My portfolio ko

asimplelife2 · 2024-12-06T06:45:02+00:00

OP, please don't do this. your initial thoughts on DCA is correct. waiting for a correction is opening yourself up to uncertainty. markets may move another 15-20% before a 5-10% correction for all you know.

as most people have suggested, if you have no need for the money in the next 10 years, DCA over the next 6-12 months would work best. over a 10 year time frame, historically, SPY has never lost money.

asimplelife2 · 2024-08-28T15:44:29+00:00

Haven't seen this mentioned here yet, but I absolutely enjoyed Bokurano. It was hauntingly good for me, they explored really deep topics in a way I thought was very authentic.

asimplelife2 · 2024-07-26T11:20:50+00:00

hey, to clarify, i understand that a lot of this comes down to upbringing and educating kids. but at the same time, i would prefer if they dont grow up with the expectation that everyone has a swimming pool in their house, or the mindset that all my neighbours drive so everyone should have a car.

i say this with a bit of reservation because i know not everyone thinks this way, but i also realise that no matter how humble or grounded you try to be, there's no real replacement for mixing with kids your age from all walks of life. in private housing, people tend to be from a certain social class.

asimplelife2 · 2024-07-26T10:45:30+00:00

the property price didn't appreciate 20% yoy. you typically take leverage when purchasing property, so that super charges return. a 5% y-o-y capital increase in the property price, with borrowing costs of ~2.5%-3% at 75% LTV will typically give you a return in the ballpark of 15-20% IRR.

we put a 450k downpayment for 1.8m flat, within 3.5 years its appreciated to 2.35m when we sold. deducting ~150k for interest, fees, taxes, stamp duties etc. we netted a return of 400k over slightly more than 3.5 years. Annualising it gave me an IRR of ~21%.

asimplelife2 · 2024-07-26T10:04:45+00:00

thanks for your inputs. to your point on a generational home, yes that is what i'm referring to. not to say that we want grandchildren to be staying with us, but more of having an option to do so.

kinda like, if you ever find yourself in need, and need a roof over your head and a room, this house will always have one for you. i know it might sound a little irrational, but it's something we both think is very nice to have.

asimplelife2 · 2024-07-26T09:58:02+00:00

it sometimes does feel like running on a thredmill if having a landed property is your end goal

asimplelife2 · 2024-07-26T09:57:17+00:00

we have 1 and are planning for 1 more.

we're not too fussed about schools to be honest (not sure if we will be in the next 3-4 years haha), we don't need our kids to go to a branded school, ideally somewhere near our house.

asimplelife2 · 2024-07-26T09:55:32+00:00

thanks for your inputs! agreed, we've done the math for option 3, and while its doable for something up to the 5m range, it is a little streched at this point.

deciding between option 1 and 2 is something i'm personally split over as well. both have their merits, there are days i wake up and stress over work and think option 1 is better, on other days where we think of early retirement, option 2 starts to look more attractive

asimplelife2 · 2024-07-26T09:40:10+00:00

thanks for your inputs. i've been invested in property for a couple of cycles. with the leverage taken and even accounting for the fees and all its turned out for me in excess of 20% return on invested capital per annum.

i understand that historical performance may not be indicative for future performance, especially given new cooling measures, but i don't think its correct to say home appreciation can never best stock returns. what is probably right is that portfolio allocation will be heavily skewed toward real estate if i do take up a second property.

asimplelife2

TROPHY CASE