Your property remain priced and valued in RM.

This post has been edited by icemanfx: Nov 24 2017, 07:42 PM

My asset will be protected as it will worth a lot more, maybe around 5 millions RM.

Property price doesn't generally correlated with currency forex rate.

When RM depreciated from us$1=rm3.2 2 years ago to 4.2, did property price rise by the same proportion?

Yes, even the price of anything went up , when you have a current-Sea crisis.

Hedge is not a word for foreign exchanges only, it is also for stock derivatives and any assets. Hedge simply means protect. There are many ways to protect.

If you mean hedge against inflation; do you realize bank interest rate normally track inflation rate.

Most bought property with bank borrowing. During economic crisis e.g recession, hyper inflation, etc, those with outstanding loan are at risks and property price is likely to remain stagnant or even drop.

Unless is fully paid off, property is not a idea asset to hedge against inflation or currency depreciation.

This post has been edited by icemanfx: Nov 26 2017, 08:19 AM

Airbnb is another option where you can increase your unit market and reach potential guest. I was thinking as the unit is dual key system. Maybe 1 room rent to student anf another to guest trough airbnb. Make sense?

Property is a good asset when it generate income the value appreciate overtime. Thus a good way to protect and increase your income. When inflation is high is either you increase your rent just to break even or minimize negative rental yield.

In economic crisis everyone is at risk. People loosing job, car loan house loan increase. But everyone still need a house to live. Thus renting is the logical thing to do rather than buy.

This post has been edited by mzalias76: Nov 30 2017, 07:25 AM

Property investment is highly leveraged for many, bank interest rate play a major role. During inflationary period, bank interest rate rise similarly. With households debt at about 90% of gdp and less than 3% of adults in the kangkong land have over us$100k net worth, many couldn't afford or sustain loan repayment i.e demand and price will be suppressed.

In time of economic difficulty, rent is likely to lag behind inflation rate. If over hang persists, those tenanted are considered lucky and unlikely to rise rental.

With bank interest rate on rising trend and liquidity tightening, Leverage will be a burden for many.

This post has been edited by icemanfx: Nov 30 2017, 10:06 AM

yes, we'll see high interest rate for the coming year

I am hedging 50% of my EPF money. I took maximum loan, but if the need arises , I will settle my loan in full.

Monitoring.

Still a lot lower than EPF dividends.

Sound good if you are staying alone.

50% is a lot considering EPF dividend is much higher than loan interest.

Ok lah. Less than 2 % extra.

For me, my main objective is to protect my money in EPF , by hedging it. EPF is a good form of asset. Why ? Safe, fairly good returns and highly liquid if you are over 55 year-old.

Hope some of you can see my point.

The most prudent strategy for any buyer or investor will be determined by their cash flow. With strong cash flow, one can sustain the mortgage/loan repayment for any property in any location at any price to overcome pricing-and-demand hiccups in the market.

But why Urbano? Mind to share?

Freehold, low density, good lift to unit ratio( 8 lifts to 389 units)

University, hotel , lrt and mall.

No progressive interest sealed the deal.

Very far from LRT

Very far is subjective.

About 15 minutes walk or 1 km. I have tested it personally.

its not covered pathway to lrt and its a busy road