Crypto Savings Account – up to 8.6%

BlockFi – provide loans through cryptocurrency. The loans are provided to people who are looking to buy properties, cars, investment, credit card debt.

Q: What you do as lenders?

A: You lend your cryptocurrency (Bitcoin / Ethereum / Gemini Dollar) and earn the interest that is tagged to it

Q: How reliable is this company?

A: Valar Venture has invested 18.3m in them, Peter Thiel (Pay-pal cofounder) is one of the owners of this venture. There are another 2 other venture firms that invested in Blockfi.

Q: What are the interest rates?

A:

Link

 

Q: Why should I use your registration link?

A: Referral bonus for both of us. Sign up here!

another way to see First Reit?

Singapore first Healthcare Reit, managed by Bowspirit Capital owned by OUE (60% to limited and 40% to Lippo healthcare limited), it is Indonesia broad based listed company.

Something i thought would be interesting for you all to look at, would be the country’s “health” position before hedging your bet on this REIT.

 

 

Source : http://www.depkes.go.id/resources/download/pusdatin/profil-kesehatan-indonesia/indonesia-health-profile-2017.pdf [for you to read more]

 

Everyone has their own narrative for why their analysis is right, but remember, its your own money, and only you are accountable for what is yours.

Soilbuild – no correlations?

Just numbers and chart – Do your own due diligence pls

	Gross revenue(M)	Net Income (M)	Occupancy	Weighted average lease	Leverage	Distribution per unit	NAV/unit	Total debt
2018	83.8	69.9	89.5	3.9	39.1	5.284	0.63	515719
2017	84.8	73.5	92.7	3	40.6	5.712	0.64	512965
2016	81.1	70.7	89.6	3.4	37.6	6.091	0.72	523788
2015	79.3	67.8	96.8	4.8	36	6.487	0.8	468557
2014	68.1	57.4	100	3.9	35.4	6.193	0.8	403192
Average	79.42	67.86	93.72	3.8	37.74	5.9534	0.718	484844.2
Average Over 5 Years	4.61%	4.36%	-2.10%	0.00%	2.09%	-2.94%	-4.25%	5.58%

My personal take is that financial number doesn’t reflect much correlation towards price action. I do think the shorting of this REIT comes mainly from the words and management direction from the annual report.

Generally, we all have seen companies with “worse-r” financial numbers and unexplainable price spikes.

I’m overall bullish on this still – loser loser armpit sellers

 

CryptoCurrency Christmas Sales??!

Firstly, Merry Christmas to all 🙂

Coinbase

Have you seen the crazy dipped of prices on Bitcoin/Ethereum/ LiteCoin?

Bitcoin dropped $4k worth, Ethereum $200 worth and Litecoin $100 worth.

This led me to the idea of giving coins as presents to my close friends….. but then how do I too benefit from it??? Referral of course.

The minimum requirement to get the referral rewards ($13 worth of bitcoin) is a min buy/sell $134 worth of any coin.

wait?! did u say $13 worth of bitcoin? so little?

Ya can grow and all…. but by how much?

 

CoinBase

 

The first referral I got was from June, that grew from $13.67 to approx $82.02

So….hehehe, If you have yet to create an account with Coinbase or do not have any friend referral! you can use mine 🙂

Here

 

 

Is it better to invest in a Foreign Market?

In order to answer this question we have answer 3 important question liquidity, availability and cost.

1. Trading Volume = LiquidityAs you can see the STI trading volume only bounces below the $500 million dollar mark while the SPX (S&P) bounces around the $10 billion dollar mark. Higher the trading volume = Greater liquidity in the market. Liquidity in this context talks about the easiness to buy and sell shares that you own.
2. Number of listed companies = Greater number of opportunities
   

   StraitsTime

   Currently we have 759 listed companies in Singapore.

   

   Topforeignstocks

3. Cost of trading overseas = reduce your profit
   

   Taxpolicycenter.org

   “A capital gain is realized when a capital asset is sold or exchanged at a price higher than its basis. Basis is an asset’s purchase price, plus commissions and the cost of improvements, minus depreciation. Similarly, a capital loss occurs when an asset is sold for less than its basis. Gains and losses (like other forms of capital income and expense) are all measured in nominal terms—that is, not adjusted for inflation.Capital gains and losses are classified as long term if the asset was held for more than one year, and short term if held for a year or less. Taxpayers in the 10 and 15 percent tax brackets pay no tax on long-term gains on most assets; taxpayers in the 25-, 28-, 33-, or 35- percent income tax brackets face a 15 percent rate on long-term capital gains. For those in the top 39.6 percent bracket for ordinary income, the rate is 20 percent. Short-term capital gains are taxed at the same rate as ordinary income. There also is a 3.8 percent tax on net investment income for single taxpayers with modified adjusted gross income above $200,000 ($250,000 for married couples filing jointly). Note, too, that capital gains in some cases face an effective tax rates above the 23.8 percent statutory rate because of phaseouts in the tax code.” – Taxpolicycenter.orgRemember trading in foreign market with a local broker tends to have a higher commission due to Forex risk.

Conclusion:

It is important to have liquidity in the stock that you purchase as this will provide the “easy-ness” of selling/buying your stock. Additionally, In a more crowded market, you will tend to find  “cheaper” and “better” companies as compared to a small market. Then again, you might find more exclusive stuff in a smaller market. Remember the value of the company have to always outweigh the cons ( Tax & Commission).

“+ 1 Knowledge point”

 

 

Timing versus Dollar cost averaging

Which method is the best?

Professional says theres no right answer. Why?

Lump sum investment benefits individual who posses great psychological skills (to hold through economical cycle), has a proven “edge” against the market (backtested) and the money to do so.

Dollar cost averaging benefits those whom has fear (Price,risk of making a mistake,etc), and lower capital

There are more than one perspective to determine the best, but ideally knowing who you are will best define your investment strategy.

Some perspectives for you to ponder :

Landed property as an investment?

Recently I’ve been asked my a close friend if I would purchase a landed property as an investment… So I spotted a real nice Terraced Flat (3B/2T/Full renovated/1.5k SQF/99 Years/Terraced/Prime location) online going for $850k and decided to use that as a comparison to a REIT etf.

These are factors I took into consideration:

1. Total cost of the property
   • Downpayment (20% of Property Price = 5% cash +15% CPF) = $170k
   • Buyer stamp duty tax = $20.1k
   • Total UPFRONT payment = $190.1K up front
   • Total COST OF property = $870.1k
2. Loan amount $(850k – $170k = $680k)
   • Sourcing out loans (Moneyline)
   • Total loan cost (Cheapest) for 3 Years will add up to $83.1k (30 Years Tenure)
3. Rental Income
   • Income ($3,300/Month – 118,800 3yrs)
     • Vicinity rental rate ( $2.8k – $4k)
     • PSQF rental ability (Similar SQF area is going for $2.8K)
     • Furnished ability ( Should be able to get high than $3k)
   • Cost = $102,024
     • Property Agent fee (1 Month rental) = 3.3k
     • NOOP Tax = $4,008
     • Depreciation of furnitures (Reduced tax) = $1.2k
     • Loan = $83,100
   • Net income = $16,776 – 3 Yrs / $5,592 – 1 Yr [0.64% of 870.1k]
4. Opportunity cost
   • Benchmark NikkoAM-Straits Trading Asia ex Japan REIT ETF (5%)
   • $43,505 [870.1k] – $5,592 =$37,913

I have intentionally left a few numbers (Capital Gain on both property and ETF/Interest on CPF/OC of cash payment/ETC) out as a comparison between a REIT and an individual property purchase would be real messy.

All in all, I’d think purchasing a landed property (as an investment) requires a special sets of knowledge to make it a feasible investment… which I obviously don’t possess…

This post is a very subjective post

“+1 knowledge point”

Should you buy S-Bonds?

Thoughts of diversifying your money // Bonds is the safest instrument

What you should know before making this decision?

1. Does it beat inflation rate? (5 Yrs average – 3.12%)
   

   Focus Economics

2. The best/safest bond (3 Options)
   • Singapore Savings Bond
     

     Singapore Savings Bond

     • Average return per year is 2.32% / Doesn’t beat inflation
   • Index
     

     ABF Bond Index Factsheet

     • Average return per year is 2.65% (Not including growth rate) / 3.65% is its actual return (Including growth rate) / Beat inflation
   • Open Market (SGX)
     

     Sgx.com

     • Higher chance to default / Beat inflation
3. Your opportunity cost

Nikko Am ETF Factsheet

Average yearly return is at 11.48%  // Alternative is SPDR (another ETF of STI) – 7.28% 

 

ConCRUsion

You should invest into an instrument that beats the inflation rate (3.12%) or else it makes no sense to even invest. Why? because your money still depreciates and you lack financial knowledge, hence making you act stupidly irrationally.  The idea of putting STI as an opportunity cost is for people my age( 20’s/30’s) who has a stable stream of income and are willing to take the risk (even thou is low).

My point-of-view on bond is that its growth rate is so slow that is actually smarter for u to put the money into CPF (5% interest). Why? because by the time your bond investment grows to a large sum, you would probably be at the age where ur CPF money can be withdrawn.

Rich = making financially sound decision one at a time

“+1 Knowledge point”

Cache Logistic Trust – What really matters in a REIT

Some numbers are not provided due to the lack of available information

Constituted on 11 February 2010 | Warehouse Properties | Singapore, China & Australia | Portfolio value at 1.3 billion

1. IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

   • Price to Book Ratio: 1.009 (overvalued by 0.9%)

2. LEARN ABOUT THEIR NUMBERS

   • Gearing : 66.93% ( Above average reliance on financing for growth)
   • Wale : 4.4 Years
   • Current Ratio : 0.685 ( Unable to pay off short-term debts and long-term obligation if liquidated)
   • Growth Rate : 7% (over 5 years)
   • Cash Flow Per Share : -0.0122
   • Poor management ability ( Decreasing dividend payout | Net income decreasing| Poor cashflow management )

Still not a buy for me hais –  due to the management’s ability! Anyway, I have just read finish Benjamin Graham – Intelligent investor!! It’s a really good read that advocates the importance of number! I’ll share more on what I’ve learned on the next post.

p.s I wanted to write about tax evasion…. but…. hais

“+1 knowledge point”

Fraser Centrepoint Limited Treasury – What really matters in a Bond

Like the Aspial Treasury, I couldn’t find much financial info on the treasury company, I will using the group’s financial number

Matures on 22 May 2020 | 3.65% | Semi-Annually coupon payment | Subsidiary of Fraser Centrepoint Limited | Started in 2011 |

1)  IDENTIFICATION OF BOND BELOW PAR VALUE

• Current market value : 1.008 ($8 above its par value)

2)  LEARN ABOUT THEIR NUMBERS

• Debt To Equity: 1.25 (Strong reliance on financing for growth) – But still better than Aspial
• Growth Performance: -16.94%
• Current Ratio: 1.84 ( Above average) – Genting is better
• Below average management ability ( Increasing dividend payout | average net income growth | Poor cashflow management)

The bond is used for the corporate reason such as refinancing loan, financing and increasing general working capital. The numbers are not to my liking and hence I won’t be entering and of course, I’m trying to get my bang for my buck

“+1 knowledge point”