Condo Supply: Total no. of units in the pipeline.

[Funniman]

a good friend of mine bought into a "picturesque " landed estate in the outskirts of melbourne and is pretty happy with the transparency of the whole process to date. he intends it as a rental property and told me the rental procedure is also well managed and transparent and expects a yield of 5-6%. he said he will be getting a shortlist of prospective tenants and he even gets to choose the tenant with the best profile to rent his new home to.

Melbourne had launched many projects lately. There are few projects very near the Victoria market that is good for student housing. Yes, the rental market is very well regulated as any default on rentals would mean non compliance to the terms of their visas.
One of the problems is the FIC ruling that foreigners can only buy new properties. That means the exit plan is not good as it is limited to locals in the secondary market. If buy as holiday home is the main idea, then go for a small unit near town center. Unfortunately, Melbourne is not my liking.

If anyone has more experience, pls share.

 

[FHBH12]

Personally in Melb, I feel getting an apartment in city or its key suburbs would be safer. Can easily rent out to students/workers, esp Asians.....

I suppose managing agent will get maintenance fee for looking after your property. Usually when u hear abt long distance investment, you are probably entering near e peak.

 

[freedom2005sg]

Yes Aunty,

the company promoting aquaculture is RBI Holdings. I went to their suntec expo booth.

I asked for opinions on fuckwarezone forum and one lao Jiao old birdie there say it is a high risk investment and a scam. That's what he thinks.

I will stay far away from this "too good to be true" investment, as well as castlewoods investment.

Another old bird says he has been burnt hard by investing in land banks and time sharing.

If you invest 100K into RBI, they give you 15% returns for 2 years, and even give you extra 45% profit sharing on top of the 'guaranteed' returns. They claim they want to supply m&d crabs to NTUC fair price and Sheng Siong. So need a constant supply of m&d crabs up to 80 m&d ponds.

I don't buy their selling. They do not have a 'guaranteed' portion on the principal. Only say the m&d pond is handled by a public trust.

If they are so generous in 15% returns and 45% profit sharing, why don't they just get a bank loan to finance their operations? If they can't get a bank loan, that means their investment is ultra high risk with the potential to wipe out all principal???

What if the whole dam company collapse, or freak weather wipe out the whole ponds? Where can I claim my 100K?

I still remember Lehman Brothers case.

At least if I put 100K into iskandar property, the property is still there and the title deed is mine. Even if I spoil the market and rent out at RM1000 per month for a 3 bedder, I still only pay RM1000+ per month, not bad for a freehold, and certainly way cheaper than a sgd1million studio condo in sg. Can always up the rental 2 years down the road in 2020.

With m&d crab investment, I don't even own the m&d crab pond...

For investment la... at a talk, the agent recommend Pinnacle. MB even has someone who will assess and provide you the maximum loan amount you able to get from banks, this is so that we will not get our loans rejected by banks after submitting all our documents... I pass by Raffles City and went to take a look at Tri Tower project. Selling like hots cakes although price above RM$1M... Anyway, don't think I can afford it...
Perhaps I might consider alternative investment like Co-assets or Aquaculture. The company promoting Aqualculture is giving out 6% interest on amount S$2.5k to S$10k/ 8% interest S$12.5k to S$22.5k, etc...all this got risk so also depends on individual risk appetite...

 

[freedom2005sg]

lol that's another version of the JB RM1mil ringgit rule, which also force ppl to sell their condos to locals...

Talk about screwing up investors...

The only problem with Australia property is that foreigner can only buy new development and can only sell to Australians. And Australians will not buy from you unless its really cheap.

 

[freedom2005sg]

I think when there is a oversupply situation, the critical factor will be location.

I won't be greedy in terms of rental. Looking at breakeven (say cover monthly loan + maintenance, or even just cover monthly loan alone) for 1st two years till 2020. My target unit TOP date is 2018.

Or I may lose my mind and spoil the market by renting out a studio at RM500 per month...hahaha...lol

There will be a glut of units up for rent in 2017, no doubt about it. The question is not which of the 2 of your short listed is better, the question should be 'how does my unit compare to the rest of the units in the market in the area?' in terms of location, view, facilities and the breakeven rent psf. If the unit's balcony is facing the opposite block or a main road, I doubt it will be easy to rent out unless you rent it below break even price.
When there is more porridge than the monk, then only the more delectable Bowl of porridge will be selected.

 

[PuteriWorld]

RBI was one of my siubsidiaries customers.

The payment of $200+ should be 7 days and they took 3-5 month to pay up just $200+

That's the only time and last time I do business with them. Seriously in deep dire financial state

Yes Aunty,

the company promoting aquaculture is RBI Holdings. I went to their suntec expo booth.

I asked for opinions on fuckwarezone forum and one lao Jiao old birdie there say it is a high risk investment and a scam. That's what he thinks.

I will stay far away from this "too good to be true" investment, as well as castlewoods investment.

Another old bird says he has been burnt hard by investing in land banks and time sharing.

If you invest 100K into RBI, they give you 15% returns for 2 years, and even give you extra 45% profit sharing on top of the 'guaranteed' returns. They claim they want to supply m&d crabs to NTUC fair price and Sheng Siong. So need a constant supply of m&d crabs up to 80 m&d ponds.

I don't buy their selling. They do not have a 'guaranteed' portion on the principal. Only say the m&d pond is handled by a public trust.

If they are so generous in 15% returns and 45% profit sharing, why don't they just get a bank loan to finance their operations? If they can't get a bank loan, that means their investment is ultra high risk with the potential to wipe out all principal???

What if the whole dam company collapse, or freak weather wipe out the whole ponds? Where can I claim my 100K?

I still remember Lehman Brothers case.

At least if I put 100K into iskandar property, the property is still there and the title deed is mine. Even if I spoil the market and rent out at RM1000 per month for a 3 bedder, I still only pay RM1000+ per month, not bad for a freehold, and certainly way cheaper than a sgd1million studio condo in sg. Can always up the rental 2 years down the road in 2020.

With m&d crab investment, I don't even own the m&d crab pond...

 

[FHBH12]

Another confirmed recent pyramid scheme is the EcoHouse in Brazil (http://www.empoweradvisory.com/prop...-promoters-of-ecohouse-projects-what-say-you/)*. Just recently there are some too good to be true investment schemes in Germany. It is better to just buy closer to home, where you can see and touch your investment. Many people look down on Johor properties and go for more atas sounding schemes, only to get scammed.

*I'm not vested in this site but the observations are good.

 

[PuteriWorld]

Another confirmed recent pyramid scheme is the EcoHouse in Brazil (http://www.empoweradvisory.com/prop...-promoters-of-ecohouse-projects-what-say-you/)*. Just recently there are some too good to be true investment schemes in Germany. It is better to just buy closer to home, where you can see and touch your investment. Many people look down on Johor properties and go for more atas sounding schemes, only to get scammed.

*I'm not vested in this site but the observations are good.

I am super tempted to throw money into Makati in Philipines, Bridge in Cambodia, Melbourne projects.. etc. Just 10% down and rest upon TOP. Sounds really good.

But the thought of flying there just to see your house, time taken and cost involved really stop me from buying

 

[RedsYNWA]

I am super tempted to throw money into Makati in Philipines, Bridge in Cambodia, Melbourne projects.. etc. Just 10% down and rest upon TOP. Sounds really good.

But the thought of flying there just to see your house, time taken and cost involved really stop me from buying

Lessons from an expert on properties in unfamiliar areas........


Good, so let's just recap the 10 lessons that I hope you avoid ever having to experience...

Lesson 1 - Take a trip to the US: If its worth investing in then its probably worth taking a trip to view the property, the areas and meet the people who will be managing the property.

Lesson 2 - Don't buy through an agent in your country: They will normally not have your best interests at heart, they won't really know the property, area or the country (ask if they have been there or own property themselves).

Lesson 3 - Be careful with Rental Guarantees: Ask yourself where is the money coming from to pay for the guarantee and what is backing the continued payment of it.

Lesson 4 - Be very careful when buying in a new area without established fundamentals: If there is a downturn these are the first places where fundamentals go out the door.

Lesson 5 - Research: Research the local area, Prepare a cash flow and most importantly Read the fine print.

Lesson 6 - If the Banks won't lend, you have to ask yourself if it is really worth buying: Vendor financing doesn't count.

Lesson 7 - What is your Exit Strategy?: What are the Implications and costs of selling and who will buy the property when you sell?

Lesson 8 - Always consider the Current Market Value and the Current Fundamentals and not what the valuation and fundamentals were in the boom. None of that counts now.

Lesson 9 - Always consider how 'Inflation' and 'Price Hedonics' are going to affect your investment long term. 10% growth with 5% inflation and Hedonics adjustment of 5% is ZERO growth.

Lesson 10 - Find out how much Sales commission your agent is earning form you: Obviously don't expect them to tell the truth. You may need to speak to a few different agents to find out the truth.

Remember these before you jump into buying in the US (or any foreign country) and call the team for some qualified advice on +44 (0) 207 812 1255.
- See more at: http://www.yourpropertyclub.com/edu...e-great-us-property-scam#sthash.yi7wLdmD.dpuf

 

[Funniman]

RedsYNWA,

Sounds like you had invested in foreign land. Mind sharing?

 

[RedsYNWA]

RedsYNWA,

Sounds like you had invested in foreign land. Mind sharing?

Haha Bro Funniman, I am just a small player, so no money to invest leh. I just read up and understand more of angmo's strategies.

https://www.dropbox.com/s/ggv7e5gusan8es0/3 plus 1 plan.pdf?dl=0

Some lessons I learnt:-

- For angmos, their strategy is to re-mortgage to the max, to take advantage of rising property prices. From the re-mortgage cash, set aside a realistic 2 years cash outflow (assuming cant rent out), and use the remaining proceeds to buy another property.

- Wait 7-15 years (while re-mortgaging at every chance) for property prices to double. Then among the properties in the portfolio, depending on one's age, one can then decide whether to pare down on loan principal on a few key properties, by selling the other properties; or to remortgage & buy further.

- The real money in property is in the holding, and you cant go too far wrong by buying in established areas with fundamentals.

- "High cash, high leverage" is better than "low leverage, low cash" in property investments.

 

[Funniman]

Haha Bro Funniman, I am just a small player, so no money to invest leh. I just read up and understand more of angmo's strategies.

https://www.dropbox.com/s/ggv7e5gusan8es0/3 plus 1 plan.pdf?dl=0

Some lessons I learnt:-

- For angmos, their strategy is to re-mortgage to the max, to take advantage of rising property prices. From the re-mortgage cash, set aside a realistic 2 years cash outflow (assuming cant rent out), and use the remaining proceeds to buy another property.

- Wait 7-15 years (while re-mortgaging at every chance) for property prices to double. Then among the properties in the portfolio, depending on one's age, one can then decide whether to pare down on loan principal on a few key properties, by selling the other properties; or to remortgage & buy further.

- The real money in property is in the holding, and you cant go too far wrong by buying in established areas with fundamentals.

- "High cash, high leverage" is better than "low leverage, low cash" in property investments.

Bro..this one really Monte Carlo style. I will chicken out if like that style of investment.
Then again, if can get high leverage from banks, then you are already ok. No need to invest further.

 

[RedsYNWA]

Bro..this one really Monte Carlo style. I will chicken out if like that style of investment.
Then again, if can get high leverage from banks, then you are already ok. No need to invest further.

I think the key take-aways are (1) "High gearing, high liquidity" is better than "Low gearing, Low liquidity" and (2) "property doubling in price every 7-10 years" (actually I would think 15 yrs is a better estimate). The strategy may sound v high-risk & scary initially, but do note that the author has set aside 2 years of cash outflow every time he buys a property.

In his words, "Banks have never repossessed a property due to negative equity, but they have always done so due to inability to service mortgage". Hence for such a strategy, high cash balance is essential, while waiting for the eventual capital growth to catch up in 10-15 years time.

You can read the link in more detail........ hee

 

[Funniman]

I think the key take-aways are (1) "High gearing, high liquidity" is better than "Low gearing, Low liquidity" and (2) "property doubling in price every 7-10 years" (actually I would think 15 yrs is a better estimate). The strategy may sound v high-risk & scary initially, but do note that the author has set aside 2 years of cash outflow every time he buys a property.

In his words, "Banks have never repossessed a property due to negative equity, but they have always done so due to inability to service mortgage". Hence for such a strategy, high cash balance is essential, while waiting for the eventual capital growth to catch up in 10-15 years time.

You can read the link in more detail........ hee

Thanks. 170 pages is awful lot to read.
This 3+1 plan will work only if:

You are still in a financially bankable status ie qualified to apply for loan.
You still have bankable years when you apply for a loan ie you are not too old
You must have a fully paid up high value property to get a meaningful remortgage for onward new purchases.
Properties must be in safe havens, I consider New York, London, Sydney and even Singapore (Iskandar not in the list yet)

Btw, If you put aside 100,000 with a constant 5% interest pa, you will get 207,000 in 15 years time.

Good read anyway.

 

[RedsYNWA]

Thanks. 170 pages is awful lot to read.
This 3+1 plan will work only if:

You are still in a financially bankable status ie qualified to apply for loan.
You still have bankable years when you apply for a loan ie you are not too old
You must have a fully paid up high value property to get a meaningful remortgage for onward new purchases.
Properties must be in safe havens, I consider New York, London, Sydney and even Singapore (Iskandar not in the list yet)

Btw, If you put aside 100,000 with a constant 5% interest pa, you will get 207,000 in 15 years time.

Good read anyway.

It's a gd read to understand why subprime occurred in the US! Haha.... On your last point regarding 100,000, the author will counter that due to the 'power of leverage' and assuming 90% LTV on GBP 1m property with tenant servicing your interest, your 15 year returns will actually be GBP 0.9m (GBP 1m x 2 times - Rm100K (deposit) - RM 1m original price).

 

[AUNTY]

Er...thanks but too far, need to fly there to see...

Auntie & Freedom2005sg can consider to invest in UK buy-to-let properties lor...... Here are 2 websites to consider & many of your questions can be found in the Q&A:-

http://www.ypc-group.com
http://www.property118.com

 

[AUNTY]

I told them I will put in $2.5k due to cash constraint and I put $100/- as deposit. If change my mind within 7 days, I can take back $100/-... today the 5th day.. will take back my $100/- tomorrow..

Yes Aunty,

the company promoting aquaculture is RBI Holdings. I went to their suntec expo booth.

 

[AUNTY]

Hi freedom2005sg, I remembered you mentioned you buy KSL Residence? An agent marketing Pinnacle told me he bought also and he rent out on his own, without taking Rental Guaranteed Scheme from KSL. He is getting RM4,000/-

 

[freedom2005sg]

Hi Aunty,

wow RM4000?? That's GOOD money!!

What is the sq ft of his unit?

Pls check for me, can?

PS You just gave me an injection of confidence in my KSL property at KSL city!!!

Hi freedom2005sg, I remembered you mentioned you buy KSL Residence? An agent marketing Pinnacle told me he bought also and he rent out on his own, without taking Rental Guaranteed Scheme from KSL. He is getting RM4,000/-

 

[freedom2005sg]

hahaha...

the agent also asked me to put $100 as deposit...

I never put, coz
1) sounds too good to be true...maybe it's true..but there will be risks..i remember many years ago, I invested 10k in publication of Secondary physics and Maths book...high returns, 12% per annum...and my NAME gets printed on the book..lol...it was selling at POPULAR bookstore..my NAME were on the BOOKS coz I'm an investor...lol...funny BUT TRUE..I persuaded my friend to invest but couldn't persuade a colleague to invest..coz she scared...lol...for such things, sometimes really got true stuffs, but there will be RISKS

2) I don't own the m&d pond. I don't like. I like to own the stuff eg. property.

Good u taking back ur money, aunty. lol

I told them I will put in $2.5k due to cash constraint and I put $100/- as deposit. If change my mind within 7 days, I can take back $100/-... today the 5th day.. will take back my $100/- tomorrow..

Yes Aunty,

the company promoting aquaculture is RBI Holdings. I went to their suntec expo booth.