How to Save and Invest for Your First Property Downpayment

The recent rise in the property market has added worry to those who has yet to own a home. To many people, especially the young families, will find it increasingly challenging to save enough for the downpayment of a house. If you belong to this category and wonder what can you do to put yourself closer to the reality of owning a house, there is a link which I want you to read.

http://www.propwise.sg/how-to-save-and-invest-for-your-first-property-downpayment/
courtesy of: propwise.sg

Enjoy and be enriched! Congrats to those who got their BTOs recently. :( I didn't get mine.

Bankruptcy Act in Singapore

Recent studies have shown that more bankrupts owe larger sums and more people under 30 are facing this situation. From Jan 1 to April 24, 621 people owing about $224 million in total were made bankrupt. This means each had an average debt of $360,000.



Q: What does it mean to be bankrupt?

Many are unaware that it comes with several restrictions on one’s personal freedom and that it has long-term consequences.


Q: What is the minimum debt level at which an individual can be made bankrupt by a creditor?

The level was raised from $2,000 to $10,000 in 1999. You might owe a bank less than $10,000, but you could still be made bankrupt if the aggregate amount of all the debts, which include credit card and car loans, held by you is $10,000 or more. That is, if you owe these creditors for a certain amount of time (i.e. half a year) and refuse to pay up promptly.



Q: When the Official Assignee (OA) seizes a bankrupt’s belongings, which personal and home items is he allowed to keep?


Section 78(2) of the Bankruptcy Act lists the property that is specifically excluded from being divided among a bankrupt’s creditors, being:
1) Property held by the bankrupt in trust for any other person;
2) The tools, if any, of his trade;
3) Such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his family; and
4) Any property of the bankrupt that is excluded under any other written law.


Q: How much of the bankrupt’s pay is he allowed to keep for the family’s monthly expenses and for paying his debt?

The bankrupt is allowed to support himself and his family.

Under Section 82, he is duty-bound to account for any money or property he receives after becoming a bankrupt. These include his income and, after allowing for a sum that is ‘reasonably necessary’ for him and his family’s maintenance, he is required to hand over anything in excess to the OA. This is for division among creditors.

Q: I have been working for many years with a good record. Will my bankruptcy put my job in jeopardy?
Depending on the occupation, the regulations might require the termination of your services or redeployment to another job.

This is usually the case for those providing advice or executing transactions in the financial services industry.


Q: Will my employer be told of my bankruptcy?
In some jobs, you might be required to inform your employer. Also, note that your bankruptcy will be advertised, so employers or third parties could find out from reading the newspapers, said Ms Lie Chin Chin, the managing director of law firm Characterist.


Q: Can I take a holiday overseas while I’m in bankruptcy?

You must seek the OA’s permission. The OA may require you to reveal who is paying your holiday expenses, said Mr Singh.

If you leave Singapore without approval, you can be jailed for up to two years or fined up to $10,000, or both.


Q: What difficulties might I face from having been a bankrupt?

Credit Bureau Singapore, a commercial entity set up by the banks, will keep a record of your bankruptcy for six years. This will be given to banks if you apply for a credit facility after your discharge.

Banks could reject your applications for between three and five years after your discharge. You could find it hard to get a credit card or housing and car loans.

Public searches with Ipto on an ex-bankrupt’s record of bankruptcy will throw up the bankruptcy for up to six years after the bankrupt’s discharge.

For my detail oriented friends, the following URL links you to the Singapore Government Statute Website.
http://statutes.agc.gov.sg/non_version/cgi-bin/cgi_getdata.pl?actno=2000-REVED-20&doctitle=BANKRUPTCY%20ACT&date=latest&method=part&segid=962608314-000996

Non Landed Homes Decline 0.7%

According to the Singapore Residential Price Index (SRPI) of the National University of Singapore (NUS), non landed homes in the private sector saw a decrease of 0.7% after a consecutive increase of 1.1% in August and September.

Going forward, experts say that mass market homes should moderate further given the large supply of development sites being opened up for Government land sales. However, it will have little impact on mid-tier and luxury home prices, which could see further increase given the positive economic outlook in 2011.

STOP! to Foreign Property Speculators

Members of Parliament have approved harsher penalties for foreign property speculators, but asked the government to crack down even more.

MPs noted that home ownership is a big issue for many Singaporeans, and further measures to restrict foreigners in the local market should be implemented.

This issue came up during a debate over the proposed changes involving foreign ownership of landed homes. Only citizens and permanent residents (PRs) who make significant contributions to the economy can own landed property. PRs can only own one such property and must live in it for at least three years before looking to sell it.

As for foreign developers, they can acquire land to build residential projects, but it must be completed in 5 years. To prevent hoarding, all units must be sold within two years after receiving the temporary occupancy permit.

If the conditions are not met, the government will forfeit their banker's guarantee pegged at 10 percent of the land price. However, with the new law, an extension charge will also be imposed for the extended time taken in the project’s completion period
 
--- Steven's Comments---
 
No matter how much the Government tries to slow down the property market. It will rise eventually... Furthermore, They are trying to attract foreign talents to enter Singapore! BUT trying to stop them from owning properties. We will never know whether an Individual has the tendency to speculate or not. Anyway.. all the BEST to us!

Asia Remains Strong

Asia’s macroeconomic conditions are expected to see supportive growth next year, said the Ministry of Trade and Industry.

However, the MTI cautioned that while household demand will continue to grow, the strength of the recovery could be hindered by weak household balance sheets and high jobless rates.

MTI also expects domestic demand in Asia to remain robust, supported by wage growth, healthy fundamentals and encouraging government policies.


It expects that Singapore will likely see an economic growth of between 4 percent and 6 percent next year.


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Looks like its rosy for us next year! All the way! All of my friends out there! Continue to stay vigilant, PLAN for your finances and work hard! And we will be laughing our way to the banks month after month!

Lifetime Plan to Family Wealth - Part 4

Internal controls



Even with the best of intentions and strong confidence, bad investment decisions can easily happen.

Experts therefore often recommend that internal controls be set up to serve as a guide for the optimal investment of family funds, as well as to reasonably mitigate risk and provide assurance, in accordance with the family's expectations.

Certain individuals in the family should be appointed as key decision makers when it comes to managing the family's wealth. This will enable chaos to be avoided, especially in times of urgency.

Procedures that safeguard access to family funds or accounts should also be in place, said Deloitte Private Client Advisers.

For example, there should be policies and procedures for documenting significant transactions or decisions, with processes for conducting regular checks. There could also be a requirement for dual signatures for transactions above a certain amount, or specifying access to vaults or cheques.

Further mitigation of risk could range from asset diversification or exposure reduction to certain investment or financial risk-management techniques such as stop orders.

Essentially, it does not mean risks should be avoided; instead, a calculated risk-taking approach is strongly advised.

"Because risks evolve over time, it is a good idea to conduct a formal risk assessment every couple of years," said Deloitte.

"Additional controls might be considered - monitoring measures that assess why results are different and what they should be given the climate, benchmarking performance to understand whether it makes sense, and discussing performance expectations based on independent evidence."

Lifetime Plan to Family Wealth - Part 3

Establishing Philosophies in Lifetime Plan

There are typically two main attitudes family members may adopt with regard to inherited wealth.

On the one hand, there are those who view the inheritance as something passed on to them for their personal use, and are comfortable with the fact that the financial legacy may end with them. And then there are others who hold the view that the inheritance is something to be enlarged to pass on to future generations.

Both views can co-exist, as long as they are clarified from the beginning and a balanced approach is adopted.

A family vision should therefore be first established to outline the family's hopes, goals and expectations in preserving family capital.

Specific guiding principles in the lifetime plan should also be highlighted, such as never investing in casino or tobacco shares.

More important is the next step - getting family members to commit to this "promise", since it serves as a foundation for related decisions and actions.

Moving forward, he suggests that family wealth can be divided into different "buckets", with some money considered as expendable inheritance and the remainder as family funds, which should be safeguarded.

Separate investment portfolios with different strategies and distribution policies should then be established for the two "buckets".

For example, the portfolio designed for wealth preservation may have a more conservative approach, and be characterised by low liquidity, with a selection of lower-risk investments and a higher proportion of inflation-resistant assets. Such a portfolio should also follow a longer-term investment horizon.

That said, a limit should also be established on the amount of funds withdrawn for personal use. Experts say a disciplined, sustainable rate of withdrawal is about 2-4 per cent of a family's assets.

Lifetime Plan to Family Wealth - Part 2

Understanding your Family's Past

Family lifetime plan experts point out that there is a greater need than before for family members to have a strong collective commitment and understanding on how to manage inherited wealth today, in view of the more complex financial landscape.

A starting point could be inculcated by creating an awareness of the past lifetime plan - family stories, particularly about how the family wealth was first built up, should be told and retold to the younger generations.

Downsides of the past lifetime plan, such as instances of failures and how family members struggled to achieve what they accomplished, should be emphasised to help the younger generations learn and grow.

It will also provide inspiration for the individual as to what is actually possible.

Lifetime Plan to Family Wealth - Part 1

Fellow SINGAPOREANS slog long every day and spend much energy drawing up a lifetime plan thinking about how best to grow their money, not just for better-quality lives but also to provide for the next generation.

Singaporeans do have sound lifetime plans and have generally been quite successful in accumulating wealth. A recent Credit Suisse wealth report showed that Singapore is the second-richest nation in the Asia-Pacific region, and the fourth-richest in the world, in terms of average wealth per adult.

But how can you ensure that the wealth that you have worked so hard to accumulate over the years will be protected and added to, and that a legacy will be maintained down the generations according to the lifetime plan?

"No one should presume that a family lifetime plan will automatically be maintained," said Mr Mark Daniell, author of the book Family Legacy And Leadership.

"Mere hope is not a strategy, nor a likely pathway to an enduring legacy."

Singapore to become Asia's fastest-growing economy

Singapore to become Asia's fastest-growing economy - Singapore Property Market News

CPF Changes - Singapore Budget 2010

I received an email from CPF Board which read:-

Dear Sir/Mdm

Singapore Budget 2010 - CPF Changes

Here's a quick summary of the CPF changes announced during Budget Debate 2010:

• Members will be automatically included in CPF LIFE if they have $60,000 in their Retirement Account at age 65 from 2023
• The first $40,000 of a member's Special Account savings cannot be invested from 1 July 2010
• From July 2010, members can apply to increase their CPF monthly income under the Minimum Sum Scheme, if their adjusted payouts can last at least 20 years from the Draw Down Age, or at least another 5 years from the time of application, whichever ends later
   
• Members can transfer their CPF monies upon demise to their nominees' CPF Accounts when the CPF Nomination Scheme is refined in January 2011
   
• Parents would be able to nominate their disabled children to receive monthly disbursements from the parents’ CPF savings after the parents have passed on, under the new Special Needs Savings Scheme (details will be announced later)
   
• The Workfare Income Supplement Scheme (WIS) is being enhanced for work done from 1 January 2010. The key enhancements are that the WIS qualifying average monthly income will be increased to $1,700, up from $1,500 previously; and the maximum WIS payment will be increased from $2,400 to $2,800 a year

Click here to find out more now!

Yours faithfully

CPF Board

S'porean Investors Confident Again..

Read this article and just to share with you guys!
Spore investors Confident

Congrats to friends who have made a windfall from this economic downturn and for those who have got burnt, I believe have learnt their lessons.

Some principles to always keep in mind:

- Please don't gamble your whole family's assets!
- Always apply dollar cost averaging for long term investments
- Don't be Greedy!