SGD Strong, Ringgit Weak

[Runifyouhaveto]

Weaker ringgit a boon to Malaysia's tourism sector
http://www.channelnewsasia.com/news/business/weaker-ringgit-a-boon-to/997638.html

SGDMYR 2.60 now
- Massive influx of cash in 2013 for Iskandar & Penang properties failed to stop downslide.
- Average 10-12% annual increment for household debts in the past 5 years.
- Extremely large foreign holdings of local govt debts. Malaysia 48% vs Thailand 18% vs S.Korea 12%
- Fitch Sovereign rating downgrade outlook: 15 consecutive years of deficits.
- Export weakness due to lower commodity prices + Chinese demands.

 

[SgGoneWrong]

Weaker ringgit a boon to Malaysia's tourism sector
http://www.channelnewsasia.com/news/business/weaker-ringgit-a-boon-to/997638.html

SGDMYR 2.60 now
- Massive influx of cash in 2013 for Iskandar & Penang properties failed to stop downslide.
- Average 10-12% annual increment for household debts in the past 5 years.
- Extremely large foreign holdings of local govt debts. Malaysia 48% vs Thailand 18% vs S.Korea 12%
- Fitch Sovereign rating downgrade outlook: 15 consecutive years of deficits.
- Export weakness due to lower commodity prices + Chinese demands.

Go for grocery shopping in Msia?

 

[lifeafter41]

Weaker ringgit a boon to Malaysia's tourism sector
http://www.channelnewsasia.com/news/business/weaker-ringgit-a-boon-to/997638.html

SGDMYR 2.60 now
- Massive influx of cash in 2013 for Iskandar & Penang properties failed to stop downslide.
- Average 10-12% annual increment for household debts in the past 5 years.
- Extremely large foreign holdings of local govt debts. Malaysia 48% vs Thailand 18% vs S.Korea 12%
- Fitch Sovereign rating downgrade outlook: 15 consecutive years of deficits.
- Export weakness due to lower commodity prices + Chinese demands.

So is it a good idea to sell P-Hole in Singapore and buy condo in Malaysia?.
5 Room I, going for S$550,000 to RM$1.4kk.

Buy 1 400k condo in Johor. RM1kk put in FD in Maybank/RHB at 3.15% = RM31.5k/year or RM2.6k per month.
Not really enough leh, unless single

 

[Cerebral]

So is it a good idea to sell P-Hole in Singapore and buy condo in Malaysia?.
5 Room I, going for S$550,000 to RM$1.4kk.

Buy 1 400k condo in Johor. RM1kk put in FD in Maybank/RHB at 3.15% = RM31.5k/year or RM2.6k per month.
Not really enough leh, unless single

Why would anyone want to buy in Johore? If they don't solve their security issue, the property prices will never go up. No one will want to work and stay there.

I rather buy in KL/Klang Valley, Malacca or if I am feeling rich, Penang

 

[Bigfuck]

Just like Singapore is used to manipulate the rupiah, why would you think the Ringgit is any different? Fucking Malaysia and at the same time asking you to invest and live in Malaysia tells you a lot of the bastard shitheads ruling Singapore.

 

[bakkuttay]

Why would anyone want to buy in Johore? If they don't solve their security issue, the property prices will never go up. No one will want to work and stay there.

Haha, you are speaking your mind, but cannot represent others lah.

 

[Runifyouhaveto]

So is it a good idea to sell P-Hole in Singapore and buy condo in Malaysia?.
5 Room I, going for S$550,000 to RM$1.4kk.

Buy 1 400k condo in Johor. RM1kk put in FD in Maybank/RHB at 3.15% = RM31.5k/year or RM2.6k per month.
Not really enough leh, unless single

Hello bro,

Part 1: Property
I am not sure about buying 400K condo due to the min. 1m selling price for properties sold to foreigners. I believe 500K is still possible as i heard that the new 1m measure is only applicable for resale or new launches. please correct me if i am wrong.

Part 2: Fixed Income Instruments
After buying a 500K property, you will have appx 1m left. Most malaysian bonds dividends are tax-free. You may choose to bank with your trusted UOB, OCBC malaysia branches to buy bonds. My most trusted bank is Public Bank. In Sept 2013, they issued 3.8% bonds and they have just announced that they will likely issue perpetual securities/preference shares soon which will give much much higher returns:
http://www.reuters.com/article/2014/02/26/publicbank-sukuk-idUSL3N0LV32820140226
It is for BASEL-III Accord requirements (need more capital to do bigger business), not because Public bank has no money. I expect the coupon of their preference shares to be priced min. 5%. Based on 5%, you will get 50000K for your 1m ringgit annually which works out to be 4166 ringgit a month.
Note 1: please only choose top top top best bestest malaysian bank like public bank because ringgit bonds are riskier.
Note 2: for retirement purpose, please do not take up bond-financing for these investments.

PS: i don't encourage both malaysian property and bond investment due to long-term depreciation of ringgit against sgd. The above examples are more suited for people who wanna take up residency there.

 

[Runifyouhaveto]

Go for grocery shopping in Msia?

Yes, if you do drive and don't mind buying high-valued groceries like 5 bottles of pantene shampoo at one go or 5 x diapers pack at one go, you really save $100-200 per trip.

 

[Runifyouhaveto]

Why would anyone want to buy in Johore? If they don't solve their security issue, the property prices will never go up. No one will want to work and stay there.

I rather buy in KL/Klang Valley, Malacca or if I am feeling rich, Penang

yes, actually for the same price, some shrewd investors choose to invest in CBD/klang valley area instead of johor. The odds of renting out in Johor is less favourable, barely enough to cover a 5% mortgage loan interest. Johor is more for singaporean's own stay.

 

[Runifyouhaveto]

Just like Singapore is used to manipulate the rupiah, why would you think the Ringgit is any different? Fucking Malaysia and at the same time asking you to invest and live in Malaysia tells you a lot of the bastard shitheads ruling Singapore.

As long as Bank Negara don't really dare to hike rates, I believe SGDMYR will hit appx 3.00 within 18-months (end-2015).

 

[lifeafter41]

As long as Bank Negara don't really dare to hike rates, I believe SGDMYR will hit appx 3.00 within 18-months (end-2015).

Wah!!! If S$/RM hits 1 to 3 after 1.5 years.
Property investment in Malaysia now would have depreciated 15% just on exchange rate loss alone.
Even put at FD at 3.15/year not enough.

Better stay in P Hole then.

 

[frenchbriefs]

So is it a good idea to sell P-Hole in Singapore and buy condo in Malaysia?.
5 Room I, going for S$550,000 to RM$1.4kk.

Buy 1 400k condo in Johor. RM1kk put in FD in Maybank/RHB at 3.15% = RM31.5k/year or RM2.6k per month.
Not really enough leh, unless single

or just rent ur 5 room out to 4 ah tiong and 2 pinoy,collect $4k rent every month,convert to ringgit $10.4k and live like king in msia.

10k ringgit every month u can set up mlm business in johor and still have money to rent a condo.

 

[blissquek]

Wah!!! If S$/RM hits 1 to 3 after 1.5 years.
Property investment in Malaysia now would have depreciated 15% just on exchange rate loss alone.
Even put at FD at 3.15/year not enough.

Better stay in P Hole then.

Yes...buying a small cubicle here make sense...

My cousin bought a small apartment here 10 years ago..exchange rate then 2.20 ( sgd/myr)

Today, apt gain 60%..exchange rate gain 20% ( now sgd/myr..2.59 )

So the rationale....u get 80% return by buying a pigeon hole here...

 

[Runifyouhaveto]

or just rent ur 5 room out to 4 ah tiong and 2 pinoy,collect $4k rent every month,convert to ringgit $10.4k and live like king in msia.

10k ringgit every month u can set up mlm business in johor and still have money to rent a condo.

I am impressed with the general idea of your plan - lowest risk, hedged sgd appreciation with your property, highest return. Not so sure about mlm hahahaha

I know people in middle-aged who rent out their 5-room hdb, work in sg, but sleep in JB.

 

[Runifyouhaveto]

Wah!!! If S$/RM hits 1 to 3 after 1.5 years.
Property investment in Malaysia now would have depreciated 15% just on exchange rate loss alone.
Even put at FD at 3.15/year not enough.

Better stay in P Hole then.

Dear sir, let me share with you something more. Personal mortgage loan is about 5%pa in Malaysia (up to 90% financing if 2 singaporeans sign on the line).

Local Sg banks are offering SIBOR-pegged loans for malaysia properties which will bring the cost of financing to <2%. that's so cool. But wait, it means that you are betting on the long-term appreciation of ringgit; ringgit depreciate = margin call

Here's a recent example. SIBOR-pegged loans are also available for australian properties and Aussie dollar depreciated about 15% against SGD suddenly. A few of these investors with 80% LTV, received margin-calls to top up for the difference. The price of the property in AUD didn't dropped but in terms of SGD, it collapsed by 15% within 6-months. (due to the way, the loan is structured)

 

[Yingge]

Hello bro,

Part 1: Property
I am not sure about buying 400K condo due to the min. 1m selling price for properties sold to foreigners. I believe 500K is still possible as i heard that the new 1m measure is only applicable for resale or new launches. please correct me if i am wrong.

[[/U][/B]

I Don't quite understand, other than buying resale or new launch, is there any other way to buy condo?

 

[Runifyouhaveto]

Yes...buying a small cubicle here make sense...

My cousin bought a small apartment here 10 years ago..exchange rate then 2.20 ( sgd/myr)

Today, apt gain 60%..exchange rate gain 20% ( now sgd/myr..2.59 )

So the rationale....u get 80% return by buying a pigeon hole here...

Likewise, got uncles tell me that their malaysian properties capital gains are limited because of weaker ringgit. I think that's fine if those properties are for own-stay/use.

 

[Runifyouhaveto]

I Don't quite understand, other than buying resale or new launch, is there any other way to buy condo?

I was told that iskandar properties launched before the announcement + unsold (developer's sales) can still be sold to foreigners based on the old ruling (min.500K).

Please note that, no matter what, when u offload (resale), you must either sell back to locals below 1m or foreigners above 1m.

PS: some smart-ass developers introduced dual-key units (but still under one property title)

 

[blindswordsman]

As long as Bank Negara don't really dare to hike rates, I believe SGDMYR will hit appx 3.00 within 18-months (end-2015).

Perhaps, I am wrong but it looks like boleh land is deliberately letting the RM to depreciate against the SGD to stimulate their own economy. Considering the large numbers of Mat working in sinkie land and the export of goods to SG, it is worthwhile to accept the depreciation and screw sinkie land at the same time.

 

[Cerebral]

Likewise, got uncles tell me that their malaysian properties capital gains are limited because of weaker ringgit. I think that's fine if those properties are for own-stay/use.

Own use or have a long term view. My thoughts are that the scenario of sgd vs myr will change in the mid to long term.

A good idea is to buy a klang valley property, smaller unit and near uni, so its easy to rent out.

Also, get a new development because it takes 2.5 years to complete. Then you just sit and wait another 2 to 3 years.

For property investments, tou should always take mid to long term view and not wanting to spin and take earnings after 1 year. Current appreciation in klang valley is around 10% for the sub-mln range. I feel the 400k to 500k ones are the best value. There are still ways to buy for foreigner.