1 00:00:00,040 --> 00:00:01,500 Speaker 1: this is a C. N. A. 2 00:00:01,500 --> 00:00:02,259 Speaker 2: Podcast. 3 00:00:02,940 --> 00:00:06,970 Speaker 1: We'll go for some quick fire questions in a few words. 4 00:00:06,970 --> 00:00:09,850 Speaker 1: Can you give us your thoughts on the following first 5 00:00:09,850 --> 00:00:11,450 Speaker 1: would be your dream home, my 6 00:00:11,450 --> 00:00:13,760 Speaker 2: dream home, just a simple bungalow, 7 00:00:14,440 --> 00:00:16,060 Speaker 2: which actually I already 8 00:00:16,060 --> 00:00:17,160 Speaker 1: stayed 9 00:00:17,540 --> 00:00:19,320 Speaker 1: buying or renting, 10 00:00:19,329 --> 00:00:21,160 Speaker 2: buying for sure 11 00:00:21,640 --> 00:00:23,690 Speaker 1: BTO or resale flat 12 00:00:23,700 --> 00:00:24,550 Speaker 2: resale flat 13 00:00:25,239 --> 00:00:27,250 Speaker 1: private property or HD be 14 00:00:27,260 --> 00:00:28,320 Speaker 2: private property, 15 00:00:28,330 --> 00:00:30,250 Speaker 1: bank loan or hDB loan. 16 00:00:30,740 --> 00:00:33,570 Speaker 2: Mm hmm. Maybe now. HtV 17 00:00:33,570 --> 00:00:33,950 Speaker 1: low. 18 00:00:47,840 --> 00:00:48,160 Speaker 1: Mhm. 19 00:00:48,740 --> 00:00:52,070 Speaker 1: All of us reach a stage in our lives when 20 00:00:52,070 --> 00:00:54,460 Speaker 1: we want to buy a home but this is not 21 00:00:54,460 --> 00:00:57,750 Speaker 1: just any purchase, it's the biggest of the big ticket 22 00:00:57,760 --> 00:01:01,350 Speaker 1: items will buy in our lives. A typical property mortgage 23 00:01:01,350 --> 00:01:04,890 Speaker 1: in Singapore can set us back by half a million dollars. 24 00:01:04,900 --> 00:01:08,780 Speaker 1: So how does this impact a young couple's financial journey 25 00:01:08,790 --> 00:01:11,740 Speaker 1: and his property a sure bet for the long run 26 00:01:11,770 --> 00:01:14,839 Speaker 1: to answer these questions is a man known to many, 27 00:01:14,850 --> 00:01:18,280 Speaker 1: he is the ceo of Singapore real estate agency prop 28 00:01:18,280 --> 00:01:22,000 Speaker 1: Nick's Ismael Gaffer has witnessed the twists and turns of 29 00:01:22,000 --> 00:01:25,330 Speaker 1: the Singapore property market and together with it, he has 30 00:01:25,330 --> 00:01:28,360 Speaker 1: made his own fortune. So thanks so much for joining 31 00:01:28,360 --> 00:01:29,570 Speaker 1: us today is mild 32 00:01:33,140 --> 00:01:36,300 Speaker 1: now no one can deny that home prices in Singapore 33 00:01:36,300 --> 00:01:38,740 Speaker 1: are not cheap. So could you explain to us why 34 00:01:38,740 --> 00:01:42,100 Speaker 1: it is so and do property prices only go up 35 00:01:42,100 --> 00:01:42,760 Speaker 1: from here. 36 00:01:43,540 --> 00:01:47,890 Speaker 2: Generally speaking, property prices tend to go up, but it 37 00:01:47,890 --> 00:01:50,860 Speaker 2: would be a myth to say it will only go up. 38 00:01:51,240 --> 00:01:53,580 Speaker 2: But if you take it from a very long time 39 00:01:53,590 --> 00:01:57,690 Speaker 2: horizon property prices have to keep going up. The logic 40 00:01:57,690 --> 00:02:01,110 Speaker 2: is very simple, say 20 years ago or 10 years 41 00:02:01,110 --> 00:02:03,970 Speaker 2: ago or for that matter 50 years ago, the salary 42 00:02:03,970 --> 00:02:07,420 Speaker 2: of an architect and engineer is not the same. So 43 00:02:07,420 --> 00:02:11,100 Speaker 2: there's this element known as inflation. So does the cost 44 00:02:11,110 --> 00:02:12,260 Speaker 2: of materials 45 00:02:12,440 --> 00:02:13,060 Speaker 2: goes up 46 00:02:13,540 --> 00:02:18,530 Speaker 2: and in the land scarce Singapore, everything become tight and 47 00:02:18,530 --> 00:02:22,980 Speaker 2: therefore in general to say over a longer period of time, 48 00:02:22,990 --> 00:02:26,609 Speaker 2: property prices will go up is the right way to 49 00:02:26,610 --> 00:02:31,150 Speaker 2: look at it. However, within that longer time horizon 50 00:02:31,440 --> 00:02:35,220 Speaker 2: there will be cycles due to uncertainties. Either it could 51 00:02:35,220 --> 00:02:38,780 Speaker 2: be SARS or it could be some kind of financial 52 00:02:38,780 --> 00:02:42,590 Speaker 2: crisis or for that matter even the very recent covid. 53 00:02:42,600 --> 00:02:46,290 Speaker 2: But I must say even during the covid period our 54 00:02:46,290 --> 00:02:49,709 Speaker 2: real estate market was relatively resilient. 55 00:02:49,720 --> 00:02:55,400 Speaker 1: Some younger people start with a less expensive home first 56 00:02:55,400 --> 00:02:56,060 Speaker 1: and maybe 57 00:02:56,139 --> 00:02:58,870 Speaker 1: pick a non mature estate for example with a few 58 00:02:58,870 --> 00:03:01,750 Speaker 1: rooms and then upgrade as needs change. 59 00:03:01,840 --> 00:03:04,960 Speaker 1: Maybe when you have a child until you start upgrading 60 00:03:04,960 --> 00:03:09,520 Speaker 1: your property. But buying and selling your home is not 61 00:03:09,520 --> 00:03:13,820 Speaker 1: very straightforward. So some younger people start buying a four 62 00:03:13,820 --> 00:03:17,369 Speaker 1: or five room flat, maybe consider a convenient location. So 63 00:03:17,370 --> 00:03:21,109 Speaker 1: for those who are trying to get in this property market, 64 00:03:21,110 --> 00:03:23,150 Speaker 1: get a home that they're going to live in. What 65 00:03:23,150 --> 00:03:25,059 Speaker 1: factors do you think they should consider? 66 00:03:25,340 --> 00:03:29,889 Speaker 2: I think it's very important when we are young sometimes 67 00:03:29,900 --> 00:03:32,639 Speaker 2: because I was young once too we 68 00:03:32,639 --> 00:03:33,770 Speaker 1: can to be 69 00:03:33,780 --> 00:03:37,360 Speaker 2: short term in our considerations. 70 00:03:37,740 --> 00:03:40,620 Speaker 2: Why do I say that for example if a young 71 00:03:40,620 --> 00:03:43,670 Speaker 2: couple who wants to buy a B. T. O. Flat 72 00:03:43,670 --> 00:03:46,869 Speaker 2: built to order flat and you know by today's norm 73 00:03:46,880 --> 00:03:49,680 Speaker 2: it could take anything between 4 to 5 years for 74 00:03:49,680 --> 00:03:51,260 Speaker 2: the constructions to complete 75 00:03:51,440 --> 00:03:54,970 Speaker 2: before you can get the keys and thereafter you have 76 00:03:54,970 --> 00:03:58,060 Speaker 2: another five years minimum occupation period 77 00:03:58,140 --> 00:04:01,440 Speaker 2: and only then after that you're able to sell. Therefore 78 00:04:01,440 --> 00:04:04,480 Speaker 2: there is almost a 9 to 10 years time like 79 00:04:04,490 --> 00:04:09,090 Speaker 2: before you can either downgrade upgrade or move forward. And 80 00:04:09,090 --> 00:04:11,490 Speaker 2: can you imagine you may be young now but in 81 00:04:11,490 --> 00:04:14,390 Speaker 2: 10 years time a lot of things can change. Maybe 82 00:04:14,390 --> 00:04:16,650 Speaker 2: two Children you may have made 83 00:04:16,740 --> 00:04:19,969 Speaker 2: and maybe in 567 years down the road, maybe one 84 00:04:19,970 --> 00:04:23,550 Speaker 2: of your parents may be wanting to occupy together with you? 85 00:04:23,640 --> 00:04:25,909 Speaker 2: I'm not so sure. So if you did not put 86 00:04:25,910 --> 00:04:29,180 Speaker 2: any of such consideration and you just say okay I 87 00:04:29,180 --> 00:04:33,470 Speaker 2: just wanted the smallest place in the very right location. 88 00:04:33,470 --> 00:04:35,869 Speaker 2: Doesn't matter even if it costs me because I wanted 89 00:04:35,870 --> 00:04:38,120 Speaker 2: to be in so central and therefore you take a 90 00:04:38,120 --> 00:04:39,450 Speaker 2: three bedroom 91 00:04:40,140 --> 00:04:42,140 Speaker 2: And then you must be mindful the next 10 years 92 00:04:42,140 --> 00:04:44,730 Speaker 2: you are going to be there. So that's what I 93 00:04:44,730 --> 00:04:47,290 Speaker 2: would say here is it's okay to have a smaller 94 00:04:47,290 --> 00:04:51,190 Speaker 2: house but each an individual must have their own planning 95 00:04:51,190 --> 00:04:54,529 Speaker 2: in terms of the time horizon, what is the likely 96 00:04:54,540 --> 00:04:58,860 Speaker 2: family needs a personal needs before your deciding whether you 97 00:04:58,860 --> 00:05:01,179 Speaker 2: want a bigger flat or a small flat. 98 00:05:01,190 --> 00:05:04,210 Speaker 1: So a lot of things to consider not just the 99 00:05:04,210 --> 00:05:05,360 Speaker 1: price it seems, 100 00:05:05,540 --> 00:05:08,580 Speaker 1: but what about those who are not married because their 101 00:05:08,580 --> 00:05:12,160 Speaker 1: options are even more limited. What advice would you give? 102 00:05:12,540 --> 00:05:14,159 Speaker 2: Oh get married. 103 00:05:14,540 --> 00:05:15,350 Speaker 1: Yeah. 104 00:05:15,360 --> 00:05:20,820 Speaker 2: So I think in Singapore's system here is this procreation 105 00:05:20,820 --> 00:05:25,070 Speaker 2: of family something that is very much favored with a 106 00:05:25,070 --> 00:05:29,440 Speaker 2: lot more incentives. But we do respect singles. I think 107 00:05:29,450 --> 00:05:33,860 Speaker 2: with all due rights for their own lifestyle is perfectly okay. 108 00:05:34,040 --> 00:05:37,470 Speaker 2: But until they attain the age of 35 they don't 109 00:05:37,470 --> 00:05:40,530 Speaker 2: have much options because once you're in a single above 110 00:05:40,529 --> 00:05:42,260 Speaker 2: 35 you may have got some options 111 00:05:42,339 --> 00:05:45,830 Speaker 2: in terms of buying resale flats or so I generally 112 00:05:45,830 --> 00:05:49,840 Speaker 2: think for the younger and as well as a single, 113 00:05:49,850 --> 00:05:52,450 Speaker 2: the ideal option will be still too 114 00:05:52,940 --> 00:05:55,080 Speaker 2: Take advantage of your parents home. So you don't need 115 00:05:55,080 --> 00:05:59,909 Speaker 2: to pay anything live as long as you're happy. But 116 00:05:59,920 --> 00:06:04,170 Speaker 2: the disadvantage is that sometimes the generation gap you want 117 00:06:04,170 --> 00:06:07,280 Speaker 2: wants privacy and you want to be bold, you want 118 00:06:07,279 --> 00:06:09,350 Speaker 2: to come back home at two am 119 00:06:09,540 --> 00:06:12,250 Speaker 2: and therefore yeah, then you don't have an alternative. The 120 00:06:12,250 --> 00:06:14,159 Speaker 2: other options are obviously 121 00:06:14,339 --> 00:06:17,480 Speaker 2: something becoming more popular. Now here is this co living 122 00:06:17,480 --> 00:06:21,880 Speaker 2: space where the younger generations can live together with a 123 00:06:21,880 --> 00:06:25,730 Speaker 2: communal kind of thing where you don't have a completely 124 00:06:25,730 --> 00:06:30,560 Speaker 2: huge house but there are common toilets, common kitchen and 125 00:06:30,560 --> 00:06:33,870 Speaker 2: you pay an affection of another usual rental of a 126 00:06:33,870 --> 00:06:35,250 Speaker 2: house and 127 00:06:35,440 --> 00:06:39,190 Speaker 2: that would be something nice if they are comfortable. It 128 00:06:39,190 --> 00:06:41,869 Speaker 2: all depends on the individual are the one who is 129 00:06:41,870 --> 00:06:46,040 Speaker 2: very comfortable with strangers to co leave. Obviously the other 130 00:06:46,040 --> 00:06:48,370 Speaker 2: thing here will be for you to just rent a 131 00:06:48,370 --> 00:06:51,909 Speaker 2: room and that gives you all your 100% privacy or 132 00:06:51,910 --> 00:06:54,760 Speaker 2: a smaller apartment like in a one bedroom. 133 00:06:54,839 --> 00:06:57,589 Speaker 2: But all this is going to cost money. So one 134 00:06:57,589 --> 00:07:00,979 Speaker 2: has to be really thoughtful about the fact that as 135 00:07:00,990 --> 00:07:03,260 Speaker 2: long as you are renting 136 00:07:03,640 --> 00:07:07,380 Speaker 2: there's an outflow of your savings or your cash and 137 00:07:07,380 --> 00:07:12,240 Speaker 2: you're basically making the landlord reacher and not yourself. The 138 00:07:12,240 --> 00:07:16,500 Speaker 2: ideal scenario will be for one to get your own house, 139 00:07:16,510 --> 00:07:20,750 Speaker 2: which means your monthly mortgage installment that you're paying is 140 00:07:20,750 --> 00:07:23,730 Speaker 2: something equivalent to your rent is paying towards your own 141 00:07:23,730 --> 00:07:27,140 Speaker 2: property Over time the property is fully paid up with 142 00:07:27,140 --> 00:07:30,720 Speaker 2: their capital appreciation. This would be the best option for 143 00:07:30,720 --> 00:07:34,179 Speaker 2: you to accumulate in terms of your retirement 144 00:07:34,250 --> 00:07:39,240 Speaker 1: Because rent definitely not cheap, especially nowadays. And another factor 145 00:07:39,240 --> 00:07:42,010 Speaker 1: that we need to keep in mind now is rising 146 00:07:42,010 --> 00:07:45,770 Speaker 1: interest rates because mortgage rates have roughly doubled in the 147 00:07:45,770 --> 00:07:48,440 Speaker 1: first six months of this year and that could mean 148 00:07:48,440 --> 00:07:51,760 Speaker 1: a lot more in interest payments. Over time. For example, 149 00:07:51,760 --> 00:07:56,320 Speaker 1: the median two year fixed rate mortgage rose from 1.15% 150 00:07:56,330 --> 00:08:01,380 Speaker 1: in December last year to 2.25% in May. So that's 151 00:08:01,390 --> 00:08:04,370 Speaker 1: a big jump only in six months. How should home 152 00:08:04,380 --> 00:08:05,700 Speaker 1: owners tackle this? 153 00:08:05,710 --> 00:08:08,200 Speaker 2: Just be happy about it. Not to worry because you 154 00:08:08,200 --> 00:08:12,510 Speaker 2: can't tackle something, it is market norms. But to start 155 00:08:12,510 --> 00:08:13,060 Speaker 2: with 156 00:08:13,240 --> 00:08:15,490 Speaker 2: singaporeans we all need to be very happy about it. 157 00:08:15,500 --> 00:08:16,260 Speaker 2: The fact that 158 00:08:16,640 --> 00:08:20,940 Speaker 2: the 1.2 below 1.5 are not a norm. There MS 159 00:08:20,940 --> 00:08:25,260 Speaker 2: enormous mainly because of the federal interest rates has been 160 00:08:25,270 --> 00:08:30,330 Speaker 2: really near zero due to crisis Covid. And they wanted 161 00:08:30,330 --> 00:08:33,050 Speaker 2: to just encourage more of the spending and so on. 162 00:08:33,440 --> 00:08:36,770 Speaker 2: But that also gives rise to other challenges in America 163 00:08:36,770 --> 00:08:40,199 Speaker 2: where inflation went up to 7 to 8% and that's 164 00:08:40,200 --> 00:08:43,270 Speaker 2: why they have decided to increase the interest rate and 165 00:08:43,270 --> 00:08:46,980 Speaker 2: therefore in my personal view, interest rates or mortgage anything 166 00:08:46,980 --> 00:08:50,429 Speaker 2: up to 3 to 3.5% is a norm. So when 167 00:08:50,429 --> 00:08:52,059 Speaker 2: we take a miss normal 168 00:08:52,140 --> 00:08:55,199 Speaker 2: percentages and then we feel, wow this is 2.5. So 169 00:08:55,200 --> 00:08:58,180 Speaker 2: I'm honestly not worried about that at all for the 170 00:08:58,179 --> 00:09:00,480 Speaker 2: fact that you see any one of us who wants 171 00:09:00,480 --> 00:09:01,950 Speaker 2: to take a loan 172 00:09:02,740 --> 00:09:04,750 Speaker 2: based on the MES guideline, 173 00:09:05,140 --> 00:09:09,240 Speaker 2: you will be assessed as if the mortgage amount given 174 00:09:09,240 --> 00:09:13,360 Speaker 2: to you at the current interest rate of 3.5% 175 00:09:13,740 --> 00:09:17,420 Speaker 2: even though the bank only charges 1.5 or two. Therefore 176 00:09:17,420 --> 00:09:19,650 Speaker 2: this is kind of safety measures 177 00:09:20,040 --> 00:09:23,469 Speaker 2: That you will not be given a loan at a 178 00:09:23,470 --> 00:09:26,929 Speaker 2: very low rate but it is assessed at 3.5. So 179 00:09:26,929 --> 00:09:30,220 Speaker 2: there's an a buffer been in built for prudence and 180 00:09:30,220 --> 00:09:33,670 Speaker 2: why 3.5? I think that is more like a normal rates. 181 00:09:33,679 --> 00:09:38,290 Speaker 2: Therefore the interest rate having gone from 1.25 to 2.25 182 00:09:38,290 --> 00:09:40,050 Speaker 2: and it's not going to stop here. In my view, 183 00:09:40,240 --> 00:09:41,859 Speaker 2: It may hit about three 184 00:09:42,040 --> 00:09:45,620 Speaker 2: and that normalized and I will not pay too much 185 00:09:45,620 --> 00:09:47,350 Speaker 2: attention to this. Honestly, 186 00:09:47,740 --> 00:09:51,140 Speaker 2: We're not talking about five, Then there would be a concern. 187 00:09:51,150 --> 00:09:56,000 Speaker 2: So with such rates, this should not deter any young 188 00:09:56,000 --> 00:09:59,140 Speaker 2: couple to look into it because sometimes we study a 189 00:09:59,140 --> 00:10:01,429 Speaker 2: lot of things and then we look at the headlines, 190 00:10:01,429 --> 00:10:04,530 Speaker 2: it has gone double and by not entering the market, 191 00:10:04,540 --> 00:10:07,120 Speaker 2: the prices that we will eventually end up paying will 192 00:10:07,120 --> 00:10:07,750 Speaker 2: be huge. 193 00:10:07,840 --> 00:10:08,250 Speaker 1: Yeah. 194 00:10:08,340 --> 00:10:10,870 Speaker 1: And it's not going to stop here. As you mentioned. 195 00:10:10,880 --> 00:10:16,489 Speaker 1: So you mentioned dismal that anything under 3% is considered okay. 196 00:10:16,490 --> 00:10:18,870 Speaker 1: We shouldn't be too worried about that. But in the 197 00:10:18,870 --> 00:10:22,290 Speaker 1: past decade and some as you mentioned, rates have been 198 00:10:22,290 --> 00:10:23,760 Speaker 1: so low that 199 00:10:24,140 --> 00:10:26,890 Speaker 1: so many people have turned to bank loans over HDB 200 00:10:26,890 --> 00:10:30,910 Speaker 1: loans because of the difference in in the rates now 201 00:10:30,910 --> 00:10:34,929 Speaker 1: that mortgage rates from the banks are creeping up. Do 202 00:10:34,929 --> 00:10:38,600 Speaker 1: you think it's time to consider HDB loans, especially for 203 00:10:38,600 --> 00:10:41,860 Speaker 1: those who are just about to buy their first property. 204 00:10:41,940 --> 00:10:46,720 Speaker 2: I definitely think yes, because HDB loans are more sheltered 205 00:10:46,730 --> 00:10:49,939 Speaker 2: because I think over the last umpteen, not 10, not 20, 206 00:10:49,940 --> 00:10:52,780 Speaker 2: not 30. Have not put my finger to really go back. 207 00:10:52,790 --> 00:10:56,040 Speaker 2: It has always been fixed at 2.6%. The formula works 208 00:10:56,040 --> 00:11:00,329 Speaker 2: is 0.1 above the ordinary account payment of 2.5. So 209 00:11:00,330 --> 00:11:03,540 Speaker 2: what HDB loan interest rate gives a person here is 210 00:11:03,540 --> 00:11:07,890 Speaker 2: the stability while a bank loan will be quite cyclical 211 00:11:07,900 --> 00:11:10,240 Speaker 2: demand and supply. You would be able to secure the 212 00:11:10,240 --> 00:11:11,760 Speaker 2: entry at below 2%. 213 00:11:11,940 --> 00:11:13,500 Speaker 2: When the rates start to go up, you may end 214 00:11:13,500 --> 00:11:17,270 Speaker 2: up paying more than 3%. Therefore, I think it's perfectly 215 00:11:17,270 --> 00:11:19,500 Speaker 2: okay right now where the interest rates are expected to 216 00:11:19,500 --> 00:11:22,380 Speaker 2: go back to the norms. HDB loan will be more 217 00:11:22,380 --> 00:11:24,420 Speaker 2: attractive for young couples. 218 00:11:24,429 --> 00:11:28,130 Speaker 1: Do you have a preference for floating or fixed rates 219 00:11:28,130 --> 00:11:30,770 Speaker 1: when it comes to bank loans? Because I'm sure a 220 00:11:30,770 --> 00:11:33,949 Speaker 1: lot of mortgage holders in the next few months will 221 00:11:33,950 --> 00:11:36,360 Speaker 1: look at their payments and go, well that's a lot more. 222 00:11:36,640 --> 00:11:39,780 Speaker 2: I think it's very individual. It all depends on the 223 00:11:39,790 --> 00:11:42,660 Speaker 2: risk appetite and how you read the market. 224 00:11:43,040 --> 00:11:48,040 Speaker 2: I've always been more favored towards floating because I think 225 00:11:48,050 --> 00:11:50,710 Speaker 2: I understand the market because I'm always looking at the 226 00:11:50,710 --> 00:11:55,200 Speaker 2: market but myself too. I've also taken fixed rates in 227 00:11:55,200 --> 00:11:58,319 Speaker 2: the past when I know the market is changing towards 228 00:11:58,320 --> 00:11:59,150 Speaker 2: the tide 229 00:11:59,240 --> 00:12:01,500 Speaker 2: where the interest rates are expected to go up then 230 00:12:01,500 --> 00:12:03,860 Speaker 2: by fixing your interest rate. You also 231 00:12:03,940 --> 00:12:06,059 Speaker 2: basically safeguard your commitments. 232 00:12:06,540 --> 00:12:10,540 Speaker 2: So what would one do here? Is it fixed or floating? 233 00:12:10,550 --> 00:12:14,930 Speaker 2: Especially right now. The difference between a floating and fix 234 00:12:14,940 --> 00:12:20,020 Speaker 2: could be almost close to 0.75 because most of the 235 00:12:20,020 --> 00:12:24,719 Speaker 2: banks are already pricing in the future cost. So that 236 00:12:24,720 --> 00:12:27,750 Speaker 2: being the case, I think to an extent floating is attractive, 237 00:12:27,760 --> 00:12:30,559 Speaker 2: but if you are going to be someone who just 238 00:12:30,559 --> 00:12:32,820 Speaker 2: want a peace of mind for next three years then 239 00:12:32,820 --> 00:12:34,790 Speaker 2: you can opt for fixed as well. 240 00:12:34,800 --> 00:12:38,660 Speaker 1: So amid this rising interest rates, if we take a 241 00:12:38,660 --> 00:12:42,740 Speaker 1: look at a broader picture here while some are trying 242 00:12:42,740 --> 00:12:45,459 Speaker 1: to gather enough for their first home, there's a growing 243 00:12:45,460 --> 00:12:47,850 Speaker 1: number of public housing millionaires, 244 00:12:48,140 --> 00:12:50,880 Speaker 1: how should we balance the need for a place to 245 00:12:50,880 --> 00:12:54,860 Speaker 1: live in and the investment opportunity from a home purchase. 246 00:12:55,540 --> 00:12:59,369 Speaker 2: One of the real good things about being Singaporean. And 247 00:12:59,370 --> 00:13:01,660 Speaker 2: I must say it is a commitment of the government 248 00:13:02,140 --> 00:13:06,329 Speaker 2: that every Singaporean will get the first home at a 249 00:13:06,330 --> 00:13:07,660 Speaker 2: very affordable price. 250 00:13:08,040 --> 00:13:10,650 Speaker 2: And I must say that that's a commitment, not just 251 00:13:10,650 --> 00:13:13,880 Speaker 2: by words, but it has been illustrated over the years 252 00:13:13,880 --> 00:13:17,910 Speaker 2: when the government keep increasing the grant, that one can 253 00:13:17,910 --> 00:13:18,750 Speaker 2: qualify 254 00:13:19,540 --> 00:13:23,350 Speaker 2: A couple, even buying a resale flat if the household 255 00:13:23,350 --> 00:13:27,550 Speaker 2: income is below $1,500, which is quite unusual unless they 256 00:13:27,550 --> 00:13:30,970 Speaker 2: are really not working and maybe cleaners. I'm really not 257 00:13:30,970 --> 00:13:33,760 Speaker 2: sure sure at the very lower income bracket, 258 00:13:34,340 --> 00:13:40,849 Speaker 2: The government is prepared to give $160,000 of grant 259 00:13:41,340 --> 00:13:45,040 Speaker 2: to assist them to buy the first property. And that's 260 00:13:45,040 --> 00:13:47,710 Speaker 2: why what I think is is buying a first property 261 00:13:47,710 --> 00:13:50,250 Speaker 2: in Singapore is never a major concern 262 00:13:50,740 --> 00:13:54,860 Speaker 2: Because you know, first and foremost the bto subsidized and 263 00:13:54,860 --> 00:13:57,780 Speaker 2: you also do qualify for some kind of underground depending 264 00:13:57,780 --> 00:14:00,840 Speaker 2: on your income bracket, not everybody gets 160 as your 265 00:14:00,850 --> 00:14:05,559 Speaker 2: household income goes on the upper scale, then the grant reduces. 266 00:14:05,570 --> 00:14:08,160 Speaker 2: So then what is the major concern? 267 00:14:08,540 --> 00:14:11,689 Speaker 2: The major concern here is not about at the entry 268 00:14:11,690 --> 00:14:17,700 Speaker 2: level is the aspiration of some of us, we want 269 00:14:17,710 --> 00:14:23,530 Speaker 2: bigger home, we want lifestyle, we want central location 270 00:14:23,540 --> 00:14:26,770 Speaker 1: closer to parents who are mature estates. That's 271 00:14:26,780 --> 00:14:29,380 Speaker 2: closer to parents, you still got additional ground because you're 272 00:14:29,380 --> 00:14:30,950 Speaker 2: staying closer towards the parents. 273 00:14:31,140 --> 00:14:34,500 Speaker 2: I mean obviously if my parents are staying in downtown 274 00:14:34,500 --> 00:14:37,070 Speaker 2: or for that matter in Queenstown, I would prefer to 275 00:14:37,070 --> 00:14:39,790 Speaker 2: buy a property because not only I can visit them, 276 00:14:39,790 --> 00:14:42,580 Speaker 2: but even when I have a child there's someone to 277 00:14:42,580 --> 00:14:43,860 Speaker 2: look after. But 278 00:14:44,240 --> 00:14:47,260 Speaker 2: then the question here will be, what about 279 00:14:47,640 --> 00:14:53,200 Speaker 2: affordability? For example, a four bedroom in the central location, 280 00:14:53,210 --> 00:14:54,660 Speaker 2: A B. T. O. 281 00:14:55,140 --> 00:14:59,470 Speaker 2: Can be anything between 600 over $1000 in a central location. 282 00:14:59,470 --> 00:15:04,240 Speaker 2: I'm talking about Queenstown blanca and so on versus a 283 00:15:04,250 --> 00:15:06,750 Speaker 2: four room at let's say yee shun 284 00:15:07,140 --> 00:15:11,770 Speaker 2: or the outlying area is 400 plus for 50 plus 285 00:15:11,770 --> 00:15:16,050 Speaker 2: minus on average. So one has to pay a premium 286 00:15:16,440 --> 00:15:18,960 Speaker 2: to buy a very central location. 287 00:15:19,340 --> 00:15:23,010 Speaker 2: But then if they cannot afford that premium to buy 288 00:15:23,010 --> 00:15:26,770 Speaker 2: a forum, some of them compromise to buy a smaller flat, 289 00:15:26,780 --> 00:15:30,740 Speaker 2: maybe a tree room in Queenstown, which will cost 400 over, 290 00:15:30,750 --> 00:15:31,660 Speaker 2: but you could have 291 00:15:32,040 --> 00:15:36,210 Speaker 2: Bought a four room elsewhere. So this is a compromise. 292 00:15:36,220 --> 00:15:38,090 Speaker 2: But as I said at the start, when we talked 293 00:15:38,090 --> 00:15:41,760 Speaker 2: about it, young couples have to really think about what 294 00:15:41,760 --> 00:15:44,510 Speaker 2: is it, they truly one and not only for now, 295 00:15:44,520 --> 00:15:47,530 Speaker 2: but for the next 10 years. Is it space more 296 00:15:47,530 --> 00:15:50,460 Speaker 2: important or is it locality more important? 297 00:15:50,640 --> 00:15:52,260 Speaker 2: Or is it lifestyle 298 00:15:52,840 --> 00:15:54,360 Speaker 2: like an executive condominium? 299 00:15:55,510 --> 00:15:58,260 Speaker 1: But what do you think about 300 00:15:58,840 --> 00:16:03,700 Speaker 1: people who are eyeing properties in certain locations with the 301 00:16:03,700 --> 00:16:05,820 Speaker 1: potential investment return in 302 00:16:05,820 --> 00:16:09,880 Speaker 2: mind. I totally can understand that and that's why, you know, 303 00:16:09,890 --> 00:16:13,560 Speaker 2: for all the video flats in the very central locations, 304 00:16:14,040 --> 00:16:19,800 Speaker 2: the subscription rates are much higher because it is human, 305 00:16:19,810 --> 00:16:23,460 Speaker 2: it's nothing wrong about people desiring to have a place 306 00:16:23,460 --> 00:16:27,310 Speaker 2: there because they achieve two things. One, the convenience of 307 00:16:27,310 --> 00:16:28,050 Speaker 2: the location 308 00:16:28,640 --> 00:16:31,830 Speaker 2: And in time to come. Such properties tend to sell, 309 00:16:31,830 --> 00:16:34,500 Speaker 2: as you said, $1 million dollar ticket. Why don't I 310 00:16:34,500 --> 00:16:37,760 Speaker 2: stay enjoy the convenience and yet 311 00:16:38,140 --> 00:16:43,320 Speaker 2: enjoy the better capital appreciation in comparison to the outlying areas. 312 00:16:43,330 --> 00:16:45,980 Speaker 2: So I think it's a good idea that a lot 313 00:16:45,980 --> 00:16:46,570 Speaker 2: of people 314 00:16:46,940 --> 00:16:48,110 Speaker 2: tend to go for this, 315 00:16:48,740 --> 00:16:52,420 Speaker 2: but they must also understand when the subscription rates are 316 00:16:52,420 --> 00:16:58,480 Speaker 2: so high, your chances of you getting one is very slim. 317 00:16:58,490 --> 00:17:02,650 Speaker 2: The government realized this after so long that there seems 318 00:17:02,650 --> 00:17:06,980 Speaker 2: to be like a lottery effect. People who bought pinnacle 319 00:17:06,980 --> 00:17:08,170 Speaker 2: some time back 320 00:17:08,240 --> 00:17:09,050 Speaker 2: and today 321 00:17:09,240 --> 00:17:12,430 Speaker 2: almost most units that goes well above a million dollars 322 00:17:12,430 --> 00:17:15,900 Speaker 2: and people do make an a sizable appreciation. That's why 323 00:17:15,900 --> 00:17:18,270 Speaker 2: now the government has come up with more restrictions in 324 00:17:18,270 --> 00:17:20,310 Speaker 2: the M. O. P. Is beyond five years to extend 325 00:17:20,310 --> 00:17:23,450 Speaker 2: to 10 years and restrictions and things like that so 326 00:17:23,450 --> 00:17:27,320 Speaker 2: that people who are buying don't come from investment angle hugely, 327 00:17:27,330 --> 00:17:30,460 Speaker 2: but more of a livable space at 328 00:17:30,460 --> 00:17:33,320 Speaker 1: Least for the first property at least. Do you think 329 00:17:33,320 --> 00:17:36,120 Speaker 1: it's fair though that public housing is going for at 330 00:17:36,119 --> 00:17:38,100 Speaker 1: least $1 million dollars in some places? 331 00:17:38,109 --> 00:17:41,560 Speaker 2: I think it's fair. I think in life we can't 332 00:17:41,560 --> 00:17:44,360 Speaker 2: say it's fair or not fair for many instances, 333 00:17:45,640 --> 00:17:48,420 Speaker 2: but when you look at for example, a spin nickel 334 00:17:48,430 --> 00:17:51,760 Speaker 2: or Queenstown or downtown or rocco or boogies, 335 00:17:52,340 --> 00:17:55,000 Speaker 2: If you want to live there and have the convenience 336 00:17:55,000 --> 00:17:57,910 Speaker 2: of everything that comes with it and if you want 337 00:17:57,910 --> 00:18:01,350 Speaker 2: to buy a private property per square foot can cost 338 00:18:01,350 --> 00:18:05,859 Speaker 2: you $3,000 just a square foot of a space while 339 00:18:05,859 --> 00:18:07,760 Speaker 2: even $1 million dollar property, 340 00:18:08,240 --> 00:18:10,760 Speaker 2: But square foot is not even $1,000. 341 00:18:11,140 --> 00:18:14,810 Speaker 2: So it's less than one third of a surprise. But 342 00:18:14,820 --> 00:18:16,640 Speaker 2: on the other hand if he said no, no, we 343 00:18:16,640 --> 00:18:19,179 Speaker 2: have to be fair because it's public housing every place 344 00:18:19,180 --> 00:18:19,960 Speaker 2: also then 345 00:18:20,440 --> 00:18:23,840 Speaker 2: whether you are staying at inn or boogies, it must 346 00:18:23,840 --> 00:18:26,380 Speaker 2: be the same price. But it doesn't work that way 347 00:18:26,380 --> 00:18:28,670 Speaker 2: because the demand and supply in the resale, people will 348 00:18:28,670 --> 00:18:32,260 Speaker 2: be willing to pay a higher price for central locations. 349 00:18:32,640 --> 00:18:36,709 Speaker 1: We're going for a short break, we'll be right back. Hi, 350 00:18:36,710 --> 00:18:39,449 Speaker 1: I'm Adrian Tan and I'm Christina robert. We are the 351 00:18:39,450 --> 00:18:42,340 Speaker 1: host of a new podcast called working, We're here to 352 00:18:42,340 --> 00:18:44,790 Speaker 1: get into the essential things that no one tells you 353 00:18:44,790 --> 00:18:48,210 Speaker 1: about working and company culture from office politics to dealing 354 00:18:48,210 --> 00:18:51,220 Speaker 1: with burnout. If you've ever wanted to eavesdrop on an 355 00:18:51,230 --> 00:18:54,860 Speaker 1: interesting conversation by the water cooler. This podcast is for 356 00:18:54,859 --> 00:18:58,860 Speaker 1: you look out for our episodes wherever you get your podcast, 357 00:19:01,340 --> 00:19:05,730 Speaker 1: you have a very inspiring story. You lived in a 358 00:19:05,730 --> 00:19:09,520 Speaker 1: rental flat, you're running Singapore's largest real estate agency and 359 00:19:09,520 --> 00:19:14,120 Speaker 1: you've also invested in property yourself and you've grown your 360 00:19:14,119 --> 00:19:18,480 Speaker 1: real estate portfolio. Do you think your property investment roadmap 361 00:19:18,480 --> 00:19:19,850 Speaker 1: is still feasible today? 362 00:19:20,640 --> 00:19:25,760 Speaker 2: I wish it is feasible but unfortunately you will have 363 00:19:25,760 --> 00:19:30,800 Speaker 2: to overcome hurdles that are much more harder than during 364 00:19:30,800 --> 00:19:33,270 Speaker 2: my time because the government have 365 00:19:33,640 --> 00:19:37,980 Speaker 2: putting a lot more cooling measures loopholes that people do 366 00:19:37,980 --> 00:19:40,640 Speaker 2: take advantage in the past. Maybe it is not even 367 00:19:40,640 --> 00:19:43,400 Speaker 2: seen as a loopholes the government has made it, that 368 00:19:43,410 --> 00:19:46,580 Speaker 2: property is something that a lot more people should benefit 369 00:19:46,590 --> 00:19:49,130 Speaker 2: and that's why people who are buying a second property 370 00:19:49,130 --> 00:19:51,550 Speaker 2: of third property, even if you're a singaporean, 371 00:19:51,640 --> 00:19:55,190 Speaker 2: You're subjected to additional stamp duties. And then you have got. 372 00:19:55,190 --> 00:19:57,730 Speaker 2: Now total debt servicing ratio. If you want to buy 373 00:19:57,730 --> 00:20:00,780 Speaker 2: a second property, the amount of loan that you get, 374 00:20:00,780 --> 00:20:03,100 Speaker 2: for example the first property the bank is prepared to 375 00:20:03,100 --> 00:20:06,790 Speaker 2: give you 75% loan. But if it is the second property, 376 00:20:06,790 --> 00:20:09,360 Speaker 2: the bank can only give you a 60% loan. But 377 00:20:09,359 --> 00:20:13,530 Speaker 2: during my era our parents era for those young people 378 00:20:13,530 --> 00:20:14,260 Speaker 2: who are listening, 379 00:20:14,440 --> 00:20:15,460 Speaker 2: we had to benefit 380 00:20:15,540 --> 00:20:17,720 Speaker 2: because whether I buy the first or the second or 381 00:20:17,720 --> 00:20:20,119 Speaker 2: the third property, I don't need to pay additional stamp duties. 382 00:20:20,130 --> 00:20:24,740 Speaker 2: Neither the loans discriminate or there's a differentiation in terms 383 00:20:24,740 --> 00:20:27,740 Speaker 2: of a lower quantum but put all those things aside, 384 00:20:27,750 --> 00:20:31,130 Speaker 2: we have to only look at squarely what is available 385 00:20:31,130 --> 00:20:31,669 Speaker 2: right now. 386 00:20:32,040 --> 00:20:34,450 Speaker 2: Very briefly if I talk about my journey, I started 387 00:20:34,460 --> 00:20:40,160 Speaker 2: my first property was a hdB three room resale flat, 388 00:20:40,170 --> 00:20:42,270 Speaker 2: stayed there for a couple of years, 389 00:20:42,740 --> 00:20:45,560 Speaker 2: accumulated some money, sold a flat 390 00:20:45,940 --> 00:20:48,360 Speaker 2: and bought a private apartment 391 00:20:49,440 --> 00:20:52,050 Speaker 2: and stayed in that apartment for some time to 392 00:20:52,440 --> 00:20:55,340 Speaker 2: enjoyed it with the lifestyle and facilities with a swimming 393 00:20:55,340 --> 00:20:56,370 Speaker 2: pool and so on 394 00:20:56,840 --> 00:21:00,960 Speaker 2: and we sold that and we had some little tidy 395 00:21:00,960 --> 00:21:04,469 Speaker 2: profit and capital appreciation and the fact that myself and 396 00:21:04,470 --> 00:21:06,909 Speaker 2: my wife, we worked and our income have also gone 397 00:21:06,910 --> 00:21:11,550 Speaker 2: up and we decided to upgrade to a small landed 398 00:21:11,560 --> 00:21:15,260 Speaker 2: inter terrorists property. So I'm just trying to tell each 399 00:21:15,260 --> 00:21:15,950 Speaker 2: and everyone 400 00:21:16,740 --> 00:21:19,580 Speaker 2: dreaming is one thing is good to have the castle 401 00:21:19,580 --> 00:21:20,460 Speaker 2: that we want. 402 00:21:21,040 --> 00:21:22,359 Speaker 2: But we have to take the first step 403 00:21:22,740 --> 00:21:27,470 Speaker 2: and the first step has to be within our means. Yeah, 404 00:21:27,480 --> 00:21:29,570 Speaker 2: that's perfectly okay, you see. But one of the things 405 00:21:29,570 --> 00:21:33,060 Speaker 2: that I normally used to share to the first time 406 00:21:33,060 --> 00:21:35,669 Speaker 2: buyers or the younger couples will be, 407 00:21:36,640 --> 00:21:39,480 Speaker 2: it is not a good idea to save money for 408 00:21:39,480 --> 00:21:41,770 Speaker 2: your dream home which may not materialize. 409 00:21:42,540 --> 00:21:45,000 Speaker 2: Why do I say that you said that? No, no, no, 410 00:21:45,000 --> 00:21:46,360 Speaker 2: I do not want an H. T. B. I want 411 00:21:46,359 --> 00:21:48,980 Speaker 2: to straightaway go into a private property. That's the lifestyle 412 00:21:48,980 --> 00:21:51,680 Speaker 2: I won and therefore I will save and accumulate enough 413 00:21:51,680 --> 00:21:52,950 Speaker 2: money to pay the down payment 414 00:21:53,440 --> 00:21:57,200 Speaker 2: While you are saving the property prices keep going up. 415 00:21:57,200 --> 00:21:59,699 Speaker 2: Let's say in the next 5 to 8 years what 416 00:21:59,700 --> 00:22:02,040 Speaker 2: you could have bought right now, you plan at a 417 00:22:02,040 --> 00:22:05,590 Speaker 2: million dollars in 8, 10 years down the road, it 418 00:22:05,590 --> 00:22:08,489 Speaker 2: could be 1.4 million. So what you have saved 2, 419 00:22:08,490 --> 00:22:12,609 Speaker 2: 300,000 inflation would have creeped up and entry into the 420 00:22:12,609 --> 00:22:13,359 Speaker 2: macro be tough. 421 00:22:13,440 --> 00:22:15,220 Speaker 2: So my suggestion here is 422 00:22:15,540 --> 00:22:18,169 Speaker 2: as long as you are ready 423 00:22:19,240 --> 00:22:22,060 Speaker 2: enter the market regardless of the size of the uni 424 00:22:22,540 --> 00:22:24,460 Speaker 2: and that become your foothold 425 00:22:24,840 --> 00:22:28,669 Speaker 2: and that property keep pace with inflation doesn't matter if 426 00:22:28,670 --> 00:22:31,710 Speaker 2: you bought it for 400 in eight years down the road, 427 00:22:31,720 --> 00:22:35,410 Speaker 2: in the 400,000 property goes up to 55 50 you'd 428 00:22:35,410 --> 00:22:39,550 Speaker 2: have attained a capital appreciation of 100 over 1000 plus 429 00:22:39,550 --> 00:22:43,350 Speaker 2: your savings. Then you use all the accumulated 430 00:22:43,440 --> 00:22:47,320 Speaker 2: CPF and your capital appreciation to upgrade to the next property. 431 00:22:47,330 --> 00:22:50,590 Speaker 2: Because over the next 56 years your income should have 432 00:22:50,590 --> 00:22:51,929 Speaker 2: probably gone up as well. 433 00:22:52,730 --> 00:22:57,670 Speaker 1: Some people think that investing in a property is out 434 00:22:57,680 --> 00:22:59,850 Speaker 1: of their reach and their focus is simply just 435 00:23:00,340 --> 00:23:03,409 Speaker 1: getting your first home and staying there. Do you think 436 00:23:03,410 --> 00:23:07,600 Speaker 1: that property should always be part of someone's investment mix? 437 00:23:08,440 --> 00:23:13,340 Speaker 2: I would always encourage everyone to look at your property 438 00:23:13,350 --> 00:23:15,550 Speaker 2: from an investment angle, 439 00:23:16,240 --> 00:23:18,270 Speaker 2: even though it's a public housing, 440 00:23:19,140 --> 00:23:22,350 Speaker 2: I know it's a very clear direction from the authorities. 441 00:23:23,140 --> 00:23:26,109 Speaker 2: Public housing is not meant to be an investment and 442 00:23:26,109 --> 00:23:27,460 Speaker 2: I agree to that as well. 443 00:23:27,840 --> 00:23:30,340 Speaker 2: But why do I say that for all young couple 444 00:23:30,340 --> 00:23:33,380 Speaker 2: when you buy a property, please do have some element 445 00:23:33,380 --> 00:23:37,330 Speaker 2: of investment in your mind simply because even if you're 446 00:23:37,330 --> 00:23:38,960 Speaker 2: buying in an outlying area, 447 00:23:39,340 --> 00:23:42,670 Speaker 2: If the lease of the property is going to be 448 00:23:42,680 --> 00:23:45,550 Speaker 2: only 70 years or 65 years 449 00:23:46,340 --> 00:23:48,750 Speaker 2: You must understand if you buy a property that has 450 00:23:48,750 --> 00:23:51,180 Speaker 2: got balance 65 year lease and you're going to stay 451 00:23:51,180 --> 00:23:53,900 Speaker 2: there for 15, 20 years and the balance least only 452 00:23:53,900 --> 00:23:57,640 Speaker 2: goes to 40 over years. That property capital appreciation is 453 00:23:57,640 --> 00:24:01,330 Speaker 2: so much muted or it may go into the negative 454 00:24:01,340 --> 00:24:01,959 Speaker 2: slide 455 00:24:02,840 --> 00:24:04,830 Speaker 2: and the fact that you live in that place for 456 00:24:04,830 --> 00:24:08,670 Speaker 2: the last 15, 20 years, paying your hard earned CPF money, 457 00:24:08,680 --> 00:24:11,670 Speaker 2: why don't you buy a property that has got while 458 00:24:11,670 --> 00:24:13,990 Speaker 2: you stay there for the next 10, 15 years. And 459 00:24:13,990 --> 00:24:17,090 Speaker 2: yet the property can have some form of capital appreciation 460 00:24:17,090 --> 00:24:19,810 Speaker 2: which is from an investment angle. So that's why I 461 00:24:19,810 --> 00:24:22,620 Speaker 2: always encourage young couple to say that don't be too 462 00:24:22,619 --> 00:24:24,169 Speaker 2: emotional about properties, 463 00:24:24,640 --> 00:24:27,230 Speaker 2: look at the property for what it is right now 464 00:24:27,240 --> 00:24:30,180 Speaker 2: and whether it caters to your needs, the space, the 465 00:24:30,180 --> 00:24:30,960 Speaker 2: location 466 00:24:31,340 --> 00:24:33,560 Speaker 2: and at the same time pause a moment 467 00:24:34,040 --> 00:24:37,450 Speaker 2: to think about say come 10 to 15 years and 468 00:24:37,450 --> 00:24:39,770 Speaker 2: why do I say 10 to 15 years by and 469 00:24:39,770 --> 00:24:42,550 Speaker 2: large for most singaporeans. I think 10 to 15 years 470 00:24:42,560 --> 00:24:50,420 Speaker 2: your family composition may change your income may change your job, 471 00:24:50,430 --> 00:24:51,770 Speaker 2: place may change 472 00:24:51,840 --> 00:24:54,640 Speaker 2: and therefore it may be good for you to reorganize 473 00:24:54,640 --> 00:24:56,550 Speaker 2: your property portfolio or even shift 474 00:24:56,640 --> 00:25:00,270 Speaker 2: And that's why you must always take into consideration whatever 475 00:25:00,270 --> 00:25:03,699 Speaker 2: I buy now when I want to exceed in 10 years, 476 00:25:03,710 --> 00:25:06,560 Speaker 2: what would be the value of my property for all 477 00:25:06,560 --> 00:25:08,470 Speaker 2: the money that I'm committing in the next 10 years. 478 00:25:08,480 --> 00:25:11,470 Speaker 2: So that's a very worthwhile in depth thinking to do 479 00:25:11,480 --> 00:25:14,960 Speaker 1: so it means we should mentally be prepared to 480 00:25:15,140 --> 00:25:17,660 Speaker 1: move houses throughout our life. 481 00:25:17,740 --> 00:25:20,350 Speaker 2: Yeah, I think I've spoken to many young couple, 482 00:25:20,940 --> 00:25:23,290 Speaker 2: it goes with the same thing when we get married, 483 00:25:23,300 --> 00:25:25,949 Speaker 2: we say for life or grave we are together 484 00:25:26,440 --> 00:25:28,860 Speaker 2: but you and I know how many marriages last. 485 00:25:29,640 --> 00:25:31,990 Speaker 2: That's the truth of the matter and same thing. Most 486 00:25:31,990 --> 00:25:33,510 Speaker 2: people when they buy a property, they say this is 487 00:25:33,520 --> 00:25:36,459 Speaker 2: our home for our life. But it will not be 488 00:25:36,460 --> 00:25:39,459 Speaker 2: the case. But it's not as bad as marriage not working. 489 00:25:39,460 --> 00:25:41,699 Speaker 2: But I think in a home when you ever change 490 00:25:41,700 --> 00:25:44,410 Speaker 2: is a positive thing in my view. Either you write 491 00:25:44,410 --> 00:25:48,180 Speaker 2: size it or you up size it or downsize it. 492 00:25:48,180 --> 00:25:51,830 Speaker 2: It really doesn't matter based on your needs at that time, 493 00:25:51,840 --> 00:25:54,980 Speaker 2: based on what you've invested. Right now, if you take 494 00:25:54,980 --> 00:25:59,630 Speaker 2: a 600,000 mortgage, it will always be a very daunting 495 00:25:59,640 --> 00:26:03,040 Speaker 2: thought for a young couple to take a $600,000 loan. 496 00:26:03,050 --> 00:26:06,010 Speaker 2: I mean you're so young you say that what should 497 00:26:06,010 --> 00:26:08,360 Speaker 2: I even take a $600,000 loan. 498 00:26:09,040 --> 00:26:10,270 Speaker 2: It all depends on the income 499 00:26:10,840 --> 00:26:14,459 Speaker 2: Who qualifies to take a $600,000 loan for public housing. 500 00:26:15,140 --> 00:26:18,170 Speaker 2: There is AM. S. R. of 30% of your income, 501 00:26:18,540 --> 00:26:22,170 Speaker 2: A 600,000 loan over a period of 30 years 502 00:26:22,940 --> 00:26:26,169 Speaker 2: at average let's say 2% interest rate. Currently 503 00:26:26,740 --> 00:26:30,140 Speaker 2: The monthly installment is going to be about 2200, which 504 00:26:30,140 --> 00:26:34,270 Speaker 2: means the household income between the couple has to be 505 00:26:34,270 --> 00:26:38,170 Speaker 2: about 7005. If someone earns $7,500, 506 00:26:38,740 --> 00:26:43,360 Speaker 2: They do qualify to get a $600,000 loan comfortably to 507 00:26:43,359 --> 00:26:44,350 Speaker 2: buy a property 508 00:26:45,540 --> 00:26:47,960 Speaker 2: and monthly they have to fork out 509 00:26:48,340 --> 00:26:52,690 Speaker 2: Only $500 cash because the rest come from their CPF 510 00:26:52,700 --> 00:26:53,770 Speaker 2: ordinary account. 511 00:26:54,440 --> 00:26:57,530 Speaker 2: If the couple says no, I don't want this commitment 512 00:26:57,540 --> 00:27:00,859 Speaker 2: of a $500 monthly. Then 513 00:27:01,540 --> 00:27:04,860 Speaker 2: The household income of the couple has to be $10,000 514 00:27:05,240 --> 00:27:09,369 Speaker 2: If they earn 5000 each and they got $10,000 and 515 00:27:09,369 --> 00:27:13,470 Speaker 2: they take a $600,000 loan over 30 years. The full 516 00:27:13,480 --> 00:27:16,460 Speaker 2: amount can be paid through your ordinary account CPF 517 00:27:16,840 --> 00:27:20,350 Speaker 2: and you don't come out cash a dollar. Therefore don't 518 00:27:20,350 --> 00:27:23,680 Speaker 2: be so worried about taking loan. As long as you know, 519 00:27:23,680 --> 00:27:26,930 Speaker 2: you have a stable career in whatever trade you are. 520 00:27:26,940 --> 00:27:29,790 Speaker 2: You know, there's a demand and you can be employed. 521 00:27:29,800 --> 00:27:33,680 Speaker 2: It's okay to take a loan and buy the right property. 522 00:27:33,690 --> 00:27:36,380 Speaker 1: Yes, don't be afraid of loan but not too much 523 00:27:36,380 --> 00:27:36,600 Speaker 1: to 524 00:27:36,600 --> 00:27:36,850 Speaker 2: write. 525 00:27:37,040 --> 00:27:38,500 Speaker 2: I always never worried about 526 00:27:38,500 --> 00:27:40,550 Speaker 1: loan. 527 00:27:40,840 --> 00:27:41,060 Speaker 2: What 528 00:27:41,060 --> 00:27:44,560 Speaker 1: happens if you have people in properties 529 00:27:45,040 --> 00:27:48,930 Speaker 1: that they are not appreciating for different reasons or they're 530 00:27:48,930 --> 00:27:52,379 Speaker 1: not appreciating as much as they would like it to 531 00:27:52,380 --> 00:27:53,460 Speaker 1: be or needed to be. 532 00:27:53,470 --> 00:27:56,419 Speaker 2: Very good question. Sarah, I really like that. And that's 533 00:27:56,420 --> 00:28:00,459 Speaker 2: why I always advocate all listeners not to take 534 00:28:00,840 --> 00:28:02,060 Speaker 2: your current property 535 00:28:02,740 --> 00:28:04,959 Speaker 2: as a property. That's forever 536 00:28:05,440 --> 00:28:08,920 Speaker 2: Because a property when we purchased five or 10 years ago, 537 00:28:08,930 --> 00:28:12,950 Speaker 2: it could have been an asset, but over time it 538 00:28:12,950 --> 00:28:15,670 Speaker 2: could have muted capital appreciation 539 00:28:16,140 --> 00:28:18,770 Speaker 2: or it may even end up as a liability. 540 00:28:19,140 --> 00:28:20,359 Speaker 2: So what should one do? 541 00:28:20,840 --> 00:28:24,900 Speaker 2: I think one should take an active approach to evaluate 542 00:28:24,910 --> 00:28:30,220 Speaker 2: your existing property portfolio to understand how it has performed 543 00:28:30,220 --> 00:28:33,340 Speaker 2: over the last 5, 10 years. What is the expectations 544 00:28:33,340 --> 00:28:36,740 Speaker 2: in the next 10 years? Has there been a break 545 00:28:36,750 --> 00:28:40,300 Speaker 2: in terms of capital appreciation? And if that is the 546 00:28:40,300 --> 00:28:43,270 Speaker 2: case this is the right time to offload 547 00:28:44,140 --> 00:28:48,460 Speaker 2: and get something else that's still in its life cycle 548 00:28:48,470 --> 00:28:53,540 Speaker 2: has got further growth. So this is something is very actively. 549 00:28:53,550 --> 00:28:56,770 Speaker 2: Some savvy investors does 550 00:28:57,340 --> 00:29:01,600 Speaker 1: what makes a home an asset and a liability. When 551 00:29:01,610 --> 00:29:03,709 Speaker 1: should alarm bells start ringing in our 552 00:29:03,710 --> 00:29:07,060 Speaker 2: head? It is an ally ability in my view, 553 00:29:07,440 --> 00:29:11,870 Speaker 2: if you buy something and for all what you have 554 00:29:11,880 --> 00:29:12,360 Speaker 2: paid 555 00:29:12,740 --> 00:29:16,580 Speaker 2: and for whatever reason when you decide to downsize or 556 00:29:16,590 --> 00:29:20,010 Speaker 2: when you want to cash out the property is not 557 00:29:20,020 --> 00:29:23,340 Speaker 2: at that moment worth what you have paid for. That 558 00:29:23,340 --> 00:29:25,850 Speaker 2: means the property has not worked as hard as it should. 559 00:29:26,440 --> 00:29:29,850 Speaker 2: In my view is in fact a liability because if 560 00:29:29,850 --> 00:29:32,200 Speaker 2: you continue to stay there for another 10 years instead 561 00:29:32,200 --> 00:29:35,440 Speaker 2: of getting let's say 400,000, another 10 years stated is 562 00:29:35,440 --> 00:29:37,860 Speaker 2: only going to give you 300,000. Yeah, 563 00:29:38,240 --> 00:29:40,700 Speaker 2: so it may not be seen directly as a liability. 564 00:29:40,700 --> 00:29:43,390 Speaker 2: Probably you may have paid up the full mortgage loan. 565 00:29:43,400 --> 00:29:46,180 Speaker 2: But the mere fact that at any time when you 566 00:29:46,180 --> 00:29:49,120 Speaker 2: want to visit it is not going to give you 567 00:29:49,120 --> 00:29:52,460 Speaker 2: a better return from what it is today. The longer 568 00:29:52,460 --> 00:29:53,060 Speaker 2: you stay there, 569 00:29:53,440 --> 00:29:56,979 Speaker 2: then I think it is a liability obviously from the 570 00:29:56,980 --> 00:29:59,520 Speaker 2: other aspect, it could be a liability is for those 571 00:29:59,520 --> 00:30:03,290 Speaker 2: people who own more than one properties and you're dependent 572 00:30:03,290 --> 00:30:06,540 Speaker 2: on the rental yield from your tenant to pay the 573 00:30:06,540 --> 00:30:10,400 Speaker 2: monthly installment. But somehow with the interest rates going up 574 00:30:10,410 --> 00:30:12,270 Speaker 2: and your monthly mortgage installment, 575 00:30:12,540 --> 00:30:14,360 Speaker 2: the rent don't seem to be going up 576 00:30:14,440 --> 00:30:16,900 Speaker 2: and what do you collect from the tenant is not 577 00:30:16,910 --> 00:30:18,270 Speaker 2: even sufficient 578 00:30:18,640 --> 00:30:22,220 Speaker 2: to pay your monthly installment in overtime. The gap widens 579 00:30:22,230 --> 00:30:24,160 Speaker 2: then I think it is a liability to 580 00:30:24,540 --> 00:30:28,050 Speaker 2: in all fairness a lot of young couple can read 581 00:30:28,060 --> 00:30:31,770 Speaker 2: from internet and many of those digital platforms, 582 00:30:32,340 --> 00:30:34,820 Speaker 2: but it would be good if you have someone who 583 00:30:34,820 --> 00:30:36,750 Speaker 2: has been in the market for a good 5 to 584 00:30:36,750 --> 00:30:40,740 Speaker 2: 10 years, who understand who have got data and statistics 585 00:30:40,740 --> 00:30:43,050 Speaker 2: to show you for example, 586 00:30:43,540 --> 00:30:45,330 Speaker 2: we would be able to track if you say that 587 00:30:45,330 --> 00:30:49,540 Speaker 2: I'm staying in condo A versus condo B and Condo C. 588 00:30:49,540 --> 00:30:51,060 Speaker 2: And we can just plot 589 00:30:51,440 --> 00:30:55,460 Speaker 2: The last 10 years, capital appreciation or price movement or 590 00:30:55,460 --> 00:30:59,040 Speaker 2: the demand. So what would be able to visually see 591 00:30:59,040 --> 00:31:01,640 Speaker 2: is the property has got potential or not. So, but 592 00:31:01,640 --> 00:31:03,680 Speaker 2: you need some experts to come in to help you 593 00:31:03,680 --> 00:31:04,270 Speaker 2: and guide you. 594 00:31:04,840 --> 00:31:08,030 Speaker 1: A lot of people right now look to the older 595 00:31:08,030 --> 00:31:10,910 Speaker 1: generation and look at the gains that they've got from 596 00:31:10,910 --> 00:31:15,160 Speaker 1: property as Singapore's property market boomed during the early years 597 00:31:15,160 --> 00:31:20,140 Speaker 1: for example. But now those gains might be less likely 598 00:31:20,140 --> 00:31:22,770 Speaker 1: because Singapore now is a mature economy and we won't 599 00:31:22,770 --> 00:31:23,170 Speaker 1: see 600 00:31:23,360 --> 00:31:26,310 Speaker 1: that big of a jump in the economy and in 601 00:31:26,310 --> 00:31:27,650 Speaker 1: the property prices. 602 00:31:27,840 --> 00:31:31,460 Speaker 1: So what does that mean then for the younger generation, 603 00:31:31,760 --> 00:31:33,360 Speaker 2: you're absolutely right, 604 00:31:33,840 --> 00:31:38,040 Speaker 2: that's life. But having said that property still makes sense 605 00:31:38,050 --> 00:31:41,850 Speaker 2: if someone invests a second property million dollars 606 00:31:42,340 --> 00:31:46,190 Speaker 2: And you come out even of 40% down which is 607 00:31:46,190 --> 00:31:49,030 Speaker 2: 400,000 and you take a loan of 600,000 over a 608 00:31:49,030 --> 00:31:50,050 Speaker 2: 20 year period 609 00:31:50,440 --> 00:31:51,850 Speaker 2: And the next 20 years 610 00:31:52,740 --> 00:31:56,840 Speaker 2: You have been renting it out and the 10ant pays 611 00:31:56,840 --> 00:31:58,260 Speaker 2: the monthly mortgage. 612 00:31:58,640 --> 00:32:00,700 Speaker 2: The man at the end of 20 years, the Tenant 613 00:32:00,700 --> 00:32:02,960 Speaker 2: has paid the entire 600,000. 614 00:32:03,540 --> 00:32:06,760 Speaker 2: So the property you bought 20 years ago was a million. 615 00:32:06,770 --> 00:32:10,459 Speaker 2: Your equity was 400,000, you took a loan of 600 616 00:32:10,460 --> 00:32:13,400 Speaker 2: over 20 years and the tenant pays off after 20 617 00:32:13,400 --> 00:32:15,660 Speaker 2: years and after 20 years 618 00:32:16,040 --> 00:32:19,290 Speaker 2: Assuming the property price, what do you reckon it be 619 00:32:19,300 --> 00:32:25,550 Speaker 2: assuming it is even 1.6 million or two million 620 00:32:26,140 --> 00:32:29,260 Speaker 2: 5% inflation. And if it's not even compounded. 621 00:32:29,740 --> 00:32:30,610 Speaker 2: So if it is 622 00:32:31,040 --> 00:32:31,850 Speaker 2: two million, 623 00:32:32,240 --> 00:32:38,410 Speaker 2: Your 400,000 equity has gone 500% or even if it 624 00:32:38,410 --> 00:32:41,840 Speaker 2: has just gone to 1.6 million, it has gone your 625 00:32:41,840 --> 00:32:44,780 Speaker 2: 400 because when you sell at the end of 20 years, 626 00:32:44,790 --> 00:32:48,170 Speaker 2: the $1.5 million dollar check is all to you. 627 00:32:48,740 --> 00:32:52,540 Speaker 2: So it still makes sense. It still makes sense even 628 00:32:52,540 --> 00:32:56,250 Speaker 2: compared to our earlier parents time and now because property 629 00:32:56,260 --> 00:32:59,610 Speaker 2: generally keep pace with inflation but as long as you 630 00:32:59,610 --> 00:33:02,230 Speaker 2: enter the right property, what I can agree with you 631 00:33:02,240 --> 00:33:07,850 Speaker 2: here is people who bought a landed property in the 1960s, 632 00:33:08,340 --> 00:33:09,660 Speaker 2: $30,000. I 633 00:33:09,670 --> 00:33:11,060 Speaker 1: can't imagine that now. 634 00:33:11,070 --> 00:33:15,770 Speaker 2: Um 4500 in the eastern part of Singapore today. The 635 00:33:15,770 --> 00:33:18,870 Speaker 2: same condition of the house, the same condition 636 00:33:18,870 --> 00:33:19,930 Speaker 1: no enough has 637 00:33:19,930 --> 00:33:20,670 Speaker 2: been done. 638 00:33:21,540 --> 00:33:25,600 Speaker 2: That piece of land today is no less than six million. 639 00:33:25,610 --> 00:33:30,410 Speaker 2: A 30,000 has gone to six million. No less. It's 640 00:33:30,410 --> 00:33:31,770 Speaker 2: likely to be better to be higher. 641 00:33:32,140 --> 00:33:34,170 Speaker 2: So um 10fold. Are we talking about 642 00:33:34,740 --> 00:33:36,860 Speaker 2: Many, many 400 awful 643 00:33:37,240 --> 00:33:39,570 Speaker 2: such things are not likely to happen as you rightly 644 00:33:39,570 --> 00:33:44,250 Speaker 2: qualified by saying that Singapore was a growing economy. If 645 00:33:44,250 --> 00:33:47,500 Speaker 2: you want to wish to have such kind of growth 646 00:33:47,500 --> 00:33:50,260 Speaker 2: potential then go and buy Myanmar 647 00:33:50,840 --> 00:33:53,630 Speaker 2: But to be there and I would advise no better 648 00:33:53,630 --> 00:33:56,940 Speaker 2: not because the risk is too high. Same thing when 649 00:33:56,940 --> 00:33:59,160 Speaker 2: those people who bought it in the 50s and 60s 650 00:33:59,160 --> 00:34:01,460 Speaker 2: in Singapore, they also took a risk. 651 00:34:01,940 --> 00:34:06,290 Speaker 2: We are today stable that was all the formative stages 652 00:34:06,300 --> 00:34:10,250 Speaker 2: but all said, I still think property does make sense. 653 00:34:10,840 --> 00:34:14,210 Speaker 1: Are there any other myths that you think people have 654 00:34:14,219 --> 00:34:18,100 Speaker 1: that you'd like to debunk or maybe areas that they 655 00:34:18,110 --> 00:34:20,259 Speaker 1: are not completely informed about. 656 00:34:20,640 --> 00:34:23,649 Speaker 2: Ah I mean one of the things that we already 657 00:34:23,650 --> 00:34:26,420 Speaker 2: talked about, you want to save enough to buy a 658 00:34:26,420 --> 00:34:27,960 Speaker 2: dream home that will never 659 00:34:28,440 --> 00:34:31,120 Speaker 2: materialize in my view. I always think that it's good 660 00:34:31,120 --> 00:34:33,480 Speaker 2: to have a foothold in the market to keep pace 661 00:34:33,480 --> 00:34:36,710 Speaker 2: with inflation. May be another example if I may give 662 00:34:36,710 --> 00:34:39,279 Speaker 2: here is some of them always like to buy the 663 00:34:39,290 --> 00:34:44,360 Speaker 2: biggest home because they like space, they're like lifestyle. 664 00:34:44,840 --> 00:34:48,110 Speaker 2: But I would say if you have a very big house, 665 00:34:48,120 --> 00:34:49,460 Speaker 2: one house 666 00:34:50,040 --> 00:34:53,690 Speaker 2: and you're so busy working so hard. The only person 667 00:34:53,690 --> 00:34:56,210 Speaker 2: who enjoyed the houses your mate and the dog. 668 00:34:56,219 --> 00:34:57,350 Speaker 1: That's a good point. 669 00:34:57,360 --> 00:35:01,030 Speaker 2: Yeah. So by necessarily buy two houses by one that 670 00:35:01,040 --> 00:35:03,820 Speaker 2: you don't need to be stressed and buy another one 671 00:35:03,820 --> 00:35:07,870 Speaker 2: like the earlier example I give that somebody pays the 672 00:35:07,870 --> 00:35:09,169 Speaker 2: monthly installment 673 00:35:09,340 --> 00:35:10,960 Speaker 2: and at retirement 674 00:35:11,140 --> 00:35:15,740 Speaker 2: you can travel the world. Yeah. So one will have 675 00:35:15,739 --> 00:35:17,860 Speaker 2: to understand what are your needs. As I said 676 00:35:18,340 --> 00:35:20,700 Speaker 2: when we are young we don't tend to think long 677 00:35:20,700 --> 00:35:23,480 Speaker 2: term but people who think of long term they do 678 00:35:23,489 --> 00:35:24,620 Speaker 2: benefit hugely. 679 00:35:24,630 --> 00:35:27,839 Speaker 1: Yeah. So we can talk about buying your first home 680 00:35:27,840 --> 00:35:30,390 Speaker 1: without touching on this is male. What do you think 681 00:35:30,390 --> 00:35:33,460 Speaker 1: should come first? Video application or a marriage proposal. 682 00:35:33,840 --> 00:35:35,160 Speaker 1: Mhm. 683 00:35:35,840 --> 00:35:37,670 Speaker 2: I think um 684 00:35:38,540 --> 00:35:41,270 Speaker 2: wow. I said that if you want to talk about 685 00:35:41,270 --> 00:35:42,859 Speaker 2: a video application, 686 00:35:43,239 --> 00:35:45,719 Speaker 2: how is your marriage don't even take place. But I 687 00:35:45,719 --> 00:35:47,740 Speaker 2: think it's the right thing to do if you're really 688 00:35:47,739 --> 00:35:51,299 Speaker 2: definitely quite agreed upon that you are the life partner 689 00:35:51,300 --> 00:35:54,090 Speaker 2: going to be for each other. My strong suggestion is 690 00:35:54,090 --> 00:35:56,750 Speaker 2: go ahead and apply the BTU because it is going 691 00:35:56,750 --> 00:35:59,850 Speaker 2: to take a good four or five years. But I 692 00:35:59,850 --> 00:36:02,010 Speaker 2: really want to encourage people to look at the other 693 00:36:02,010 --> 00:36:02,460 Speaker 2: option 694 00:36:02,730 --> 00:36:03,700 Speaker 2: and believe me 695 00:36:03,930 --> 00:36:06,950 Speaker 2: I think this is a superior option for most people 696 00:36:06,950 --> 00:36:10,420 Speaker 2: but not everyone to look at resale flat. Why do 697 00:36:10,420 --> 00:36:12,150 Speaker 2: I say that? I think about it 698 00:36:12,730 --> 00:36:15,130 Speaker 2: when you buy a resale flat you get the case 699 00:36:15,130 --> 00:36:19,350 Speaker 2: within three months and you do qualify for higher grant 700 00:36:19,730 --> 00:36:22,190 Speaker 2: compared to Bto Bto. The ground is not so much. 701 00:36:22,200 --> 00:36:25,350 Speaker 2: The government deliberately give higher amount of ground because of 702 00:36:25,350 --> 00:36:28,460 Speaker 2: the price difference. What is your first advantage 703 00:36:28,830 --> 00:36:32,110 Speaker 2: Your marriage and your privacy and to leave your home 704 00:36:32,110 --> 00:36:36,879 Speaker 2: start immediately not five years later. # two your minimum 705 00:36:36,880 --> 00:36:39,350 Speaker 2: occupation period starts the day you collect the keys. 706 00:36:39,730 --> 00:36:41,160 Speaker 2: I mean five years down the road 707 00:36:41,530 --> 00:36:42,850 Speaker 2: you can 708 00:36:43,230 --> 00:36:47,470 Speaker 2: reorganize your portfolio. Either sell the resale flat and by 709 00:36:47,469 --> 00:36:51,279 Speaker 2: an executive condominium or something else. As opposed to a 710 00:36:51,280 --> 00:36:53,600 Speaker 2: Bto flat. You're stuck for 10 years, five years of 711 00:36:53,600 --> 00:36:56,190 Speaker 2: construction plus another five years of M. O. P. So 712 00:36:56,190 --> 00:36:58,860 Speaker 2: you can't manure. Not forgetting the fact if you're going 713 00:36:58,860 --> 00:37:01,650 Speaker 2: to be 28 30 10 years is 40. 714 00:37:01,830 --> 00:37:04,580 Speaker 2: So that five years lead time can mean a lot 715 00:37:04,580 --> 00:37:05,250 Speaker 2: of things. 716 00:37:05,730 --> 00:37:08,669 Speaker 2: So as I said I'm not suggesting everybody should look 717 00:37:08,670 --> 00:37:11,160 Speaker 2: at resale flat. If you can afford 718 00:37:11,530 --> 00:37:15,029 Speaker 2: if you think your aspiration is now, just for the 719 00:37:15,030 --> 00:37:18,040 Speaker 2: next five years or six years to have a decent 720 00:37:18,040 --> 00:37:21,870 Speaker 2: flat without waiting too long for your marriage, go for 721 00:37:21,880 --> 00:37:22,540 Speaker 2: a resale. 722 00:37:23,030 --> 00:37:25,420 Speaker 2: But on the other hand, you said, hey, resale is 723 00:37:25,420 --> 00:37:27,170 Speaker 2: going to be a bit more hefty because the resale 724 00:37:27,170 --> 00:37:31,420 Speaker 2: prices are definitely higher than B. T. O. And video 725 00:37:31,430 --> 00:37:34,709 Speaker 2: much cheaper and it's brand new. Fine. Then you must 726 00:37:34,710 --> 00:37:36,900 Speaker 2: be mindful of the fact that if you apply for 727 00:37:36,900 --> 00:37:40,000 Speaker 2: the video, apply early, if you intend to get married 728 00:37:40,000 --> 00:37:41,960 Speaker 2: in 23 years better apply now 729 00:37:42,030 --> 00:37:44,969 Speaker 2: so that at least halfway through after you got married, 730 00:37:44,980 --> 00:37:46,250 Speaker 2: you don't need to wait too long, 731 00:37:46,630 --> 00:37:49,690 Speaker 1: smell one question before we let you go. So we 732 00:37:49,690 --> 00:37:53,120 Speaker 1: all know you've made quite a hefty sum in the 733 00:37:53,120 --> 00:37:56,089 Speaker 1: property market. Can you give our listeners your view of 734 00:37:56,100 --> 00:37:58,550 Speaker 1: money and what you learned when you had little? And 735 00:37:58,550 --> 00:37:59,460 Speaker 1: when you had a lot 736 00:38:00,219 --> 00:38:01,239 Speaker 2: lot of people may not 737 00:38:01,620 --> 00:38:02,339 Speaker 2: really 738 00:38:02,820 --> 00:38:04,040 Speaker 2: maybe agree with me 739 00:38:05,320 --> 00:38:07,650 Speaker 2: to me. Money has only got that much value, 740 00:38:08,420 --> 00:38:11,500 Speaker 2: honest truth. Probably a lot of people will say when 741 00:38:11,500 --> 00:38:13,580 Speaker 2: you have a lot of people tend to talk like that, 742 00:38:13,590 --> 00:38:15,140 Speaker 2: maybe I'm not so sure 743 00:38:15,620 --> 00:38:17,980 Speaker 2: you have all the money. But if you don't have 744 00:38:17,980 --> 00:38:19,750 Speaker 2: the heart to give it to 745 00:38:20,420 --> 00:38:24,980 Speaker 2: your own loved ones, including your parents, including whoever who 746 00:38:24,980 --> 00:38:28,900 Speaker 2: is in need because you start to halt money because 747 00:38:28,910 --> 00:38:30,649 Speaker 2: money is so important to you 748 00:38:31,120 --> 00:38:35,390 Speaker 2: somehow money won't come to you much because you have 749 00:38:35,390 --> 00:38:38,190 Speaker 2: an affiliation with the money. That money is all paramount 750 00:38:38,190 --> 00:38:40,790 Speaker 2: to you. I'm not saying that just be free and 751 00:38:40,790 --> 00:38:42,450 Speaker 2: just be spent with no 752 00:38:42,820 --> 00:38:45,149 Speaker 2: when you work hard and 753 00:38:45,520 --> 00:38:48,160 Speaker 2: you give money where it is due to make a 754 00:38:48,160 --> 00:38:50,500 Speaker 2: difference in the life of other people as well. But 755 00:38:50,500 --> 00:38:52,540 Speaker 2: it all starts with your own family first. 756 00:38:53,320 --> 00:38:55,239 Speaker 2: I think somehow money has got more meaning 757 00:38:55,719 --> 00:39:00,850 Speaker 2: because it is not about you have multiple millions and 758 00:39:00,850 --> 00:39:04,230 Speaker 2: you still feel that it is not enough versus you 759 00:39:04,230 --> 00:39:08,900 Speaker 2: have enough and you feel so happy that you're rich, 760 00:39:08,910 --> 00:39:12,250 Speaker 2: the state of happiness is in the mind, 761 00:39:12,920 --> 00:39:16,540 Speaker 2: but all said is it's equally important. You must have money, 762 00:39:17,020 --> 00:39:17,650 Speaker 2: work hard, 763 00:39:18,219 --> 00:39:19,030 Speaker 2: earn the money, 764 00:39:19,520 --> 00:39:22,790 Speaker 2: but pure money doesn't give you happiness using the money 765 00:39:22,790 --> 00:39:25,190 Speaker 2: with the right cost, bring greater joy and that's how 766 00:39:25,190 --> 00:39:25,540 Speaker 2: I feel. 767 00:39:26,120 --> 00:39:29,680 Speaker 1: Yeah, that's a great advice. Think long term when it 768 00:39:29,680 --> 00:39:33,180 Speaker 1: comes to your property, don't wait until you've saved all 769 00:39:33,180 --> 00:39:36,629 Speaker 1: the money you need for your dream home. And remember 770 00:39:36,630 --> 00:39:40,310 Speaker 1: that over a long period of time, home prices do 771 00:39:40,310 --> 00:39:43,799 Speaker 1: go up though, there are cycles in between. Thanks so 772 00:39:43,800 --> 00:39:44,580 Speaker 1: much for joining us 773 00:39:44,590 --> 00:39:45,950 Speaker 2: appreciate it. Thank you. 774 00:39:46,020 --> 00:39:46,230 Speaker 1: Okay, 775 00:39:48,219 --> 00:39:50,930 Speaker 1: we hope you enjoyed this episode of money talks the 776 00:39:50,930 --> 00:39:54,380 Speaker 1: team behind this podcast is hope a name, Danieli, Christina 777 00:39:54,380 --> 00:39:57,719 Speaker 1: robert and you've got a refreshed slate of audio material 778 00:39:57,719 --> 00:40:00,540 Speaker 1: you can listen to on your commute or your workout, 779 00:40:00,920 --> 00:40:02,859 Speaker 1: go to the C. N. A. Website or app. Look 780 00:40:02,860 --> 00:40:05,830 Speaker 1: for the listen button and subscribe to the podcast. See 781 00:40:05,830 --> 00:40:08,800 Speaker 1: like if you have thoughts, ideas or even stories you'd 782 00:40:08,800 --> 00:40:11,480 Speaker 1: like to share, please write to us. The details are 783 00:40:11,480 --> 00:40:15,140 Speaker 1: in our episode notes. Until next time. This is Sarah apology. 784 00:40:17,420 --> 00:40:17,650 Speaker 1: Mhm.