property vs stocks

sinkies

FUCKING

love property

could be an asian thing

could also be because 1/2 people in singapore is a property agent or closely related to one

for many years now

i intuitively know that residential property underperforms stocks while also being a pain in the ass to manage

https://youtu.be/Pv389tqpiWc?si=niNRQN_1DkG1eNDR

this video says a lot of what i want to say 

 

1st point - a lot of cost line items

it is not so simple as [ (sell price) - (buy price) ] / years held

most property investors completely fail to correctly include all costs so their PNL is always inflated

 

2nd point - compare property vs stocks

costs

effort and involvement

liquidity

1 missing line item is "wholeness"

you cannot sell 10% of a property, but you can sell 10% of your stock portfolio

 

3rd point - the "goal" of property vs stocks

(not included in the video, it is my own point)

take a moment to think about

ssd, bsd, absd, annual property tax

you realize, it is not in the governments interest to pump property prices right?

sg is even more special, since gahmen builds and provides housing to 80%

if property prices go up, it is BAD and ppl comprain about affordability 

propety has natural characteristics to be cooled down, for "social good"

property is designed to never chiong much faster than inflation 

compare and constrast to stocks

stock market got cooling measures?

got absd if you buy more stocks? got ssd if you sell within 3 years?

got annual tax on the value of your stocks?

your portfolio value go up too much, ppl will talk about it in parlaiment?

the nature of stocks is that the are designed to go up

up is always good

down is always bad

my opinion is property if you want mental comfort, buy and be happy

but you want to play pretend that property is also a good investment? go ahead lor

you probably also the type that play pretend whole life / ilps are also good products lol

note: mr chua compares his forecast with 2 scenarios

scenario 1 - renting out 1 of the dual key unit

scenario 2 - not renting out the dual key unit

but he is missing scenario 3 - renting out both the dual key units

there is another flaw he makes when comparing property vs stocks

he included interest cost

i would compare a 100% cash finance property to a stock portfolio if i wanted apples to apples

but of course

in sinkieland

who buys properties 100% in cash?

answer is: the ultra rich ppl buying GCBs

ironic cos that many of the richest ppl in the sinkieland do not WANT leverage, when they obviously have access to it

makes you wonder what these rich ppl know that the poor ppl dont 

why they so stupid dont leverage up on such a massive quantum asset?

if you so smart, you live in a GCB right?