renting is paying off your landlords mortgage? lmao

https://www.youtube.com/watch?v=tQt6ZhCd4Sk

i just watched this honey money sg video where he say that

not sure to laugh or cry

this is what i mean when i say that the level of sg finfluenzas are so low quality

ofc easy for him to say since he has a hdb bto

hdbs have the best yield wrt current market price

and btos are severely underpriced due to govt subsidies

if you rent a hdb then ya he is quite right

he lucked into being half right that in sg it is indeed good to build up home equity (if hdb) since most people are so bad at all other types of investing (low opportunity cost) and govt subsidies guarantees that hdb btos are practically no-loss investments

but that is a unique case of hdbs

there are plenty of private properties that even after being rented, are still cashflow negative for the landlord once you consider all the expenses

also, most people incorrectly value their own labor in the administration of such properties as $0/hr

in fact, for high end properties, renters are getting subsidized by landlords to help cover most (not all) of their property investment costs

this applies to even more properties after the recent hike to property tax for non owner occupied aka investment units

such properties rely exclusively on capital gains for the landlords to eventually make money when they realize gains and sell, all while alternating between bleeding cash or breaking even until that happens

you might think that doesnt make sense and why would landlords speculate on capital gains rather than rely on the "stable" rental income of their investment property, but hello my friend, the china and south korea property market are even worse that sg with gross yields under 2%

after taxes and expenses? big fat negative

thats what i mean when i say, rentors are being subsidized

gross yields mean nothing, just like entreprenuers talking revenue numbers

only uneducated fools are impressed

tell me the net profit or gtfo

and just like that, that is what is important when purely considering the financial aspect of rent vs buy

but even beyond the financial reasons, there are good non-financial reasons to NOT rent, like stable environment (esp for families) and renovating for specific living space

there are also good reasons to always rent, even if it costs a lot more, like career and lifestyle flexibility

you cant really put a firm price on such things, but surely they are valuable to some people, and worth it to them to pay more, if they had to

hearing people say stupid things like "renting is bad" really makes me sick

him thinking that renting is a waste of money goes to show how basic and low level his understanding of finance is, clearly not a holistic approach

its funny to me that i am a harsh critic especially when i see so much of my younger self thinking in him

anyway money honey like to say "supercharge" this and supercharge that

but the simple answer to why your NW will "supercharge" as it gets bigger is simple

your expenses do not scale with NW, but lifestyle desires, so fixed expenses as a % of NW becomes smaller relative to your asset base due to continued savings and bigger absolute returns from that larger base

the 100,000 number of "supercharging" is not a magical threshold

if your NW is $95K or $120K, it will still feel about the same

he also said something i very strongly disagree with

higher NW can participate in better investment opportunities because you have higher quantum? 

bull shit

give MH SG a $100M dummy portfolio and he can go access all his different super special higher quantum investment opportunities while i put 100% into s&p 500 and watch me outperform from day 1 to infinity

honey money really is not joking when he says his content is not financial advice but rather financial entertainment