A 50 year old person who has a fully paid up 5 room HDB flats wants to invest in a small condo. She intends to rent out the condo or the 5 room flat. She needs the rental income to help pay the mortgage on the condo. In the worse case, she will sell off the HDB flat and live in the condo. She asked for my views.
My reply:My general advice to consumers is:
a) Never invest with borrowed money, except for a property that you live in.
b) Be free of debt when you are 60 years old.
c) Do not invest in property when the price is high.
If you are prepared for the worse case scenario, then you should be meeting my guidelines. However, if you wish to look for a good investment, you should consider the index fund. Watch my videos here: http://www.tankinlian.com/learn.aspx
My reply:My general advice to consumers is:
a) Never invest with borrowed money, except for a property that you live in.
b) Be free of debt when you are 60 years old.
c) Do not invest in property when the price is high.
If you are prepared for the worse case scenario, then you should be meeting my guidelines. However, if you wish to look for a good investment, you should consider the index fund. Watch my videos here: http://www.tankinlian.com/learn.aspx
1 comment:
Another way - you could team up with your working child to co buy private property on mortgage to lessen burden should something strikes, provided the child has not bought public property yet. Ownership should be on tenancy in common, so that either owner automatically inherits property upon one owner's demise. Check with lawyer.
However each owner bears their own income tax obligations on rental income, split equally, and the present rental yield is so low you can't even cover mortgage payments.
Bank won't give a mortgage to a 60 year old retiree unless you team up with a much younger working co partner.
Pragmatic to invest in index funds, even Warren Buffett advised his family to invest in the S&P 500 Index funds upon his demise.
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