Property News

[cow138]

Is that for terrace?
That's a pretty good rate I think..
You're right. Better then leaving it empty.
Actually the practicality of having a weekend home might sound nice in theory but really how feasible is it exactly?
It's an expensive option for the long run.

 

[jasonjst]

Is that for terrace?
That's a pretty good rate I think..
You're right. Better then leaving it empty.
Actually the practicality of having a weekend home might sound nice in theory but really how feasible is it exactly?
It's an expensive option for the long run.

Well like you say better then leaving it empty , even though we know it suck .
Let say the house cost 700K fully paid . Might as well put in FD for 4.2% , which will fetch you $2450 per mth . Don't need to pay agent fees , pty tax , maintenance and no worry of tenant default , payment issue ... very headache lor . If on bank loan , lagi jialat , probably cant cover the bank interest .

 

[kawan2sgmy]

wow, can I know which bank is paying 4.2% fd interest?

Well like you say better then leaving it empty , even though we know it suck .
Let say the house cost 700K fully paid . Might as well put in FD for 4.2% , which will fetch you $2450 per mth . Don't need to pay agent fees , pty tax , maintenance and no worry of tenant default , payment issue ... very headache lor . If on bank loan , lagi jialat , probably cant cover the bank interest .

 

[jasonjst]

wow, can I know which bank is paying 4.2% fd interest?

UOB , OCBC .. 4.2% RHB .. 4.1% , RHB FD + investment bonds = 7.8% !
Can forget about rental liao !
Tell you all a real story ( please don't laugh at me hor ). Used to get rental from my cluster house located at
a reasonably good location while waiting for interested buyers . Finally sell away and put in FD and now I am earning $800/= more per month ! Don't need to bet for my rental from those suckers tenants . My suckers tenants behave as though he own the house , even refused me from entering my own house despite making appointment well in advance ! Finally kick him out for good , haha !

 

[cow138]

It's hard to argue against that.
Just that property perception is that it's hard asset which is hedged against devaluation of the ringgit and inflation.

I'm sure if you put it into the bank, for the short term it might be compared very favourably against rental but 10-15 years down the road? Looking back, capital appreciation is still something that trumps bank deposits for the medium to long term.

 

[jasonjst]

It's hard to argue against that.
Just that property perception is that it's hard asset which is hedged against devaluation of the ringgit and inflation.

I'm sure if you put it into the bank, for the short term it might be compared very favourably against rental but 10-15 years down the road? Looking back, capital appreciation is still something that trumps bank deposits for the medium to long term.

Not necessary for the case of JB properties at this point of time ( market conditions may change ) .
Let say , you have a fully paid condo / house at RM 1M . 5yrs from now , how much you expect to fetch ?
Maybe lower , looking at today market condition . What can you do about it ? Nothing, because it is not a liquid asset . If ringgit devaluation , your house value also kena right ?
If you put 1M in FD , earning interest plus compound interest , your earning can beat a falling market like this one . Maybe you can buy that same 1M condo / house for say 600K instead when market bottom out or start pickup again . Cash is liquid , you can make decisions depending on market condition.
Well this is too simplistic view , maybe some people can make a more detail study.

 

[kawan2sgmy]

Thank you jasonjst.
Congrats! For switching to fd instead of brick and mortar, and all the headaches from tenants!
For FD, the money just come to you, and it keeps rolling in, without missing a day of 'no interest'
Hey, by the way, is fd interest taxable?

UOB , OCBC .. 4.2% RHB .. 4.1% , RHB FD + investment bonds = 7.8% !
Can forget about rental liao !
Tell you all a real story ( please don't laugh at me hor ). Used to get rental from my cluster house located at
a reasonably good location while waiting for interested buyers . Finally sell away and put in FD and now I am earning $800/= more per month ! Don't need to bet for my rental from those suckers tenants . My suckers tenants behave as though he own the house , even refused me from entering my own house despite making appointment well in advance ! Finally kick him out for good , haha !

 

[Tekkun]

Thank you jasonjst.
Congrats! For switching to fd instead of brick and mortar, and all the headaches from tenants!
For FD, the money just come to you, and it keeps rolling in, without missing a day of 'no interest'
Hey, by the way, is fd interest taxable?

If the figure is big, then you see money. For FD of RM 1.0m @4.2%, you get RM3450 per month.
You can even negotiate for a slightly better rate if you are a priviledge customer.

You do not invest on properties for rentals. You invest for capital appreciation.

 

[jasonjst]

If the figure is big, then you see money. For FD of RM 1.0m @4.2%, you get RM3450 per month.
You can even negotiate for a slightly better rate if you are a priviledge customer.

You do not invest on properties for rentals. You invest for capital appreciation.

Actually RHB have a FD+bonds that pay 7.8% but banker say only available for Malaysian .

I don't think they tax on FD income.

Normally properties price won't appreciate in a raising interest rate environment. Too costly to hold properties in such market , I think.

 

[Tekkun]

Actually RHB have a FD+bonds that pay 7.8% but banker say only available for Malaysian .

I don't think they tax on FD income.

Normally properties price won't appreciate in a raising interest rate environment. Too costly to hold properties in such market , I think.

These banks very smart one.
They ask you to put in FD but have to buy another product eg bonds or unit trusts and they charge upfront fees.
Some ask you to put FD and same amount in saving account at very low interest rate. So many varieties here.

 

[jasonjst]

These banks very smart one.
They ask you to put in FD but have to buy another product eg bonds or unit trusts and they charge upfront fees.
Some ask you to put FD and same amount in saving account at very low interest rate. So many varieties here.

No lah , for Malaysia FD quite straight forward one . If kia see , just put everything you have in FD , forget about the higher interest they promise in those " varieties " option.
I think FD is like parking and waiting for market to show sign of stability , waiting for better opportunity . That's it .

 

[Tekkun]

No lah , for Malaysia FD quite straight forward one . If kia see , just put everything you have in FD , forget about the higher interest they promise in those " varieties " option.
I think FD is like parking and waiting for market to show sign of stability , waiting for better opportunity . That's it .

No right or wrong answers.

If you got RM5m, would you put in FD or invest in properties and make more money?

 

[jasonjst]

No right or wrong answers.

If you got RM5m, would you put in FD or invest in properties and make more money?

Well if I have RM5m , I would put in FD and get RM210K pa ( or RM17,500 pm ) excluding compound interest . More than enough for my expenditure , why take unnecessary risk for more than you need ?

Invest in JB properties with RM5M now can guarantee the same return in such market conditions ? What is the possibility of losing one or two million after 5yrs in this current market ?
Got a friend brought a small bungalow at Nusa Duta 1 for RM3.5M , just got key , thinking of renting out like 10K to 15K per month . I am worry for him , don't know can get tenant or not ? Might as well put FD , can get 15K per mth . Semi D in the same area, size is only ~3.5Kpm , do people need to pay so much more to rent a bungalow?

 

[Tekkun]

Well if I have RM5m , I would put in FD and get RM210K pa ( or RM17,500 pm ) excluding compound interest . More than enough for my expenditure , why take unnecessary risk for more than you need ?

Invest in JB properties with RM5M now can guarantee the same return in such market conditions ? What is the possibility of losing one or two million after 5yrs in this current market ?
Got a friend brought a small bungalow at Nusa Duta 1 for RM3.5M , just got key , thinking of renting out like 10K to 15K per month . I am worry for him , don't know can get tenant or not ? Might as well put FD , can get 15K per mth . Semi D in the same area, size is only ~3.5Kpm , do people need to pay so much more to rent a bungalow?

But with RM exchange dropping like stone, in 5 years time, you would have lost 30% in value.

 

[kawan2sgmy]

If the figure is big, then you see money. For FD of RM 1.0m @4.2%, you get RM3450 per month.
You can even negotiate for a slightly better rate if you are a priviledge customer.

You do not invest on properties for rentals. You invest for capital appreciation.

My guess - u are an experienced property investor, many years in the property scene. Lots to learn from u.

 

[kawan2sgmy]

Tekkun & jasonjst, I am confused! If only I have both money and properties!

 

[Tekkun]

My guess - u are an experienced property investor, many years in the property scene. Lots to learn from u.

"Blind chicken pecked at worms" type of investor really.
Miles and miles away from experienced guru here. I am still very wet behind ears as far as commercials and retails are concerned.

 

[Tekkun]

Tekkun & jasonjst, I am confused! If only I have both money and properties!

How can you have 2 wives? At most you can only have a wife and a girlfriend. Or just girl friends and no wife.
So you either save all your money and have no properties or you have properties only. Dividing them would give you lesser yields at both ends.

 

[xebay11]

But with RM exchange dropping like stone, in 5 years time, you would have lost 30% in value.

Bro, if currency drop in exchange rate diversify and use it to invest in brick and mortar, using the high interest rates, or just continue to leave it and spend in Malaysia, after all even property will suffer this exchange loss if you sell and want to convert back to sgd. So it is it the end dependent on your needs to invest in Malaysia or not.

 

[xebay11]

No right or wrong answers.

If you got RM5m, would you put in FD or invest in properties and make more money?

Use the RM 200,000 per annum interest, two years is RM 400K to reinvest in property if you see better opportunity than FD, or leave it in the bank.

This is the principle of "Anak" taught by my father, that is why I eat $4 for lunch and breakfast, save money and let money work for me LOL!