When I was growing up, my father often had sound advice for me. One of the pieces of advice that he has given me has been ringing in my ears ever since. It was a simple phrase – “Don’t buy a car, the COE is too high. Buy property and make money”.
At the time, I was a teenager with dreams of owning my own car. I thought that having a car would make life so much easier. I could go anywhere I wanted, whenever I wanted, and I would no longer need to rely on public transport. However, my dad was wise enough to know that the cost of owning a car in Singapore was too high, and that investing in property would be a much better way to make money.
So, what did he mean by “COE is too high”? COE stands for Certificate of Entitlement. In Singapore, the government uses the COE system to manage the vehicle population. Basically, the COE system works by auctioning off a limited number of COE permits every month. Whoever bids the highest price for the COE permits will be allowed to buy the car.
With the latest COE bidding the price is put it in simple terms “ki siao”
The COE is also used to determine the price of the car. Because the COE is in limited supply, the price of the car will be higher than its market value. This makes car ownership in Singapore more expensive than in other countries. In addition, the COE also has to be renewed every 10 years, and the cost of renewing it can be very high.
My dad was right. Investing in property was a much better option than buying a car. Property prices in Singapore have been rising steadily over the years, and investing in property can provide a great return on investment. In addition, property is a much more stable investment than a car. You don’t have to worry about renewing the COE, and the value of the property can appreciate over time.
Invest in what makes money and nose what that loses value over time
Of course, it’s important to remember that buying property is not a get-rich-quick scheme. It requires a lot of research and planning. You need to know what kind of property you’re looking for, and you need to make sure that you can afford the monthly payments. Investing in property also requires patience. You may not make any money right away, but in the long run, the returns can be very rewarding.
My father’s advice has certainly paid off. I eventually bought a property instead of a car, and it has been one of the best investments I have ever made. I’m now able to rent out the property and make a decent income each month.
So, if you’re thinking of buying a car in Singapore, remember my father’s advice – “Don’t buy a car, the COE is too high. Buy property and make money”. Investing in property is a much more profitable and stable investment than buying a car, and it can be a great way to make money in the long run.