Me & My Money Series (Sunday Times)

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(24-03-2013, 09:13 AM)Musicwhiz Wrote: Q: What is your best investment?

Back in 1989, I bought three terraced houses in Liverpool for £7,000 each. They had no roofs and no floors. I invested another £7,000 in each, putting in the floor and the roof, and rented them out to an organisation which paid me a fixed rental slightly below market but it was regular. Five years later, I sold all three houses for £90,000.

A lot of question marks here. Why would he accept below market rentals for five years? There was an expose a while back in BBC on sub-standard housing that was subletted and rented out illegal immigrants in the UK.
You can count on the greed of man for the next recession to happen.
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(24-03-2013, 11:01 AM)yeokiwi Wrote: Castlewood?? Another alternative investment.
The company that setup booth in malls and recruits some angmos to sell foreign real estate investments.

Basically, an investment company that depends on $$$ from retail investors.

Yes, in fact I had noticed Castlewood selling a lot of foreign real estate. I always wondered how legit it was, but without further evidence and knowledge, I will leave it at that.

That said, I do feel that he sounds arrogant in the interview. He stays in Sentosa Cove so he must be minted, but I wish he would demonstrate a little more humility.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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how come MAS is not catching people like him, setting up ponzi scheme in sg, yet let them stay in sentosa cove?
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Is he a developer or developers' agent ?
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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seems like sentosa cove is breeding a number of 'crooks' from the fake USA-option professor clemen chiang to this guy?
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The Straits Times
www.straitstimes.com
Published on Mar 31, 2013
Newlyweds have their future all worked out

Entrepreneur and wife have even drawn up a five-year profit and loss statement to guide spending

By Joyce Teo

Entrepreneur Wong Hong Ting stares at risks every day in his business. So when it comes to investing his earnings, the 28-year-old puts them only in blue chips.

Mr Wong is the director of 2359 Media, a mobile marketing provider that he co-founded with Mr Zhou Wenhan when they were both studying at the National University of Singapore (NUS).

Now, the business employs 42 full- time staff and numerous part-timers.

"I aspire to be comfortable enough so that I don't have to work for someone else. It's the notion of being able to choose," says Mr Wong.

Mr Wong's wife, Ms Loo Hoey Lit, 28, whom he married earlier this month, is starting her own IT business, having recently left her job as a bank officer.

One of her mentors works for a boss but is able to break through bureaucracies and help the organisation because he doesn't need the job.

"He doesn't have to please the boss and can think about what is good for the organisation," said Mr Wong.

Of late, money has been occupying his mind, but not the practical bit of it.

"My mentors and the really successful people whom I meet are not the types who splurge on Prada and Ferraris. They are happy to go to the kopitiam for coffee and toast, and they seem a lot happier to me.

"I want to take a page out of their book and to always enjoy the little things in life."

Mr Wong has seen friends splurge on branded goods and so on, after making some money, and when they lost their jobs, they could not cope.

"The moment you start splurging, there usually is no turning back."

Q: Are you a spender or saver?

Lifestyle-wise, I'm a saver, though I do enjoy good food, nice wine and the occasional trip with my wife.

In the first year of 2359 Media, my co-founder and I lived on $800 a month each. The business has gained traction in the market, but I still make it a point to live as frugally as possible.

I am inspired by Warren Buffett and aim to live in a frugal manner, and have financial flexibility to make life-changing decisions without being tied down by the need to maintain our lifestyle and/or to service debts accumulated when acquiring luxury items.

Q: How much do you charge to your credit cards every month?

As a rule of thumb, I subscribe to strictly having no debt on my credit card.

To have a good sense of how much I'm spending each month, I make it a point to pay through AXS or by cheque as it forces us to think clearly about what we're spending on.

Q: What financial planning have you done for yourself?

I review my financial health every year to get a sense of how much I can invest or spend, and decide on how many trips or higher-value items I can acquire.

As a bachelor, this was relatively easy, but since I proposed to my wife last May, all the good business strategy things that I use at 2359 Media came into play.

We put together a five-year profit and loss statement, and worked out short- term cash-basis projections and a simple balance sheet to assist us in our decisions.

We spoke about what we wanted to do, if we need a car and when we want to have kids. As a family, what trigger points would there be?

Since last year, I've started saving consciously - $2,500 a month - for a property.

Given a technology firm's high-risk, high-return profile, and the time and effort needed to maintain a full stock portfolio, I have invested in only blue chips with clear dividend policies to protect my assets against inflation.

I review my portfolio every quarter. I have technology stocks because I understand that. I also like property stocks because landlords charge too much for rent.

It helps that sometimes I get to meet senior executives of listed companies. When they get extremely excited about your industry and not so much about theirs, you know you shouldn't touch their shares.

This has worked a lot better than me running financial models. If anything, the biggest thing I learn from school is that a passive trader can never beat the market.

Q: Moneywise, what were your growing-up years like?

My dad was director of Centre for English Language Communication at NUS and my mum is a homemaker. I have an older brother, a philosophy professor in Germany.

My dad also had to take care of my grandmother, aunt and cousins, but life was still fairly comfortable.

Since I was young, I have always been the kid who loves to go to toy departments just to look at toys and analyse all their specifications but never buy them.

Instead, I looked forward to my birthday and Christmas, when I got to choose something that I really wanted. This has very much translated into my adulthood, with me allowing myself a couple of "wants" each year.

Q: How did you get interested in investing?

I invested in buying health-related products to sell when I left the army. I managed to break even but the experience piqued my interest in business and investing.

I went on to study quantitative finance at NUS and have been helping my dad pick stocks since 2006.

I do my own charts and don't really look at analysts' reports. By the time the reports are published, it may be too late to trade based on the recommendations.

Q: What property do you own?

We started looking last July but have not bought any. The cooling measures have worked recently in bringing cash- over-valuation down significantly.

Finding a home to build our family is now at the top of our priority list.

Q: What's the most extravagant thing you have bought?

Our wedding. It wasn't super extravagant but we don't usually spend money like that. I had a wedding reception here and in Malacca.

Q: What's your retirement plan?

My life goal is to help others succeed, and I see myself mentoring and investing in young aspiring entrepreneurs well into my years.

We have only been able to achieve what we have done at 2359 Media through the help of many mentors, and I would love to do that as well.

My ideal life involves spending two-thirds of a year in competitive markets like Singapore and Silicon Valley, and the rest exploring the world and helping others.

Q: Home is now...

City Square Residences, where my wife and I live with my parents.

Q: I drive...

A Nissan Sylphy, which is a family car.

joyceteo@sph.com.sg

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WORST AND BEST BETS

Q: What is your worst investment to date?


None so far. I only regret not buying a property a few years ago as the cost of acquiring a Housing Board flat is now the same as the cost of acquiring a similar-sized condominium back then.

The lesson learnt here is that sometimes, when a long-term appreciating asset feels right to acquire, the smart thing to do might very well be to make that investment, a philosophy I have carried through in business nowadays as well.

Q: What is your best investment to date?

In 2008, when the market was down, I invested in Venture Corp at about $4 a share and it yielded a 100 per cent return on investment in less than a year.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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I thought you didn't really "own" a property till you paid for it in full? But wow $500,000 at $1,200 psf for a shoebox at age 25 is indeed stunning! This means he had $100,000 to plonk down as downpayment for the unit; impressive for his age. I was also rather surprised that he drives - with cars being as expensive as they are, I would think he would channel the money to his investments? He does not, however, seem to have any equity investments.

On a side note, wonder why he agreed to this interview? Now all his colleagues at the Tax Dept in PwC will know he is rich and successful haha!

Comments are welcome. Smile

The Straits Times
www.straitstimes.com
Published on Apr 07, 2013
Young man with a knack for making money

As a teenager, he profited from selling virtual currencies; at 25, he owns an investment property

By Joyce Teo

At the ripe old age of 25, Mr Aaron Wan is already a proud property owner.

While most people his age might be scouting around for their first property to live in, the bachelor bought an investment property last year.

Mr Wan, a tax associate at PwC Singapore, took about a year to do his homework - reading up on the market and visiting many showflats. He eventually zoomed in on a shoebox apartment near Serangoon MRT station.

He made the choice because it is freehold, bite-sized but not in Geylang, next to a mall and just a few bus stops away from the upcoming Paya Lebar hub. These factors mean the unit will likely be easy to rent out or sell.

After this experience, Mr Wan's advice to potential property investors is: Do not let your emotions cloud your investment decisions.

It is something that many people do not heed, he says.

An investment property is different from one where you intend to live, he says.

"People always think they should buy a bigger unit. They will think: What if I want to live in it in the future?

"But when you buy an investment property, you should think about what the tenant wants and what the next buyer wants."

Q: Are you a spender or saver?

A saver. I save most of my monthly salary and plan to invest some of it in the stock market.

My main aim, though, is to save enough to buy another property.

I spend very little on myself and will always look for the best deal in town before spending my money.

When I was at Temasek Polytechnic, I was consciously saving for an overseas education. The plan was to study in Australia with my then girlfriend.

Looking back, I must thank her for breaking my heart. In the end, I took up a part-time degree while serving my national service. My savings then went into the downpayment for my property.

Q: How much do you charge to your credit cards every month?

About $1,000. I usually pay for big- ticket items with my Standard Chartered Bank's Manhattan card as it offers a 5 per cent cash rebate, capped at $200 quarterly.

I have credit cards from almost every bank so that I can take advantage of the various perks and promotions.

Q: What financial planning have you done for yourself?

I have health, accident and life insurance. I did put some money into blue chips but have since sold off most of them.

I prefer to invest in property. I bought my first property last year and am looking to rent it out. I will then work towards owning another property.

Many people have asked me why I gave up the opportunity to own an HDB flat.

When I made my purchase last year, marriage was not on the cards. Besides, new flats take about three to five years to build and have a five-year minimum occupation period. It may take time to get one as I have friends who balloted several times before securing a flat.

I don't want to wait till I'm in my mid-30s or 40 to buy my first investment property.

Q: Moneywise, what were your growing-up years like?

I started performing as an acrobat at the age of four and picked up the art of face changing at 17.

My parents would give me a small token for every performance I did. I would always put it into my bank account.

My dad is a ventriloquist and magician who has a chain of magic shops in Singapore. My mum assists him in his business.

They came from poor families and are the thrifty sort. My dad started out as an electrical engineer before becoming a full-time performer.

He started a retail shop selling magic tricks with his savings. The business has now evolved into selling party items and other gifts as well.

My dad helped to develop my entrepreneurial mindset from a young age. When I was in secondary school, he would encourage me to help out at his shop and push me to do sales. It taught me skills like marketing, bargaining and, importantly, to speak and sell well.

I played a lot of online games when I was in secondary school. I would buy the best equipment for my virtual character as well as virtual currencies, and had a flair for sussing out the best deals.

One day, it struck me that with the prices I was getting from the suppliers, I could easily resell the equipment and virtual currencies to other gamers at a higher price.

Sometimes, when I was out with my friends or even in class, I would be busy checking my BlackBerry and organising a deal through MSN and ibanking.

When business was good during the school holidays, I could make a low five-figure sum in a month. My biggest client was a guy in his 50s, who bought $7,000 worth of virtual currencies for his wife and kid. I was 18 then.

Q: How did you get interested in investing?

I like to grow my wealth and the idea of generating passive income.

Once, I invested a few thousand dollars in men's clothing to sell and made about four times more.

I was checking around for the cheapest source of clothing for myself online. That's when I found this guy who told me to go down to his warehouse to check out his clearance sale.

I called my mum and we bought all their stock on the spot. I sold everything online and at flea markets within a few months.

Q: What property do you own?

A 409 sq ft one-bedroom freehold shoebox apartment near Serangoon MRT station, which I bought last year for about $500,000.

I did my research, and procrastinated for a year and saw prices just rise and rise.

The seller's stamp duty was already in place so I wanted something that could give me a rental income while I wait four years to sell it off without incurring the duty.

I did my calculations carefully and even assumed a 5 per cent interest rate to make sure I can pay the mortgage.

Q: What's the most extravagant thing you have bought?

I used to splurge on virtual equipment and currencies, and would have easily spent several thousands on these during my secondary school days.

The most expensive item was a belt I bought for my virtual character in Dark Ages when I was 13. It cost US$700 (S$870). My parents didn't know about it. They would have been very upset.

Q: What's your retirement plan?

I'm too young to think about retiring. But I guess when I do retire, I hope to have multiple properties that can generate enough rental income to take care of the mortgage. You don't do anything and yet get the money every month.

Q: Home is now....

My parents' HUDC apartment in Potong Pasir.

Q: I drive ...

A Toyota Sienta.

joyceteo@sph.com.sg
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WORST AND BEST BETS

Q: What is your worst investment to date?


During my polytechnic days, I imported a whole lot of poker cards and poker chips to resell and I still have leftover stock.

I found out that the quality of such poker cards and chips is very good and a set can last a long time. The market is also small. I’ve learnt that when I plan to resell something, I must be sure there’s a market for it.

Q: What is your best investment to date?

It’s my property, which I bought for about $1,200 psf. A unit in the development was transacted earlier this year at $1,600 psf.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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" a proud property owner'' ?
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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ST can't find people with substance to interview ?
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
Reply
Ya. Whole day made money thru property.

The success model for this series of articles: I work or do business. But I got rich from property boom.
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