Live Talk : Idea behind renting instead of buying property. - Printable Version

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Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

Starts at 12 noon.

Many Japanese did not understand the case for renting until they were hit by inverted pyramid demographics and property saw declining demand in Japan.

For the last 30yrs Japanese prefer to rent instead of buy property.

Many still don't be understand the disadvantage of buying property until they are burnt...only then will they understand the case for renting.

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RE: Live Talk : Idea behind renting instead of buying property. - WhatDoYouThink? - 06-11-2021

no sense of belonging. imagine if you rent, would you or your landlord spend on reno and maintenance for upkeep? would you set up a huge fish tank in the living room and keep beautiful fish in it and decorate it with beautiful aquarium plants? the latest large tv, big fridge?

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RE: Live Talk : Idea behind renting instead of buying property. - RichDad - 06-11-2021

Rent for short term. Buy for long term

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RE: Live Talk : Idea behind renting instead of buying property. - winbig - 06-11-2021

(06-11-2021, 10:28 AM)sgbuffett Wrote:  Starts at 12 noon.

Many Japanese did not understand the case for renting until they were hit by inverted pyramid demographics and property saw declining demand in Japan.

For the last 30yrs Japanese prefer to rent instead of buy property.

Many don't be understand the disadvantage of buying property until they are burnt...only then will they understand the case for renting.

Buy to live in. U sound like u have intention to sell away your parent's house for money and rent.

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

(06-11-2021, 11:21 AM)winbig Wrote:  Buy to live in. U sound like u haveU intention to sell away your parent's house for money and rent.

I have no plans for property transactions.
My family property is under my mom's name.She can do what she wants..I have never discussed with her.. I don't own any property and don't have plans to own any.

My interest in property is low. I tend to think it's a crowded investmentspace that Singaporeans like...and over commit.

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RE: Live Talk : Idea behind renting instead of buying property. - Blasterlord2 - 06-11-2021

Rent only in countries where property prices are dropping. If the property price is rising your rent will only increase accordingly so in the very long run it's still better to buy. Moreover, you can rent it out when you're old and have no job.

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RE: Live Talk : Idea behind renting instead of buying property. - dynamite - 06-11-2021

Not applicable to Singapore.

Need to have common sense. Not much money buy bto. Simple. Do the math and it is plain simple to see.

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RE: Live Talk : Idea behind renting instead of buying property. - Sharexchange - 06-11-2021

Singapore property price wont drop. Can only go up.

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RE: Live Talk : Idea behind renting instead of buying property. - WhatDoYouThink? - 06-11-2021

ah butt no own family to support and very lucky can stay with his mum. families with several children aso hv worry about what to give to them in future

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

Talk has started

Josh is giving pros and cons.

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RE: Live Talk : Idea behind renting instead of buying property. - starbugs - 06-11-2021

He poked holes in the article's analysis and quibbled over some small differences due to rounding, but his own argument has big holes. He used 700k to compound for 60% years and claimed that the ST article didn't compound, but he forgot to deduct the $3500 monthly rent to pay in cash.

Some of these Youtubers are not really experts.

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

(06-11-2021, 12:25 PM)starbugs Wrote:  He poked holes in the article's analysis and quibbled over some small differences due to rounding, but his own argument has big holes. He used 700k to compound for 60% years and claimed that the ST article didn't compound, but he forgot to deduct the $3500 monthly rent to pay in cash.

Some of these Youtubers are not really experts.

It's not an absolute thing.
If you are Warren Buffett compounding your investment at 20%...buying a property to build wealth is a bad idea.

But if you are "ordinary guy" then still can consider buying property 

For me, looking at the analysis....it's a definite "No" to buy property ...it will result in inferior returns. For me between buying a condo and renting one.... definitely renting is better. It is counter-intuitive for many why this is the case as they see money flowing out...the answer is "opportunity cost" and commitment risk.

Anyway it's different for each person.

https://investmentmoats.com/money/permanent-renting-owning-a-private-property/

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

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RE: Live Talk : Idea behind renting instead of buying property. - theold - 06-11-2021

The property prices in Singapore don't know will rise or fall. Some said Warren Buffet and others had cashed out from the market. But the US is printing money. When the US prints, China will also be forced to print. Then there will be the devaluation of currencies.

Japanese inheritance tax is levied on beneficiaries (heirs and legatees), not on the deceased's estate itself. Beneficiaries who receive assets exceeding the basic tax allowance must file an inheritance tax return within ten months after the deceased's death.

You inherit the property, you have to pay tax. If you don't report it, you can continue to stay there.

If the inheritance tax is 33%, the property will pass through 3 generations.

https://englishlawyersjapan.com/inheritance-tax-in-japan/#:~:text=What%20is%20inheritance%20tax%3F,is%20deducted%20from%20the%20estate).

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

The returns on property is shown below....1-3% a year.

Reason why people like it is because it is always a leveraged  long term investment. After 10yrs their 1.5M condo rise to 1.9M.... To they make 400K and very happy. But the fact the return is 2% a year which is on the low side



We also have a ageing population like in Japan.

Once property goes on reverse trend down it can last for 1 or 2 decades.

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RE: Live Talk : Idea behind renting instead of buying property. - ArielCasper - 06-11-2021

Rent in oversea if you intend to stay long term..

If not, look at those folks who are stuck in the Iskandar project... Can't visit their property for the last 2 years and don't know in what shape now.

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RE: Live Talk : Idea behind renting instead of buying property. - winbig - 06-11-2021

(06-11-2021, 12:31 PM)sgbuffett Wrote:  It's not an absolute thing.
If you are Warren Buffett compounding your investment at 20%...buying a property to build wealth is a bad idea.

But if you are "ordinary guy" then still can consider buying property 

For me, looking at the analysis....it's a definite "No" to buy property ...it will result in inferior returns. For me between buying a condo and renting one.... definitely renting is better. It is counter-intuitive for many why this is the case as they see money flowing out...the answer is "opportunity cost" and commitment risk.

Anyway it's different for each person.

https://investmentmoats.com/money/permanent-renting-owning-a-private-property/

You've no family of your own, no children, of course u advocate renting lah.

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RE: Live Talk : Idea behind renting instead of buying property. - theold - 06-11-2021

Oversea properties carry risks. Some can grow molds and some can grow grasses. You still have to pay management fees and property taxes. During Covid, the manager can also go missing. Over the period, your bank account number can also be changed. It can be frozen. Your passport details had changed.

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RE: Live Talk : Idea behind renting instead of buying property. - Huliwang - 06-11-2021

You should find out how many properties these renting gurus owned other than the one he and his family stay comfortably. Of course their horse back canon reasons will be very convincing and if you agree and rent, then he found another sucker to rent his properties. 

Buying a house for your love ones and raising a family is not all about money. There are many things in life where money cannot buy which I shall not say.......

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

(06-11-2021, 12:54 PM)theold Wrote:  Oversea properties carry risks. Some can grow molds and some can grow grasses. You still have to pay management fees and property taxes. During Covid, the manager can also go missing. Over the period, your bank account number can also be changed. It can be frozen. Your passport details had changed.

Overseas property is a bad idea.

If unfortunately you die, your family will have a hard time claiming it.....it is often a mess and authorities in the other country can make life hard for your family to change ownership.

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RE: Live Talk : Idea behind renting instead of buying property. - WhatDoYouThink? - 06-11-2021

one Stanford mba guy after resisting to buy any property for yrs finally gave in and bought one condo recently. threw away all his mba notes and called them rubbish. had already told him many times those things he learned from sch are not applicable here, only now then he believes. but still not too late.

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RE: Live Talk : Idea behind renting instead of buying property. - mikotan - 06-11-2021

In SG, better to buy. In MY, better to rent.

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RE: Live Talk : Idea behind renting instead of buying property. - starbugs - 06-11-2021

As a person who does financial modeling as part of my job, I just cringe at the quality of analysis in this fella's videos, this one and in the past.

I don't want to mention him by name so as not to smash his rice bowl, but he is a financial products salesman, not a financial analyst. Please watch his videos with a pinch of salt.

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RE: Live Talk : Idea behind renting instead of buying property. - moonrab - 06-11-2021

(06-11-2021, 10:28 AM)sgbuffett Wrote:  Starts at 12 noon.

Many Japanese did not understand the case for renting until they were hit by inverted pyramid demographics and property saw declining demand in Japan.

For the last 30yrs Japanese prefer to rent instead of buy property.

Many still don't be understand the disadvantage of buying property until they are burnt...only then will they understand the case for renting.

Nobody force you to buy property in SG 
Quick go rent a house for your whole life..cheers .

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

(06-11-2021, 01:02 PM)5354 Wrote:  If I had rented instead of buying, lost $1M to landlords.

Stupid fcuk!

Many people think that I a bad idea to rent because you pay rent which is an outflow.....this is a misconception that makes it difficult for people to understand why they should rent....they keep looking at this outflow and feel strongly that renting=losing money.

This is wrong.

The answer is opportunity cost.

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

(06-11-2021, 01:02 PM)mikotan Wrote:  In SG, better to buy. In MY, better to rent.

Property is good investment in Singapore until it starts to drop.

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RE: Live Talk : Idea behind renting instead of buying property. - dynamite - 06-11-2021

I do not see what logic this thread has in a local context. Have a roof over the head is I'm, buy within your means for stay. Gov already taking good care on this.

Dun buy affordable bto and go rent is better?

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

(06-11-2021, 02:15 PM)dynamite Wrote:  I do not see what logic this thread has in a local context. Have a roof over the head is I'm, buy within your means for stay. Gov already taking good care on this.

Dun buy affordable bto and go rent is better?

This thread us not here to conclude...but to discuss.

Renting or buying depends on many factors.

If property is selling cheap e.g. BTO and we'll within one's means to pay....nobody says it is wrong to buy.

But too often we see people cheong 2000 psf condos...then again if you are rich it is not an issue.

The idea of renting is often not considered as it is seen as money thrown away ....this is not true and a misconception.

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RE: Live Talk : Idea behind renting instead of buying property. - menghuii - 06-11-2021

if u r talking abt bto
no need to think. buy!
if u r buyinginvesting in pte pty
make sure its not a rotten place

so u rent only if u easily get tired of living in the same place
the aussies love renting fr perth to sydney from sunshine coast to tasmania

take your pick

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RE: Live Talk : Idea behind renting instead of buying property. - sgbuffett - 06-11-2021

https://dollarsandsense.sg/can-condos-really-make-money-private-property-really-sign-riches/

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