Rich Dad to be blamed for subprime woes?
I’ve been reading Rich Dad’s Success Stories: Real Life Success Stories from Real Life People Who Followed the Rich Dad Lessons
Many of them are people with poor credit and are living from hand to mouth, yet they decided to take the plunge to go into buying apartments and renting them out and make a positive return of a few hundred dollars each month.
In today’s newspaper, Saxo bank is bucking the trend by offering subprime loans because it felt that this is the time to capture the market.
Despite this, I still think that investing in properties is the easiest to make money. I have heard of this guy in Australia that does something like that, and has bought almost 100 apartments or flats, all financed by tenants.
I met an old friend last night, and it had been almost 5 years since we had last seen each other. We were catching up about what we had been doing, and we happened to talk about our houses. I told him my apartment is worth about $200k more since the time I bought it, which was one year ago on National Day. He bought his apartment in 2003, and had just bought a HDB flat that cost $350k near the MRT station. He’s thinking of selling his current place, and he estimated that the profits would more than cover the cost of his flat and he would still have enough for investing. That’s a lot of money!
While checking the URA caveats lodged, many apartments that I had been considering last year were fully sold out. That means the demand for houses is still quite strong, though investors may be a little spooked due to the stock market meltdown. I have this feeling that I should sell my apartment now and pocket the difference and then buy a small HDB flat with the proceeds from the sale. However, the thought of spending another year or two hunting for a place to live really puts me off.
Sarah Tan – SingaporeProfit.com
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