Property vs Stocks

 Interesting video I watched last night

In the video he mention about S$450k to finance a $1.5mil property versus the investment returns on S$450 invested in stocks. But if I'm a salaried worker and I can afford a $1.5mil property that probably mean I also have a substantial amount of money in my CPF OA account and I need only S$150k in cash + S$300k in CPF. The remaining S$300k I can then invest in stocks. I feel he should just compared S$150k in cash to purchase a $1.5mil condo vs S$150k equivalent in shares....

10-15 years ago I would say as-many-properties-as-you-can-afford all day long, but with the invention of ABSD everything went out of the window. Nowadays I think minimally everyone will need at least 1 property and stocks. If a couple can finance 2 units without ABSD that's all the better. Maximize the number of units one can own without paying ABSD, once that is settled just continue to serve the mortgage and focus excess funds on building stock investments.

I don't believe in all-in on stocks without owning a property because nobody can guess where the rental market is going, and neither can anyone promise anything about the stock market. 20-30 years down the road the returns on stocks might not catch up with the rental increase. Having a roof over one's head is always better. 

In the video it was probably assumed the investor is staying rent-free with family/friends. It will be interesting if he add the following scenarios:

i) Rental income - rental rates in Singapore has increased by 40-50% in the last 10 years. But the calculation is pretty flat in the video

ii) If the investor gets kicked out of his rent-free residence after 5 years. How much will he/she spend on rental (offset with the investment gains) vs taking back his property to stay. 

For someone like me who has children, a roof over our heads is one of the most important and fundamental issue. I see alot of YOLO investors on Youtube sharing about how much you've spent and earn on the stock market. When you dig deeper you realise they are saving 90% of their salaries because they are staying with their parents, no spouse/partner and no kids. 

Damn, kids are expensive! LOL~