How much money do you have to invest ?silverstream wrote:Hello All,
I am thinking about setting up a vending machine business as a passive source of income, and still keep my day time job. Do you guys think it is doable? what is average time for getting breakeven?
Thinking setting up an elder care centre as well. but that may need full time engagement.
Do you know which bank gives 5% interest rate? the best I found is 4%.beppi wrote:For S$100k, you may get 10 - 20 vending machines.
You need to pay rent for their location. You need to have a truck and spend a few hours every day buying goods, refill each machine, take out the coins and bring them to the bank. You'll also have expenses for electricity, maintenance and repairs. You need quite some turnover at each machine just to cover these expenses.
On the other hand, investing the same amount in, say, A$ fixed deposits at 5% interest will give you over S$400/month with no extra expense and effort.
Buy condo now lah...!! Singapore property value go down cannot~!beppi wrote:So far for economic theory.
Reality works differently, as shown by the constant rise of the A$ compared to other currencies over the last few years, despite consistently offering higher interest rates. How long this will continue, of course, is anybody's guess.
You can also bet your money in an Integrated Resort. Not more risky, but maybe more fun!
I was thinking about this last week. Land and property prices are to a large extent managed by the government. Historically prices have risen solidly excluding a few years here and there where prices were beyond manageability. Rising property prices are a kind of tranquiliser to the people (owners), especially when they are born inherently greedy lol. How large does the government intend to make the population? How long can these perpetual rises go on for? In a longer term falling market people tend to become very agitated with the government 'losing them money'. I wonder whether that day will come in SG...
Usually a company suspending payments is due to them already being in a very bad light, and so as such it is almost expected. Lloyds Bank and BP are two recent examples of companies that suspended divi payments whilst in the midst of deep crisis (I understand Lloyds still aren't paying one).aster wrote:There are also perpetual "bonds" from Genting, over 5% and denominated in S$ too.
Apparently the catch is that the issuer can - at its own discretion - suspend payments. Even indefinitely.
Is such a scenario quite rare in such situations, as I take it it would put the company withholding payments in a very bad light?
Yeah, it was a joke.silverstream wrote: Buy a condo now? sound like suicide for me.
How does that work with regards to tax? For non residents of Australia you would get slugged heavily, wouldn't you?silverstream wrote:Checked Nikko AM Shenton ShortTerm Bond Fund. The return is about 2% in AUD. the platform fee is about 1%. so the gain from the difference in AUD/SGD interest rates must be over 4% to ensure a 5% return in SGD.
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