Run if you have to

[Runifyouhaveto]

Is it to one's benefit to buy an Aussie property using a loan in Sg if Aussie dollar slides further?

Your outlook: purchase Aust property with SIBOR-pegged loan in the opinion that AUD slides further.

Part 1. SIBOR-pegged loan in the opinion that AUD slides further
You are vulnerable to a weaker AUD in such loans (margin calls), so rightfully, you should only take such loans in the opinion that AUD will appreciate further.

Part 2. Purchase AUD property in the opinion that AUD slides further
Usually, investors hope the base currency to appreciate if they fully pay-up and vice-versa if they have a large loan exposure. I safety assume that you prefer AUD to slide further because you will just make a minimum downpayment and drag your instalments. But then, your property value depreciates too, in terms of SGD.


PS: If it is a normal Aust loan(not sibor), Reserve Bank of Australia might also hike rates which will increase your interest burden in the event they want to support a weak AUD.

 

[Runifyouhaveto]

Fed lowers debt buying by US$10bn while Japan continues with easing momentum.
Expect USDSGD to cross 1.30 by the end of 1H14.

 

[rushifa666]

Madness which will burn the world. You have been warned

 

[Runifyouhaveto]

Madness which will burn the world. You have been warned

Look at the way we print fiat.
Our teachers were all wrong; Money do grow on trees.

 

[SgGoneWrong]

Your outlook: purchase Aust property with SIBOR-pegged loan in the opinion that AUD slides further.

Part 1. SIBOR-pegged loan in the opinion that AUD slides further
You are vulnerable to a weaker AUD in such loans (margin calls), so rightfully, you should only take such loans in the opinion that AUD will appreciate further.

Part 2. Purchase AUD property in the opinion that AUD slides further
Usually, investors hope the base currency to appreciate if they fully pay-up and vice-versa if they have a large loan exposure. I safety assume that you prefer AUD to slide further because you will just make a minimum downpayment and drag your instalments. But then, your property value depreciates too, in terms of SGD.


PS: If it is a normal Aust loan(not sibor), Reserve Bank of Australia might also hike rates which will increase your interest burden in the event they want to support a weak AUD.

Thanks for the analysis, i'll have to do my sums and be prepared for the different possible senarios. I expect aud to weaken further maybe to sgd $1 or slightly less and then bounce up again and interest rates not to go up for at least the 1st 6 mths in 2014.

 

[Runifyouhaveto]

I expect aud to weaken further maybe to sgd $1 or slightly less

Very well said.

AUDSGD was nearly 1.30 in 1Q13 but now, we are looking at 1.12. Looks like AUD's biggest customer really got problem, going forward.

 

[Runifyouhaveto]

The Most Popular Local Housing Loan Now

Well, the most cheapest loan packages now are those that prices loan interest with Sibor 1-mth + premium and the most popular packages have an added feature that give you the flexibility to switch across SIBOR tenures; eg 1-mth, 3-mth 6-mth or 12-mth.

In a peaceful market short-term Sibor rates (eg 1-mth, 3-mth) are usually lower than long term, just like bank fixed deposits; the longer the maturity, the higher the interest.

When money supply is right during market crash, it will be vice-versa (short-term is more expensive). This is where such loan packages can be helpful because he interest rate yield curve goes crazy during market meltdown; damage will be limited because you can at least re-peg to the cheapest SIBOR tenures.

 

[Equalisation]

you need someone older ?

 

[Runifyouhaveto]

Chemical Industries Far East

This is another interesting company (NTA $1.08). Recently the boss buys additional stake from his son's company at 88.9cents although the share price is about 45cents.

Based on the latest semi-annual results, the value of their non-core assets in investment commercial properties alone, is worth at least $32.4m or 42.7cents per share (nearly the same as average share price). Based on the current share price, nearly all other assets are not priced-in.

 

[Runifyouhaveto]

Fed lowers debt buying by US$10bn while Japan continues with easing momentum.
Expect USDSGD to cross 1.30 by the end of 1H14.

Eurozone loses Standard & Poor's AAA rating. Further USD upside projected.

 

[DollarsNoSense]

Interesting, from whygoldandsilver channel in youtube:

http://www.youtube.com/watch?v=iFDe5kUUyT0

 

[rushifa666]

fiat is a scam. forget fiat. let it burn

 

[Runifyouhaveto]

I have a dream.

 

[t0nychat]

Hi All, I am a refugee from a recently-closed forum. I seek a small webspace to rebuild my past interest of sharing thoughts online.

Thanks for reading gentlemen!

You are not a refugee form another forum. Admit it, you are a PAP IB trying to distract our attention away from attacking your MIW pay masters.

To hell with all your financial news.

 

[Runifyouhaveto]

You are not a refugee form another forum. Admit it, you are a PAP IB trying to distract our attention away from attacking your MIW pay masters.

I was from a very large forum that closed down recently. Your remarks are uncalled for.

 

[escher]

I was from a very large forum that closed down recently. Your remarks are uncalled for.

t0nychat is an unzeroed arsehole spraying shit everywhere.
Toss that bastard into your ignore list for him to spray his shit there harmlessly and you see him no more

I did that an SBF is like a Zen garden of tranquility for me, other than Leongsam sometimes saying his hosannas when the sun got into his head .

 

[Runifyouhaveto]

Thanks escher, you're the man

 

[Runifyouhaveto]

Merry Christmas SBF!

 

[Runifyouhaveto]

China's Love for Gold

Vietnamese trust gold more than their Dong. Indians love gold. But nobody can match China's devotion to gold; in 2012, they are the world's largest Gold PRODUCER & IMPORTER. Absolutely loved-struck, i think 2013 wouldn't be much different.

Wait a minutes, being the world' No.1 gold producer, why didn't we see any China refiners' gold in their domestic retail precious metal market. Here's a list of accredited (checked) Chinese gold refiners:

- Inner Mongolia Qiankun
- Zijin Mining
- Shandong Jicang
- Shangdong Zhaojin
- Zhongjin Gold
- The Great Wall Gold & Silver
plus at least another 14 non-LBMA accredited refiners/bar suppliers
plus another group from HK Gold & Silver Exchange
source http://www.goldbarsworldwide.com/PDF/BI_2_GoldBarManufacturers.pdf

All indications that China is hoarding Gold. China needs a weak yuan. They are effectively using proxies all over the world, including HK to procure gold with their excess trade balance (sell yuan to keep yuan's strength capped). That is that Team A while Team B includes sovereign investment funds or state companies acquiring global miners instead of buying gold directly to avoid jacking up gold prices.

PS: I am not claiming that Gold has guaranteed upside going forward. If you wanna invest in precious metals in 2014, a calculated alternative would be precious metals miners (like China's Team B) as miners had steeply crashed in last 18-24 months with a smaller downside risk due to continued production yield.

 

[Runifyouhaveto]

How to sell your Residential Property

Wanna get the most out of your residential property? Well, here’re some strategies that you can consider

• Buyer is the one paying your property, not property agent. To close a deal, property agents must make you sell cheaper, so, do not expect a property agent to sing praises for your unit. In all honesty, they will tell you more shortcomings of your unit that than buyer; that is their job. Therefore, when they speak to you, bear in mind that they don’t love you.
  .
• I assure you that you will never get the best price for your unit when you appoint an exclusive agent. Exclusive agents can promise you the sun and the moon but once you appointed them as your exclusive agent, the game is half-won for them. In short, they have no incentive to protect your interests going forward. Always declare the sale of your unit, free-for-all / open for all agents. In this way, all the agents will have equal incentive to convince the buyers to offer a higher price, as much as they want you to lower selling price. In addition, you will get maximum exposure because you can get more agents to promote you unit online or in classified ads which will translate to greater buying interests.
  .
• Next, do a bit of homework when you price your unit. You just need to price the same as others initially (given the same size and level) and enquiries will naturally appear. No point putting up the lowest price because you are not selling shares in stock market. No two units are 100% similar, you can have the lowest list-price but the buyer will still visit other similar units in the same estate with a 3-10% budget tolerance for a more suitable choice because of hidden factors such as neighbours, facings, move-in condition,
  .
• Be firm about commission and confirms it before any viewing. It is only fair if you pay agent commissions but those who ask more than 1% are simply not respecting you. If your property is worth more than $2.5m, 0.5% commission is also acceptable. Don’t worry that you don’t know the paper work because you will always need to appoint a lawyer (not property agent) to close a property transaction and your lawyer will have some kind of templates/forms for you to close your sale. If you are lucky, maybe you will get to deal direct with buyer and save on commissions (but shrewd buyers will usually bring their own agents to get some kick-backs from the commission).
  .
• Usually it takes 3-6mths to offload a unit for the best price. To get some exposures initially; place small classified ads on newspapers for 2-3 consecutive weekends and gradually reduce to once a month. Property agents do maintain a large in-house database of available units so you don’t have to keep putting up ads.
  .
• Please organize weekend viewings at specific timings (eg 2-5pm). Most of the people viewing your units are not serious buyers. Some people are just hobbyist viewers. Please do not waste time accommodating to less-convenient timeslots because buying a property is not buying buns; serious buyers will genuinely wait to see your unit if they have already shortlisted your price/estate to make a more informed decision.
  .
• It is ok to accommodate second-viewing requests for serious buyers as the involvement of more family-members and friends can aid the buyer’s decision process. Of course, if the offer price is too much below your target price, then don’t waste time.
  .
• Agents need to smoke you, pressure you, lie to you to make you sell. Please understand that the agent only spends time smoking you because your unit has demand, therefore you must learn to ignore the criticisms and stories that they tell you. Just pay attention to price negotiations.
  .
• Property agents are going to start calling you during price negotiations. Property agents are taught to act busy and missed your calls because it will create anxiety. Likewise, you must also learn not to answer calls immediately from property agents who had begun negotiations with you to increase their anxiety. Many agents are very high-handed in their negotiations with you and for these jerks, just apologize to them politely for missing their calls because you were attending to another viewing earlier. Doing so, occasionally, will remind the rouge agents that their buyers are not the sole interested-party and all property agents hate missing out on closing deals if they are close.

Buying cheap is only ½ right, selling right determines your profitability.

You can get to see all kinds of funny, weird, dishonest people when you sell your own property. It is a good exposure and you will learn more about humanity + more street smart from this experience than schooling + a better price. Good luck.