When there's a will, there's a way

So much have happened the past 1 month, I do not even know where to begin! Less than 10 days of moving into our newly rented apartment, I said "goodbye" to my BMW 125i sports coupe. I have more or less gotten over the sadness of losing a damn good car. It was my very first sports car and it was so powerful and such a pleasure to drive. I am glad we did drive it to Johor once last year and had a good run. Also gone with it was the license plate that had graced all of my past cars in Singapore for the last 15 years...Oh well, as much as I hate to part with it, I think it is for the better. Having 2 cars is too much a luxury for us.

Then we booked us a 5 bedroom apartment at Q Bay Residences in Tampines! The layout was right, the price was right, the location so-so and the timing was quite bad actually as we now have to figure out quickly how to get the whooping amount to pay for it within 8 weeks. It was by chance that we found out about Q Bay. We were on our way to fun-bowl at Tampines Safra and we saw this banner and went in. The indicative price was around $950~$1000 psf which is affordable but the amount in stamp duties after the latest "cooling off" measures is really hard to swallow. Anyway, I figured that we cannot rent forever, so we have to buy something somehow and the longer we wait, the more expensive it is going to get. The population is projected to be 6.9 million by 2030! And I definitely do not see the size of my family getting smaller any time soon, in fact, it will only get bigger as baby J will eventually want his own room.

We spoke to a banker and she recommend that we can take a term loan with our 2 properties to tie us through and we breathed a sigh of relieve. The government's "cooling off" measures are not making it easy for us...10% additional buyer stamp duty, 40% loan and God knows what else! But whatever it is, we still have to do it. I am totally consumed by the idea and I think I am going to go for it no matter what. It is OK to not have a car but I think it is definitely unacceptable not having a nice house with a good master bedroom. I want a master bedroom with a walk-in wardrobe and a bath tub. I want my house to have a good size balcony. And indeed, when there is a will, there will be a way. Our term loans have been approved! Now, I do not need to sell one of my apartment so hurriedly and lose all negotiation powers. I figured that if we can hold on for a couple of years, the price will definitely move up further! Now, I really need to find a tenant soon!

Random Thoughts...

Spent Sunday at home cleaning up the kitchen in preparation for the arrival of my personal cook...yes, my mum will be arriving this coming Saturday and she will be using the kitchen a lot to cook some wonderful home-cooked dinners for us. My mum is not that great a cook, to be honest, she just makes good soup but that is good enough for me. Eating out for all meals everyday for most of the year really makes me long for simple home-cooked food, even if it's just steam fish and stir-fried vegetables...

While I was cleaning the kitchen, I kept thinking of how I would like to buy the next door unit to our new place so that I can have a dry kitchen there for baking and have a counter top for coffee. Then it will be great to have a Nespresso coffee machine to make the perfect latte every morning. However, I received a sms this morning from S and she was telling me that the property market is moving up in Singapore. I wonder if the economy is really recovering or is it just a technical adjustment? Will I be able to get that unit? Should I pay whatever the seller want or should I wait and see? Hubby was saying that he doesn't want the anxiety but mum-in-law is confident that the prices will fall after lunar 7th month and I am still in the state of wait and see...

Random thoughts...

It has been such great weather these few days that for the first time the other night, we witnessed the Disneyland fireworks from our 2nd bedroom window! Amazing! And we are situated at least 30 minutes's drive away!

We are putting our apartment up for sale and so far there were a couple of viewings and each time potential buyers came to view our place, I didn't feel like selling it anymore...hubby told me that he has the same feelings. I guess we are quite attached to Hong Kong now.

Today, the "antenna" of my department came back to work after being away for 1 week. We call her "antenna" because she is good at receiving "news" that is happening in the office and reporting back to us. Today, she found out that 3 more of our colleagues in other departments have quit. 1 of them is a sales manager and has worked with the company for many years. He quits not because he has found another better job but just because he cannot take it any longer. He has been posted to work in our Shenzhen office 2 years ago and he is really not happy there. He requested to come back to the Hong Kong office but there is no position for him here anymore. My company has decided to move all sales operations into China and keep only the supporting department here in Hong Kong. It's an organisational change that is not easy for everyone. *SIGH*

Is a house an asset or a liability?

I was reading Rich Dad and it has some very interesting points. Basically it is highlighting to us the differences in terms of thinking and outlook of life between a poor man and a rich man. The main difference? The poor man works hard for his money but a rich man has his money work hard for him. How to make money work for you? Apparently it is the difference in the way one thinks that will make one get financially stronger or weaker. The poor man will think that "I cannot afford it." and shut his brain down. The rich man will think "How can I afford it?" and continue to exercise his brain to think of a way to make the money. Another difference, a poor man will think that his house is his asset while the rich dad thinks that a house is a liability. Hmm...interesting isn't it? Why is a house a liability when everybody is investing in properties and getting rich with their properties?

Well, I have 1st hand experience...remember the 1997 crisis when so many people went bankrupt by having properties? Well, when the market is good and the property is being rented out at a higher rent than your mortgage repayment, it can be considered an asset. However, when the market is bad and the property you have on hand is still under mortgage, then it is a big liability. I bought my private apartment in Upper East Coast Road during in 1995 and took a 80% mortgage. By mid 1997 the property has dropped 30%~40% from the price that I bought it for and it remained there at the bottom for 10 years. The rental income was less than my mortgage repayment, so for 10 years, the property was not an asset but a liability to me. I was paying through my nose and if I had no other inome to tide me through, I would be gone. I sold it for 5% higher than my purchase price last year and got out of the crap. I may have sold it a little too early...but I had my reasons and I shall not go into details here. The market has turned around and if I still have my property now, I will be taking in a monthly income of at least SGD500 after paying for the loan repayment from the rental. So, a property can be an asset or a liability depending on the market situation. Right?

Anyway, there is a board game by the name of Cashflow 101 that teaches finance, accounting and investing at the same the fun way! I think I am going to buy this board game and start playing it with my children. It is supposed to be suitable for adults and children above 10 years old. Just nice for my family. Good idea to start the kids young! :D