I have been reading a bit about financial investment in Singapore recently (for a financial idiot like me) and came to know some figures that I suppose need to be familiar with if I were to go into this:
Straits Times Index: hovers around 3000 (drop means no good, increase means good haha)
Inflation rate: anything above 4% means no good
Rental yield: anything above 4% is good
Home interest rate: anything above 4% is considered high
Underlying all this is the theory of supply and demand, and using research patterns and a degree of calculated risks to predict the future.
And what type of investment you go into depends on how much liquidity savings you have, your risk appetite, your short term/long term growth plan, interest rates, whether can secure loan, etc.
On doing business – no body will tell you the bad points on their product. So it is essential to find out the cons of the product, as no product is perfect.
On buying stuff – most of the time there are many hidden costs for a particular investment or product, etc. That’s why I don’t bother so much when the person tell me how cheap a certain product is. Just tell me the total amount of money I have to pay including things like delivery charge, penalty charges, refilling costs, etc.
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