Jul 30 2013, 10:30 PM
QUOTE(Martinis @ Jul 30 2013, 08:52 PM)
I was wondering if the weakening ringgit means that one should invest or stay invested in properties as a hedge for further inflation. Am my thinking right? Why should property investors sell their props and keep RM which is depreciating?
My 1.5 cents:The weakening ringgit could be hedged through local property investment provided the property price does not weaken more than the currency.
In order for property not to be weaker than the currency, the cost of building has to be increased (due to weakenning currency) but in the same time the demand has to be high too -- this could also means purchase power of the target property buyers has to increase (although currency has weakend). Therefore, it is still very much depends on the local economy.
The fundamental is still demand Vs supply..... in a situation of weaken currency, would demand > or < than supply in the types of property we are investing?
Perhaps, if a person does not have much confidence on this "boleh-land", should consider holding international asset (property in other countries) Or stocks (unit trusts too) invest in other countries, precious metals (gold / silver) which is insulated from local currency issue, etc........
Other daigos -- do share your thoughts too on "how to preserve our assests" Or "hedge on inflation"....
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How would they reach the state of financial freedom 
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