Property News

[Tekkun]

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!

I think you need not invest anymore. Rather you are thinking how to protect your money.
Even if you remain status quo, you are pretty ok. So why worries. Go travel and see the world while your legs can still carry you.
No need to stinge on $4.00 lunch.

Geo politics in Malaysia and Singapore is different. Diversification in safe havens is more important than cash in Malaysia.
So poor people like myself have to be prepared to squat everywhere when the shove comes.

 

[kawan2sgmy]

Your comparison is really entertaining! But as human beings are greedy, we want the best of both worlds! Hahaha! Although it is not possible in majority of cases. The emperor wants kingdom or concubines???

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.

 

[kawan2sgmy]

You are humble! You have come this far, so I guess you are pretty comfortable with what you have today.
Spending your leisure time look look see see here and there for good investment opportunities.

"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.

 

[freedom]

Had thought of selling Sg terrace since price now dropping to put cash in My FD and semiretire in My but worry is currency loss and also My banks only guarentee 200k rm I believe, correct me if I got the figure wrong...worried about banks in My going bust sometimes as pple have talked of My going bsnkrupt soon....

 

[kawan2sgmy]

Only a seasoned investor is able to make such a statement!
Wondering... you have a bigger footprint is Sg or My?
To make your statement come true, in other words, the possibility to strike gold, care to share your thooughts: is it better to invest in Sg or My?
Assuming I have limited capital; small fry type

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

 

[kawan2sgmy]

I attended a talk, and the property guru mentioned that if you have a landed in Sg, you are sitting on a gold mine!
Somehow, I still think it's better to keep a small house to fall back in case something crops up in the host country. No matter what, I still think Sg is a better managed country.

Had thought of selling Sg terrace since price now dropping to put cash in My FD and semiretire in My but worry is currency loss and also My banks only guarentee 200k rm I believe, correct me if I got the figure wrong...worried about banks in My going bust sometimes as pple have talked of My going bsnkrupt soon....

 

[xebay11]

Had thought of selling Sg terrace since price now dropping to put cash in My FD and semiretire in My but worry is currency loss and also My banks only guarentee 200k rm I believe, correct me if I got the figure wrong...worried about banks in My going bust sometimes as pple have talked of My going bsnkrupt soon....

Don't do it, your rental in sgd is higher than the fd rate, also don't put all eggs into one basket especially MY.

 

[kawan2sgmy]

Sounds like good and sensible advice!

Don't do it, your rental in sgd is higher than the fd rate, also don't put all eggs into one basket especially MY.

 

[Tekkun]

Sounds like good and sensible advice!

Not just sensible but EXTREMELY sensible.

 

[xebay11]

Only a seasoned investor is able to make such a statement!
Wondering... you have a bigger footprint is Sg or My?
To make your statement come true, in other words, the possibility to strike gold, care to share your thooughts: is it better to invest in Sg or My?
Assuming I have limited capital; small fry type

In the past in SG you could invest in properties for both rental yields and capital appreciation, if interest rate lower than rental return, very achievable in SG. Borrow at 1% plus and collect rent at 5-6% return, money makes money. Also when the price appreciates in land scarce SG, you get CA.

But in MY, interest rate is high, so rental yield must be high to justify, for MY investment, to gain on CA, you really need hell lot of investment experience, timing, and luck these days or else you will go negative CA. Many Singaporeans do not understand the concept of timing, another lesson on that LOL

 

[kawan2sgmy]

Acknowledged the amendment made by the experts! TQ!

Not just sensible but EXTREMELY sensible.

 

[kawan2sgmy]

I heard of a case whereby the owner rented out his condo to an old lady, later on the tenant defaulted on rental for nearly a year. He just let it be. Not long after that, it went enbloc! Strike gold! Wonder now still got such good lobang ornot?

In the past in SG you could invest in properties for both rental yields and capital appreciation, if interest rate lower than rental return, very achievable in SG. Borrow at 1% plus and collect rent at 5-6% return, money makes money. Also when the price appreciates in land scarce SG, you get CA.

But in MY, interest rate is high, so rental yield must be high to justify, for MY investment, to gain on CA, you really need hell lot of investment experience, timing, and luck these days or else you will go negative CA. Many Singaporeans do not understand the concept of timing, another lesson on that LOL

 

[jasonjst]

In the past in SG you could invest in properties for both rental yields and capital appreciation, if interest rate lower than rental return, very achievable in SG. Borrow at 1% plus and collect rent at 5-6% return, money makes money. Also when the price appreciates in land scarce SG, you get CA.

But in MY, interest rate is high, so rental yield must be high to justify, for MY investment, to gain on CA, you really need hell lot of investment experience, timing, and luck these days or else you will go negative CA. Many Singaporeans do not understand the concept of timing, another lesson on that LOL

Totally agree that's is what I am trying very hard to explain when I say better to put in FD now under such market conditions. You explain it best , bro !

 

[jasonjst]

Don't do it, your rental in sgd is higher than the fd rate, also don't put all eggs into one basket especially MY.

Totally agree !

 

[Tekkun]

From all the taikors here, I learned something as follows:

Buy where there's limited land and buy where there is choice location within a good location even if it is in the same building.
If you can't get it, just walk away. I know it is hard to walk away at times but just bite your lips and walk.
After a while, you will get used to it.

If you have nothing to do, park your money in safe havens. FD rates in safe havens are low but you are there to hedge off forex losses, not to make money from interests. And wait for the right time to go in. Which property sector? The higher the entry cost, the better for you to make money.

Try as far as possible, do not take loans to invest new properties. Anyway, at my age, banks don't want to lend me money so it is sour grapes. :(

 

[cow138]

The higher the entry cost the better the return potential?
That's a bit difficult to understand.

 

[Tekkun]

Only a seasoned investor is able to make such a statement!
Wondering... you have a bigger footprint is Sg or My?
To make your statement come true, in other words, the possibility to strike gold, care to share your thooughts: is it better to invest in Sg or My?
Assuming I have limited capital; small fry type

I can only say I do not have any property footprints in Singapore. As in any safe havens with limited land, the property prices are high and interests are low. But Singapore is a good financial center where it provide a good capital flow network. It is useful to where capital movements can sometimes be limited.

My own personal take on any investments would be:

Invest only in what you know.
What you don't know, don't invest
What you cannot afford to lose, don't invest
What you cannot control, don't invest
Where there is no choice lots, walk away. No regrets.

Good luck.

 

[kawan2sgmy]

Noted with thanks!
Here you are: Tekkun's 5 commandments in the world of investments!
EXTREMELY wise advice!

I can only say I do not have any property footprints in Singapore. As in any safe havens with limited land, the property prices are high and interests are low. But Singapore is a good financial center where it provide a good capital flow network. It is useful to where capital movements can sometimes be limited.

My own personal take on any investments would be:

Invest only in what you know.
What you don't know, don't invest
What you cannot afford to lose, don't invest
What you cannot control, don't invest
Where there is no choice lots, walk away. No regrets.

Good luck.

 

[Tekkun]

The higher the entry cost the better the return potential?
That's a bit difficult to understand.

Less players, high demand.

A detached factory for eg. in MY is anything from RM5m - 7m above in Selangor. To buy this property, you need 30% downpayment on commercial loans. Not too many big sized factories around for rental really as most of them are owner occupied. Average rental would be about RM25k - 35k per month. Factory land price never decrease as industrial land is always limited and difficult to develop. CA is always there, as high as 4x over a 10 year period.

 

[xebay11]

Less players, high demand.

A detached factory for eg. in MY is anything from RM5m - 7m above in Selangor. To buy this property, you need 30% downpayment on commercial loans. Not too many big sized factories around for rental really as most of them are owner occupied. Average rental would be about RM25k - 35k per month. Factory land price never decrease as industrial land is always limited and difficult to develop. CA is always there, as high as 4x over a 10 year period.

Yes good opportunity, I had a large detached factory in Singapore in the 1990s but lease only 30 years :( I got my father to sell it and invested in FH landed and the 99 year lease flatted factory. Performance is poor for CA for the flatted factory but rental better than residential, so we are keeping it till the current tenant ends the lease.