Rich Sporeans
- Thread starter Niva
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Re: Rich Sporeans
No I think u got it the other way round.. Most take loan.. Some take huge loans..
Most supercar driver just don't admit it.. U ask their salesman.. U will be surprised..
In fact I know a lot of rich PRCs and indonesians usually don't take loan... Not that they are wat richer than singaporeans but a flat rate of 2 percent just don't make sense to them.. When they are going to sell the car in 2-3 years anyway why pay the interest..
golfgti;599892 said:
No I think u got it the other way round.. Most take loan.. Some take huge loans..
Most supercar driver just don't admit it.. U ask their salesman.. U will be surprised..
In fact I know a lot of rich PRCs and indonesians usually don't take loan... Not that they are wat richer than singaporeans but a flat rate of 2 percent just don't make sense to them.. When they are going to sell the car in 2-3 years anyway why pay the interest..
wt_know
Well-Known Member
Re: Rich Sporeans
my point is risk control cannot be left to the bank. if bank got into trouble and no money, who will step in ? gov ? anyway, that's not the issue to discuss in this thread. closed.
high rollers take loan to buy bungalow, supercar and what have you. in general high rollers have their way to best use $$ to make more $$. leverage is their most powerful weapon. ie: with $1M they will downpayment few condos to flip instead of buying 1 unit like most normal people might do.
if they can generate > 2% return, that's not stupid anymore
i would think most take loans unless like saudi prince la, one lump sum payment with no sweat.
my point is risk control cannot be left to the bank. if bank got into trouble and no money, who will step in ? gov ? anyway, that's not the issue to discuss in this thread. closed.
C3P0;599879 said:
high rollers take loan to buy bungalow, supercar and what have you. in general high rollers have their way to best use $$ to make more $$. leverage is their most powerful weapon. ie: with $1M they will downpayment few condos to flip instead of buying 1 unit like most normal people might do.
if they can generate > 2% return, that's not stupid anymore
Terry;599891 said:
i would think most take loans unless like saudi prince la, one lump sum payment with no sweat.
golfgti;599892 said:
Last edited by a moderator:
delrosa81
Well-Known Member
Re: Rich Sporeans
On the contrary, I would feel that people who do not earn alot but is able to manage his/her money extremely well, manage the risks and still manage to survive is one who is really good. Paying cash is of cos what a really really rich person who does not know where to spend their cash.
Everyone would feel that paying cash is best and is significant of someone who is really really rich.
Its just like playing GT 5 Sunday Cup with a Stealth Supercar against all the smaller supercars, that wouldn't so much fun isnt it? Instead, using a car that is the same category as the other cars in the match and emerging as a champion would be more fun isnt it?
In other words, I mean to say, lets take for eg. A person earn $50,000 per month (Take Home Pay), he buys a 1.5mil car and put 10% down and loan the remaining 90% at 1.88% for a maximum of 10yrs. Monthly is estimated to be 13365. Then taking into account his housing loan, car expenses, roadtax, personal expenses, etc. His salary of 35K is used up by these expenses. left 15k, so maybe 5 to 10k save up lor, rest buy some boh liao stuff for fun or leisure la. Enjoys a nice condo or maybe a landed, and maybe got a normal cheap daily runabout car. He/she can enjoy such luxuries at the age of maybe 30yrs old with just 800K savings in cash at the bank. Shld his/her job goes wrong, there is some buffer although not much to fall back on.
Take another example as someone who feels must pay everything in cash, even save 30K per month, can only achieve all these at age 42.5 years old assuming there is NO inflation and prices remain a constant for both the car and house for the 12.5 years required to save up and buy. Of cos I did not factor in increments nor bonuses which is not guranteed in the first place and this is of cos a more conservative estimate. But one must also factor in inflation which I did not for this scenario as well. So it sorta compensate each other as well in terms of increments and bonus vs Inflation.
If nobody take loans and everyone pays cash, then banks die liao lor, this is one of their sources of income. So in a way its healthy for the economy as a whole and some may argue that in terms of personal financial prudence, it is absolutely taboo to leverage ur income and debts in this manner. What if retrenchment, cut pay, financial meltdown, etc. Well we only live a short time, if now don enjoy, wait till when, isnt it?
And should anyone ask, Yes I earn very little only hee hee. Well the above is written with very little knowledge of financial planning and is just based on my personal opinion and not meant to rebute or start a debate. Its just sharing of different ideas and the examples I have listed may be absolutely inappropriate or simply against logic but its just simply a representation of my tots and just sharing only.
Cheers and have a great week ahead!
On the contrary, I would feel that people who do not earn alot but is able to manage his/her money extremely well, manage the risks and still manage to survive is one who is really good. Paying cash is of cos what a really really rich person who does not know where to spend their cash.
Everyone would feel that paying cash is best and is significant of someone who is really really rich.
Its just like playing GT 5 Sunday Cup with a Stealth Supercar against all the smaller supercars, that wouldn't so much fun isnt it? Instead, using a car that is the same category as the other cars in the match and emerging as a champion would be more fun isnt it?
In other words, I mean to say, lets take for eg. A person earn $50,000 per month (Take Home Pay), he buys a 1.5mil car and put 10% down and loan the remaining 90% at 1.88% for a maximum of 10yrs. Monthly is estimated to be 13365. Then taking into account his housing loan, car expenses, roadtax, personal expenses, etc. His salary of 35K is used up by these expenses. left 15k, so maybe 5 to 10k save up lor, rest buy some boh liao stuff for fun or leisure la. Enjoys a nice condo or maybe a landed, and maybe got a normal cheap daily runabout car. He/she can enjoy such luxuries at the age of maybe 30yrs old with just 800K savings in cash at the bank. Shld his/her job goes wrong, there is some buffer although not much to fall back on.
Take another example as someone who feels must pay everything in cash, even save 30K per month, can only achieve all these at age 42.5 years old assuming there is NO inflation and prices remain a constant for both the car and house for the 12.5 years required to save up and buy. Of cos I did not factor in increments nor bonuses which is not guranteed in the first place and this is of cos a more conservative estimate. But one must also factor in inflation which I did not for this scenario as well. So it sorta compensate each other as well in terms of increments and bonus vs Inflation.
If nobody take loans and everyone pays cash, then banks die liao lor, this is one of their sources of income. So in a way its healthy for the economy as a whole and some may argue that in terms of personal financial prudence, it is absolutely taboo to leverage ur income and debts in this manner. What if retrenchment, cut pay, financial meltdown, etc. Well we only live a short time, if now don enjoy, wait till when, isnt it?
And should anyone ask, Yes I earn very little only hee hee. Well the above is written with very little knowledge of financial planning and is just based on my personal opinion and not meant to rebute or start a debate. Its just sharing of different ideas and the examples I have listed may be absolutely inappropriate or simply against logic but its just simply a representation of my tots and just sharing only.
Cheers and have a great week ahead!
Re: Rich Sporeans
The main consideration whether you buy a supercar (a depreciating asset ) by cash or taking a loan lies on the opportunity cost of the hard cash you sink in the car. If you can generate income more than the interest paid on the loan then you should just take the loan else you better off paying cash.
You better be rich to buy a supercar which incur high depreciation/mainatenance cost else you should invest your monies on appreciating asset or investment but all of them carry inherent risk as well.
The main consideration whether you buy a supercar (a depreciating asset ) by cash or taking a loan lies on the opportunity cost of the hard cash you sink in the car. If you can generate income more than the interest paid on the loan then you should just take the loan else you better off paying cash.
You better be rich to buy a supercar which incur high depreciation/mainatenance cost else you should invest your monies on appreciating asset or investment but all of them carry inherent risk as well.
Re: Rich Sporeans
i heard frm my banker that dbs treasure alone got few hundred mill aum... more than enough $ to go ard. just ask any private or priority banker there avg customer aum & u realise that theres few hundred thousand rich guys in sg... abt >10% of singaporeans which is abt right considering 80% live in hdb.
zorro;599960 said:
i heard frm my banker that dbs treasure alone got few hundred mill aum... more than enough $ to go ard. just ask any private or priority banker there avg customer aum & u realise that theres few hundred thousand rich guys in sg... abt >10% of singaporeans which is abt right considering 80% live in hdb.
