Dollars and Cents

My family used to be quite well-to-do. I won't say we were wealthy but I most certainly think we should be considered above middle-income. Some how, all that came loose and went away once my dad decided to let greed take over good business practices. Yes, it is nice to see assets appreciate in value but it is also important to keep a careful eye on your P&L. Too bad he didn't and all was lost. I really mean all....

I always tell myself to think positively and take things into my stride. Things happen for a reason and the closure of doors doesn't mean new ones won't open. However, no matter how much I have accepted that fact, at times I cannot but help wonder "what-if".

Nowadays, without a property of our own, doing business carries the additional burden of rental as an overhead for my brother and sister. I can understand the cruelty of this world i.e. no money no talk but seeing how the rich getting richer and the poor getting left behind, I cannot but think what I should do to generate more $ to help my siblings.

Basically, the Singapore business model (as far as property owners are concerned) is to raise rental at their own discretion and pass the burden of generating profit (or dare I say breaking even) to their tenants. Easy money, no sweat..... What will the tenants do in this case? They in turn will raise the prices of their goods and services, no? In turn, what will the buyers of their goods and services do? Suffer in silence or demand a higher remuneration package from their employers? Can this cycle go on and on? Maybe for the upper classes of the population? What about the rest? If this goes on and on, how much savings (and rainy day funds etc) can they accumulate before they retire? How much on average do people have in savings, I wonder? I always wonder to myself how do cleaners or food stall workers make enough to live life and NOT just to stay alive. Can they afford the luxury of a good meal, a night's out at the cinemas, a holiday trip, an iPod, a new mobile, some branded clothings? I really doubt it....

Because of the recovering economy, my siblings have in turn become victims of the burgeoning property market so much so that rental is expected to be more than doubled by the (new) landlord. So what do they do? They leave the market and say good luck to the next better person. Running a small business is no longer viable for our trade. Granted it was good while it lasted, I don't think they will generate enough revenue to cover the rent increase PLUS good earnings. This is sad as I know the quality of work is good but alas, the business didn't soar as fast as the burgeoning property market. As I said, to the new owner, it is fine just raising the rent to justify his or her investment in property but will there be a tipping point whereby prices will become too high and there are no takers? Everything is cyclic and I am sure there will come such a time....

To many people, everything in this world is about dollars and cents and unfortunately, I have to agree this is true because we were/are unfortunate victims of it.