Wednesday, September 26, 2012

Prime New York apartments are now cheaper than Singapore’s new mass markets homes…

Hi Guys! I just left New York City and went to look at a few sites and guess what, prime NYC apartments overlooking Central Park is now going for less than our mass market condominiums. The economic slowdown has badly impacted the US and we are just starting to see signs of recovery even though growth is now very unevenly spread out. Prices of food and other essentials were surprisingly cost effective; I suspect the strong Singapore helped my buying power. Well, Singaporeans should enjoy it while the going is good.

Remember what goes up must come down and vice versa.

I had a great dinner with Jackson, my university canoeing mate who also attended my property program. We were trying to schedule a time to organize his portfolio and we were both so busy that we had to do it in New York. He made me realize that a lot of Singaporeans are investing in property with no proper strategy. It is very scary given the high price of real estate in Singapore. Many Singaporeans have no issues making money off their careers but when it comes to putting a well thought out portfolio together, they have no idea. It will be disastrous for anyone to depend on lady luck alone.

I have always taken it for granted the training that I have received in the past. My financial trainings and also being coached by very smart people, is certainly a blessing. I really feel that I have made a difference through the various forms of sharing with all the participants of my programs. Anyway, we had a good Italian dinner before we both departed the next day. Ah… Stories of our lives.

Quite a few of you asked me which asset classes will benefit from the money printing measures initiated by Ben Bernanke. You just have to put yourself into the shoes if you are a foreigner with tons of money. I will certainly invest in properties with minimal stamp duties or asset classes which offer value. I will try to elaborate at our next gathering. It is very difficult to organize as Suntec City closed for renovations and all the big venues have been taken up. Please do not ask me to write what I discuss with you in the forum as I do not want to write extremely long essays! The venue will be confirmed soon and I will see you there.

I am at the lounge waiting for my flight writing this entry; as usual life is quite hectic. This has been a very good trip as the meetings I had went well in general. At the very least, the pain I am about to suffer for the next few days to overcome jet lag will be quite worth it.

All the best and God Bless!

Your Friend,
Andy Ong

Monday, September 17, 2012

The Perfect Storm and More Cooling Measures…

I just finished teaching my latest property class and even though it is very satisfying, I am quite tired. I shared with my class my latest perspectives. It has been a long time since my visibility has been so clear. I have emphasized many times over that the property prices in Singapore is liquidity driven. With Ben Bernanke pledging to keep interest rates low till 2015 and introducing QE 3. The advanced countries are all trying to print money to get out of their current economic glut. Hey you cannot blame the guy; Romney said he will get Bernanke out if he becomes president. As late as the measures might be, it is better than never.

I will be very surprised if property prices dip in the light of this development. I am now anticipating a 10 increase by end of year and another 15 to 20% increase for certain asset classes. My previous predictions have had rock solid returns for you guys so you might want to act and not miss out. The early bird catches the worm!

Why the optimism? I was initially hesitant as our economic numbers have not been rosy. However beyond the money tsunami, China, Indonesia and Malaysia are all experiencing political changes within their own countries. China will be witnessing a changing of the guard. Indonesia and Malaysia will have messy elections. Over 100 political parties are vying for seats in Indonesia! And UMNO will be witnessing its toughest challenge since its foundation. Quite a few of their citizens will be making alternative plans just in case. These countries’ citizens are amongst the largest groups of investors in Singapore. Their enhanced presence will certainly make an impact on prices very soon.

Witness the $1million HDB flats. Not one but several of these transactions have made deadlines. It seems that many smart people have made moves. It seems that the latest QE has already caught Asian government’s attention. Hong Kong has announced more cooling measures and you can look forward to Singapore introducing more as well. Don’t say I did not warn you in advance!

Today is a special day as I am officially taking over the House of Tan Yeok Nee. The property was featured in the Sunday Times a couple of weeks ago and quite a few of my friends were surprised how lovely the property is from the inside. I am looking forward as it was a childhood dream to own this site as I cut my hair at nearby Park Mall when I was a kid. Dreams can come true after all. I am just blessed that I have the opportunity to realize mine.

I will be leaving for the US soon… sighs. I hate the jet lag but I have no choice and work calls for it. I am not looking forward to the 20 hours flight. But what has to be done has to be done. I am looking forward to meeting Jackson, my old uni mate to discuss his portfolio. It is not everyday that you get to meet friends in foreign land as far away as the US.

Till the next entry, all the best and God Bless!

Your Friend,
Andy Ong

Wednesday, September 12, 2012

New found optimism… iPhone 5 anyone?

I just came back from Bangkok where I was reviewing and structuring a few deals. Singaporeans do not appreciate the business friendly operating environment we are in. It is true that the GLCs have taken a large chunk of the viable businesses out there but Singapore is actually quite a suitable base to tap regional opportunities. Now that ASEAN is in the limelight, I would say that its now or never. The opening of Myanmar do present potential but I have seen asset prices ballooning there in the matter of weeks and the euphoria has gotten ahead of itself.

The world is short of investment opportunities. Now that Draghi has arm-twisted Germany into paying for the rest of Europe’s sins. Things suddenly look a lot better. Bernanke may be forced to do a QE soon. Guess what, I think he will do a super QE this time around as this is literally make or break. He will have to time this very well as it is his last bullet. Remember all the action heroes in the movies? The main actor will always have a last shot to kill the big bad villain. This is the movies in real life action. However, I cannot imagine the consequences. I will explain myself in my next entry.

I bumped into a few of my old students at a bar last night. They were amongst my first few students that I taught entrepreneurship. They were very proud that all of them started out on their own and have never looked back. I’m proud of them and hope to be meeting them soon.

I love my job and it’s not just the tangibles and the money but the impact we have made on people’s lives. We believe helping people maximizing their potential in life and make dollars along the way. We also believe that one needs to invest very wisely in order to build on their career success. I am very glad that to have made a little contribution along the way to guide my students towards career success.

I have switched nearly all my devices to Samsung in the last couple of years. I am actually looking forward to the new iPhone’s launch today. I hope they do not disappoint.

Till the next update, take care and God Bless!

Your Friend,
Andy Ong

Tuesday, September 4, 2012

Back from heat and cold again…to face a bad Apple

Hi guys… I’m just back from Europe and just experienced the most extreme of weather changes. The cold in UK was chilling after the Olympics and then the 40 degree Celsius heat wave in France was a testing experience. That is why I have been so quiet of late.

When I was in London, I chanced upon Creative Technologies products in Curry’s shelves. It got me thinking. It was then when it was announced that Apple won the lawsuit against Samsung. It won over US$1 billion which can be increased by the judge later.

Whilst I am not for Samsung, I am not happy with the conduct of Apple too. Apple ripped off Creative technologies when it went into the iPod business. Mr Sim Wong Hoo tried hitting back and obtained some compensation but Creative never found its footing since. You want to talk about respecting creativity and designs, Apple certainly does not have that great a track record. My heart goes out to Mr Sim who tried so hard to build one of the awesome Singapore companies which tried to make an impact.

I am in the midst of finalizing our hotel development and I am so happy that everything looks quite pretty now as we have transformed the whole building into an amazing piece of work. We are still quite a few months away from actual operations and I am looking forward to it. The people from one of the leading property firms swung by to take a look and they were quite intrigued by the concept. I hope to introduce a whole new hospitality concept to Singapore and pray that we are mature enough to accept new stuff.

Till the next update, take care and God Bless!

Your Friend,
Andy Ong