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20-08-2014, 02:40 PM
(20-08-2014, 02:24 PM)egghead Wrote:How do you know how long you going to live exactly? How to compensate for the risk of living too long or too short after lease back? Or G got a "Fixed Formula?" These are just a few disadvantages.(20-08-2014, 02:08 PM)Freenasi Wrote: The leaseback that is offered is not favourable to the owners. It does not take into account of the appreciation of the hdb value in future.
I agree with you that renting out will likely provide the highest cash flow. However, it is simplistic to compare it with leaseback because:
1. You get a lump sum upfront in leaseback
2. The portion of the lease that is sold back is the least valuable part of the property (remember the value goes to ZERO after 99 years?) while the owner still gets to enjoy the property for the next 30 years
3. Appreciation? Why not depreciation? My point is - who knows for sure?
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.