Monday, August 29, 2016

Malaysian Ringgit- Should you hold longer??

I have been absent from my blog for almost 3 years!! It has been a while since I wrote something about investment.

I joined private practice in 2012 and ever since life has been busy everyday and I must say I went through the hardest part in my life.

For my spare time, I always think about how to grow my wealth and make good return every year. Unfortunately our Ringgit Malaysia (RM) has been depreciating since I last wrote in this blog 3 years ago.

Looking at the graph before and you will be disheartened by the fact that our money has lost value almost 80% to Singapore dollars over a period of 20 years

Image result for rm vs singapore dollar

As a Malaysian, we have no choice but to hold on to our currency but can you do anything about this??

My answer to this-------------------------YOU CAN'T!! I anticipate our money will lose the value slowly over Singapore dollars as long as long investors have no confidence in our country.

As a humble and normal Malaysian, what can you do??
I will suggest you to do the following,

1) Buy some overseas shares especially in countries that you think the currency is undervalued. My first choice will be London Stock Market. After BREXIT, pounds has been under a lot of pressure and I anticipate it will rebound back in 1-2 years time.

2) Keep your currency in foreign currency fixed deposit, I have been accumulating NZD for a few years because there are only two currencies that pay good interest, AUD and NZD, however, NZD has appreciated against RM almost 20-25% in 18 months!! The only currency I am looking at this moment is AUD.

3) Buy a foreign property!! That sounds crazy to a lot of people but I think it is possible and do it while you still can because in next 5-10 years, you might not be able to buy one. Don't think about London, Melbourne or Singapore, Thailand seems to be an good choice. If you look at Thai Baht, the currency is much stable than our RM!!

Tuesday, April 09, 2013

I Sold 3 Properties in 2 years!

Yes, after many years buying properties, finally I managed to sell my properties.
The first property I sold was in Penang Island, I bought in 2008 with RM340K and sold it at RM520K after 2 years 9 month. During the 2 years+ period, I stayed in that apartment and renting out one small room at RM500 per month for 1 and half year. I think it is not a bad investment considering a profit of almost 50% in 2 years ( 25% per annum)

Property Investment is always the best!
The second property I sold was a shopoffice at Seberang Perai, I would say it is a so-so investment. I bought at RM220K in 2005 and sold it at RM290K in 2011. However, it was always a cash flow for 6 years meaning my installments were always paid by tenants since Day 1 of the purchase.(5.16% per annum)

My third property that I sold was a terrace house in Simpang Ampat, I bought in 2001 with RM170K and I sold it at RM290K in 2013. However, I had been getting rental income around RM1000 to RM1100 per month for almost 5 years since I moved out that house in 2008. That translates to a profit of about ( RM290K-170K+ RM1000x12x5) RM180K, a return of 105% in 12 years ( 8.75% per annum).

My examples clearly show you that it seems that Penang Island property do much better that Mainland properties. I think one thing is for sure, it is certainly better investing in properties than keeping you money in FD or under your pillow.!

Friday, March 16, 2012

I Made My 7th Purchase!

I Made My 7th Purchase!

Yes, I am very happy because I have finally made my 7th purchase of another property in Penang Island. I am a strong believer in property investment. If you are interested in property investment, I would suggest you to do the following homework before putting in your hard-earned money,

Believe in what you do and keep going!
1) Find a good location, it is OK to buy slightly above market value, keep the property and wait for capital appreciation.

2) Earn/Keep enough money, you must have holding power for at least 6 months even no one rents your unit!

3) Never fall in love in your property, sell if you can make a profit of about 20%. Roll the money and buy a better property instead.

4) Diversify your portfolio, buy some properties for rental yield and some properties for capital appreciation.

5) You can invest as well in REIT. Some REITs pay pretty good dividens.

Happy investing!

Saturday, December 10, 2011

What do I want to do if I have one more day to live?

What Do I want to do If I  Have One More Day to Live?

I am not talking about investment today. One end stage renal failure patient asked me " Do you feel my pain Dr Goh? " Yes, we are too busy sometimes and tend to forget what people think most relevant to them in life!

I am a nephrologist, what I hope to achieve is to prolong end stage renal failure patients' lives. I start them on dialysis because I know that will be the best way to prolong thier lives. But occasionally I forget to ask what actually patients want when they are old and frail.

One of my patients told me, he didn't want dialysis, he was old enough ( he was 76 years old) to make a informed decision. What he wanted was to spend the rest of his life with his children and grandchildren. He didn't want to waste the precious remaining time he had to do fistula or even finding a dialysis centre.

" Dr Goh HK, I spent half of life making money, but when you know you have an illness, I think money is nothing. What I want to do is just spending time with my family."

I am not sure about whether it is worthwhile sacrificing your time ( =life?) making tones of money. Maybe one day you would ask yourself, " What do I want to do if I have one more day to live?"

Wednesday, August 31, 2011

Penang Turf Club- Prime Land in Penang

Penang Turf Club- Prime Land in Penang

After vanishing for almost 20 years from Penang Property Scene, Tan Sri Vincent Tan of Berjaya Group is finally back again in Penang.

Penang Turf Club
Vincent Tan has bought a 57-acre prime land near Penang Turf Club for RM459 million  which translate to about RM185 per square feet. However, it is almost not possible for you to fully utilize all the land for buidling houses, therefore the 'real' cost for this piece of land is ceratinly above RM300 per square feet.

I think Vincent Tan is planning big again in Penang and certainly if he is only building low rise condominium, Bungalow, Semi D together with low medium cost housing according to The Edge, he has no choice but to sell the future high cost houses for at least RM600-700 per square feet!!

So I think houses near Medan Lumba Kuda will appreciate soon to about RM300-500 per square feet and once the final plan of Berjaya Land is finalised, they might go even higher to RM600-700 per square feet!!

Thursday, August 11, 2011

Market Plunge- What's Next??

Market Plunge- What's Next??

US Market Plunge- Global Panic??
I think the past few days was the most difficult period for a lot of investors out there. Most of my friends have many sleepless nights after the recent US market plunge.

However, I sleep pretty well although I have some US stocks which dropped almost 15% one 2 days. I always believe that when there is a crisis, there is always an opportunity. For you to sleep well at night even you hold stocks in US, Malaysia or Singapore, remember these 4 golden rules,

1) Don't buy stocks using bank margin- Use your own money and NEVER borrow to buy stocks!!
2) Don't panic, when stocks go down, they will go up eventually as long as you ARE BUYING GOOD STOCKS! Hold on and wait a while, your stocks will go up soon!
3) Diversify- buy some stocks, properties, REIT, gold/silver, when one comes down another investment will go up certainly!
4) Earn and invest and never invest to live. If you do not have a fixed income and retired, put at least 80% of money in bonds/hedge fund or else you will lose all your money if you put everything in stocks when the market is bad!

No worry when the market plunges because it provides you golden oppurtunity to hunt for cheap and valuable stocks!!

Sunday, August 07, 2011

Homestay Business in Penang

Homestay Business in Penang

Georgetown, Penang
Yes, homestay business seems to be growing rapidly in Penang especially in Georgetown. Due to UNESCO status and recent influx of tourists to Penang, I forsee that hospitality business to be the next 'big money' business in Penang.

I did a bit of research on the net and I was quite shocked that even a tiny small apartment in Penang is charging RM150-RM200 per day even the location is not so good.

Yes, I am venturing into this business and I have an extra condominium unit at Batu Uban that I have converted into a small B+B with full facilities. If you drop by in Penang one day, come and visit my unit at Batu Uban.