I count left count right... REIT yield is much better than property yield wor... now apartment can yield 3% or less only, landed house even worse can get 1+% consider lucky de. All hope capital gain to earn only. 

Blame all the developers manipulating the market. 

Stock market also same. Most people chase the price when bull is here, and dump and cash out when the bear appears

When talk about money, people's behaviour is the same everywhere 

Can find 100k condo/apartment now meh? 

Even low cost flat more than that already..

Leveraged REIT for dividend income

This is an idea for discussion only, and it involves LOANS and possible MARGIN calls, please do not attempt this.  Otherwise.. 

Lets say you have 100K capital... and want to have good income from REITs (Keep it simple 6% after tax)

Method 1
100K buy Reit counter
REIT income = 100,000 x 6% = 6,000 p.a.

Method 2
100K put into pledged FD, to obtain 300K margin facility
FD income = 100,000 x 3.5% = 3,500 p.a.
REIT income = 300,000 x 6% = 18,000 p.a.
Interest expense = 300,000 x 4.75% =  -14,250 p.a.
Net Income = 3,500 + 18,000 - 14,250 = 7,250 p.a.

Method 3
100K REIT pledged to obtain 200K margin facility
REIT Income = 300,000 x 6% = 18,000 p.a.
Interest Expense = 200,000 x 4.75%% = 9,500 p.a.
Net Income = 18,000 - 9,500 = 8,500 p.a.

Of course you need to have some buffer to protect against margin call and get ready at least 1st year interest (to pay first before divvy).

Discuss! 

Give your thoughts lar.. hehe. 

I think method 2 is the most 'safe' .. cause with pledged FD, you will not likely kena margin call.. unless your FD becomes negative.. 

Other risk include capital loss from REIT price down and divvy < interest if REIT rental not doing well.. but if the reverse happens.. 

sell stocks.. pledge FD... buy MORE stocks.. win.. 

Hmm dunno wor.. long time no buy MY stocks already de... 

I thought abang gark had adviced you to pledge FD so you can get more $$ to invest MOORE..  

http://www.themalaymailonline.com/malaysia...-made-bnm-chief
Be prepared RM 5 = 1 USD

Time to lari......... 

Pink Spider

Since you like divvy stocks...

Star and UP tak mau? 

My family still do.. for entertainment purpose only.

The star is much less political than utushit.. 

Boleh ka? 

Seafood, I got a question on right issue.
MFCB just send me the form to subscribe,
stated the number of rights shares provisionally allotted to me and the payable.

under subcription option i saw "you can opt to" (i) ; "and/or" (ii)
means i can top up la?
so means 2 bank drafts ka?

Pink Spider Wah, u bought into Hiaptek! Expecting turnaround in 2nd qtr ah 

On your property thingy, I heard u can get the funds as long as u can give all the relevant documents to EPF. Go check EPF website for more details.
But, whether subsequently EPF investigates or does a review on whether the funds given to u was really paid to the seller, that part I duno. I don't they will be that petty.

My 2 cents: if you haven't bought your first property yet, then u shouldn't waste it on dealing with your friend. U don't want to lose all those "first home buyer" benefits just like that. Should just keep your EPF money and let them do the compounding work for you. But if your "friend" is your gf who will be your fiancee, then yeah just go ahead.

EPF giving 6+ % consider ok lah... keep as part of your 'bond' portfolio allocation loh.. 

Otherwise..

Better you buy property charge rental (to offset loan) and get appreciation, in the end the property is yours..

Den you collect rental from your 'friend' no hassle... later if he went into financial trouble then how? Electricity no pay, water no pay, condo fees no pay.. then you are liable as house owner.

Advantage for him is after 'selling' the house to you, he no longer owes the bank, but owe you.. you have no legal recourse to force him to pay. Bank can take his property, you cant because it's already yours.

Even rental agreement usually state give 1 month notice only.. then cabut.. 

You must study carefully why he wish to dump the bank loan onto you? 

Remember buy and sell house twice means you incur stamp duty twice and lawyer fees too.. siapa pay?  If house less than 5 years old, got RPGT also.

Where you buy ?
What mine 2 sen - if you buy for long term like 5-9year onwards juz go ahead.

1) Rule 1 : Rental yield > Reits yield.

2) Rule 2 :  committed
Malaysia Birth rate:
https://www.statistics.gov.my/index.php?r=c...klWdzQ4TlhUUT09

I heard usually auction - banker will sapu the unit..now banker not keen on OUG.
don't know how true..maybe high density and PH..

or ppl spread bad mouth on OUG parklane.