My First Singapore Savings Bond (SSB) Application

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Just applied for my first SSB of $10,000! We figured out that we did not need the cash for the upcoming BTO downpayment as we will have enough grant ($30,000 under the Additional Housing Grant) and CPF to cover everything. This amount will be put aside for the payment in year 2022/2023, which is in 4-5 years time. This means that we will accumulate an effective return of 1.65-1.71% per year according to their interest calculator on their website.

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I’ll be adding more cash into SSB if I have the capacity, I feel that I wouldn’t want to risk it in the stock market (although I know that we can get better returns in the market if we did so). Furthermore, nowadays it’s pretty hard to find a good stock to invest in. Risk free 1.65% (minimum), why not? Better than letting the money rot in the bank right! CASH IS KING?

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BTO Application Results

Results were release yesterday and we got it!! First try and it went through! Such a good start to the year! The application rate for Eunos 4 room BTO was 2059 for the 538 available rooms, however we managed to secure a queue number of 70+, what are the chances?! Putting the excitement aside, this will also mean that we will have to tighten our Budget to pay for the upcoming downpayment of about 40K around May this year.

Portfolio has also made a turnaround, from an unrealised loss of $167.66 to a positive $84.34 as of 5 Jan 18!! 2018 huat ah!

A short post but I’ll keep y’all updated on the process of getting the BTO flat! YAY.

PKBF 2017 Portfolio Update

* Updated chart

Here is the chart comparing my unrealised profit vs accumulated gain/loss + dividends for the Year 2017:

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Capital in Portfolio: $10,000.00
Portfolio Cost: $10,490.66
Portfolio Value: $10,323.00
Dividends Received in 2017: $256.60
(2.57% gain according to capital pumped, 2.44% gain according to cost)
Total Closed + Dividends: $630.72
(6.31% gain according to capital pumped, 6.01% gain according to cost)
Total Closed + Dividends + Unrealised P&L: $463.06
(4.63% gain according to capital pumped, 4.41% gain according to cost)

Dividends

I’ve received a total of $256.60 in dividends this year which equates to $21.38 per month. I feel that it isn’t too shabby since I only started investing only around end Feb this year (missed the payouts in Feb sobs). Was the risk involved in investing worth it? Definitely. Actually to me, I don’t really get affected by the changes in share price or rather I try not to let it affect me, as long as my companies continue to give me the dividends, I’m happy enough. Some might not agree but I believe in time to come, those capital that is lost in the share price will be earned back from the dividend payouts.

Overall

Taking into account the unrealised profit, the gain/loss, and dividends received for this year, we have managed to close the year with a profit of $463.06, thanks to ParkwayLife REIT. Not really a big achievement as 2017 was quite a rallying year, however, slowly but surely, shouldn’t be too hard on myself as it’s only my first year into investing. Hope I’ll get to learn more and put the knowledge into use next year!

Year 2018

For next year, I would like to venture into getting some Singapore Savings Bond (SSB) if I have the chance to (might not have enough liquidity since we MIGHT BE paying for the downpayment in May). I’ll bound to ORD this coming May and starting school in June, this means that I will not have as much income as I am getting now (unless I find a part-time job while studying, which I am aiming to).

In 2018 I will also bring myself to learn more and improve on how to analyze a company with fundamental and technical analysis. Excited and hungry to learn!

Lesson(s) Learnt

Not to let emotions come into play. I’ve sold Parkway at $2.83 before XD to lock in profits due to talks about the market crashing, however it rallied till $3 even after XD. I think it’s better to keep the noise away..

Oh well, have a great New Year’s Day!

Don’t Say Bojio – Tips on Booking of Hotel

First of all, this is not a sponsored post hor. Although I do get some referral points if you decide to use my links provided hehe.

Since holiday season is here, let me share with you a website where I always find the best hotel deals at. Drumroll please… *badum tss* BOOKING.COM! I’ve always been using this platform to book my hotels ever since I found out about it.

What’s so great about it?

Here are 3 main reasons why I choose to book through this platform over the others:

  1. Booking.com is easy to use and gives a lot of flexibility in term to cancellation of booking and payment wise (by Debit/Credit Card or on the spot).
  2. The more you use the platform, the more discount you’ll receive! Complimentary perks like welcome drink, free airport shuttles, and late check outs might be yours too!
  3. Last but not least, the best part is.. Booking.com ensures that the prices they give are the lowest! They’ll refund the difference if you find something cheaper! Isn’t that great? Don’t know about you but this is the main give away why I chose to use this website as you won’t feel like you’ve been cheated off your hard earned money. PKBF approves!

Click on any of the links (any of the orange words) provided in this post and get 10% off your first hotel booking! Or if you want the URL, here you go: https://www.booking.com/s/34_6/655c83f1

Click here for more Don’t Say Bojio recommendations!

‘Tis the Season To Be Jolly

Fa la la la la, la la la la! The month of December, this means more spending of $$, more holiday trips, and more gift wrappings. Unfortunately, I won’t be able to stay in my $350 budget this month due to all the above mentioned reasons.. Shucks.

As of the time I’m writing this, 19 December, I’ve spent a total of $299.62 and here are the amount I’ve spent in each category:

  • Food – $47.40
  • Entertainment – $5.50
  • Transportation – $57.22
  • Holiday – $150.00
  • Gift – $39.50

I will be going on another trip to Genting & Malacca coming next week and have yet to account for the expenses. Expected damage for the trip would be around $200. Which will end the month with a total expense of about $600 (plus $100 miscellaneous expense). Stay tuned to my month end budget in my budget page!

Calculations on BTO

As promised, here are my calculations for the 4-room BTO in Eunos that we have ballot for.

According to HDB, Eunos 4 room started from $517,000, since my Girlfriend and I preferred to stay at a higher floor, we estimated our price to be at around $600,000 to be safe.

Now we’ll move on the the individual components that we have to fork out our money:

PRICE OF BTO
$600,000.00
Application Application Fee $10.00
Booking of flat Option Fee $2,000.00
Signing of Lease
5% downpayment $30,000.00
Stamp Duty $12,600.00
Conveyance Fees $408.60
Caveat Fees $64.45
LESS: Option Fee -$2,000.00
Total $41,073.05
Collection of Keys
5% downpayment $30,000.00
Stamp Duty
Lease Fees $38.30
Mortgage Fees $38.30
Survey Fees $275.00
BTO Price $600,000.00
LESS: Grant -$30,000.00
LESS: Downpayment -$60,000.00
LESS: Loans -$400,000.00
Upfront Needed $140,351.60

Of course to be able to get the loan amount of $400,000, we will need to earn about $3,300 and $2,800 each (according to HDB enquiry on Maximum Loan).

If we were to choose to have the repayment period as 25 years, our estimate monthly instalment inclusive of 2.6% interest rate per annum would be $1,830.

OH BOY, time to start living frugally..

BTO and Budget Planning

My Girlfriend and I recently applied for the Nov 17 BTO at Eunos. One of our main factor for consideration was the location of the BTO. Besides that, my mom was really supportive on the location (it was her childhood area). Initially we were contemplating on whether to get a 3-Room flat or a 4-Room flat but we ended up choosing the latter (thinking ahead as we are planning to have 2 kids in the future, both of them can have a room of their own). So I did my calculations and figured, yes we can manage to pay off the flat.

Here are the numbers I’ve gathered:

  1. Option Fee (Jan 18): S$2000 (for a 4 room)
  2. Signing of Lease (May 18): S$41,073.05 (inclusive of 5% down payment, Stamp duty, conveyance and caveat fees)
  3. Key Collection (Apr 23): S$140,351.60 (If we are able to get a loan of 400K)

Of course all these plannings are accurate only IF we manage to get lucky for this BTO exercise.

To save up, we are targeting to only spend no more than $350 a month each, this means that we will have to eat home more often and not out dining in some fancy restaurant.

I’ll make a more in-depth post on the calculations in my next post, and if you want to check out more on my budgeting you can click here. Till then!