Sunday, February 20, 2011

Added more money

While waiting for the next recession....which there is no sign of yet....

Added 50K to portfolio. Savings from overseas assignment. Now have 250K. Moved it to an account paying 0.2% interest. Inflation is the big risk here.

Line-of-Credit approved for AUD 90K against overseas property. Must keep in mind:
  • Can only reasonably withdraw AUD 50K for the rent to cover the loan amount
  • Large forex risk. AUD very volatile, In 08, dropped 30% in a week against SGD, recovered in several months.
  • At some time it may worthwhile to sell the property instead. Probably if it hits 30x gross rent. Bank's valuation at 250K last year was 24x gross rent. Also, get my Singapore PR renewed first.
Still doing nothing. Busy looking for new job.

3 comments:

Drizzt said...

hi boss. all the best in your job search. looks like you got abit cash rich there.

Drizzt
www.investmentmoats.com

Black Cat said...

Thanks Drizzt. job market looks pretty good now :)

As for cash, trying to scrape enough together so I will one day have the option not to work. It'll be a while...

QUALITY STOCKS UNDER 5 DOLLARS said...

Another great move.