ST: If you're not a millionaire, You're SCREWED!

Dec 17, 2006
ME & MY MONEY
Millionaire investor enjoys good run with property, bonds
Isaac Chin has also reaped handsome capital gains and yields by investing in Reits
By Leong Chan Teik

IF ISAAC Chin takes a 10-minute stroll from his simply furnished private apartment, he arrives at Chinatown, where he grew up in crowded quarters in a shophouse.

His father was an immigrant from China and was often without work, but he had five children to feed.

Despite his tough beginnings, Mr Chin, 57, has made good. His investments in property, bonds and stocks have made him a multi-millionaire.

He credits his success to the tough times: 'Nobody would help you. You fight for your own survival. That gives you strength.'

He cited one example during an interview at his home. He worked as a civil servant for about nine years and saved up before he enrolled in a university in New Zealand at the age of 28.

He met his wife there and returned to Singapore as a chartered accountant.

His training and work experience gave him a nose to suss out profitable investments.

Six years ago, he became a full-time investor while his wife continued as a management lecturer in a polytechnic.

They have a 21-year-old son, who has just completed national service while their 24-year-old daughter is an actuary in an insurance company in Australia.

Q With financial markets as high as they are now, how do you invest?

A I feel some fear as I have seen how sharply the market can go down. My money is hard-earned so I'm protective of it.

Instead of stocks, I now hold a lot of Singapore government bonds. They give me regular income which is not taxable.

The bonds are part of the way I play the investment game. If the stock market crashes, I'll move money out of bonds into equities.

Q What is an example of a big winner for you?

A When Singapore Post was listed in 2003, I bought huge chunks of its shares. When I like a stock, I'd buy at least $500,000 worth.

The price of SingPost was 63 cents at the initial public offering. It has risen to over $1 now, and I still hold the shares.

Q What else are you invested in?

A Real estate investment trusts (Reits). I bought Reits when they were introduced in Singapore in 2002. They have given me very good capital gains and yields.

Overall, my investment gains, including dividends and trading profits, have averaged 18 per cent to 20 per cent a year since 2000.

Before 2000, I invested in properties.

My first home was a five-room HDB flat in Bukit Merah which cost $93,000 in 1982. I was about 33 years old then and had just married.

We sold the flat for $335,000 about 10 years later.

Q What was your first investment property?

A It was bought in 1986, during a recession. We paid $312,000 for a unit in Ridgewood condominium in the Holland Road area. It came with Japanese tenants paying $2,000 per month.

The gross rental yield worked out to nearly 8 per cent a year, which was very good.

We sold it for $500,000 after four years.

After buying and selling a few properties, by 2000, I had made $1 million in capital gains.

I decided to invest in bonds as they paid much higher yields than bank interest rates then.

I also ventured into stocks and Reits. The latter is better than physical property which is illiquid. With one phone call, I can get out of Reits.

Q As for your current home, what paper gain, if any, do you have?

A My wife and I bought it eight years ago for $773,000. It's a 2,200 sq ft apartment with four bedrooms.

It is expected to be sold en bloc soon, and we will receive $1.4 million for it.

Q Why did you quit full-time work to manage your investments?

A I didn't have an inspiring career as an accountant. Nothing great came out of it.

If I have to work hard for a salary and put up with a lot of stress, I might as well work for myself - and earn more.

Q How do you reward yourself?

A I live a simple life. My wife takes the car, a Toyota Corolla, to work. If I go out, I'd take the MRT or taxi.

I'm basically a Chinatown man at heart. I don't own a Rolex watch - it's not necessary.

My wife and I like to travel - to places such as Japan, New Zealand, Rome, Venice, Paris and Switzerland.

Q Do you give back to the community?

A Yes, to various charities such as the Cancer Society. My wife gives a five-figure sum a year to her church.

[=> To secure a place in Heaven?]

Q What's next, moneywise?

A If I continue to invest successfully, it's more than just about the money. It's the satisfaction of being able to do a good job.

To enjoy wealth, one must have health. That's why I jog for an hour every morning and eat simply. If I eat rich food all the time, it will kill me.