Four major events to look out for in 2018

Happy 2018!

It has been a hiatus since our last few posts. At every stage of our lives, things evolves which requires more of our attention. Nonetheless, triplehuat would like to wish all readers a blissful, peaceful and bullish 2018! Huat ah!!

As announced by PM Lee yesterday, Singapore's economy performed better than expected by growing 3.5%, more than double the initial forecast. This is good news for the country as we continue to ride on the global economic upswing.

As evident, the prospects for 2018 seems promising and likely to be rosier than past years. How true can this be? Let's delve into four events which could jolt the market this year.

1. US Tax Reforms
Recently, President Trump gifted all US citizens and companies a Christmas present by passing the biggest tax overhaul in three decades. The tax cuts were aimed to entice US companies based overseas to flow their investment back to US. This would certainly lift the economy, create jobs, boost markets and harness economic growth. However, how it truly benefits US remains to be seen. Some predicts that it only benefits the rich and widen the income gap. I view it as positive as we are likely to see higher earnings from US companies which is a big plus for the stock market and global economy.

2. Oil Prices
Lately, there are rising tensions between Saudi Arabia and Iran. The unrest in Libya, Syria, Iraq and Yemen are also going to threaten the oil productions. This would push oil prices up and provide some respite to the beleaguered offshore and marine companies and hopefully end the drought of earnings in the oil and gas sector. However, there is another threat posted by US Shale gas which is poised to increase production alongside the rise in oil prices. As such, oil prices may continue to hover around the range of $50 to $60-ish which could still be a sweet spot - high enough for oil producers but low enough for oil consumers.

3. North Korea Nuclear Weapons
Despite being slapped with tougher international sanctions, North Korea continues to march towards their vision to be a fully nuclear-armed country. They are determined to pursue their nuclear programmes to 'defend' themselves against external threats. Tensions are likely to escalate in 2018 should Kim Jong Un continues testing missiles after missiles. It will be a new test of relationship between superpowers such as US, China and Russia. This is worrying as it could depress investors' confidence in the market and results in the stock market to plunge. My view is all countries will still practice some form of restrain as waging a full-fledged war is certainly not win-win for everyone globally.

4. Rising Interest Rate Environment
This year, we are going to experience a rising interest rate climate as a result of global monetary tightening. The US Federal signals three hikes in 2018. This will impact individuals who own homes and companies who borrow funds from banks to fuel their growth. In addition, we are approaching the tenth year since the last global financial crisis in 2008-2009 coupled with the fact that stock market is trending on the high side. It becomes harder to find stocks to invest at low valuations. As monetary policies continues to tighten further, the fear is that it may lead to economic corrections, risk appetite changes and turbulent capital flows ahead.

What other events might cause market turbulent? Feel free to share your views.

Nevertheless, we hope 2018 brings more opportunities to all Triplehuat readers! Wishing all a bountiful year ahead. Huat ah!

With New Year greetings,
Triplehuat

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EzHuat's take on Viva Industrial Trust Q2 results

Viva Industrial Trust ('VIT') is a Singapore-focused business park and industrial real estate investment trust. Its portfolio focuses predominantly on business parks and industrial properties in Singapore.

Here is a summary of the Q2 report card:
(i) Distribution Per Unit (DPU) achieved a 6.3% hike to 1.861 Singapore cents.
(ii) VIT's gross revenue also grew 18.0% to $27.6m, partly driven by a $2.3m increase in contributions from Viva Business Park (VBP) and a $1.9m contribution from the Chin Bee acquisition.
(iii) Its Net Property Income (NPI) rose 17.5% to $20.2m from a year ago.
(iv) Occupancy at VIT's Jackson Square reported occupancy of 89% with >70 sq ft new leases signed
(v) Completion of Downtown Line interchange at Expo MRT in late Oct 2017 will potentially spur increase in rental reversions.

As a result of VIT's relatively good results, its share price has seen a good upward momentum lately. Now the question is, is it a good time to buy VIT?

While I am vested in VIT, I am of the view that there is nothing spectacular at current juncture. Nonetheless, I like the fact that VIT has positioned itself in pretty good locations. Most of them are strategically located near amenities and accessibility to transportation. With its yield of about 8%, it is indeed quite attractive amongst the reits community.

Some says that its property lease tenure is short as compared to others and likely lead to drop in valuation overtime. They run the risk if the land lease runs out which ultimately will impact their income. Personally, I see positive upside in the short-medium term as long as the Singapore economy remains healthy and VIT successfully renews or sign new land lease tenures.

In industry reit, I typically look at its growing NPI, healthy and rising occupancy rates and manageable gearing ratio. In addition, VIT manages to house a good mix tenant mix such as gym, Decathlon Singapore and a variety of food and beverage outlets. VIT looks stable to me for now and I will continue to monitor further.

What's your take? Feel free to share.

Cheers,
EzHuat


Related post:
Q1 2017 Update for Mapletree Logistics

GoHuat's Views on Current STI Market and Upcoming Plans

YoloHuat's 1H 2017 Report Ccard

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Do You Know the Meaning of Financial Freedom?

I want to be financially free!

This is probably the dream of everyone. What exactly is financial freedom? How do you achieve it?

By convention via a linear pathway, we were taught to study hard, get good grades, enrol into good schools, go to the University. After graduation, you find a good-paying job and then work work work to climb up up up the corporate ladder. 

After going through all the stressful periods farming your hard earned money, you then feel the urge to spend spend spend to satisfy your material needs, pamper yourself like royalty on holidays, buy bigger houses, cash in on the latest car models etc. After splurging on those big-ticket items, you then feel the pinch and obediently goes back to work to earn back the money again. Sounds familiar? 

Indeed, most people trade the bulk of their time for a paycheck. I'd term this a 'vicious cycle in perpetuity'. In other words, it is a self-imposed rat race. 

What is financial freedom?
As the name suggests, it means being free financially where you can maintain your lifestyle without worrying about a monthly paycheck, bills, food and entertainment expenses etc. 

Financial freedom is not merely about having more money. We have seen wealthy people fall from grace and become bankrupts, high-income earners who had to slog/borrow/beg to pay off debts or people who seems to be rich on the outside but actually poor on the inside.

On the flip side, we also witness ordinary people who earns modestly and lives simply. Despite that, they are able to do what they like. They work because they want to work, not because they need to work. They can afford a yearly holiday trip and some occasional splurges yet don't feel a pinch in their wallet.

Achieving financial freedom is about how you make use of money wisely with a peace of mind.

If money is not an issue, what would you do?
To understand financial freedom, you need to ask yourself the question above.

Would you travel around the world?
Would you start a new business?
Would you spend more time with your loved ones? 
Would you spend your time volunteering and help the needy? 
Or would you take on new hobbies?

Being financially free gives you these options. 

Take control of your life
To achieve financial freedom, here are some simple steps you need to take:
- Avoid debts
- Spend less than what you earn
- Invest your spare cash
- Generate multiple income streams 
- Set your financial goals. Know what you are working towards to
- The earlier you start, the better
- Be grateful with what you have, don't compare with others

What does financial freedom means to you?
Building wealth is just part of the equation. There are many more aspects in life to appreciate such as building your health, happiness, dreams.

For me, financial freedom is more than just financials. It means having the time of freedom to do what I want to do. Instead of material possessions, I prefer to have freedom to spend time with my loved ones. Having the freedom to change my career, start a new business, take some time off to gain new perspectives through meditation, pursue my passion and dreams, travel the world to learn more about what this splendid world has to offer and celebrate for. 

It’s not about what I choose to do, it’s about having the freedom to choose who I want to be or do what I want in my life fulfillingly and meaningfully. 

Go forth and plan your financial journey. Believe in yourself and you will reap the fruits of labour eventually. 

I would love to hear your definition of financial freedom! I would appreciate if you could leave your comments below :)

Cheers, 
EzHuat

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9 tips for saving in Singapore! [Part 2]

We hope you have enjoyed Part 1 of our series for savings tips. We, TripleHuat, will once again bring you Part 2 of the series in this post!

Shopping

1) Utilising SAF Credits. If you are still an active NSF or NSmen, you will have SAF e-mart credits. Instead of letting the credits idle until the next In-Camp-Training or until its expiry, why not use them to buy some sports equipment for yourself? If you are working in the corporate world, do consider getting their black shoes & socks. You can purchase a pair of sports shoes for your girlfriend too!

2) Earning Online Cashback. The e-commerce world is getting more and more prevalent. You don't have to step out the comfort of your home to do your shopping. Go online and make your purchases! Make full use of ShopBack or/and credit cards to earn cashback. 

3) Be A Savvy Shopper. For shopping at international brands, always compare prices between online vs. local physical stores. For example, because of online sales, some items on the Victoria’s Secret US website are being sold for less than 50% of the price in local SG stores! Even before the sale, it can be about 20-30% cheaper online. Remember to check delivery options though! Besides cashbacks, making payments using credit cards that give you extra points/miles for online payments, such as UOB’s Preferred Platinum Visa card, will also ensure that you’re stretching every dollar. 

4) Leveraging on Sales. For new couples, you can explore buying items at Great Singapore Sales or warehouse sales which are occasionally held at SG Expo, Sia Huat or online platforms such as Taobao, Qoo10 or simply finding second-hand items on Carousell. Make sure you do your due diligence to check on vendors' reputation & items' condition! This would save you a huge sum which you can use for other purposes such as traveling. 

5) Buying Household Items from Chinatown. Little known to many, there is a corner in chinatown at New Market Road with shops that sell household items at cheaper price than many heartland shops. The first floor is made up of hawker stalls while the shops occupy the second floor onwards. You can buy household items or even items for chinese wedding there. Some of the more well-known shops are Swanston and 海洋.

Couple Time

6) Dating. Going out dating with your partner can cost a lot in a day. Instead of spending money and time to eat, watch movie, shopping, why not go out exercise to keep fit together, take a stroll at our UNESCO site - Picnic at Botanic Gardens, bask in the sun at East Coast Park, go on a hike at Coney Island, take a day trip to Kusu island or go for cycling in Pulau Ubin. There are many inexpensive activities you and your partner can do. It's the company and quality time that matters!

7) Visiting Malaysia. We heard that scores of people have went over to Malaysia to purchase many useful, bargain-hunting and affordable items to take advantage of the favourable SGD-Ringgit currency. But do be mindful of the borer restrictions and various taxes! For couples, you can consider a less expensive staycation in Johor Bahru or take a coach from Lakin to various parts of Malaysia. Hotel in a good location is likely to cost less than SGD100 per night during non-peak seasons.

8) Console Games. If you and your significant other are into console games, buy a good RPG game that can keep the both of you engaged for at least a month or two - save on eating out and dates! You can sell the game once you're done to recoup some of the initial outlay. The common option is to do this on Carousell, but there are some shops out there that let you sell back the games that you bought from them once you're done - one example is Qisahn. 

Personal Skills Development

9) SkillsFuture Credit. Every Singapore Citizen aged 25 and above will receive $500 worth of credits where we could use it for skills-related courses. If you want to stay relevant in this ever-changing world, it's time to take charge of your self-development and career progression. So go forth to plan your learning journey with your SkillsFuture Credit!

We hope you enjoy Part 2 of our saving tips! Keep a look out for more tips from us soon!

Huat ah! Happy Labour Day in advance!

Cheers, TripleHuat

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7 tips for saving in Singapore! [Part 1]

It's common to hear people lamenting that Singapore is such an expensive city to live in. The prices will only go up and not down. Aiyoh... money not enough leh. If you are willing to spend the time and effort to search for good bargains, there are still many ways to save a couple of dollars and cents which will add up to be a lot of money over time!

In this post, we the 3 Huats - EzHuat, GoHuat, YoloHuat - will share tips on how we can save money. We have compiled a list of items that will be useful for minimising the daily expenses in our lifestyle and through this post, we hope to share what we know. If you have other tips, we would be keen to find out more from you too!

Food & Drinks 

1) Coffee. Are you a coffee addict? If you are, it's time to do a caffeine check. One cup of Starbucks coffee can easily cost $6 or more. If you need a cup everyday, you would spend $42 a week, $168 a month, $2,016 a year! Imagine what you can do with $2,016! Maybe it's time to search for cheaper source of caffeine fix. How about kopitiam coffee? It probably cost below $2. Or you can buy the coffee powder and make your own beverage!

2) Eating at Hawker Centre. Instead of eating at restaurants, why not eat at hawker centres which cost lesser and the food can be as yummy too! A meal at Hawker Centre should cost between $3-$8 while a meal in restaurants will likely cost at least twice or even more than that. So go for value-for-money meals at hawker centres and you get to support our hawker heritage too! 

3) Cooking at Home. If you are sick and tired of eating out, you can consider cooking at home. Home-cooked food always taste better than outside food because it's cooked with love. It is also a good and healthy bonding session for couples or families to come up with new recipes together! All we need to do is plan your menu and buy the groceries at nearby supermarket. 

Transport 

4) Don't buy a Car. We live in a consumerism world. To own a car in Singapore is definitely not going to be cheap - with a significant amount going to the Certificate Of Entitlement (COE). Instead of spending a 5-digit sum for that piece of paper, why not take public transportation or use Grab/Uber? Besides, we can also make full use of Grab or Uber promo code. It's definitely cheaper than owning a car which you would have to pay for road tax, car insurance, petrol, parking, maintenance, ERP, etc. 

5) Free MRT rides. If you are an early bird at work, you can wake up earlier to take the free train rides if you tap out of the 18 designated stations before 7:45am on weekdays. The scheme has been extended to 30 June 2017. Not only do you get to avoid the crazy peak hour crowd, you also get a free ride! You can check out the 18 designated stations at this link.

6) Grabbing a Bicycle. Instead of driving cars or taking public transport, why not explore using bicycle to travel within a short distance. You can consider to buy second-hand bicycles or take up bike-sharing initiatives from companies such as Zaibike, ofo, Obike. Alternatively, you can explore purchasing a personal mobility device too. Save the planet!

7) Tapping on Travel Websites. Ever wonder whether you could enjoy a vacation while saving a bit more? Well it is possible if you are aware of all the available flight options and choose the less costly ones. Websites such as Skyscanner or Kiwi are useful platforms for us to tap on to quickly find out these info. Do sign up for budget airlines' mailing list too! Sometimes they do offer good promotions at different seasons or occasions. Essentially you can still travel but spend lesser at more affordable prices!

That's all for Part 1 saving tips. Keep a look out for Part 2!

Huat ah!

Cheers, TripleHuat

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Will you continue to be loyal to the revised OCBC 360 Account?

When I was in the midst of work today, I received an SMS from OCBC informing that there will be changes to the OCBC 360 Account effective on 1 April 2017. I took a quick glance and was kind of disappointed with the so-called 'enhancements'.

In one of my posts, I blogged about the OCBC360 on What’s Next After Savings? This was the account which helped to kickstart my investment journey. With the upcoming revised changes to the interest rates, is it still worthy to put your funds in this account? Let’s delve deeper.

With effect from 1 April 2017, OCBC will be making five changes to the OCBC 360 Account.

Table 1: Comparison on upcoming change to OCBC 360 Account w.e.f. 1 April 2017
	Current	New
Balance cap to earn bonus interest under OCBC 360 Account	$60,000	$70,000
Salary bonus - Credit a minimum monthly salary of S$2,000 through GIRO	1.2%	No change
Payment bonus - Pay at least 3 unique bills with your OCBC 360 Account	0.5%	0.3% (To qualify, pay at least 3 bills totalling at least S$150)
Spend bonus - Spend a minimum of S$500 across your OCBC Credit Card(s)	0.5%	0.3%
Save bonus	Earn 1% per year on your incremental balance	Earn 1% per year on the first S$70,000 if account balance is ≥S$200,000
Wealth bonus	1%	Up to 1.2%
Base interest	0.05%	0.05%

With the above changes, how will it impact my current funds sitting in the account?

In my situation, all the changes will impact me except Weath Bonus as it is not applicable to me because I did not purchase their insurance product.

Let’s do a comparison assuming I have S$70,000 sitting in OCBC 360 Account under the revised scheme and fulfilled the salary, payment, spend and save bonuses.

Table 2: Comparison of Interest Earned
	NEW	CURRENT
	Interest Earned p.a. for $70,000	Interest Earned p.a. for $60,000
1.2% Salary Bonus	$840	$720
0.5% Payment Bonus		$300
0.3% Payment Bonus (revised)	$210
0.5% Spend Bonus		$300
0.3% Spend Bonus (revised)	$210
1% Save Bonus (revised)	N.A.	Assuming there is no increment
0.05% Base Interest	$35	$30
TOTAL (indicative)	$1,295	$1,350

In the table above, it is clear that I will earn $55 less under the revised changes. Moreover, I would have earned more interest under the existing Save Bonus if there are any incremental balances from the previous month’s balance contributed by my monthly salary which I did not reflect in the table.

For the Payment Bonus, you need to ensure your 3 bills total up to at least $150. There is no cap currently. However, I believe this should be easily achieved for most working adults.

If I continue to keep my funds in the revised OCBC 360 Account in Table 2, I will only get to earn 1.85% interest per year, down from 2.25% currently. On the other hand, I am sure there are many other better fixed deposit accounts which you can earn more than 1% with $200,000 rather than park it under OCBC 360 Account for 1% on the first $70,000. That means the balance $130,000 will be idling in the account and only accrue a miserable 0.05% base interest.

While OCBC calls it an ‘enhancement’, I seem to interpret that they telling us that the good O’ days of OCBC 360 Account is going to be over soon :(

Maybe it’s time to search for other better savings account now.

Will you continue to pledge your loyalty to OCBC 360 Account? Feel free to share your views as different people have different savings strategies :)

Cheers, EzHuat

Related posts:

What’s Next After Savings?

Update to OCBC 360 Account

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Good Bye 2016. Welcome 2017!!

First of all, Happy New Year 2017!

I hope you had an awesome celebration over the festive seasons! :D

Last year was quite a bumpy ride for the financial markets. Read my Recap on Major Events that Rocked the Global Financial Markets in 2016. As we usher in the New Year, let us be mindful of how these events will spill over to this year and possibly impact our investing strategies. Warren Buffet once said “Be fearful when others are greedy, be greedy when others are fearful.” Hence, I believe opportunities are aplenty in 2017.

In my first blog post in 2017 (huat ah!), I will share some of my achievements to wrap up 2016 and various investment plans for 2017 going forward. 

Achievements in 2016

Looking back, 2016 has been a great year for me.

Investment-wise. I am happy to share that I had achieved a two-fold increase in my returns vis-a-vis 2015 mainly through collection of dividends and trading of a few stocks. As such, I am inching closer to my short-term target of $10,000 passive income! To up the ante, I aim to surpass the figure this year.

Career-wise. I received a promotion in my full-time job which helped me to harvest a bumper crop in terms of income earned. This allows me to allocate more spare cash into my investment portfolio. But this also means I would have to pay more income taxes. As such, I had done a voluntary cash top-up to my CPF SA to receive some tax relief. Doing so allows me to set aside some money for retirement needs and earn the guaranteed 4% interest in SA. It’s a win-win. I’ve projected to receive about 25-30% in tax reduction.

Relationship-wise. I have also achieved several breakthroughs. Despite my busy schedule, my girlfriend and I managed to create a truckload of memories in 2016! As our relationship matures, we delved into deeper issues. While we may not agree on everything, we are open in our communication and respect each other’s viewpoints. Our belief is that it is paramount for every couple to share, discuss and align common goals and priorities. Most notably, we applied for BTO in the Nov HDB launch and we are eagerly awaiting the results in Jan 2017. I will keep you updated if there is any good news! If successful, this will be a significant milestone for us :)

Looking ahead in 2017

As you would have already known, 2017 will not be an easy year.

Singapore’s small, trade-dependent economy is expected to go through a cyclical downturn. The weak economic outlook has resulted in a dip in business sentiment and confidence levels. In the latest annual National Business Survey conducted by the Singapore Business Federation(SBF), the poll showed that almost half of those companies polled expected 2017 to be even worse. 

In PM Lee’s New Year message, he shared that Singapore would grow one plus percent amid the global economic uncertainties. He sought to allay concerns by saying that the Government is watching this closely. He said “Singapore is making good progress, but the world around us is in flux.” Indeed, the global scene continues to be shrouded in uncertainties. It is pertinent for you to review your portfolio and tweak accordingly, where necessary.

Plans for 2017

Nonetheless, I am looking forward to an exciting and busy 2017!

Investment-wise. I am looking to ramp up my portfolio to include REITS/Unit Trusts to increase my yield. Despite the interest rate hikes, I am confident that companies with good fundamentals, healthy financial statements and astute management will continue to perform well as long as you do your own due diligence. Currently, I am waiting for a good entry opportunity for the following counters: Ascendas Reit, First Reit, Parkway Life Reit and Keppel DC Reit. These companies give relatively stable and good dividends with sound financial management and business prospects.

On the other hand, I’ve subscribed to The Edge Markets to deepen and gain more industry knowledge. I like the in-depth news reports, interviews, analysis and investments content. It is important to always keep yourself abreast of new happenings.

Health-wise. I will be starting an exercise routine to get back my fitness which includes weekly swimming and gym workouts. I will also be participating in the Sunrise in the City programme with my girlfriend. It is a studio-gym based morning workout programme initiated by the Health Promotion Board. As the saying goes “health is wealth”, you must be healthy so you can enjoy your wealth. Otherwise, all your futile efforts will go to pay for medical bills. Therefore, please also invest in your health!

Relationship-wise. My girlfriend and I have committed to achieve at least 500 hours of learning together. This learning hour can include any activity that leads to our personal growth objective. We have created a spreadsheet so as to update our learning hours and activity. This will motivate us to grow our knowledge and invest in ourselves. With my influence, my girlfriend has also made a New Year resolution to track her expenses and to pay herself first (hooray!). It is essential to get your partner on board on your journey to financial freedom as having their support would make the journey much more rewarding and successful! 

Lastly, there are a few people I would like to thank for the support given to me in 2016. I would like to express my appreciation to my girlfriend who has been very supportive of me. We continue to live simply by having more home-cooked food (we love it!), occasional restaurant visits to pamper ourselves, watching movies in the comfort of our homes etc. This is so that we will have more funds for our dating activities, investments, and rainy days. 

Next, I would like to thank my fellow co-writers, GoHuat and YoloHuat. They are my source of motivation and inspiration to keep me going. We will continue to contribute meaningfully to the investment community and inspire people like you who read our TripleHuat blog!

If you would like to reach out to us, please don’t hesitate to drop us an email at triplehuat@gmail.com. 

Onward to 2017, may you huat huat huat ah!

New Year greetings, EzHuat

Related posts:

Ciao 2016, Hola 2017!

Recap on Major Events that Rocked the Global Financial Markets in 2016

Looking at REITs/Trusts for a Change

Can You Really Pay Less Tax Legally? Yes You Can!

GoHuat Explains.. How Did I Build Up My Spare Cash?

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