today.

[@gavinyuen040680]

Not sure why Mr Loo is always casting property investment in a bad light but Stock investors have more than their fair share of being "burnt"

[@ocswoodlands]

perhaps its human nature. what i don't buy/invest in is lousy. what i buy/invest in is good. but in real life, many roads lead to Rome.

[@jem8965]

I don’t think his casting property investment in a bad light in this video. I think it’s more about making better and informed decisions. I too wanted to buy the most expensive house that my wife and I could afford. Eg. Stretch the loan etc.. but thankfully we didn’t. And months down the road, we had a baby and my wife had the option of working part time to spend my time with our kid, which is what she did and we need not worry about it affecting our mortgage payments etc.

[@stephanieteo91]

Both asset classes have cases of being burnt. But based on my feel, more people are aware of the dangers of stocks, but not the dangers of property investing. Property investing has this unjustified halo of being “safe”, “high return” which I think is perpetuated by agents/consultants. Whereas many people have seen or experienced for themselves first hand being burnt by stocks/bonds/crypto. Therefore I think it’s appropriate to shed more light on the risks of property investing.

[@weesonteh8751]

Too many people are not financially savvy and property has been oversold as an over leveraged investment, especially real estate agents with their own agenda. Property is a good investment vehicle but due to the huge sums involved in Singapore too often the common man has to over leverage to get into the game….hence putting his whole family into unnecessary risk as in this video. Yes there re many roads that led to Rome but some roads are more risky than others…choose wisely (or not)

[@carnesir]

it is obvious that buying property is a very gd investment choice but the choice of purchase is different from all. assuming 20% of new launches out there are good means 80% gets burnt. its not easy to exit a bad property investment compared to a bad stock

[@jennifer-oc6io]

Hi Mr loo, I was in his position 15 years ago, today I own mortgage free HDB n agents pushed us to purchase a more expensive condo, I am glad I expelled their hard core selling tactics

[@jkalmon]

Yes because youre already old, you can afford to stay stagnant. Younger generation even if they purchase HDB wont even be able to afford mortgage free until theyre in the 60s. You have no clue about the economy.

[@jk35260]

This scenario is now very common in China.

[@darrenkwok84]

Regression to the mean, be the average simple live, and be part of the system. So the term Rank & File shouldn't be new to this Technologist anymore?

[@theincredibles6517]

Buy a good property (private/ public housing) and stay in it. Sit on your investment. Don't need two properties. There are better ways to invest besides properties. The absd is not worth it.

[@superconnie5003]

Did the SG Co. know he had a 2nd job in US?.What company will accept that?. Sure retrenched 1st choice.

[@fool1124]

An asset doesnt generate an income is not an asset is a liability this apply to your primary residence

[@64ytb]

An indian spiritual master once said: Humans are like cows tried to a tree. The more the cow wants to roam round the tree, the tighter he will feel around his neck. The more desires a human has, the more suffocated he will feel. Just live within one’s means and all will be ok. People often over estimate themselves and feel ther choke later in life. I paid just 5K for my pioneer generation 3 room HDB 30 years ago shared with my mum. No wife, no children, little burden. Live simply and simply live. Life is short. My policy is: Don’t even try, not worth the hassle. Don’t be a slave to others. Just live and enjoy each moment.

[@mikelam1677]

Truth spoken

[@sallychua292]

Property not is too expensive the risk of leveraging is there.

[@clarencechan835]

Hi Loo, thank you for all the videos so far! Have you heard of Dave Ramsey's 7 baby steps to become a baby steps millionaire? Thought you might be interested in his philosophy

[@xxbananax]

Can share how you got burnt in previous property investment? Seems the phobia still there

[@eriklee4723]

Frankly speaking I heard more of people losing their fortune to shares. U may want to do another Gideon on this show your impartiality

[@fool1124]

I buy stocks with my spare money, I don't borrow and leverage. I buy than I forget. You can set investments targets at your comfort zone. Which it's hard to do with Singapore real estate they priced millions. I took Mr loo's advice consistently invest during the down turn and I am already 40% gain. The hardest part on stock investing is consistency. Most people treat stock market like casino.

[@Longtermalwayswins]

@@fool1124 you cant explain this to people who are financially not so literate. the comment above is obviously from someone who dont know much about shares and how equities work.

[@choonsengteo9694]

But you say it already.

[@jamesee3929]

Aiya , the example you gave is not property investment to generate rental income. It is property purchase for own stay and enjoyment . This is no property investments which made many millionaires. He should read RichDad PoorDad.

[@lidna82]

More wealth preservation than investment. But rental play isn't as rosy as before... e.g. higher property tax, fluctuating rental rates, maintenance etc. Maybe capital appreciation?

[@stewardsung1853]

We all have a common friend calls Murphy

[@hummit]

This is a case of over leveraging and a string of unfortunate events. It doesn’t detract from fact that property is one of the more resilient investments during bad economic times. It would have been a different story had he not over leveraged and had holding power.

[@engkiatpoh9696]

Maybe he is "shorting" ?

[@akoj3262]

maybe ... They sold the wrong house. the previous house fengshui better? but when one luck going to go down hill, they listen to what they think they shld be thinking (somehow blind here n there), buy the wrong house then stay inside ... soon after all the not gd things all come out one by one overleverage is poor financial decisions. they have no sense of saving for rainy days ? my relatives loan also come up to 5-6k /mth and dual income and not high paid but lots of savings. the installment is definitely more than their income minus cpf n exp but because of the rainy days saving, the funds r being tapped and also to reduce the loan as n when needed... n make sure have solid background to support if the individual unfortunately really cannot tahan the loan... at least have someone to borrow $ from haha

[@MsCorydorus]

Make no sense. Too confident. When I bought my apartment I did not get the larger one that I could afford. At least the damage is just regret. 😅

[@philipchan0231]

My boss ever told me not to play play with property. His wife was retrenched and their property was almost foreclosed!

[@tanchinkoon]

That is not good news

[@livedtea4363]

rich but cannot afford 9k? always a youtube drama.

[@daryllee244]

6.6k mortgage for young man could be around 30 years loan. That is easily 2 million dollars Condo. A jump from HDB 4 room. Wow, these lessons learned probably for gambler or financial illiterate people.

[@jam729]

I ride a bicycle and I don't own a car and take the public transport. The only transport I can afford. 😊

[@money3ss]

In Genesis, Joseph advised the Pharoah to keep 7 years of emergency resources

[@agtay424]

Did his SG employer know he’s having another job at the same time?

[@MKiurinuRigold]

Yeah bad luck comes one after another

[@Jamesyipkl]

That’s why don’t how Lian and how Siow. Know your head size and wear the right size hat. Don’t dream. Be contented in SG.

[@fool1124]

It's called middle class income trap

[@cathhl2440]

Poor guy... I hope his wife remains supportive and find a part time job to supplement the income. Who knows, someone may come along to buy his property at his advantage. If that happens, I hope they are humble enough to go back to "just a HDB".

[@Lancer21899]

Orh bi good to the hao lian and show off condo buyer. Will realise paying high % of interest instead of capital sum. Happy paying

[@cathhl2440]

We were all young once. Might not be a condo. Could be landed also...

[@leekc2574]

​@cathhl2440 Yes, all of us made mistakes, whether its properties or others. It's good not to rub salt onto other's wound, as everyone got their own difficulties or weak areas.

[@fanlie1576]

Never borrow money from parent. It's their hard earn.

[@nigeldcruz1195]

Actually Mr Loo, your stories are in line with latest data. 1. Rental fell 9 months consecutive for private 2. Govt set up resale portal to prevent private sector setting unrealistic property growth target which may affect social compact. 3. 99-1 kena pay back. Lastly after SA closure and 99-1 investigation, who knows what is next.

[@Longtermalwayswins]

Decoupling

[@yipkf18]

👍

[@david888a]

This is not about property investment n this is not something new. Workers get retrenched when economy is bad affecting their lives. From this content what I know is this tech guy is not financially savvy,once he empties his bank account n borrowed his parents retirement money to buy this dream home,he was already deemed for trouble, over stretched. Big mistake. Wife stopped work, 2nd mistake. We wouldn’t b talking about this if the economy is good, he will still,hv his 2 jobs n life would b rosy,isn’t it? But shit happened. . I had been retrenched 3 times, the 1st was the hardest,thought this would never happened to me but it took me a month to get another job with better pay I was in the IT profession as well. Plan for your future for u never know what tomorrow brings…

[@andrea9797mdd]

Nothing wrong with one income if you're a super saver. There are benefits to a mother being home that money cannot buy.

[@1m65]

Not when you are stretching to buy an expensive house

[@choonhockong8215]

Mr Loo, keep up with your good work.

[@1m65]

Thank u very much

[@Mike-e1n]

I save as much as possible 😊. Trying to fully pay down debt to zero. Agree on the feeling to be peace of mind and financial freedom is priceless 🎉

[@ocswoodlands]

wife stop working?? fatal error. a family is like a plane. Can/should a plane fly on a single engine?

[@fool1124]

Doesn't matter how many ppl working in your household you have to live below your means.

[@Longtermalwayswins]

yes. if the plane's engine is bigger than the plane. aka millionaires or billionaires.

[@allisonbrady1364]

I will not be him Mr loo because I won't earn as much as him lmao

[@choonsengteo9694]

True.

[@jkalmon]

Mr Loo is a joke.. His solution is to just push through. So if he can push through then is it that bad that in life you have ups and downs? You push urself to work harder to achieve more than you'll get if u just stay stagnant. Its not like hes buying luxury bags or cars, its property that he gets to enjoy the space he has even if he's going through a rough patch. This is a joke. The issue is if the buyer does not have emergency funds to pay mortgage. If he does then its not an issue.

[@1m65]

Cannot understand your point.

[@jkalmon]

​@@1m65 because the entire point of the video flew away when you said what you did at @14:00 . So is purchasing a property within his current means bad? Push through meaning he can still afford it just that he will have to maintain his lifestyle as per he was already doing. Hows that a bad thing to have a "good debt" pushing him to strive to work harder for a better future as compared to staying stagnant and hoping he will be able to save money. Your video is pointless and you're just trying to influence your karen mindset viewers to stay stagnant and do nothing.

[@JZoooZ]

Interest rate will go UP to 6% or more very soon. Remember this sentence. Big big crisis is coming. Interest rate coming UP NOT because of inflation. Forget about inflation. Interest rate has nothing to do with inflation. You know what is the reason ?

[@nigeldcruz1195]

Reprinting of money ?

[@urchaocheebye]

Ah loo, tolong. Pls be objective. % of stock losers vs % of ppty losers since 19xx or whatsoever...guarantee stock losers % much higher

[@choonsengteo9694]

His ego is great.

[@limliza992]

This man is over-confident. He may be highly educated, he made mistakes by letting his wife to stop working and think he will continue to earn high income. Btw, everyone learns from mistakes.

[@Agogo-ki7kc]

Yes usually the well educated act smart guys

[@ngadam3126]

As people always say, dun wear a hat thats bigger than your head.