So anyway, it was an awesome view, but I should probably have looked IN the house before buying.

1. Interior Design

First time home buyers are like excited puppies; you can distract them with anything. Throw them a rag and they’ll be entertained for hours. Well in housing, that rag is interior design.

Veteran property investors know better. When they go for a viewing, they keep their emotions bottled up. Usually next to an impressive collection of empty vodka bottles. These people make money because they’re jaded, stressed, and soulless. But more importantly, because they’re not the least bit moved by a nice feature wall.

For another $15,000, we put your face on them. Talk about real class and value huh?

Here’s some advice from Mr. Charlie Sng, procurement officer and property speculator:

“The most important things are price and location. I am not interested to hear which designer or what finishing, or granite or sandstone or whatever. The only question is: What is the surrounding value, what are the returns? End of story.”

So don’t be dazzled by design. Look at the hard numbers, and keep to your budget.

2. Early Bird Discounts

Most property developers have a sales target of 70% on launch day. In fact, anything below that is considered quite disappointing. When word gets out that a particular development had “very few” buyers, revenue plunges faster than necklines at the STAR Awards.

For this reason, developers like to offer “early bird” discounts. This ranges from direct price discounts (pay less per square foot) to absorbing certain stamp duties. But blink and clear the smoke from your eyes: These discounts are trivial compared to the 10 or 15 year commitment of a home loan. Also, no discount will compensate for inaccessible location or bad amenities.

Of course there's a discount. I'm discounting your intelligence right now.

Finally, check that all the discounts being touted apply to you. It’s not unheard of for amateur buyers to be enticed by the absorption of stamp duties, only to discover those stamp duties never applied to them in the first place. American buyers, for example, do not pay the 10% Additional Buyers Stamp Duty.

3. The Showflat

Showflats don’t resemble actual interiors. For starters, showflats are built on very expensive budgets. Unless you have an extra $50,000+ in the bank, you won’t be getting the same set-up. Yeah, this might be the only business where the display unit is 70% inaccurate.

I’m not just talking about sofa sets and lights here. Sometimes, doors are repositioned, extra windows are thrown in, and entire walk-in wardrobes or kitchen islands are installed. You might find none of these in the actual flat, so don’t base your decision on what you see.

I dunno, I got a suspicion it doesn't come with everything I see here.

To be sure, ask the sales staff which features are part of the property, and which are just for show. Be especially wary of sliding glass doors or balcony features, which are favourite ways to make the space seem wider.

4. Easy Rental Promises

A favourite promise by property agents is easy rental income. The loan repayment will work itself out, they’ll say, because everyone wants to rent that location. Look at the surroundings: They’re in high demand, and vacancies are filled in days.

But Mr. Sng suggests you shouldn’t be swayed by this argument:

“Of course got no vacancy. Everywhere also no vacancy if the price is right. But the question is how high can the rent be?”

Actually, I think your toilet sewer pipe *doesn't* count as a basement.

Mr. Sng also feels that rental should not be the sole consideration when buying property. He feels that, even if a property can be rented at high prices, the major considerations are resale and a high COV.

“Don’t be so optimistic. When times are bad, expats will go home. Rental market is the first to suffer. Don’t just think about rent, rent, rent. Think about your holding power. No holding power, don’t buy. Don’t care whether you can make from rent.”

5. Word of Mouth Reviews  

The Internet magnifies everything, including idiocy. Case in point: Large crowds of property buyers, who prompt each other into aggressively higher bids.

But the best property investors are intensely hype-averse. They’re so allergic to bull crap, they break out in hives just walking across a paddy field. And these are the people you should be looking to. Your info should be coming from H88, iProperty, or Mr. Propwise; not from Mr. Su Ka Liao next door. Preferably, get a copy of Secrets of Singapore Property Gurus for some general outlines.

Hey, you out there. Yeah you. Is this place worth buying? You have the better view.

Don’t jump in with the herd. When a property agent squeals that “Everyone is buying! We’re already getting cheques!” Just take a deep breath and find a quiet spot. An old Warren Buffet adage applies well to Singapore’s property market:

Be greedy when others are fearful, and be fearful when others are greedy. 

(On an irrelevant note, the same adage is terrible for picking a food court).

Image Credits:
dinuks, hslo, bpsusf, YoTuT, PinkMoose, nicubunu.photo

What do you discount when hearing a property pitch? Comment and let us know!

There are no sharks in the pool. Property agents aren't allowed to bring relatives.

What Happened in April?

What happened is 2,487 new units got sold by developers. That’s a 3.9% increase from March, and the biggest record in three years. It’s also the third straight month that private home sales exceeded the 2,300 mark.

And just days before, the Ministry of National Development (MND) claimed cooling measures “are working“.

Yeah, sure they are. They’re “working” like I work after five on Fridays.

While cooling measures have caused modest price declines, the growing sales volume suggests nothing’s under control yet. Resilient demand, coupled with unrealistic investments (i.e. shoebox apartments, Sky Habitat), are propelling Singapore’s property market toward a potential crash.

Why’s it happening? I put it down to:

• Uninformed Optimism
• Low Interest Rates
• Shoebox Apartments
• HDB Prices vs. Private Home Prices

With great pleasure, I present our government's new community plan.

1. Uninformed Optimism

To the layperson, Singapore’s property market is the Nirvana of the investment world. It’s been spiralling upward since 2007, despite efforts at government control.

It doesn’t help when tycoons like Li Ka Shing claim that, no matter what the price, they’ll buy property in Singapore. Because of our herd instinct (yes, I’m flat out saying it, and I’m Singaporean. So Moo moo), we skip other investment options.

Insurance? Too slow.

Structured deposit? Too complicated.

Forex or stocks? Too risky.

No, the answer is property. Property will cure all our financial ills. It will ensure our future, bring social status, and cure lung cancer.

It's half full of course. Anyway, I have an alternative investment selling life insurance in Iraq.

You laugh, but until educational intervention takes place, this irrational optimism will keep plaguing the property market. Mr. Charlie Sng, a successful property investor since ’93, mentions that:

“The government should run free courses at community centres. Teach people what will happen if they have to default on their loan. Show them what are the realistic returns when they buy their shoebox flat, or how the bubble has to burst.”

2. Low Interest Rates

SIBOR and SOR have stayed low for some time, and home loans are at their cheapest in years. To Singapore’s growing middle-class, this is an opportunity to move into the property market.

There is a notable disparity between HDB loans (2.6%) and the typical bank loan (little over 1%). Because newcomers to the market are unfamiliar with the terms (e.g. pre-payment penalties, lock-in clauses, collaterals), bank loans can create an illusion of affordability.

And for my next trick, I'll make *logic* vanish.

“Why get a HDB flat on a HDB loan,” some are thinking, “when we can risk getting private property on a bank loan?”

Often, this question is answered when they’re in the queue for charity porridge.

So if you happen to think this way, please do your homework. At the very least, make sure the bank loan is really as cheap as the banker claims. Visit sites like SmartLoans.sg, to compare the latest interest rates from all the banks.

3. Shoebox Apartments

Oh for the love of…are people still buying these? I already have two articles about this, and the Minister for National Development (Mr. Khaw Boon Wan) has repeatedly warned against it. The MND even threatened to start taking steps.

(Hah, I’d like to see what those “steps” are. A strongly worded letter? A disapproving glance? Spitballs?)

No, I don't know. What CAN you and your friends do with those fists and bike helm…arggh, my face!

There’s been a glut of shoebox flats lately; apartments that are 500 square feet or below. Because shoebox flats have low quantums and high rental yields, they’ve become a “get rich quick” scheme for amateur investors. These investors expect similar performance to central region shoebox flats, so they’ve been buying like aunties at an OG sale.

I’d comment on their expectations, but I’ve been told to cut back on words like “ass”.

4. HDB Prices vs. Private Home Prices

Ever since November 2011, HDB prices have been climbing at significant rates. The property market needs to invent a technical term for this, and I suggest “scary as hell“.

Thanks to a variety of reasons, such as rising median COVs, HDB flats are threatening to hit prices that were once exclusive to private housing. There have been reports of HDB flats hitting the $900,000 mark; and while a bumper crop of 8000 flats should help, it doesn’t change the fact that HDB flats aren’t as cheap as before.

Save money? Dude, the only thing cheap about this place is you.

To some buyers, such as Ms. Adeline Tay:

“Whether it’s private housing or HDB, it’s both quite expensive anyway. So if in either case I’m going to be paying for  30 years, I may as well just bite the bullet and get a condo. I think the price difference isn’t big enough to prefer HDB over a small condo any more.”

Image Credits:
ssedro, disrupsean, _Fidelio_, stevendepolo, NewNation.sg,  NewNation.sg (final Image), neajjean

Why do you think private home sales are up? Comment and give us your opinion!

Yeah, sure it works. It transformed my money into less money.

What’s a Forex Bot?

A good way to rip-off amateur investors. Also, any sort of software designed to buy and sell on the foreign exchange, on the end-user’s account.

The earliest Forex bots were simple tools; they allowed Forex traders to automate spot transactions. In time, some traders realized that amateur investors were really impressed by this. Amateur investors are also impressed by crayon scribbles, so long as you put “J P Morgan” on it.

Some traders then started to write Forex programs (bots) that automatically bought and sold according to various algorithms. They claimed that, thanks to their super secret algorithms, any end user would be able to trade like an expert.

Of course, it's drafted by the CFO's son. Just take our word for it.

It took minutes for every third rate programmer and scam artist to jump on the bandwagon. Today, there are Forex bots coded by people who think the Euro is a German dance move. There is incredible diversity in the types and performance of Forex bots, and their costs range from free to several thousand dollars.

Forex bots have become unpopular, because:

• There is no accountability
• Amateurs can’t evaluate bot performance
• Bots can make trading harder, not easier
• Bots have high risk defaults
• They are not less stressful

1. There is No Accountability

There’s no way to verify the seller’s claims, not when it comes to Forex bots. What, you’re going to check every last (fake) review?

Even if you manage to verify some of the reviews (I have no idea how), remember you don’t have statistics on the number of end-users. For all you know, the claim may feature one success storey out of 10,000 end-users. It’s the equivalent of casino or lottery advertising: Look at this one guy who won so much! Forget the thousand odd losers behind him!

Look, there are real testimonials. From bigbux 1, bigbix 2, bigbux 3…many different people.

Also, you have no idea who’s coding the Forex bot. It might be a veteran Forex trader / coder (true for bots like Forex Decimator). It might also be a part-time student, who agreed to do it for $.350 and a Mars bar.

Forex software may look complicated, but remember: If no attention is given to the algorithm, any code monkey can write a program with a bunch of links and spreadsheets, then off-load it at $400 a pop.

2. Amateurs Can’t Evaluate Bot Performance

When I asked which Forex bots can perform, I was e-mailed a list with more statistics than Enron ducking for cover. But apparently, this was the point the investors wanted to make. One of them (who wanted to remain anonymous) wrote:

“Is that making money? Most of the trades are profitable, but it’s exposed to outsized losses. You see very a nice picture, but you don’t understand that a single loss will wipe out the whole lot. The risk is so high that the small gains are not worth it.”

Of course I understand it. The purple line thinks the blue line is a ****, and they're separating.

A simplified example: It’s like playing a game of Blackjack where, every hand you win, you’ll make $10. But a single loss will cost you $1000. Even if you win 10 straight games in a row, a single loss will more than wipe out the profits. On paper, it looks like this:

10 wins, 1 loss. (Looks awesome right?)

In real money terms, it looks likes this:

Won $100, lost $1000. (Still think it’s awesome?)

When a Forex bot reports on its performance, it likes to use the former. It reports how many successful trades it made, but seldom reveals the real risks. If you know how to analyse the numbers, it’s not an issue. But most beginners couldn’t tell a pip from a Charles Dickens novel, let alone interpret the statistics.

3. Bots Can Make Trading Harder, Not Easier

Some bots come with in-built analysis tools. These measure everything: Performance of odd currency pairs over variable periods, interest rate differentials over the years, general movements over time, the temperature of your chair based on your ass size, etc.

Except none of these fancy tools (which are used to justify the price) actually do anything. Imagine driving a car with 35,000 gauges on the dashboard, and trying to read every one before making a decision. Not only is it unnecessary, it’s confusing.

You don't need to be an experienced trader to use this! You just need a Masters in Finance.

Day trader Marcie Kwong wrote that:

“The benefit of Forex trading is that it’s SIMPLE. There are just four currency pairs*. Compared to the stock market, which has 80,000+ stocks, Forex is supposed to make choices easier. When you start over-analysing everything, you’ll just confuse yourself and become unable to make a decision. You may as well go to the stock market.”

*Most traders deal only with four currency pairs. Other combinations exist.

4. High Risk Defaults

Letting the bot bet your money is like inviting a blind stranger to drive your car. Fast. Default settings let the software make hair raising bets, and their algorithms may require it.

Forex bots have been known to risk 5-10% of your capital on a single trade. If you can swallow that, your other fun activity might involve scuba-diving with piranhas. Many Forex bots also have a very large stop loss, or no stop loss. In other words, the bot won’t close a trade until it accumulates a certain percentage of winning trades.

Many Forex bots are built to accumulate 99% winning trades. Until then, it will keep risking your money. And that’s a long time to be leaving your money out there.

We made the risk management settings more graphically intuitive.

5. They Are Not Less Stressful

Supposedly, a benefit of bots is that they remove the stress of trading. A bot turns your Forex account into a glorified jackpot machine: You put money in, and hope something comes out. If nothing does, no big deal. But one user denied this:

“It’s still the same. Even if you use a bot, you still will want to keep checking. You’ll still worry is it going up, is it going down, should I put a stop to it. There’s no difference.”

It comes with a stress reduction kit. Do you have duct tape and a wall?

Some of the traders suggested that, just maybe, a bot has an advantage because it won’t get emotional and panic. But in terms of overall stress or anxiety, a bot doesn’t help. If you’re the sort to worry about trading, you’ll still be downing Xanax at work, bot or no bot.

Image Credits:
gurucrusher, drewzuckerman, betsyweber, spierzchala, Victor1558, blogefl, eamoncurry123, renaissancechambara

Do you use a Forex bot? Comment and tell us about it!

A recent article in The Straits Times highlighted the growing trend of home owners and tenants renting out spare rooms to paying guests for short periods of times (such as a few days). Websites such as Airbnb, Wimdu, 9flats and Roomorama have sprouted out to facilitate these lettings by effectively creating a marketplace for renters and rentees.

Airbnb currently has over 230 listings for rooms for rent in Singapore, which can be stayed in for as low as $40 a day, or less than one fifth what a typical hotel room would cost. Some hosts even offer premium services such as breakfast and complimentary toiletries and EZ-link cards.

From the host’s perspective, it’s a great way to earn some extra dollars from a spare room, while from the guest’s perspective they can save a lot of money and get a different experience versus staying in a hotel.

The catch? It’s illegal

Sounds like a win-win idea… but it’s illegal. According to the Urban Redevelopment Authority (URA), private residential properties can only be rented out or sublet for periods of six months or more. A spokesman said they would investigate cases of breaches, and those caught will be issued enforcement notices. If they do not stop they can be fined up to $200,000 and/or jailed for up to a year. Neither the HDB nor JTC allow short-term subletting either, so those caught doing so can face penalties. HDB homeowners may even get their flats confiscated.

The URA’s rationale for banning this practice is that “transient occupiers” may disturb and inconvenience other residents. A Singapore Hotel Association (SHA) spokesperson voiced concerns about how unregulated guesthouses could compromise the safety and health of the guests, and that any complaints from tourists might create adverse publicity for Singapore.

Is the renting out of rooms really that bad? 

Personally, I believe that short-term room renting should be allowed. As one of the hosts in The Straits Times article put it, doing so “democratizes the marketplace” and is a win-win for both the hosts and guests.

For the hosts, they can earn extra income from their asset while meeting new people from around the world. For the guests, they have a greater choice of accommodation at affordable prices, and can choose the experience they would like to have. In my travels, my favorite places to stay were often not the fancy hotels but small bed and breakfast places where you get to enjoy the local hospitality.

If this practice became widespread, the losers would be the hotels and hostels as they would face greater price competition and an increased supply of rooms, which is probably why they are against it. In my opinion, the risks stated by the URA and the SHA are probably overstated, given that this practice has been going on for over five years and we do not seem to have any major incidents arising from it.

Of course, if renting out rooms were allowed, the URA would still play a vital role in investigating any complaints lodged by neighbors and residents if a nuisance was being created, and could take action against offenders instead of banning it outright.

While negative incidents could indeed affect a tourist’s impression of Singapore, I believe on the whole that allowing the short-term renting of rooms would actually have the opposite effect – it would allow tourists to experience true Singaporean hospitality, and get an understanding of the local culture that they would never get by staying in a fancy hotel. It would also allow “asset rich and cash poor” homeowners to monetize their asset and increase their incomes, while exposing Singaporeans to people from all over the world, leading to increased cultural tolerance and understanding.

Hopefully the regulations can be reconsidered, and amended to benefit the homeowners and not just the hoteliers.

Do you think short-term rentals should be banned? Comment and let is know! Or drop by Mr. Propwise and leave your opinion! 

I don't have any napkins, just use these. I refuse to waste money on paper.

* Some people confessed to stealing all their toilet rolls from public toilets. As more than two people mentioned this, I imagine it’s why you can walk into a loo at midday, and find the whole dispenser’s been cleaned out. Give the janitor a break.

1. Unused Credit Cards

Most Singaporeans don’t like to cancel credit cards, even when they’re not using them. The most common reason is sheer laziness; they’ve already applied for it, and they don’t want to end up doing it again. Because, you know, the 10 minutes it takes to drop by SmartCredit and click a few buttons is so much work.

What’s the dollar cost? Admittedly trivial. Perhaps $130 a year, maybe more with supplementary cards. But it’s not this small fee that’s the problem. Remember: An open credit line is a perpetual source of temptation. That’s why banks make it so easy to hold on to cards, even the ones you don’t seem to use.

Having a few reserve cards makes you that little bit more reckless. You’re more likely to splurge on a nice restaurant, or go clubbing even when cash strapped…just this once. And all too often, that’s where a reliance on “credit crack” begins.

If you don’t use the card, get rid of it. It’s an indirect money waster, and one of the worst sorts.

Work out the bill? I only use this card as a pocket ruler (true story).

2. Buying Drinks One at a Time

Do you know why soda cans are sold in packs of six? Because that’s the quantity you’re supposed to buy them in. Likewise, it’s the reason fruit juices and milk are sold in litre sized bottles.

When you’re going for a barbecue,  do you buy individual cans of beer? Would it occur to you to walk into 7-11 and buy three Carlsbergs and two Tigers? What kind of freak does that? It’s not cost effective, alright? And you can apply that to just about any other beverage.

Forget the piddly $1.20 bottles that you can down in 7 seconds, or 350ml milk bottles. Same goes for the single cans of soda, which can go for $1.10 each. Those are for the odd occasion when you’re out and need a quick drink. When you’re stocking your fridge at home, just buy the economy-sized quantities.

And for those of you who say “I don’t drink that much”, I have a great revelation for you. Be amazed by this remarkable tool.

Just get one first. If you're still thirsty we'll get in the car, drive back here, pay ERP and parking, and get another one.

3. Multiple Game Consoles

Game consoles have gotten cheaper with time. We’ve come pretty far from the days when getting one meant saving for a year; today a Secondary school student can afford one without help.

Which still doesn’t excuse the freaks with an Xbox, PS3, Wii, two PSPs, a DS, and a computer in the house. For some reason, Singapore’s thriving game industry has bred a mutant strain of gamers: The sort who buy consoles not to use or collect them, but just because.

It’s got nothing to do with fun, because most of the best games are cross-platform (they can be run on any one of those machines). And there’s no appreciating value here, because most of those gamers aren’t collectors. They don’t maintain and clean their console collections; they buy them at $500 – $600 a pop, play them for a week, then hurl them into a dust-pit corner of the room.

Look, if you’re going to waste money on video games (and I fully empathize), waste them on games and not game consoles. 

I need three copies of the same game. I have three consoles, so that makes sense.

4. Meaningless Smartphone Apps

Hey, can I see your smartphone? What the… there are more buttons here than there are copyright violations in China. I hope as heck they’re all free.

But they’re not are they?

In fact, I’ll bet at least half those apps were paid for. Hey, for a few bucks a pop, there’s no sting when you hit “download”. But here’s a fact: Regardless of how many apps you’ve downloaded, studies show you probably just use 10.

At most, you’ll download a cool app and marvel at it for a week or two. Then it’s resigned to a file folder on some far flung location, never to be retrieved again. Kind of like the winners’ resumes on The Apprentice.

And now you’re expecting me to say “you should only download what you need, yadda, yadda.” Well yes, that’s part of what I’m suggesting. But also, maybe the next time you buy a phone, the number of available apps shouldn’t count for so much?

I mean, when you get right down to it, telling the salesman “I don’t want a blackberry because there’s no app that simulates zips” makes you look like a moron.

I'm not losing productivity from game apps. I just…didn't get any those e-mails. All of them.

5. Seating Space

No, really, Singaporeans buy seating space. As in, when they’re waiting for someone, they like to buy a drink to justify a seat in a cafe (typically Starbucks).

It shouldn’t be surprising; in fact, high end coffee-shops count on this for business. But what’s amazing is how subtly, and how often, this can break a budget. Here’s an example of illogical behaviour you’ve probably seen (or been a part of):

Person A: Oh, we can’t go to that restaurant because it’s too expensive.

Person B: Yeah, let’s go to the cheap one where everything tastes like potential hepatitis. We’ll save $10.

Person A: Where’s the rest of our dinner gang though?

Person B: Not here yet. Let’s wait in that hipster cafe and spend $14 on overpriced coffee.

If you don’t want to stand at wait, at least find a cheaper outlet. What’s the point of getting a mocha-frappa-whateva-ccino at $5 or $7, just for a seat? It’s especially delusional to buy “just the small one”, which is an equal waste of money.

Go find a seat at Burger King or something. It worked fine when you were 14 and it works fine now.

How do I pay my tuition fees? I bet a $12 coffee will help me figure it out.

Image Credits:
narin-flickr, Wonderlane, ksuyin, PsuedoGil, Wyemji, missbossy

What are your favourite money wasters? Comment and let us know!

Hey, it's casual Friday. I'm taking my work casually. What's the problem?

1. Make Sure You’re On The Same Page

A colleague can seem incompetent because he has different frames of reference.

An example: One of my worst work disasters involved telling a colleague to “put a date on every report”. I meant for each report to be individually dated, but my colleague thought I meant “put today’s date on every report”. The end result was a sarcastic remark about how well Windows 95 was selling (in 2007), and a sudden desire to leave my boss’s office via an eighth storey window.

Would other colleagues have understood me? Yes, because after a few months, we all worked with the same assumptions. But for those who take longer to fit in, always ask how they intend to execute a task. They may have a different interpretation of what you mean.

That's a guide to bowling. This is a criminal law firm. "Three strikes" isn't as awesome as you imagine.

2. The Read Back Message

This is one of the simplest methods to use. If you know someone’s green or unreliable, ask them to repeat any important messages you give them. This method works especially well for anything involving lists or ordering systems (e.g. warehousing or waitressing).

Explain it at the start of the conversation. For example, lead with: “Hey, this is really important, so I need you to repeat it to me after I say it, okay?”

This also cues your colleagues to get a pen and paper. Good for you, since if they write it down, they’re less likely to forget it. Be sure to follow up with point 1; apart from repeating the message, you need to know how they interpreted the message.

Next, we'll take turns hand illustrating the concept, and role-playing it. Then you repeat the whole thing.

3. Describe Process, Not Outcome

For less capable (or just inexperienced) colleagues, try to describe process rather than outcome. In other words, give them a routine, not a goal.

An example of a described outcome would be saying: “What we need is something like MoneySmart; a mind blowing hybrid of extreme sports and financial news.”

An example of a described process would be: “Okay, step one, open this file. Step two, click this button. Step three…etc.”

With luck, your colleague will “pick up” after a few months. Once they’ve internalized the process, you can start including them in team goal discussions. This is micro-managing, no two ways about it; but you already knew incompetent colleagues mean more work. Between coaching them and appearing inept yourself (i.e. when they turn your project into a train wreck), pick the former. More job security in it.

And then I had to simplify the simplified list.

4. Ask Them For Help (No Really)

Some people respond to incompetent colleagues by dodging them completely. Hey, it’s less damaging right? Actually, an incompetent colleague with nothing to do is even more dangerous. They tend to find even more dramatic ways to mess up, and take all of you with them.

If anything, the incompetent should be kept even busier. A good tactic is to ask for their opinion a lot. Ask them to put it in writing (like an e-mail) if you can. This shows you are open to feedback, absolves you of potential blame (you can claim it was due to their stupid suggestion), and makes them feel useful.

This is also a great way to motivate people. Once someone has ventured an opinion in writing, they are more committed to seeing it through. If your colleague is incompetent by inclination (i.e. lazy) rather than by nature, this is a good cure.

The client's arguing and being an idiot. Luckily, you've got more experience there. Now get on this phone.

5. Periodically Offer Help

If someone’s incompetent, they may not know to ask for help. Or maybe they just don’t want to, because they know they’ll be approaching you every 15 seconds.

The solution is to be proactive. Every other day, stick your nose in and ask them what they’re doing. Note: The question to ask is not “Can I help you”, but “What are you up to”?

It's uninvited, but I better help you vacuum the office. And put out the fire you started while doing it.

Most Singaporeans will refuse your offer to help. But if they show you what they’re doing, you can throw in suggestions and request changes. Think of it as gently opening their mouth, then suddenly and violently shoving your assistance down their throat.

As an alternative, some incompetent people ask for help so much that you can’t get on with your work. In which case, you…also schedule periodic help sessions. The functional term being “periodic”. Have them drop by one day a week, or after lunch every day, to handle all their questions at once. Otherwise, you’ll be running a 24/7 FAQ service for them.

Image Credits:
L, skippyjon, James Trosh, See-ming Lee, emilydickinsonridesabmx, Loco Steve, Bennett 4 Senate

How do you deal with incompetent colleagues? Comment and let us know!

New project? Hold on while I open this coffee can. It's where I keep my morale.

1. You Don’t Want to Take Your Boss’s Place

This has nothing to do with good or bad bosses. You might have the greatest boss in the country, who lets you off before six and thinks sniffing glue in the break room is a small matter. But that doesn’t matter if you can’t imagine ever wanting his job.

Take a look at all your immediate superiors, or beyond. Do you actually want to be doing their jobs one day? Because as far as your prospects go, that’s all there is to it. Even if you stay with the company for 30 years, and get promoted up the ladder, none of that will change. That work is what your company does.

Keep working hard and one day, you'll be regional director of hot dog stand sales like me.

If the thought depresses you, it means you’re in the wrong industry. Some people have the stamina to bear with it, working their entire lives in an industry they loathe. But they’re a tiny minority. And if you’re not one of them, you’d best make plans to leave at some point.

Accumulate your emergency six month fund, then say your tearful goodbyes when it’s time to go. Remember, if you move to another industry, you’ll be starting at the bottom again. So barring a good reason (e.g. you are immortal), you’d better not dally.

2. You Burned Out

Job burnout is a very real effect. Some people aren’t wired to do the exact same thing, eight hours a day, forever. Just like Windows Vista, you will at some point get tired and stop working.

It won’t be a conscious decision either. One day you’ll drag yourself out of bed, and realize you’d prefer a root canal with a crowbar than another budget meeting. Then you’ll find yourself missing deadlines, messing up projects, and holding conversations with carpet stains. Once this happens, you have two choices:

1. Go on a long holiday
2. Change jobs

And if the holiday doesn’t cure you…well there’s only one other option there.

These are my 194th ad sketches. I drew them with no faces, because that's how I see the world now. Also, this is my knife…

Burn out triggers a vicious downward spiral. Because you can no longer work properly, your performance declines. As your performance declines, your desire to work diminishes even more. The side effects are increased risk of termination, loss of career prospects, and the SCDF turning up outside your office window (with a net to catch you).

3. You are Underpaid

The usual response to being underpaid is to beg for a raise. Hey, it’s preferable to quitting your job and risking unemployment. But sometimes, the situation is futile.

Your company may want to give you a raise, but “you know, times are just bad right now”. Sometimes there’s no budget for a raise, and there won’t be for years to come. In the meantime, mounting bills will threaten to explode your letterbox.

Of course the company will help with your home renovation. Take these.

Let’s make a quick comparison to stock trading here. If the stock you’re investing in is constantly underperfoming, and has no hope of rising for several years, would you keep pouring money into it? Same with your job. No matter how much time you invest in it, no matter how great your performance and prospects are, it makes no difference when you can’t pay your bills.

If you aren’t seeing an increment at least once every four years, you should be concerned. Even a small company should be able to afford this. Likewise, be wary of having no AWS (Annual Wage Supplement), or a complete lack of bonuses for more than a year.

4. There Are Ways To Win a Meeting

You can “win” a meeting? You can “beat” a colleague by getting the last word with the boss? A work environment is supposed to bring out your need to excel, not turn you into a screaming 12 year old in a Battlefield 3 match-up.

When your work environment degenerates into warring political cliques, it’s time to re-think your job. There’s a little bit of this in every company (except MoneySmart, where I’ve killed everyone not in my faction). But there’s a limit: If you are now more focused on “beating” the opposing clique than making an awesome product, or advancing your career, it’s time to leave.

We're ready for the budget meeting now.

Apart from Annoying Amanda in legal or Stupid Sam in accounting, no one cares if you win the clique wars, okay? The world couldn’t give less of a fart after a buffet at Beans ‘n’ Beer. If you’re not in a situation where you’re securing increments and bonuses, and advancing toward senior management, you’re wasting your time.

Pack up and find a place where real work gets done. The rest of us left the school yard a long time ago.

5. You Send Secret Signals to Customers…

To run away. Sometimes, you’ll end up working for a company with ethics or values you can’t abide.

Maybe you’re a Greenpeace volunteer working for Exxon. Or maybe you work in investment banking, but dislike the taste of human blood. But you keep thinking: “Hey, it’s just a job. I need the money.” So you should just stay on and live with it, right?

The Toyota sales staff are disturbingly honest.

If I were anyone in this situation, I’d stay off Facebook and Twitter. It just takes one public mention about how ”my company sucks” to ruin any career prospects. More importantly, a mismatch in values might also mean dissatisfaction with company products or agendas. How are you going to make improvements to something you hate? That’d be like me writing blog entries for the White Aryan Resistance.

Don’t get me wrong, stay for a while if you need the money. But I do mean a while. Don’t start trying to brush your personal values aside, just because you’re too worried (or too lazy?) to find another job. Sooner or later, you will say or do something stupid. Usually the day before you get fired.

Image Credits:
Phillie Casablanca, Mattastic!, whitney waller, twodolla, nukeit1, twodolla (last image), Alan Cleaver

Thinking of quitting your job? Comment and tell us why!

Another salesman? I have a bad feeling about this.

1. Starting With The Expensive Product

Salesmen work their way up right? They’ll show you the cheap stuff first, then convince you to trade up. Well, that breed of salesmen aren’t around any more; they’re too busy stealing dog biscuits from SPCA kennels to survive.

Successful salesmen start with the most expensive item. They know you’ll turn it down, which is when they’ll lead you to a cheaper version. Which, by way of contrast, will look a lot cheaper. It’s called the Perceptual Contrast Effect.

Turns out the human mind is pretty lazy; we don’t put every purchase against a baseline measure, but make limited one-to-one comparisons. So if a car salesman shows you a Ferrari first, a Lexus suddenly seems like a bargain. At least, until you’re brain’s had time to wake up.

$6.50. Or you want our $1.20 kopi? (Got you. It's ALL overpriced!)

Another example: Just after buying a MacBook, you’re more likely to buy a $150 cover than an $80 one. It’s a rare individual who stops and thinks: “Hold on, $70 can buy me lunch for 15 days!” That $70 just vanishes from sight, because you’ve been dealing with much bigger numbers.

So what can you do about it? Take a minute to cool off. Pick up the two cheapest products, and mentally evaluate them. Then compare them to that expensive gimmick you want.

2. DITF Technique

The Door In The Face (DITF) technique is something we should be grateful for. And yes, that’s the actual term in social psychology.

It exists because our brain is wired to accept compromise. If it wasn’t, UN meetings would consist of Barack Obama trying to curb stomp Kim Jong-Un into a coma. In order to avoid fistfights every three seconds, our brains are rigged to become co-operative when the other party lowers their request. But it also works for sales. Here’s how:

Then you slam the door in their face again. After the third time, they'll either buy or the police would have arrived.

A durian vendor offers you an XO durian for $50, and you need to breathe or die laughing. He then comes back with a second offer, a $20 “normal” durian.

Yes, the perceptual contrast (see point 1) starts to kick in here. But besides losing track of the price, a part of you wants to respond to the compromise. People love to bargain. We’d rather make a counter-offer than walk away; that would feel rude.

So you counter-offer, and ask for $15 instead, and so forth. But no matter how you bargain, it probably results in victory for the durian seller: He’ll make his sale.

How do you get over it? Walk away and don’t get into a bargaining match. The longer you bargain, the more obliged you’ll feel. Take a look at the other durian buyers: no matter how low they bargain the price, almost none of them get away without buying.

Dude, I got some great deals on these durians. Also, we need to rent a truck.

3. Force of Branding 

People like to defend choices they’ve already committed to. Take a look anyone buying 4D numbers: Before they buy the number, they’re not very sure. After they buy the number, they’re a lot more confident. Everything from bird droppings to car accidents “affirms” their number selection was correct.

Think hard about that, and you’ll realize why Apple and Razer fanboys are the way they are (Not that I have anything against them; freedom of religion and all). See, when a fanboy commits to buying a more expensive device, he becomes much more certain those devices are superior.

Oh yeah? Well my phone costs so much, it means I have a bigger…

Yes, it’s brand loyalty. And if you’ve already made that first commitment, you need to shake it off. Otherwise, it’ll reach a point where said brand can gift wrap dog poop and you’ll stand in line to buy it.

The best way to break out of it is to know the product market. Test drive other brands, or borrow devices from friends. Don’t feel obliged to avoid other labels. Once you start shopping around more, your sense of brand loyalty will erode.

4. The Indirect Salesman

You know what after-sales support is? If you said “the guys that fill the warranty” or something, you’re wrong. After-sales support is the most deceptive name ever, because it’s a sales team.

Now and then, you’ll find after-sales support being extra nice to you. Say you bought a purse, and the zip broke. Instead of just replacing it, they prostrate themselves like Tang Dynasty peasants who’ve run over the Empress in a bullock cart.

In addition to replacing your laptop, I'd like to offer you my daughter's hand in marriage. Or just for a fling.

You get gift vouchers, another purse, and an option to execute the manager via lethal injection. All because of a broken zip. Well…they’re not doing it to make you stop complaining. They’re doing because they want you to be stunned, and run out telling your friends: ”This is the BEST company EVER.”

Instead of being complaint case #176, you are now a human advertisement. You have become their best salesman, highly motivated and working for free. And you will sell their stuff to your friends.

But you should know you’ve been deceived. Not everyone who complains will get the same treatment. Often it’s a single random case, picked out as a sales stunt. So the next time a friend comes running to you with “the greatest after-sales story ever”, take it with a whole shaker of salt.

Judge from your own experience, not from word of mouth.

Image Credits:
brad montgomery, Calgary Reviews, femerenda, zolierdos, quinn.anya, j.o.h.n. walker, I See Modern Britain

Have you ever been convinced by one of these tactics? Comment and tell us about it!

The SCDF complaining about the number of lit candles had NOTHING to do with your age. At all.

1. A Time Deposit Close to Maturing

Maybe it’s a fixed deposit, a structured deposit, or just plain old insurance. Whatever the case, you want to receive a nice big pay-out at around 35. Why?

30 – 35 is the age when most people buy their first property. That means at some point, you’ll be faced with the initial 20% down payment on your property. That’s a huge payout, which leaves you vulnerable. Even if you use your CPF to cover it, you’ll be exposed to dangers like sudden medical costs.

Yes, I see what you meant about your money maker. Now stop shaking it and put on some pants.

A maturing deposit might not make up for the whole down payment, but it will provide a safety measure. Also, knowing you have a maturing deposit is a big help when property hunting; you can act with greater confidence when choosing a home loan.

You should start by finding a reliable investment scheme in your 20′s. (Read: Not the pyramid scheme that Amway guy showed you at that creepy sales meet). Due to extensive regulation by MAS, fixed deposits are a good place to look.

2. A Relevant Degree

Yes, I know what you’re thinking: You’ve already been working for so long, what’s the point of getting a degree now?

Well you’re absolutely right. You’ve been working that job for so long they’d never fire you. And today’s companies make it a norm to keep people on for 20 or 30 years. Also, they’re happy to keep you till retirement age without reducing your pay, or….Gah, my hand! It’s red and itchy because I’m allergic to lies.

'Grats on your finance degree. Now, about the 19 years you've been working in this bank without one…

Look, at 35, it’s possible you’ll be looking for a job at least one more time. Even if that doesn’t happen, aren’t you interested in a senior management position? You probably won’t get there on your O-Levels.

Keep in mind that a degree has become the norm. Back in the 80′s, a degree was like a doctorate; nice, but hardly expected. Then in the 90′s, education became much more accessible. Now we even have a taxi driver with a Phd. In about 10 years, if you don’t have a degree, you’re going to be more outclassed than Ris Low at a Buckingham Palace Gala.

And you could start taking night classes at 35, but I’ll bet it’s easier at 25. So consider starting early.

3. A Job With a Health Plan

When you’re young, and you’re running to join revolutionary start-ups or SMEs, a health plan isn’t that big a deal. It’s when you hit 30 that you need to start worrying about one.

Once you reach 30, your body’s organs start to decline (wow, even my third rate body outlasts our MRT). By the time you’re 40, you’ll start needing regular health screenings. Unless your first million is already in the bank, the coming medical costs should probably concern you.

At MoneySmart, our health plan involves keeping you so fit you won't need one.

Remember: You might be unable to make insurance claims if you’re not hospitalized (ask your insurer). So if you need to see a doctor for tests, you’ll need cash or credit. Oh, and how much can those tests cost? About 783 freaking dollars the last time I saw a cardiologist. (Maybe that’s why I need a cardiologist).

Anyway, at 35, your job should involve more than “X dollars a month”. You want something that covers health and dental screenings. Because pretty soon, everything involving those is going to cost more.

4. All Rollover Debts Resolved

Rollover debt is unpaid credit card debt. It’s like snot from a bad flu; it builds up until you choke, and occasionally picking at it won’t help. You need to clear it all out at once.

Now I’m not recommending bankruptcy, but I will say this: You can afford to go bankrupt from credit card debt at 25 or 30, and still recover. At that age, you probably don’t have a family to look after. You have plenty of good years left in you, and you might not have a car or home loans.

Uh, I cut it up to stop myself wasting money. Here's $50 for a replacement.

Going bankrupt at 35+ is another matter. Assuming you take five to 10 years to clear your bankruptcy (an average figure), it means you’re discharged at 40 -45 years of age. From that point, you need to wait another five years before you can get credit again.

Do you know what it’s like trying to get a bank loan at that age? If I had to pick an equivalent activity, it’d be something like eating live porcupine, or hammering nails with your forehead. So even if it means living off rice and bean  curd for a while, do yourself a favour and kill your debt before 35.

5. At Least One Form of Side Income

I don’t care if it’s Forex trading, franchise ownership, or just a money making hobby. You need at least one alternative income source, in order to:

• Provide for retirement
• Overcome pay cuts or lack of increment

At 35, you’re understandably hesitant to walk off and find a better job. It’s not impossible of course; it’s just a lot easier to rip your pants off and butt-mambo on the boss’s desk (i.e. quit) when you’re younger. By 35 you probably have dependents, so telling your boss to walk off a pier is a lot harder.

Sure it's viable but…maybe you need ONE more song besides Pumped Up Kicks?

Then there’s the issue of retirement, which you should start planning for. CPF provides for necessities, but it won’t maintain your current standard of living. If you want to buy that plasma TV or condo in your golden years, don’t count on CPF handouts.

So look around, experiment, and upgrade yourself. Find that “one extra thing” you can do to boost your income, and be an expert at it by 35.

Image Credits:
Chris Radcliff, Dominic Soon, chelmsfordblue, LachyLeung, 1967b, AIM Neutron

Got everything you need already? Or working on it? Comment and let us know!

All our renovations are functional. That sofa, for example, conceals the burst toilet pipe behi…oops.

What Are The Factors?

For the most part, renovations don’t play a big role in the official valuation. But when you take into consideration extras like cash over valuation (COV), renovations do result in a higher sale price. The factors that make renovation matter are:

• Buyer’s Experience And Intent
• Current Median COV
• Designer or Contractor
• Prevailing Design Trends
• Functionality of Renovations

In conclusion sir, the buyer's reluctance has less to do with your flooring, and more to do with your referring to her as a stupid cow.

1. Buyer’s Experience and Intent

If you’re selling to a property investor, your renovations are as relevant as your hair style in a bar fight. Most property investors are not looking to move in, so it doesn’t matter how pretty your chandelier is.

Property investors will stick close to the valuation. If they’re interested in rental yields, they only care that the place looks neat. In fact, if they’re looking to rent, renovations can even be a disadvantage. Can you imagine renting a house with vertical gardens or a crystal chandelier to college students? There’d be European debts smaller than the monthly repair bill.

Perfect for anyone who spends their life watching TV, drinking beer, and staying unemployed. (i.e. The clientele of every Lucky Plaza KTV).

With home buyers, the situation is different. Comfort is their main focus, so renovations can prompt them to pay more. Also, home buyers tend to be less experienced than property investors; they may not know the hard rules of location and resale value.  As such, they may prize the cosmetic features of the property over its real value.

2. Current Median COV

However pretty your renovations look, the current median COV will be the main determinant. The COV determines the amount paid for the property above the official valuation; it’s a sensitive issue, because a bank loan does not provide for it.

So before forking out for renovations, take look at COV prices in your area. If the median COV is low ($10,000 or under), then don’t expect your renovation to “pay for itself”. Singapore’s property market is highly efficient; with sites like iProperty, H88, and SmartLoans, there’s almost no chance of suckering a buyer.

If the median COV in the area is $10,000, then paying for a $50,000 renovation gets you…well, 40,000 reasons to take up adult maths classes.

Here come the viewers. Get ready: Once Block 76 signals their new asking price, raise ours to match,

3. Designer or Contractor

Yes, a contractor can double as an Interior Designer. But that’s as clever an idea as getting your car mechanic to double as your dentist.

Interior Designers and contractors seem similar, but they’re not. Interior Designers are up to date on current trends (see point 4), and prestigious design firms can lend branding to your property. Contractors are execution stage, hands-on people: They’re the ones who stick on the tiles and drill into the walls.

When will the contractors get started? What do you mean? This IS the end product.

In Singapore, the term “Interior Designer” is not heavily regulated. At some point, contractors started calling themselves designers as well. And home owners started wondering why, after $30,000, their flat still resembles the set of Prison Break.

Since renovations in general aren’t cheap, it’s best to fork out a bit more to get a recognized design firm. Remember: If the renovations are anything short of spectacular, they won’t justify your asking price.

4. Prevailing Design Trends

Like the fashion industry, interior design has its own trends. Back in the 80′s, art deco was all the rage in Singapore. As of ’05, the industrial look has grown in popularity.

If you’re not intending to stay long, picking something “in vogue” might help. Contemporary styles (all chrome and mirrors) can make a HDB flat resemble an upmarket condo. That’s why few showrooms use traditional design schemes; they’re counting on a “wow” factor to halve the buyer’s IQ.

But if you’re not intending to sell for a while, it’s inadvisable to follow trends. The industrial vibe may be cool today, but in five years, your viewers might be wondering why you live in a factory supply closet. Traditional design schemes (e.g. country house, east Asian, high modernist) are a safer bet. They may not raise your property value, but they won’t detract from it either.

Excuse me, I think you missed a few spots with the wallpaper.

5. Functionality of Renovations

Functional renovations are the biggest contributor to COV. That is, renovations that do something besides look good. Local favourites are:

• Walk-In Wardrobes
• Wet Rooms
• Kitchen Islands
• Any sort of partitioning that allows the kitchen to double as a study room or TV room
• Bar counter seats (sometimes attached to the kitchen island)

These renovations count for more than cosmetic features, such as materials used in tiling, or a ceiling motif. The downside is that these renovations also cost more; so while they may raise your COV, your asking price still may not cover them.

It's a shoebox apartment. Can we count the entire design as a single walk-in wardrobe for billing?

In general, renovations can raise your COV, but do little to help the official valuation. Also, it tends to be high cost renovations that justify a higher asking price. Even if those renovations raise your COV, you may not see a return on investment.

As such, it’s best to treat renovations as a luxury to enjoy, rather than an investment of any sort.

Image Credits:
rogue-designs, ssedro, aenertia, abdulrahman.elections, Sarah_Ackerman, MAZZALIARMADI.IT, MAZZALIARMADI.IT (Last Image), OlgerFallasPainting

Do you expect your renovations to raise your property value? Comment and let us know!