Tuesday, February 26, 2008

Even the dregs of society also have thier dreams

You must certainly remember this two golden rules until the fear of death takeover your life.

First, never ever forsaken your dreams even the dregs of society also never. They also dreams to be the best among all the dregs. Moreover we are far more better than them.

Secondly, do your best!

"In city of liveliness, there has a lot of trash which ultimately collected at trash collection whereby the city does not want. Therefore, who said trash has not been useful?"

This is a statement copy from a Korean's sitcom that a school teacher encourage her student to do whatever they like in future irregardless of attending University's education.

Four of her students graduated respectively have their different destiny. There is called real life after graduated. No matter how tough it will be, as long as we do our very best which own likes it's worth to chip in our effort.

Ask oneself, I have no regret for whether I have achieved so far. How about you, my friend?

Friday, February 22, 2008

Why my bussiness loan application get rejected???

There is a hundred thousand of reason to reject a loan application. One of the most common reasons is burst DSR. Some may wonder what DSR means is over here. Well it is just another abbreviation of Debt Serving Ratio. As a normal applicant the maximum DSR is not more than 75%.

Another common reasons credit operation using to reject an application may sound funny but it is true. Low credit bureau score or fails credit bureau score which means the applicant is not a good payment in all credit repayment.

A consumer credit bureau is a repository of factual information on the credit application and repayment records of consumers only. A credit bureau provides this information to its credit providers (banker), under authorized conditions, to help them to determine whether or not the person applying for credit is likely to repay. In doing this, a credit bureau helps lenders to make better lending decisions quickly and objectively. It also guards against fraud. Credit bureaus are a common feature of developed countries around the world, and this concept is not unique to Singapore.

Recently I’d a customer with CBS (again abbreviation) as low as 50. In another words he is consider bankrupts and black listed by banking sector. Normal credit bureau score is about range from 189 to 210. And my score definitely more than 230!

This means that the more credit you are using the lower is your CBS. The lesser credit card you hold on hand the higher chance you get out of rat race. So my dear friend, only spend under your means because the banker always win!

How to get rich?

If you’ve ever wondered how the rich get so obscenely rich, it’s not because it’s in their blood or because they attend the best schools. The reason is much simpler than that. You see, while you work hard for your money, rich people make their money work hard for them; they have the power of Passive Income!



There are three types of income - earned, portfolio and passive income. Most types of passive income are derived from real estate/property, while other types of passive income are derived from royalties from patents or license agreements.An income stream falling into passive income category is one where money is received usually on a regular basis, without continuing effort. This does not mean no effort at all; most passive income streams require great effort to start with.



Some Examples:
Automated web business.
Interest Income paid from bank deposits.
Rental income from real estate/property.
Royalties from writing a book.
Dividends from shares holding.
Selling digital files like software / ebooks or scripts or offering a service that doesn't require the merchant's intervention. In these cases, PayPal IPN may be used to achieve this.
Network marketing.
Have fun choosing your favorite way to financial success!

Why my housing loan application got rejected???

I believe there are more than a handful of people out there who have the same question on their mind when their housing loan applications got rejected by the banks. But how many actually know what goes on behind the scene in credit processing?Besides the normal credit checks, banks have a standard procedure to calculate your Debt Servicing Ratio (DSR) to check if you meet their internal criteria. i have summarized the steps require to tabulate the DSR (may differ from bank to bank):

Scenario:
Client A (40 yrs old) would like to buy a freehold private property with indicative value of SGD 1,000,000. He is planning to take a loan from the bank for 20 years. He has a CPF lumpsum of SGD 350,000 sitting in the OA account after working for many year. He also have FD Savings of SGD 200,000 with a bank. He has a outstanding car loan where he pays a monthly installment of SGD 700, and a monthly installment of SGD 300 on his Credit Card. If he earns $4,500 gross employment income every month, will his loan application be approved (for 80% financing package)?

Step 1:
Calculate Stamp Duty requirementStamp Duty
Calculation:
1st $180,000 – 1%2nd $180,000 – 2%Subsequently – 3%
For property worth more than $360,000, you may use the following short cut formula:
Stamp Duty = Property value * 3% - 5,400
For Property Value @ 1,000,000Stamp Duty= 1,000,000 x 3% - 5,400= 24,600

Step 2:
Calculate Maximum Loan Amount (80% financing)
Private Property VL = $1,000,000
Maximum loan amount = $800,000

Step 3:
Calculate Monthly installment for the loan after deducting CPF lumpsum
CPF lump sum available = $350,000
FD = $200,000
Stamp Duty = $26,400 (use CPF to offset)
Nett CPF available to use = $323,600
Loan Tenor required = 20 yrs
Income = $4,500 (Gross)Car Loan = $700
Credit Card Monthly
Installment = $300Generic 80% loan package @1 yr 3.50%2 yr 3.75%3 yr 3.98% (normally banks will take the largest to calculate)
Actual loan required= $1,000,000 - $200,000 (FD) - $323,600 (CPF Lumpsum)= $476,400 (less than 80% - ok )

For 20yr loan @ 3.98%, monthly installment:Loan required (PV) = $476,400
Tenor (n) = 20 x 12Interest (i) = 3.98/12
Compute montly installment (PMT) = $2881.87 (require amortization)

Step 4:
Calculate DSR (most bank uses 40% as benchmark)
Total Current Liabilities = $2881.87 + 700 + 300 = $3881.87
Debt Servicing Ratio (DSR)= Total Current Liaibilities / Total Gross Income= 3881.87 / 4500 * 100%= 86.26% > 40% (Loan will be rejected)

Options:
1) Get one Joint Applicant with income > $5204.68 (3887.87/40% - 4500)
2) Reduce loan amount
3) Increase loan tenor + joint applicant

Note: Most banks have age limitation on the applicant; they restrict the maximum age of applicant after the expiry of the loan to be at 65 years. In above scenario, Client A will be 60 years old after the loan expires, thus still within the age limit. Take note that legal fees not taken into account.

Save Now Not Later

When should one start saving?

Check out the follwoing examples to find out:
Scenario 1
Ali, 20 years old, saves $100 per month @ 5% p.a.
At 40 years old, Ali would have contributed $24,000, and earned an interest of $17,275

Total Savings = $24,000 + $17,275 = $41,275

Scenario 2
Billy, 30 years old, saves $200 per month @ 5% p.a.
At 40 years old, Billy would have also contributed $24,000, but only earned an interest of $7,186

Total Savings = $24,000 + $7,186 = $31,186

By delaying your saving plans, the same amount contributed would result in significantly lower returns!

Lesson of the day get a higher yield of return for your money. Let your money works harder for you.

Tuesday, February 12, 2008

Thought of the day - Winner VS Loser

The Winner Loser is always part of the answer;
The Loser is always part of the problem.

The Winner Loser is always has a program;
The Loser always has an excuse.

The Winner Loser says,"Let me do it for you;
The Loser says;" That is not my job."

The Winner Loser sees an answer for every problem;
The Loser sees a problem for every answer.

The Winner Loser says," It may be difficult but it is possible";
The Loser says,"It may be possible but it is too difficult."

When a Winner Loser makes a mistake, he says," I was wrong";
When a Loser makes a mistake, he says," It wasn't my fault."

A Winner Loser makes commitments;
A Loser makes promises.

Winners Losers have dreams;
Loser have schemes.

Winners Losers say," I must do something";
Losers say,"Something must be done."

Winners Losers are a part of the team;
Losers are apart from the team.

Winners Losers see the gain;
Losers see the pain.

Winners Loser see possibilities;
Losers see problems.

Winners Losers believe in win/win;
Losers believe for them to win someone has to lose.

Winners Losers see the potential;
Losers see the past.

Winners Losers are like a thermostat;
Losers are like thermometers.

Winners Losers choose what they say;
Losers say what they choose.

Winners Losers use hard arguments but soft words;
Losers use soft arguments but hard words.

Winners Losers stand firm on values but compromise on petty things;
Losers stand firm on petty things but compromise on values.

Winners Losers follow the philosophy of empathy: "Don't do to others what you
would, not want them to do to you";
Losers follow the philosophy, "Do it to others before they do it to you."

Winners Losers make it happen;
Losers let it happen.

Strike off losers.

Source Unknown

Monday, February 11, 2008

Room for Improvement

We always keep repeating the above phase from our mouth without any intention. Just wondering how many of us knowing the meaning of that common phases. Who will border about this unless this will feed our stomach. But who not cares?

Somebody throw out a few sentences to impress me by saying:
"Room for improvement is some kind of motivation for loser."Hurray!!
"Some kind of room or space that you can stretch to."(bullshit)
"Your form teacher's comments on your year end scorecard."
"A drive to self-motivation to be a better person."
"An excuses for poor performer to perform better next year."
"For whatever reason it is just mind your own business."!!@#$%

Well there is no standard answer for a common question. As long as you are happy with it just stick to your very own answer. By the way, what is the different between 95% and full mark? I rather be a 95% perfect than 100% as we know achieving is easy but hard to preserve.

What is 5% for???

I hate I want room for improvement! Did I mentioned I'm a loser?
p/s: However there is absolute case for religion related issue.