And you will continue to disagree until you own a few properties and start earning decent passive income. Ppl r often sceptical until they experience it themselves.

When you earn approx 2k monthly passive income (clean after minus all cost) and your investment capital has triple in just 3 years, you'll have a diff outlook





This post has been edited by Pai: Aug 3 2008, 12:32 PM

Hmm, interesting point here. Im personally not a big fan of asset allocation actually, due these 2 cons :

1. No time -In order for it to work ie getting good returns, should one plans to segregate their investment into 3 asset class, say property, shares and precious metals, they technically need to master all 3 asset class.

Since we only 24 hours a day, I'd rather concentrate my efforts to become really good at only 1 asset class. Better be a pro at one thing than become an average at many things.

2. Measly returns - Not only its time consuming, you could end up being an average investor for 3 asset class, and geting a mere 5%-6% returns p/a. My view is that one concentrate on maximising returns when they are still young, then explore asset allocation once they've accumulated a comfortable wealth level, say at RM3Mil.

Also, there no one I know got rich thru asset allocation. What do you all think?

[quote=shadowz,Aug 3 2008, 11:36 PM]


Property though still remains a form of investment I hope to master (as well as the rest of the people in this forum I guess) as it is least likely to cause me financial ruin as long as I manage it properly. By the time I retire, I hope to have 2-3 paid up properties which is able to provide passive income for me, 2-3 properties which I would be able to sell with nice capital gain for $$$ and my own live-in home. So that would be 5-7 properties by retirement which are completely paid up for. Very general goal that I have yet to micro-plan to achieve. LoL! Give me time. I will figure it out as I learn from all you gurus
[/quote]

Sounds like a good plan, at least for me

[quote=shadowz,Aug 3 2008, 11:36 PM][/quote]
As for the 3 mil mark... Would that be completely in cash or mix of assets that make up 3 mil like a few of properties worth 1.5mil, 0.5mil in cash and the rest in stocks;unit trust;etc?
[/quote]

3Mil of pure cash or in highly liquid investments bro.

[quote=shadowz,Aug 3 2008, 11:36 PM]
If a person has 3mil in pure cash along with other assets then I think asset allocation is definitely in order With that much $ then a person really shouldn't put all of it in one investment. But that is just me. I am not so brave I would strive to ensure that the value of my assets (cash or otherwise) remain the same if not more by appreciating more than inflation and provide me with a reasonable income though.
[/quote]

Agree. When u reach the 3Mil mark, capital preservation should rank highest (unless you plan to reach the bilionaire gang) and should be one's top priority. A 5% yield would already give a person 150k p/a pocket money


[quote=shadowz,Aug 3 2008, 11:36 PM]

Every person will have a unique plan to make their fortune. What works for one person may not work for another so I won't let myself fall into that trap or feel pressured into something I am uncomfortable with. I simply wish the best of luck to anyone brave enough to stretch themselves financially with one form of investment alone with no buffer.

[/quote]

Very true and I respect that each person has their own investment preference and risk appetite. What I dont like is those naysayers who cast doubt on every lad here by making negative remarks with no supporting proof. Im very sure that there's plenty of kids out there who come here looking for investment advise ended-up being a chicken due to this unfounded but "sounded-logic" remarks. they then ended up regretting their "chickenness" few years down the road when other ppl took their chances and made significant profit, be it properties or stocks or any other investments

Dont get me wrong, I dont plan to get everyone here to buy properties blindly.

I got started after reading Kiyosaki's book, and agree with his idea on leveraging as a wealth tool, hence decided to go for properties.

Recommendation --> Not many value buys today, but based on current valuations, Maytower is probably one of the best rental yield properties available. Not many properties at circa 200k today can give you above 10% yields. Rented my current unit for RM1900 p/m to a corporate company (expat) and spend zero for advertisement and agent fee's. Using history as an indicator, think the price will go up by another 20% by mid next year, which is a fat bonus IMO given its alread strong rental yield.

no, the 351sqf shoebox

Its the location, my friend.

This post has been edited by Pai: Oct 15 2008, 06:33 PM

Its funny rite? That area has :

1. The failed CityOne - 3-bedroom condo being rented to bangla's for only 1k p/m, and selling for approx rm160psf
2. The decent Maytower - Shoebox studios being rented from 1.3k - 2k p/m and selling for rm580psf
3. CapSquare condo - 2 n 3 bedroom condo being rented from 5k onwards, and selling for rm700psf

Best part is that all 3 condo's are just 50 meters away from each other

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Added on October 15, 2008, 11:26 pmOpposite the upcoming & new shopping mall, Capsquare

This post has been edited by Pai: Oct 15 2008, 11:26 PM

Look, altho im very biassed towards Maytower, its not like its the perfect investment. I could think of 3 mains cons when it comes to Maytower :

1. Built quality is only average.
2. Mayland has a bad reputation as a developer and to have known to screw their buyers despite their track record as property managers is quite decent actually.
3. Flooding - Apparently is prone to floods but personally I have never encountered this before after a few months.

Also, like any other investment, Maytower has no guarantees on returns. However, I consider the above risk is negliable when I weight the strengths of Maytower :

1. Location - In Central KL, less than 10min walking distance to shopping malls, Putra & Star LRT, Monorail, cinema etc. KLCC, Bukit Bintang is just 5 min drive subject to traffic. Its extremely convenient. I cant think of any other units that cost you approx 200k today that could give you the same level of convenience.

2. Maytower basically addresses a key issue : limited supply & high demand. Apart from Casa Mutiara studios, there arent any modern studio's supply located at KL center today that cost anything less than 300k and being rented out for anything less than 2k p/m. Its caters mainly for short term expats who doesnt wish get a car and rely mainly on public transportation. I got my current Maytower expat tenant using free internet advertisement within just 10 days, and I paid zero for advertising and agent fee's.

3. Price VS Rental yield ratio - IMO its currently undervalued and still about 20% cheaper psf compared to Capsquare condo next door, but it commands 20%-30% more rental psf compared to Capsquare. Strange right, but small is sometimes big in returns
This wont stay for long as ppl will quickly realised that 10% yield is too attarctive and sellers will adjust their sale price upwards to match Capsquare. Furthermore, when BRDB launches Capsquare2 at indicative quote of RM900psf, Maytower price can only move upwards.

4. Past performance of similar studio's - By similar I meant by similar sized units, similar accesibility to public transportation and less than 5 years old :

a. Suasana Sentral - Launch at rm300psf - now asking for rm600psf, (100% increase - 4 years old I think)
b. Parkview@KLCC - Launch at RM450psf - now asking RM1000psf (>100% increase -3 years old)
c. Sommerset Bukit Ceylon studio's - Dont remember excat size (think approx 550psf), but studio units were launched at approx 250k, now selling at min 400k. (>60% increase - 3 years old)
d. Casa Mutiara - Launch at RM350psf, now asking RM650psf (>70% increase - 1 year old)

5. Very strong rental yield - The unit I bought 4 months ago now gives me 12% rental yield. Another fella I know who bought at the same time as me today enjoy 13.5% yield.

These 5 reasons are why Im quite bullish on Maytower

Syd,

Sounds like a good plan IF you can afford to cough up more than 30% deposit in cash. Good luck mate

No worries chief, u r defo not alone here in being concervative in these trying times. In fact, some banker fren's of mine are currently feeling the slowdown as there's significant reduction in loan applications

Guess it boils down to our respective risk-appetite, investment strategy and bet. Im making a contrarian decision so praying for the best now

Having bigger balls means nothing if the big ball will get burnt

If the flexiloans can give you significant savings and also increase liquidity, why not go for it?? In trying times, having that extra cash could be your ticket to significant wealth increase

mate,

The unit I bought 5 months back was the 351sqf bare unit @185k. Loan was 90%. Have to admit now its a bit hard to find a 351sqf@ below 210k. The 2 that I recently agreed to buy was just slightly over 200k.

If you cant wait, your best chance is to go after the 439sqf ones, and that should cost you 220k to 240k. Still cashflow positive with extra RM300-RM500 (depending on rental) pocket money every month kua

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Added on October 17, 2008, 2:03 pmIf can get min 20% more cash, think its worth your while. Good luck mate

This post has been edited by Pai: Oct 17 2008, 02:03 PM

Syd,

u r spot on. I know its not a complicated strategic move to some ppl & diversification is a safer way but the returns are just too mediocre. If my calculation is right, I'll have very decent passive income stream ELSE I'll just have small passive income stream