Eventually, the conversation drift to property. She wanted a shift to a private property and leave it for our son when we go see our makers. She wanted to do it "when the market is right" (my poison)
I told her these:
1) You need to understand these because I might passed away earlier than you.
2) Misconception of rental money is the best investment money. Many look at the 2-3K rental and believed it is a good investment since the rental can pay off the property eventually. I ask her to consider yield. How much capital is put into the property to generate that few k of rental.
3) I ask her to calculate the yield of her mother private property and our HDB unit. I ask her which is a better investment?
4) I told her the yield Is even lower if you max out the possible credit to buy that private unit. With leverage there is interest risk and the possibility of repossession at the worst case scenario
5) investing in equity, if you have the heart for the volality, required only meaaured injection of capital and there is no risk of leverage (unless you are pro and doing ES or CFD or the likes)
6) there is no going back to HDB.
7) better to buy a reasonable studio or smaller unit to rent and sell when the market is right.
She is not very happy with my answers but I think she understands. But if I passed away, not sure if her mind will be in a better state than her heart?
I wonder why the craze to leave a property to the children. Wouldn't it be better for the children to learn to earn their keep? Of course, if I do stay in a private property when I go see "God", I will leave it to him, but I won't planned to squeeze it out of my life to pass it down.
I used to think it is a lame excuse of adults for vanity for those who over stretch their finances for a private property. They are using their kids as a shield for their own vanity.
I had a colleague who downgraded from a semi-D to a private. He made a profit of almost a million. He told me his wife objected to the downgrade and want to leave the house to their kid. He told his wife it's better to hold cash and take profits and decide what to do later.
Am I the odd one out? Am I the only one not thinking of leaving a property behind?
When my FIL told me DTL is free, and wanted to try it, I said it will be crowded and I don't like crowds. He asked me to send him to the station and he takes it alone. I told my wife later that it is quite "bo Liao" to ride for the seek of riding just because it is FOC and endure the crowd right?
She told me many of her colleagues did that today too.
I seriously think I am "odd"