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 Multiple Signs of Malaysia Property Bubble V20

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Ron2828
post Mar 28 2017, 08:28 AM

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QUOTE(gark @ Mar 27 2017, 10:58 AM)
I dont understand all these UUU and DDD, both also waiting for something that might or might not come.

Instead of speculating, I prefer to invest my money in a more sure thing rather than local properties, which currently does not make sense.  rclxub.gif

I prefer investing in foreign REITs, as a proxy for property investment.

I can buy properties at up to 30%-40% discount from market, and getting 7%-9% annual dividend annually from rental. I only choose counters which can at least raise their rental annually because of collective bargaining power. You can never get all these with your standard property purchase.

Buying local overpriced properties, you be lucky to get 5% discount to market and rental yields of 2.5%... what a foolish investment:lol:  laugh.gif  laugh.gif

If property goes DDD, I am protected with my high yield.

If property goes UUU, I enjoy my NTA going up, thus they can buy more property with debt.

If RM crash, I am also protected from Forex (I invest in >6 countries)

I dont have to worry about tenancy problem, selling, and all the associated headache related with property ownership.

The reit itself is already leveraged, but I can pledge my REIT to get loan (rate not much different than housing loan), which I only pay interest, and I can pay off the principal at any amount or one go if i like.

Sounds too good to be true? Sounds impossible? It is not. I have been doing this for the past 8 years, and it has done very well for me indeed.

To know more head to the stock exchange forum under REIT threads to know more.
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thumbup.gif thumbup.gif
Bro....well said and well done.Following your footsteps soon

Ron2828
post Mar 28 2017, 09:00 PM

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Bro gark,

How do you view the current retail space oversupply?can retail Reits maintain or increase their dividend payout in near terms (3-5 years)?I am looking at Pavreit,IGB reit,KLCC and Sunreit.

Your opinion is highly appreciated smile.gif

Ron2828
post Mar 29 2017, 10:41 PM

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QUOTE(gark @ Mar 29 2017, 10:29 PM)
Best you post at reit thread.. otherwise off topic.

In short, retail like mega mall is not going to die anytime soon. If you have visit it before you will know.

Avoid 2nd class retail reits like those who own summit usj for instance.

Reit choosing is also all about the location... Like buying properties.

However current MY reit price is already expensive thanks to the huge run up in last year. Better target in SG reits.
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I will go reits topic look look see see thumbup.gif
Ron2828
post Jan 25 2018, 04:46 PM

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Actually how much is the impact of 0.25% increase?

100k x 0.25% = RM250
RM250/12 =RM20.83 increase per month for every 100k loan

Is it this simple?

Ron2828
post Mar 12 2018, 12:31 AM

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QUOTE(icemanfx @ Mar 11 2018, 10:21 PM)
$68k to $300k in 30 years is about 5% p.a. compounded. A example of property price rise at about inflation rate in the long term.
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Should be a lot more than 5% p.a since most people took 80-90% loan.It is turning 6.8k/12.6k into 300k


Ron2828
post Mar 12 2018, 06:50 AM

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QUOTE(icemanfx @ Mar 12 2018, 01:14 AM)
What about loan interest and repayment?
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Ah yes....i forgot to mention assumming the owner is renting out the unit.First few years might have some negative cashflow but after that should have positive cashflow until year 30.The positive cashflow over these years would be able to cover all kind of expenses (quit rent,assessment,vacancy,maintenance,loan interest)




Ron2828
post Mar 12 2018, 12:40 PM

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QUOTE(icemanfx @ Mar 12 2018, 07:44 AM)
If could generate positive cash flow, many investors would have bought and current value would have worth a lot more than $300k.

Property price appreciation remain at about inflation rate in the long term.
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Sure will have positive cashflow from my example(assuming you bought 30 years ago).you bought at 68k,installment is about rm300.at that time rental may be around 200-300.so no positive cashflow at THAT time.

Fast forward 10 years later,rental should around 500-600 and there is your positive cashflow since your loan installment remains more or less the same (around 300)

Fast forward another 10 years (currently) 900-1000 rental and loan installment still at 300.That is the positive cashflow that i am talking about.

Year 1-10 - no +ve cashflow
Year 11-20 - approx 300 +ve cashflow per month
Year 21-30 - approx 500 +ve cashflow per month

The positive cashflow from year 11-30 is more than enough to offset whatever expenses that occur.So turning RM6.8k (10% DP,90% loan) into 300k (current value with no more loan after 30 years) is definitely more than compunded 5% return p.a

Conclusion:-
1)Buy property with HIGH DEMAND from renters.(very few vacant unit).No need to fork out own money to pay installment.
2)Buy property with AFFORDABLE rental.
3)Use LEVERAGE (loan 80-90% from bank) and let tenant pay it off.
4)Hold for LONG TERM to enjoy super return.

Yeah yeah,who dunno our mom is woman?but with point 1-4 above,i am pretty sure we can generate a return much higher than 5% compounded return per annum.

Happy investing everyone

This post has been edited by Ron2828: Mar 12 2018, 12:44 PM
Ron2828
post Mar 27 2018, 05:09 PM

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QUOTE(Jliew168 @ Mar 27 2018, 05:07 PM)
Hahaha.. Please check overdue maintenance and balance owe to developer  n others charges
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All these expenses will be paid by bank.I bought one auction unit with outstanding 3k maintenance fees but all paid by bank
Ron2828
post Mar 27 2018, 05:15 PM

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QUOTE(Jliew168 @ Mar 27 2018, 05:14 PM)
Not all same.. Have to refer the proclamation of sale
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Oh....i must be very lucky then.haha
Ron2828
post Jun 10 2018, 12:20 PM

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Perhaps we are heading for a lost decade....bubble wont burst but price stagnant for a long long time until income per capita
Ron2828
post Jun 12 2018, 08:46 AM

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Someone commented before that a rise in interest rate only equivalent to few plates of wantan mee.

Wantan mee is going getting expensive soon
Ron2828
post Jun 12 2018, 02:18 PM

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QUOTE(aspartame @ Jun 12 2018, 09:16 AM)
For those unprepared, yea, will suffer ..

Looks like many here want to see a crash to get back even with those who made from bull run.. he he
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I just hope to get 20-30% discount from current price for subsale freehold + landed property in KV

Ron2828
post Jun 12 2018, 02:35 PM

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QUOTE(aspartame @ Jun 12 2018, 02:27 PM)
Not to say cannot but must wait for real global crash lah. That time maybe can get 50% discount tim... other than that.. u slowly wait lah.. ke ke
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50% is a bit too much I think....maybe strata property in bad location can get 50%.

I not greedy....20% also ok brows.gif
Ron2828
post Jun 12 2018, 02:52 PM

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QUOTE(aaron1717 @ Jun 12 2018, 02:48 PM)
lelong ada... if u willing to try... for those non lelong ones... owners of landed usually have quite strong holding power... they willing to wait for the price they wants...
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Yup....especially those bought at cheap price many many years ago. Lelong I don't dare to buy coz I buy for own stay, worry about nasty surprise that awaits me inside
Ron2828
post Jul 3 2018, 09:52 PM

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US Fed is raising their interest rate.sooner or later we have to follow suit otherwise 1USD = RM5 + huge outflow of government bonds/FDI
Ron2828
post Sep 27 2018, 12:13 PM

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https://www.google.com.my/amp/s/m.scmp.com/...il-more%3famp=1

HK raise rates for the first time in 12 years.Market meltdown incoming
Ron2828
post Sep 27 2018, 01:41 PM

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QUOTE(icemanfx @ Sep 27 2018, 12:15 PM)
uuu/bbb used to say; rate rise is marginal, is like only the cost of one family wanton mee/dimsum lunch only.
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Really?if their loan amount is 500k,an increase of 0.25% in bank rate is already RM1250.enough to eat wantan mee for one whole year

Imagine if we raise 3 times in a year like in US....

Ron2828
post Sep 27 2018, 01:43 PM

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QUOTE(TOMEI-R @ Sep 27 2018, 12:33 PM)
Isn't Semenyih supposed to be a cemetery. No wonder cry also no tears.  laugh.gif

Jokes aside, why lar anyone from KV would choose to invest or even stay there? Travelling time alone and costs of traversing will sure offset the cost you save from staying there to coming down to KL for work. Not to mention, the effort and sacrifices you need to make like getting up early in the morning, jam, etc.
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Maybe most of the buyers work in Bangi/Putrajaya/Kajang area....can reach workplace in less than 30 minutes

Ron2828
post Dec 11 2018, 11:47 AM

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/k property expert

What is your opinion on using commodities price movement as an indicator for property price rebound?

lets say if oil price increase to more than USD 100 a barrel in the next 2 years and remains at that level,does it means property rebound is around the corner?
Ron2828
post Dec 11 2018, 12:07 PM

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-double post-

This post has been edited by Ron2828: Dec 11 2018, 12:08 PM

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