Personal Finance - Uncle Huat's Sharing

Keppel DC REIT Analysis

December 9, 2023 by Uncle Huat

Uncle write something smart a bit.

Keppel DC REIT: Powering Up Your Portfolio?

Data centers are the backbone of the digital world, humming away 24/7 to store and process our ever-growing online footprint. And Keppel DC REIT, owns data centers across Asia-Pacific and Europe. They own colocation, full-fitted, and shell and core facilities. ️ Most of their colocation centers are in 🇸🇬 🇮🇪 contributing to 2/3 of their rental income.

(In case if you didn’t realise, this is not an actual image of Keppel’s Data Center. Please hor, but this picture quite nice.)

But is Keppel DC REIT a buy? Let’s dive into the analysis:

The Good:

Strong fundamentals: Keppel DC REIT boasts a diversified portfolio of high-quality data centers across Asia Pacific and Europe, with a long weighted average lease expiry (WALE) of 7.5 years.
Resilient performance: Despite the pandemic, Keppel DC REIT has maintained positive income growth, with its distribution per unit (DPU) increasing by 2.4% in FY2023.
High dividend yield: Currently offering a 5.8% dividend yield, Keppel DC REIT is a compelling option for income-seeking investors.
Positive industry outlook: The global data center market is expected to grow at a CAGR of 11% over the next five years, driven by factors such as cloud computing, artificial intelligence, and the Internet of Things (IoT).

The Not-So-Good:

Rising interest rates: A potential increase in interest rates could put pressure on Keppel DC REIT’s margins, as a significant portion of its debt is at floating rates.
Competition: The data center market is becoming increasingly competitive, with new entrants and established players vying for market share.
Potential global economic slowdown: A recession could lead to decreased demand for data center services, impacting Keppel DC REIT’s performance.

The Verdict:

Keppel DC REIT is a solid investment option for investors seeking stable income and exposure to the growing data center industry. However, it’s important to be aware of the risks associated with rising interest rates and potential economic downturns.

For young professionals, Keppel DC REIT presents an opportunity to invest in a future-proof industry with a strong track record. However, it’s essential to do your own research and consider your individual risk tolerance before making any investment decisions.

Further Resources:

Remember, investing involves risks, and past performance is not indicative of future results. Always consult with a financial professional before making any investment decisions.

Disclaimer: Uncle Huat owns Keppel DC REIT as part of his long term investment portfolio.

T-Bills vs Savings Bonds – Interest Rate Showdown!

December 7, 2023 by Uncle Huat

Unlike choosing gf/bf – you can have both!

🇸🇬 #SgFinance: T-Bills vs Savings Bonds – Interest Rate Showdown!

Sick of your savings just chilling? Tired of earning peanuts on your hard-earned cash?

It’s time to level up your short-term savings game with Singapore’s T-Bills and Savings Bonds!

Here’s the latest on interest rates (as of 6 December 2023):

T-Bills:

6-month: 4.00%
1-year: 3.98%

Savings Bonds:

Year 1: 0.85%
Year 2: 1.20%
Year 3: 1.45%
Year 4: 1.70%
Year 5: 1.95%
Year 6: 2.20%
Year 7: 2.45%
Year 8: 2.70%
Year 9: 2.95%
Year 10: 3.20%

So, which one wins the interest rate battle?

It’s a close call!

T-Bills offer a higher initial return, especially for the short term. But if you’re looking for long-term growth and the flexibility to access your money anytime, Savings Bonds might be a better bet.

Ultimately, the best option depends on your individual financial goals and risk tolerance.

Here’s a quick cheat sheet:

T-Bills:

Pros: Super short-term, discount savings, flexible.
Cons: Low returns.

Savings Bonds:

Pros: Longer-term, guaranteed returns, flexible withdrawals.
Cons: Modest returns.

#SgSavings #InterestRates #TBillTips #ShortTermSavings #FinanceForMillennials #SGFinTech #MoneyMatters

Disclaimer: Uncle Huat have both! 😎

Breaking down of Singapore Saving Bonds ("SSB")

November 14, 2023 by Uncle Huat

Not breaking bad. SSB is good, so it is more like breaking good #UncleJoke

Part 1: Understanding Singapore Savings Bonds (SSB)

For the Investor

What They Are: Singapore Savings Bonds (SSBs) are monthly-issued, low-risk investment options by the Singapore government, first introduced in 2015. These bonds have a 10-year term with escalating interest rates to reward long-term investors.
Investment Flexibility: You can start with as little as $500 and go up to $200,000. Plus, you can cash out anytime in multiples of $500 without major penalties – just a $2 fee.
Interest Payments: SSBs pay interest every six months, tax-free, with rates stepping up annually. Currently, they offer around 3.32% average over 10 years, reflecting the current interest rate environment.

Part 2: Why Choose SSBs? And What’s the Catch?

Balancing Pros and Cons

Virtually Risk-Free: Backed by Singapore’s government, these bonds are super safe, meaning you won’t lose your initial investment.
Liquidity Plus: You can access your money whenever you need it, with minimal fees, making SSBs great for emergency funds or short-term savings.
Diversify with Ease: SSBs are a smart addition if your portfolio is heavy on stocks or corporate bonds.
Cons to Consider: While safer, SSBs offer lower returns compared to some other investments. Higher returns come later in the 10-year term, and monthly issues mean interest rates can vary.

Part 3: Getting Started with SSBs

Investing & Redeeming Made Simple

Prep Work: Have a local bank account and a Central Depository (CDP) account linked to it.
Application Process: Apply through ATMs or online banking between specific dates each month. Remember, there’s a $2 application fee.
Allocation & Interest: Check allocation on the 3rd last business day of the month. Enjoy semi-annual interest payments directly to your bank account.
Redeeming Bonds: Redeem anytime in $500 multiples via internet banking. You’ll get your investment and accrued interest by the 2nd business day of the following month.

How to buy Treasury Bills? (T-Bills)

October 25, 2023 by Uncle Huat

🍍Lai lai huat ah buy T-Bills

What is this T-Bills?

Singapore’s Treasury Bills (aka T-Bills), backed by our awesome and prudent Singaporean government, are a prime choice for risk-averse investors. These short-term debt securities offer capital preservation, low risk, and predictable returns, making them an excellent option for those seeking safety and stability in their investments. Especially during these uncertain times with rising interest rates, the current T-bills have better rate of return than bank’s interest. The Government issues 6-month and 1-year T-bills.

How do I buy T-Bills as part of my investment plan?

The 6-month T-bills are issued every two weeks (as of the date of this article we are in the reverse interest rate era, where shorter investment results in higher interest rates), the 1-year T-bills are issued every three months.

Check out the Auctions and Issuance Calendar for details on the latest T-bill issuances.

You can buy the T-bills using cash, supplementary retirement scheme (SRS) funds, or CPFIS Investment scheme funds.

💰 Cash

To buy T-bills using cash, you need a bank account with one of the three local banks (DBS/POSB, OCBC, and UOB).

You will also need an individual Central Depository (CDP) account with direct crediting services activated. This is to allow your coupon (meaning your interest income) and principal payments (your capital money) to be credited directly to your bank account.

Once prepared, you can apply for the T-bills through your banks (DBS/POSB, OCBC, and UOB) outlet or the banking app.

If successful, the transaction would be reflected on your CDP statement in 2-3 working days.

CPF Investment Scheme (CPFIS)

You can use your CPF’s ordinary account to buy T-Bills, especially in this current era where T-bills are around 3%-4%, while your CPF OA is paying 2.5% only.

You would need a CPF Investment Account with one of the three CPFIS agent banks (DBS/POSB, OCBC, and UOB).

You can apply online, depending what banks you are using:

If all fails, you can submit an application in person at any branch of the CPFIS bond dealers (DBS/POSB, OCBC, and UOB) when buying using your CPFIS-OA account.

Netflix is no longer chill

February 15, 2023 by Uncle Huat

You shouldn’t “steng” cigarette with your mates in Singapore as well.

🇸🇬 In Singapore this week

No More “hun jikki” – SG’s budget raises tax for cigarette.

More grant for first time homebuyers to buy HDB and if you earn more, you should save more! CPF contribution to be increased.

Thanks for reading Uncle Huat’s sharing! Subscribe for free to receive new posts and support my work.

For more news, you can check out the link here

BTO but divorce, then how?

TLDR: HDB take back, refund deposit. No possession gain, relationship lost.

A woman has won a court appeal to get her ex-husband to transfer his share of a Build-to-Order (BTO) flat to her. The couple married in 2015 and applied for the Tampines flat in 2017, but the man left the family home in 2019 and divorce proceedings were initiated in March of that year. The couple had not yet taken possession of the flat, nor made full payment for it, and the divorce court had ruled that it be returned to the Housing and Development Board (HDB) and refunded to both parties. The woman appealed this decision and offered to pay the ex-husband whatever he had paid towards the deposit, stamp, and conveyancing fees, with accrued interest, in exchange for the transfer of his interest in the flat to her. This offer addressed the judge’s concerns that the woman’s stance was unreasonable and that she would potentially gain a windfall if the flat was transferred to her. The appeal judge noted that there was no windfall to speak of and that the flat was not yet an asset that could be sold in the open market. Read more from the news here.

No Money, No Honey

TLDR: Man got rejected, sue the girl. Girl sue back.

A man has launched two lawsuits against a woman in Singapore, one for $22,000 in damages for breach of agreement to improve their relationship, and one for $3 million for emotional trauma. The first lawsuit was thrown out by the Magistrate’s Court and the deputy registrar called it an abuse of process. The pair first met in 2016 and became friends, but problems arose in 2020 when the woman asked for less interaction and the man felt their relationship was stepping back. The man went on to initiate legal action, making unreasonable demands and referencing a list of expected improvements that was later used as the basis for his $22,000 claim. Read more from the Read more from the news here

She strikes back!

A woman in Singapore is countersuing a man who is suing her for SGD 3 million ($2.2 million) after she rejected him. Nora Tan Shu Mei is seeking damages of SGD 1,480 ($1,082) for expenses incurred to protect herself from harassment and SGD 1,000 ($722) for expenses incurred while participating in “healing” sessions and counseling at the man’s request. Tan is also seeking damages for future counseling expenses. K Kawshigan, who is a director at drone company D1 Racing, launched two lawsuits against Tan after she told him that she saw him only as a friend. Read more from the news here

World News 🌏

Netflix no longer chill

Netflix may soon end password sharing by tying accounts to a single location. The new plan would require users to pick a “primary location” or be charged an “extra member” fee if a device connected to the account doesn’t access Netflix using the location’s Wi-Fi every 31 days. This move follows Netflix’s loss of subscribers for two consecutive quarters in 2022, and the company’s efforts to cut back on password sharing, including charging fees for extra users in Latin America and allowing users to kick off profiles from their own accounts, have already helped the company recover subscribers and add more than it expected in the last quarter of 2022. Read more from the news here

List of Personal Finance blogs and websites in Singapore (Jan 2023 version)

February 1, 2023 by Uncle Huat

Money Sense

MoneySense is a national financial literacy initiative in Singapore, led by the Monetary Authority of Singapore and Ministry of Manpower. It offers a wealth of information and resources to help people in Singapore understand financial instruments and concepts. The website is non-profit and a trusted source for personal finance.

Money Smart

MoneySmart is a pioneer in Singapore’s personal finance space and offers a wealth of information on various topics in an easy-to-understand manner for beginners. It’s a great starting point for learning about personal finance.