mind sharing where to channel the proceed from the sale of your property to?
which investment vehicle?
some of the previous postings consider property as a good investment....

Personaly I don't trust property investment much if only for rental yield. If you want rental yield, you might as well go for REITS. No loans needed smaller capital.

Property for me is much like the capital appreciation. Although not all property price will increase, but most of them does. Its matter of more or less only.

In my experience, there is a certain risk element (or some call it luck) to direct property investing. E.g, getting good reliable tenants, someone to buy the property off your hands at a higher price, things breaking down and needing repairs, good agents to sell/rent your property, market timings (imagine you have to sell the property for personal reasons, but the market is at the end of its boom cycle)

My relative has had sh*tty luck when it comes to tenants. He had to evict 2 tenants in the span of 12 months - which is time consuming and costly.

But this is also why the returns are on average much better than investing in property through REITS. Risk - reward tradeoff.

To be frank, my Malaysia properties are still stuck on the market , I also looking for lubang to sell.... since the US property market is still hot, will sell the US property next year to achieve my FI goal

When one window closes, another opens. I believe there's always opportunity around us, we just need to meet with the right people and a right timing.

Yes, I do have a few clients who is running retail businesses. They are running the business under sole-proprietorship, so their account is quite simple and lesser things to do compare to a Sdn Bhd. They don't use any invoicing software so the filing work it's just a nightmare.

Keeping track of cost for a retailer who sells lots of products, it'a challenge. I've thought about it, I think the best system should be those bar code system that supermarket uses but for a small SME to invest into those software it's a big investment. If you could code every single of them and then trace back using excel, I think it should do the trick.

since you have property in the US....mind sharing the legal fees amount like and any property gain tax applicable to aliens?

then mind sharing where to channel the proceed from the sale of your property to?
which investment vehicle?



This post has been edited by MUM: Jul 18 2018, 09:10 AM

I forgot the legal fees but the seller commission to agent is high, about 5-6% of the selling price, you may googled of the tax applicable

I ask my friend who work as property agent to sell my property

wow...5~6% of the selling....
I think I don't need to google the tax applicable...for I don't have a property in the US for sale.
I think if the seller is an alien and really have a property for sale in the US, he/she should google the tax implications .

This post has been edited by MUM: Jul 18 2018, 10:17 AM

similar goal.

but the difference is earning MYR. so it takes x3 longer to reach a passive income from dividend yields.

but yea i get the idea of getting paid while u just sit and wait. truly beautiful.

Don't use invoicing software? You're referring to softwares like Autocount, MYOB, Peachtree or cloud ones like Financio, Biztory & QuickBooks? Then each & every sale will have an physical invoice generated? Only half of my sales have invoices i.e. sale to other businesses (B2B). While my B2C sales don't have any physical invoices. So ideally even my B2C should have an invoice too for my own recording & filing?

Yes I am facing a huge problem tracking my cost, especially to determine my COGS. My COGS fluctuates so regularly to the point that in my inventory, even for the same identical product, they has different COGS because they're bought at different periods. Is there any method to solve this challenge with MS Excel? Barcoding may solve this issue because each item details can be captured & tracked. But woah, the software alone will cost several thousand, the printer will cost several hundred & the stickers will cost few hundreds too. Then not to mention the labor cost to stick the barcode on all the products during inbound phase

but as a rule of thumb. Isnt that rental more than loan amount considered an ok investment. But for sure haven't factor in other fees of course.
Because as I notice, some prop can project real high and the rental cant even pick up to 6% of the prop market value. Because it will be ridiculous to rent a house of 8k per month for a prop of market value of 1.0.

Nani, you dupeeeee??
oh god whyyyy

REIT market perf ok nowadays? seems so shaky beside the dividend paid. Capital appreciation shaky.

I know some place is a strategic place and sure got tenant due to booming. But not enough cash for dp. Saddddd

Property is long term asset/low liquidity you calculate at book/cost value. Furthermore you have debts on the property.

Stock is a short term/mid term asset/high liquidity you calculate at market value.

Use this method will be easy and handy.

On the other hand, you can apply fair value to your property / stock if you really want to calculate the yield. Of course Fair Value is very subjective but you will have better feel. E.g. Bought XXX apartment 400K. Current Market Value is 600K. So you think you can sell it immediately for 560K. Then U can apply 'Fair Value' as 560K to use it in your yield calculation. Fair Value is very useful but you have to be honest. If you buy 500K and current market value at 300K and actually you think you can only sell it at 260K, so you will apply fair value between 260K-300K.

Applying which value in yield calculation will depends on your honesty and feel good factor.

BTW, I'm not talking about Accounting for company.

Yes, no software at all. That's why filing those invoices back to sequence it's a nightmare. All books invoice starts with different numbering and to keep cost low they just purchase those cash book from stationary shops.

For B2C you could just sum them up once a month and generate an invoice for your own keeping.

Use those colorful stickers that you can find on stationary shops. Not sure what those are called.

Then stick it on every single one of your products:-

Product A purchase on 23/01/2018 cost 60 - Code as A230120180060
Product B purchase on 23/01/2018 cost 70 - Code as B230120180070

When you sell, just key in the code then excel should be able to sort or show the things you need.

Any good stock control need time to implement and a trustworthy staff to manage it without that, the best software also can't help it.

I do have a excel template cater for this due to client requested a control and also me to do stock check

Not sure if it will help you, but if you need the template I can send it to you.

Property unlike stocks, commodities, Bitcoin, etc is not trade on exchange. Difference between asking/perceived market price and transacted price could be significant. Except during bull run, vendor asking/perceived market price is often syok sendiri.

Many invested in property because of leverage. Leverage is a double edges sword, amplify profit as well as losses.

Given growing magnitude of oversupply in kv property, price is expected to stay depressed for extended periods.

This post has been edited by icemanfx: Jul 18 2018, 12:23 PM

Rather than calling it a rule of thumb, I'd prefer to call it an ideal scenario
It really depends on what you're trying to achieve; capital gains from flipping or steady income from rental. Those aiming for

A lot of people shares the same rule of thumb like you too, met a lot of them already. That's why you see sometimes a unit is left empty for so long without tenant cause the landlord stubbornly refuse to rent below their monthly installment despite most other landlords around them are renting at a significantly lower price. Mostly is due to ego la haha & they're super rich anyway with multiple units around KL vacant. They easily can afford to go tenant-less for years, I was so so so tempted to become their property manager to earn some pocket money from short termed tenants until they get a long term tenant

If you're in the property market, you'll know which developer's project can buy & which developer to ignore one la. Some developers are indeed hopeless, so don't need waste time with their projects. Especially those that are busy promoting in the malls & every property events. Good projects will be half sold already before launching - internal staffs including the boss & all their friends will sapu first.

I bought a brand new property in Shah Alam for RM180k, been collecting rental 20% higher than my monthly installment. After RPGT is gone, hopefully can sell RM300k+ & snowball to next project.

Ho mai gaddd.....that's basically a manual barcode method aka stone age barcoding
Only viable for those al-cheapo misers lol, this method will make accountant smile but retailer puke Looks like for this issue, somebody have to puke - either the accountant or the retailer

el-cheapo "a cents to them it's as big as a tractor wheel"

Even though it's a very traditional way of doing it but it does serve it purpose.

1 of my client also uses stock cards, and they are a big group of companies.

They are super rich but they are always the last to go home from their office.

I am not flipper type.
I just want to have capital growth and rental income only.
if the market not allowed to be rent more than loan, what to do? just follow lo. we can't do shit. that's why must look location and dev also. don't just buy for the sake of buy.
I got one low cost apartment unit in selayang. many years ago la. 90k only. loan 400 per month flat using gov loan. rent out 600 per month. quite ok la. recent 3 years up to 750. the rental there really stagnant like that. I can't do much also. but good thing is only fork out 9k for the unit. lol.

why not track the COGS as a running average for each product? when buying, add $ to inventory value, add count to inventory count.
when selling, reduce 1x average cost from inventory value, and reduce one count from inventory count.