Property Pooling for a Global RV Lifestyle

Pool your overseas property investment. Invest for profit. Choose to live anywhere in your network. Its like being part of a virtual global RV.

What do you think? 

Author: Wong Kong Thean

Interests: Join any activity like stay and tour plans.

25 thoughts on “Property Pooling for a Global RV Lifestyle”

  1. When you own a typicaL overseas property you cannot pool. Most property are on term lease and are unavailable as and when you want to use it.

    Investors of hotel condos, managed serviced apartemnts or condotels do not have this disadvantage. Their properties are managed on short rentals. They can pool their owners discount or privilages with other owners of this same class of properties.

    This lend a new dimension to this class of investment. Owners have all the advantages that this type of property has to over as a financial investment and to enjoy living in affordable properties in favorite destinations across the world.

    Avoid all the timesharing traps and property scams in the world. With property pooling you are the sole owner of the property which you can dispose as you see fit. To join you need to own a suitable class of managed short-term-stay property here or abroad.

  2. Hi KT,

    For many Singaporeans, retirement still means Singapore.

    However, for some, there are benefits, fun and advantages with spending short term overseas eg 3 mths.

    From your experience, how do you see this feasible in Singapore.

    Last year, we had a number of discussions on the subject, but I guess due to unknown factors, we have gone too far.

    How do you see managed property and short term retirement living?

    Terence Seah

  3. I think that retirement will mean flexi-living and flexi-working. Sporeans will take on short stint of work and living abroad for part of the year.

    Rule of thumb. By living abroad one can reduce the annual cost of living by 20 to 50%. If you require medical, your savings can be much more. So half a year working in Singapore can pay for your full living cost for the year with savings. If you require 20K per year by flexi living and you earn $4K per month for 6 months you would achieve net savings for the year. This assumes that you don’t even make a profit of net rental (you rent out your Spore home for the 6 months while you rent a home in a foreign country) which will be unlikely given the high rate of rental in Singapore. Any contribution in net rental will increase your savings rate. And I am only talking about a HDB flat with a modest view overlooking somebody’s toilet. If you have a $720K HDB flat, you need not apply here. .

    If your savings is not touched it means at the very least it will sustain another monthly income from even the most passive of investment, say, an annuity. Any additional passive income contribution from investments will mean that you have to work even less to maintain the aforesaid standard of living. A rosy picture and bright future awaits those who do their homework and some creative planning. Your standard of living has improved with half a year of quality time KLKK with your family.

    If you “die, die also must work and live in Singapore” alone, then expect to get exactly what you wish for.

    Now, does flexi-plan sound like a semi – retirement program to look forward to?

  4. Dear Wong KT,

    Thank you for sharing your thoughts, it would appear that you have done lots of research on this matter. I appreciate it, and would agree that working off-shore has its plus factors. However, there are also negative areas for concern too. Most frightening, of course, is the geo-political position these days. It is almost like the changing of guards nowadays with the government in some of these countries and therefore, it is difficult to have rigid plans on the table. Adjustments are common and uninvitingly numerous.

    Next comes the socio-aspect, it takes time to adjust to unfamiliar suroundings and sometimes it can jive. At times, it does not and we fall flat on our backs. A case for reflection, after retirement, I took a job as an AGM for a casino in Colombo, Sri Lanka. I think this was during the first gulf war. The pay was great, the perks fantastic. One snag,the political situation was just plain atrocious and the almost absent social aspect is very difficult to swallow. I tossed my coin, packed up and left in a huff after a very short stint.

    I think not many would want to leave the comfort of this little island to venture abroad without a very good supporting “home team” network. I for one wouldn’t.

    Thanks and regards,
    Edwin Chen

  5. Hi Edwin,

    I guess we have all seen Singapore as a safe place. I am interested in knowing what do you mean by a “home team” network?

    Terence Seah

  6. Even if you put a tiger in my tank I won’t go to Colombo now.

    Here’s today’s tipsheet of where to flexi-live.

    China – back to roots; wait for imminent market melt-down; buy up distress assets and make a lot of money

    Vietnam – growing tiger pup; Everythin’s like China 10 years ago; early bird advantage today. In case, you haven’t heard, the VN war is over.

    Thailand – bet that people want the soldiers to return to barracks and give back the country to politicians and businessmen. One year for normalisation.

    Bali – recent arrests indicate a new beginning from ashes. Good bottom to pick. Best deal for budget airline. Go – come back every week also can. We pay $4.7 mio for a seaview home. For less you can buy a nudist beach; nudes included.

    JB – what is there to say. Iskandar is spore 1/2 price clone without the IP cost. Even cable TV is better and 1/2 price. Takes less time to work in jurong than if you live north and east. Clob – ber again. Don’t think so. Clob was only Spore. Iskandar also have amor and internationals too.

    The list goes on. Check here for updates.

  8. Dear Wong KT,

    Your list is sums up where hordes of people will generally head for, what about others, Philippines? India? Latin or African cities?

    Regards,
    Edwin Chen

  9. Yo’ Edwin,

    Touching popular Asian destinations in first issue. Many others akan datang.

    Today’s ST June 18 H8 YOUTHINK forum. “Thinking of Emigration” cites a “55 year old friend who is enjoying a stress-free retiremnt in Canada. The cheaper cost of living there has enabled him to retire comfortably on a small pension. and in a house near a mountainside lake.”

    Front page same paper lists enbloc land sales from $1.5K to $2.3K psf ppr. When developed properties will sell at top end min of $2.5K to $3.5K psf or $2.5 mill to $3.5 mill per 1000 sq ft ! This will make even your $720K HDB a steal. Still best panaromic view on high floors will be other high rise buildings. No sea, mountains, lakes, woods or rivers. Not even big monsoon drain.

    I have the latest copy of “Lakes District Property Press” from Kiwi. A Queenstown freehold ready modern bungalow 4000 sq ft (3 living rms, 4 bedrooms, 2 kitchens, patios, decks, storage rooms as big as our master bedrooms etc) with unobstructed snow capped mountains and lake view sells for NZ $1.3 mio. I didn’t select this. It so happens to be the first item on a listing of hundreds. Today, if you can only afford to pay $1.5 million, you won’t even be invited to stand in line for a $4 mio 99 years lease apartment 1,5 K sf overlooking a container yard as a seaview near Vivo.

    Sure you have a choice. So choose.

    What’s your take? Your turn now.

  10. I was in Ireland last year on a self-drive holiday.We had an enjoyable time staying at B & Bs which were run by homeowners who let out rooms. They had big houses with many rooms and were able to do that.
    A suggestion is for a list of foreign owners who are willing to let out rooms in their homes. I can try to work out a list for Perth for you all. Some of you with contacts can get overseas members and friends to do the same.
    Regards
    Joan (Perth)

  12. Hi Eleanor,

    First question to ask yourself is what are your investment objectives eg.

    – second home with staying rights few months a year

    – investment purely for profit (is your focus on capital gain or rental?)

    – investment for now but may long-stay later (ie one year + at a stretch)

    – Flipping properties (buy and sell for profit)

    – prefer to invest as portfolio with other investors eg on a TIC arrangement

    There is one golden rule when investing in asian residentials. “Don’t buy on plan”. In other words,

    – buy developed and operating gated projects

    – ensure transfer of registered land title at S&P if it is for long term

    The golden rule is contrarian to what most foreign investors will do. It will also save you from the disasters which have befallen them.

  13. Dear Wong KT,

    Thanks my dear man for the analysis, going that far needs a long range bow; I think I have to stick to my backyard in Ozland!

    Regards,
    Edwin Chen

  14. Hi Joan,

    Ireland is a very good for bottom fishing. Beautiful countryside equivalent to the lake and peak districts of UK midlands.

    IRA is now politicised and recovering from civil war but people’s memories of war needs at least a generation to fade. You don’t expect great financial growth potential. But lifestyle retirement is great value. Local dialect and even their spoken english is hard to understand. Also not within budget airline reach. Not a weekend retreat for most of us.

    Any good opportuntiies in particular to share?

  16. Dear Wong KT,

    Thanks again, I am not a very good businessman but look at the amount of virgin land that was handed over on silver platters to the migrants from China.The hard working chinese turned most of these plots to productive farm land and today, I am sure it is worth something to shout about, right?

    I am no farmer, so as owner , I will probably hold it till it turns to be the last Eden!

    Regards,
    Edwin Chen

  17. Hi Kong Thean

    If the focus is getting away for short breaks to place nearby, then S’pore is a good take off place where there’s plenty of cheap flights. Staying put in S’pore makes sense.
    If there are enough of us with overseas properties and contacts, my idea is to tap on these resources and stay at B & Bs/SC chalets and other cheap accomodations instead of investing in overseas properties where your money is tied up. The interest earned can pay for your holidays.
    Regards
    Joan

  18. Hi KT,

    Tks for sharing with us the various opportunities investing in properties as a viable source of passive income after retirement. This topic interest me cos i am seriously scouting for a suitable one.

    recently was introduced to a leased apartment in Melbourne which already has 100% occupation. The offer involved buying an “interest” of AUD25K with guaranteed 8.75% pa net for 10 yrs with possibility of higher return when rental is re-negotiated annually. Payment is made monthly directly to your a/c. After 10 yrs, u wd have received your principal and continue to receive rental income >8% (not guaranteed but very likely increase rental). This kind of investment in “interest” is more affordable than purchasing physical buildings.

    any thoughts on this?

    cheers! Henry

  19. Hi Joan,

    Your idea of tapping into available places is interesting. How many homes in Perth do you think are available? Just a good guess will do.

    Terence Seah

  20. Hi Henry,

    You must focus on the instrument and who is behind it. Eg. is this a loan in which you are banking on the borrowr’s credibility and no capital gains; or is this a TIC arrangement in wich you are laible to Oz taxes for capital gains and limit on resale to foreigners.

    What is the net interest rate after tax? If it does not exceed 8% ROI pa over the term (how long?) it is not attractive. In fact,I won’t consider a overseas investment that does not promise net return of 12% to 15% interest.

    You are taking a risk on forex. Remember OZ interest rates are high so an income rate closer to min 15% would be more acceptable.

    Don’t worry. Do your home work. You can cherry pick from trees full of blossom.

  21. Hi Terence
    I haven’t asked many friends, only two as they have spare room/rooms and I know them quite well. They are agreeable to have 1 room available for short stays.
    Generally, no one is willing to let out the whole house even if it’s vacant. It could be that it’s owned by another family member and they treat it like a holday home.
    I can find out from more if the idea is appealing. The other suggestion is to stay in self-contained chalets or apts where you can cook and it can be monthly, costing around AUD $1200 or more, I think. You can check Oz websites for this.
    Regards
    Joan

  22. Hi all fellow SHC would-be overseas property investors and travellers!!

    I’ve been reading this interesting exchange and there are more ideas thrown up than I can personally undertake in my remaining lifetime.

    KT did ask me on my views for buying an investment property in Thailand… and I told him that I wasn’t considering buying at all. Yes, things change and we, too, change with time and circumstances. The Thai political and security situation has changed (for the worse) in the past year and it is unpredictable at present.

    Secondly, I have a very short time horizon… maybe 10 to 15 years of useful, active life; after which I may be put to pasture. Meaning, it would make more sense to rent if I want to consider an extended stay of two or more months at a place.

    There are two main approaches in this discussion:

    The first is from an investment aspect where returns, taxes, appreciation are all important.

    The second (one in which I am more interested in) is living in an overseas location to enjoy the different environment and lower costs. Without much effort we can easily achieve this in our regional areas: Malaysia, Thailand, Vietnam, China, etc.

    So what we need is an SHC effort to start: first by arranging short trips to be lead by our own experts. Then expanding to rent longer-term locations to sublet to SHCs or others.

    Otherwise, it would be just all talk and lead nowhere.

  23. Great, I am with Ronald Wi now in Malacca.

    Just had a look at new Senai town, and likely retirement properties.

    Ronald Wi and myself would like to meet KT Wong and Kenneth Tan next week,in the evening. All of us have very similar vision, Let meet to map out a plan.

    Terence Seah
    (On the way to Malacca) with SilverHairsClub friends.

  24. Great.

    Take photos and get info (pricing, brochures, contacts) of identified properties. Mode of “acquisition” could be purchase, lease and operate or juncket destination.

    Focus on developed and preferably running operations with management and good title now. If landed then concentrate on gated with clubhouse/facilities and managed projects. Otherwise concentrate on condos. If commercial, resorts also good.

    Location convenience near urban facilities (shopping/market)is important to RV lifestyle. James Bond island is good for an exotic tour but less for a second home.

  25. Hi Ken,

    MIA? Long time no here and hear. Thought that you have found and retired to your Utopia for good.

    It will probably be the second – short/middle term retirement junckets. This is why the title of the thread is on pooling of properties already owned by members. But this is just one of many ways to skin this kitten.

    Classical overseas acquistion and land development is out for Sporeans. Even heartland aunty is talking about flipping en-blocs. Real estate here is all casino now and prices are dancing with Alice in Wonderland. Not only fundamentals but even technicals are on long term vacation. Smart funds have taken a 180 degrees U-turn back to Spore. With the best game being in town no one is seriously looking abroad now.

    BTW, if you are free, come join Blue Helmet (Reboot) Yes, the same one started by Mr. T and, as usual arrowed, this time to me. Check with Edwin the Ong who is protem CFO. He’ll tell us how many millions we are in the running for the project. You can be head of RV operations in Foreign Service department. Loads of fun, laughs and little work. Fully covered investment with plenty options.

    It is the noblest of noble missions. A proposed Social Enterprise project to take care of senior welfare in the country. Generations of Singaporeans will come to remember your pioneering efforts.
    “So much has been owed by so many to so few.”

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