Property investor scores a home run (the unpublished version)

I am a compulsive saver.

During my years of investing in properties, I saved 70 to 80 per cent of my monthly salary so that I could pay the down payment on my next property earlier.

With passive income from my rental properties, I could save 100 per cent of my pay cheque.

Nonetheless, I believe in using money to help people in need in the right place and at the right time. That is when you see the real value of money.


Q: On average, how much do you charge to your credit cards every month?

I withdraw $100 a week from the ATM and spend a few hundred dollars to $1,500 a month on my two credit cards.

I enjoy living a simple life. My biggest indulgence is going to the wet market to buy fresh ingredients to prepare a sumptuous meal for my family or friends.


Q: What financial planning have you done for yourself?

We are loan-free now and should have saved enough for our golden years.

I am keeping my money in savings, fixed deposits, foreign currencies, commodities and some equities.

I will only invest in properties again when the time is right.

Savvy investors know that they don’t need their money to be fully invested all the time.

I don’t believe in buying medical insurance. We already have Medisave and the Government is making MediShield Life compulsory. By international standards, that is more than enough coverage.

Life insurance companies may say otherwise. But I think insurance is for people who have big housing and car loans to repay, young children to support, and not much savings from their jobs which is their only source of income.

We should focus on adopting a healthy lifestyle, making our life loan-free, investing prudently to accumulate enough wealth to cover unexpected things that might happen in life. Afterall, there are actually many situations that life insurance can’t cover. It also takes much time and effort to process your claims in the event of an accident.


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

I come from a humble background. Before I moved to Singapore in 1998, I grew up in a government-subsidised housing estate in Hong Kong.

During my schooldays, it was a daunting task to go home and ask my parents to pay for any study-related expenses.

My parents often worried and argued about money. But I am grateful that they taught me to work hard and save for the future.


Q: How did you first get interested in investing?

From a young age, I dreamt of owning my own place one day. I wanted to own things I didn’t have before – my bed, my desk, my wardrobe, my bedroom and my bathroom.

I started researching about private property after relocating here in my 20s. While renting an apartment with two other people, I saved enough for the down payment and bought my first condominium unit at the end of 2002.

I decided to continue to rent rather than move to the new place.

The affordable prices, low interest rates and good rental return from my first property helped me to fund the purchase of my second property.

For the next few years, I bought more properties, leased them out and used the passive income to subsidise my own rental and my next property purchase.


Q: What property do you own?

Apart from my terrace house, I sold my other properties as I felt the market was getting overheated.

I believe that ‘paper profit is not a profit. But paper loss is a real loss’.

To make real money in any investment, you have to move in early when things are cheap. Make your money, exit early and pass the risk to the excited latecomers who can’t wait to get in.


Q: What is the most extravagant thing you have bought?

Definitely my properties. But they are all worth it.

To me, paying for knowledge and experiences, or buying gifts for my loved ones, are more satisfying than the short-lived happiness from buying any extravagant thing for myself. And just because I can afford something doesn’t mean that I have to buy it. We don’t have to live that ‘middle-class life’ portrayed by the advertisers. We all know that things we treasure most in life almost always have nothing to do with money.


Q: What is your retirement plan?

I am fortunate that years ago, I already had financial freedom and did not have to stick to my full-time job for the sake of paying the bills.

Now, I only spend my precious time working on projects that I really love. And you don’t talk about retirement if you are passionately doing something you enjoy, right? I will continue to do what I do best – invest in properties against the property cycle.

But success in life is more than money. Through Property Club Singapore, I want to help like-minded people who want to succeed in property investment. Members can support each other by sharing our wisdom and experiences in the journey of building wealth through properties.


Q: Home is now…

A The terrace house in the north-west of Singapore.


Q: I drive…

A one-year-old Audi car, a gift from my husband early this year.

Cars have the highest depreciation costs in the first year. I told my husband that I only want a one-year-old demo car which offers better value-for-money.


WORST & BEST BETS

Q: What is your worst investment to date?

Some IT and telecom mutual trusts that I invested in before the burst of the dot.com bubble. I thought I knew the market well because I was working in the industry.

There were also some inverse (exchange-traded funds) that I bought based on the recommendations from some so-called experts in the stock market.

The four lessons I learnt from these bad investments are: Never buy what everybody else is buying; never buy what the so-called experts recommend; never touch any investment that I don’t know better than the seller; and never invest in anything that I can’t manage myself and have absolutely no control over.


Q: And your best?

The five private properties that I bought at bottom prices between 2002 and 2007. Thanks to the power of leveraging – by putting down a 20 per cent deposit, when the value of the properties doubled, my invested capital actually increased five times.