An improved version of Pro-Investor has been uploaded. The summary and stocks are sorted in descending sequence based on the latest year's yield. The investor can identify the categories (i.e. country, industry sector and market segment) that performed best during the past year. It is likely that these categories will continue to perform better than average during the following year. The sorted figures make it easier for the investor to pick the stocks based on this strategy.
Practice makes perfect. Try this simulation game many times and learn how the prices are affected by the trends in the country, industry sector and market segment. This is suitable for students learning fund management to practice their stock picking skills, and get a feel of the practical environment.
Although this simulation game is based on its internal model, it still give the challenge to the player to identify the strategy to pick the right stocks. The strategy will have to be changed in the real world environment, but the skill remains the same. Try this simulation now. Read the Guide. Register an account and Play.
Tan Kin Lian
Thursday, January 28, 2010
Housing prices and cost of living
If a family lives in a rented home and there is an increase in the rental charge, it results in a higher cost of living.
The purchase price of a home is the discounted value of the future rental. If the purchase price increases, the monthly installment to pay the loan also increases. This is almost the same as paying a higher rental.
If housing prices continue to increase, the owner will benefit as the cost is already fixed at the time of purchase. This was the case in the past, where the cost of property represents a low percentage of the average income, i.e. when housing was inexpensive..
In recent years, the housing prices has increased to a high proportion of the average earnings. It is not possible for housing price to continue to escalate, as the people cannot afford to these prices, when their earnings have stagnated.
The high housing price will be a burden for the future generation. They pay a high price and has to service the loan using a higher proportion of their earnings. The prices will not continue to escalate, after it has passed the "affordability" mark.
It is better to have a system where the housing prices is not left to speculation in the market. The housing prices to be controlled, and kept within a reasonable proportion to the average income. .
Tan Kin Lian
The purchase price of a home is the discounted value of the future rental. If the purchase price increases, the monthly installment to pay the loan also increases. This is almost the same as paying a higher rental.
If housing prices continue to increase, the owner will benefit as the cost is already fixed at the time of purchase. This was the case in the past, where the cost of property represents a low percentage of the average income, i.e. when housing was inexpensive..
In recent years, the housing prices has increased to a high proportion of the average earnings. It is not possible for housing price to continue to escalate, as the people cannot afford to these prices, when their earnings have stagnated.
The high housing price will be a burden for the future generation. They pay a high price and has to service the loan using a higher proportion of their earnings. The prices will not continue to escalate, after it has passed the "affordability" mark.
It is better to have a system where the housing prices is not left to speculation in the market. The housing prices to be controlled, and kept within a reasonable proportion to the average income. .
Tan Kin Lian
Stabilize the price of new HDB flats
I suggest that the Government should set the prices of new HDB flats based on a multiple of the average earnings, rather than on the prices of resale flats. The prices for new flats could serve as a benchmark for the prices of resale flats, rather than the other way round.
If the HDB publishes the prices of new flats and is ready to build more flats to meet demand, it would help to create a stable market for the new and resale flats. This would be better for the economy and for the people who need a place to live in.
A person's home should not be subject to speculation or for asset enhancement. The prices of the home should be kept at an affordable level, relative to the average earnings.
If the HDB publishes the prices of new flats and is ready to build more flats to meet demand, it would help to create a stable market for the new and resale flats. This would be better for the economy and for the people who need a place to live in.
A person's home should not be subject to speculation or for asset enhancement. The prices of the home should be kept at an affordable level, relative to the average earnings.
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