Malaysia Real Estate

[Banzai]

Hi all

I was just talking to a group of friends the other day over beers and a question cropped up during the discussion. It's a really simple question but no one had a really good analysis of this. Just to re-surface the question:

- If you have a pile of money sitting around now, where would you sink your money into?

Since this is a real estate forum, i guess the answer would naturally be real estate. Given all the uncertainties about the market in the recent months, I am not entirely sure if this would still be the right answer at this point in time.

Any inputs?

[mercuri]

something safer with guaranteed returns? Wawasan Bonds? The market IMHO is pretty volatile nowadays. I reckon some would beg to differ, But for me, if I have loads of props I would cash out and hold on to it, as they always say, "cash is king"!

[nick1994]

...i think in the short 2 med term...............one shld start shifting 2 hold a higher degree of cash & equivalents vs property or share holdings......................................



as 4 properties.........................unless i am absolutely convinced its a sure-fire good deal..................i'll just stay with what i have..........mebbe lighten up a bit............................

[Banzai]

actually, i've given this a very hard thought and i somehow think that the investor should shove everything into FDs (shop for the best rate available) and keep that rolling on a year if it is worth it. About RM100k, to keep liquid on a monthly rolling FD just in case the right sure-fire property comes along and you need to pop in a 10% etc.

Repeat the same thing for year 2 etc until your money runs out.

[rck]

Have you ever considered Foreign Exchange FD's? I mean they give higher rates like 6% or so, since u are looking into FD's. Wonder if there are any conditions attached to it besides a minimum of 50k, but u did say a 'pile of cash' right?

[Banzai]

NZ denominated deposits have the highest % but if the currency moves the wrong way, you could end up losing whatever interest you have earned. And yes, have thought of it but struck that out.

[sky]

Well...banzai,it's really a nice question.actually i been survie for the question befor,different ppl different view.but 1 thing for sure is..all the way is juz keep the money value!am i right?

1word hav touch me, ' rather invest than safe'. y? becoz if u put it into bank,yes i agree bank also hav interest.but now day the inflasi is growing more faster than the bank interest n i think everybody also knw that the bank interest is decreasing from day 2day,right?so it's become a problem..

so,there's was 2best way 2 make a good investment,that's is invest to a mutual fund or to a PROPERTY!

i think that every1 also knw property value is there n definately increase every year becoz of population n habitat.it's juz mather on time.even puchong that no body would brought it 10 year's ago now day everybody searching for investment in there..becoz of the population..

so..this is my view.do u hav better view or any thing that u can 'fix' my post,there's r welcome coz it's benefit to every1,rite?^_^

[goliath]

............GOOD question......................looks like FD's the best place to dump the money so far.......................anyone can suggest something better than this?

[Banzai]

been giving a lot of thoughts to REITs, shares, unit trusts etc lately. Think i'll buy some nominal amount and take it as a learning lesson

[mercuri]

[FF]

How about gold? Gold price is going higher and higher, I won't be surprised if it hit 500 by end of the year.

[Banzai]

[mercuri]

[aimtrue]

Forget it. This thread is not the appropriate audience. If anyone wants to discuss structured savings in Singapore and Malaysia, levels of diversification and potential investments besides real estate, feel free to PM me or go to the finance forums.

[aimtrue]

double post

[aimtrue]

[nick1994]

[aimtrue]

[Y2K]

[aimtrue]

Y2K: You are right, he won't know if he is getting the best wantan mee. And he better hope that wantan mee seller does not decide to move or retire. Maybe nick meant, he must be a master of wantan mees. He focuses on every variation of wantan mee (kolo mee, kon loh, with soup, halal version , Singaporean version with ketchup ) so he will know every wanton mee seller in town.

I had to spend some time calculating and analyzing risk ratios, betas, regressions and graphs to come up with a diverse portfolio that have acceptable risk vs. potential return. The point of diversification is minimizing risk while maximizing return. The difficult part is quantifying risk. Where this is not possible through insufficient data or intangible factors, intelligent estimates through regression, extrapolation and comparison with similar vehicles are needed.

Simply, this means participating in several investments that when one goes down, the others might go up. On the top-most level: equity markets, real estate, structured savings, business. On lower down levels: different industries, markets, countries, risk profiles. Technical level: betas, PEs, etc. If your investments are not risk-minimized through a spread of different instruments that offer different risk factors, then it is not a diversified investment portfolio. Diversification is definitely not for lazy people.

But what do I know. I'm not Warren Buffett.

[mercuri]

[nick1994]

[nick1994]

[aimtrue]

[aimtrue]

*double