Rich Dad, Poor Dad, real estate investing strategy applicable to SG?

If you have read Rich Dad Poor Dad, and its sequals, you'll know about the advice of real estate investing.

Get a loan/mortgage-> Pay10% of the Loan as a Premium-> buy a house with the loan-> rent out the house-> collect passive income.

I was wondering if such a strategy is applicable to Singapore. From what i know, you cannot buy more than 1 HDB house. And housing here is more expensive than USA.

And who is going to manage to house for you? i.e. fix toilet, pay bills, physical collection of rent etc. Does anyone know companies that do this here?

Cheers! afro

Posts : 12 Reputation : 0 Join date : 2009-04-20

I think u gotta convert the $ in ur "Small Deal" or "Big Deal" card, and the ROI to suit sg context before all can apply.

Of course, in my opinion, housing is difficult to play for small investors.

Dun expect buy hdb for rental, cos u cant really do that many many times.

Dun expect to buy condo/landed for rental, cos it's really too slow and costly.

And I've got a good solution to that Smile

Contrast to unit trust or stocks,
safe and good investment that give 10 - 20% ROI sounds good?

PM me if you have at least $25K for this,
and I can almost gurantee you capital be back in one year (or less)
with the rest as you return.

So your's is a "Big Deal" card eh?

Im guessing its a commercial property investment. Cool

Maybe there is a way, just that we haven't found out yet.

Best is to get Robert Kiyosaki himself to come down here and figure it out for us.

Blacknight wrote:: Maybe there is a way, just that we haven't found out yet.

Best is to get Robert Kiyosaki himself to come down here and figure it out for us.

Good idea. Test his mettle. See if he truly can invest wisely. But what if he himself says that it is difficult to find practical real estate investment opportunities here? We'll be doomed.

Posts : 12 Reputation : 0 Join date : 2009-04-26

From what i know, there are opportunities everywhere! cheers

Rob may not be the best person to advice us as he is based in USA. He does have several strategies that are applicable
anywhere in the world though.

There's a program i attended called the Property Investment Network. It focuses on investing in Singapore and in the future will expand overseas. So far, the information i've learnt is invaluable. The speaker has many properties in Sg and good insight in the current market.

PM me if you'd like to attend the preview.
All the best in your investments! Very Happy

Ninja wrote:: From what i know, there are opportunities everywhere!
Rob may not be the best person to advice us as he is based in USA. He does have several strategies that are applicable
anywhere in the world though.

There's a program i attended called the Property Investment Network. It focuses on investing in Singapore and in the future will expand overseas. So far, the information i've learnt is invaluable. The speaker has many properties in Sg and good insight in the current market.

PM me if you'd like to attend the preview.
All the best in your investments!

Teach me! How do you acquire property in Singapore? I have little clue. All I know so far is that you cannot buy more than one HDB unit in Singapore. Are there companies in Singapore that do the property management for you? (I mean the rent collecting and repairs).

Posts : 12 Reputation : 0 Join date : 2009-04-26

Dude, you have to invest in private property and not HDB.

Apartments & condos are said to be better ROI than private property. But that is subjective as well.

Yes there are other rent collection companies that can help you with it. It is recommended to engage their services if you have a ton of properties - or if you live in a different country from your investment.

I see. Thanks for the information.

Now, even if you manage to find a property agent and find a good apartment, where is the tenant going to come from? I know classifieds and other forms of advertisements are possible, but are there other ways? Does the property agent help you to find the tenant?

Hi guys,

I think we can also try to buy overseas properties, e.g. Australia, New Zealand, etc.

Dont need limit our view to that of Singapore and M'sia only Smile

Rgds
Dung

That's true. But I myself have little or no idea about real estate investing overseas. Nor do I have a knowledgeable contacts.

Anybody know someone overseas that can share? Like, how can foreigners like us buy real estate there. If this entails setting up a company there, that's a whole new set of things to get through.

Only Singaporean can buy HDB. I personally encourage my Singapore friends to buy HDB once they qualify to buy. Don't wait. Singapore HDB prices rises like those in Hong Kong. If you are buying with investment in mind, buy those properties with high rental yield. If for own use, then just go according to your own preference. After you own a HDB for I think 5 years, you can still can buy a private property if you want and can afford it. But you have to stay in the HDB flat (HDB requirements) and you can rent out your private property.

If you are a foreigner, you have to buy private apartment or house. Most of those will not have restriction on Foreigners.

If you are thinking of buying properties overseas, there are those from Australia and New Zealand. The developers will sell to you, and manage for you too. Must also get high rental yield properties, especially those near University and other amenities. They used to conduct sale fair in hotels; I am not sure if they still do.

My opinion on other properties in other parts of ASIA for your consideration :
1. Taiwan property price does not fluctuate alot, and country prone to natural disaster.
2. China property - alot of fake stuff - so very difficult to get a good property. If you are not there, then even more difficult. If got money, buy those big houses which expatrites like - dealing with expats is easier and more reliable. China re-sale market is not so good unless you get premium property in the city.
3. Choose properties in country that are not so prone to natural disaster - like flood, earthquake, fire, typhoons. And air pollution is also a consideration for people not wanting to buy or rent a house.

Unfortunately for me, my Mandarin is terrible and absolutely no contacts in China or Taiwan.

I shall create a new thread under general business "how to invest in real estate overseas?"

You also want to make sure the monthly rental collected from the property bought is enough to cover the monthly mortgage loan repayments.
So, don't buy a 5-room flat if the rental collected cannot cover the mortgage loan repayment.

esthersoh wrote:: You also want to make sure the monthly rental collected from the property bought is enough to cover the monthly mortgage loan repayments.
So, don't buy a 5-room flat if the rental collected cannot cover the mortgage loan repayment.

Yup, this goes without saying. Unless you want to lose big time.

Nope..
Not applicable..
Property market in Singapore & US is completely different..

Btw if I am not mistaken, investing in an equity unit trust or stock will make an average, around 10% per annum over the long term with the ups & downs in the market..
Unless we are referring to shorting, trading & timing for leverage..

I think maybe its applicable, just not very practical.

Basically since the land is pricier here, the cost, mortgage and down payment of the house is more expensive.

The return on investment (ROI) from rental income here is average 10%. I personally can get the same if not more return from stock market dividends and with much less effort, thus making stocks more practical.

The REITS (companies that invest in real estate) give 10% ROI anyways, and you can buy them from the stock market.

Ya..
Investing in REITs is better than physical property..
No maintenance cost..
No property management issues..
More liquid & transferrable in buying & selling..
Dividends advantage..

But the bad thing is, REITs are paper assets..
Owning(or Owing) real estates are physical assets..
With paper assets, you can't even smell it..
With physical properties, you got to sit on it, sleep with it, & shit in it..

Yeah, but the likelihood of a REIT going bankrupt is very slim.

As they own the physical assets. They can smell it, and have tenants sit and defaecate in them. You can go to the properties they own and have a look-see for yourself as well.

Its like buying property through them.