Property Investment in April

Shares

Divested my remaining SMRT at 2.16 and Best World. The visibility in Best world is really not there. And I feel that the startup cost for the circle line for SMRT will take a long time (at least 1 -2 years to recoup see NE line).

Property

- Bought my 2nd property at Dakota Residences. I was tempted to buy when I knew that Waterbank ( the property to be launched next to it was selling at 1200psf. So after much thoughts, I bought a 4-rm at Dakota at 1050 psf. Comparing around, i feel that it has more potential to appreciate comparing The Shore (1300 psf) which is not near any MRT/Shopping Centre, SilverSea (totally overhyped high end selling) at 1600 (no sea view)- 1900 psf. Also interest rate should be low for 1-2 years. + Dakota is next to the upcoming Sports Hub (Lifestyle and 2nd Singapore expensove Architectural Icon)

- Sibor/SOR Had to look for banks (Sibor/Sor) finally settled for OCBC (SOR).

SIBOR stands for Singapore Interbank Offered Rate and is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market).SIBOR stands for Singapore Interbank Offered Rate and is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market).

The Swap Offer Rate (SOR) represents the effective cost of borrowing SGD synthetically through borrowing USD for 3 months and swap out the USD in return for SGD for the same maturity

The simple reason why I settled for SOR is I believe the interest rate in US will be ultra low for a long time. The low interest rate will not help the US unemployment rate and with unemployment rate still high, interest rate will remain low in US. Also SOR (abt 0.38 as of today) is cheaper than SIBOR (0.438)

I got a very good deal at OCBC (1st year 0.5 +SOR, 2nd year 0.75+SOR and 3rd year 1.25+SOR). Also I got a mortage broker to get a mortage referral to get some dough back. Ha ! It looks like my property agent course got its refund.

- Sold my HDB flat ! I also advertised in the newspaper and sold my HDB property 50+ K over valuation (in 1 day!). Had to spend time advertising SPH and find free online

• cleaning up the house, paint (red wall & TV consle),
• fix several items (lights/kitchen cabinet door).
• And after that HDB inspection, had to fix up the aircon pipe to touch the basin(went to Lavender SimBH to buy pipes/ connectors and saws)