Desa Airmas Condominium Car Park Collapsed

Desa Airmas Condominium Car Park Collapsed after torrential rain in the morning.

Renewed interest in Jalan Ipoh

$150K at EPF or buy low cost flat with 6% return?

Question:I need some advice.. if an old person has rm150k in epf. either leave it and get dividend yearly 6% or buy a low cost flat cash with rental rm750 monthly. I want to know the calculation that i am not aware of

Replied:
Hi Ahmad, based on ur limited information below will be my with inputs.

EPF rate=6%
This is the risk free rate.
In order to generate better than EPF rate, the targeted return should be at least 2 times.
That means 12%. Why? Think about it, if we put in at FD=3%, but we dun as we can get 6% from property investment!
FD rate is also risk free rate.Google "Risk free rate" and u know what i mean.

To invest in low cost at RM150K, u need to pay maintenance,repair cost, tenant sourcing etc. it will erode ur initial 6% calculations.
If you do not target 12% return, if i were you, i will put into EPF.

Since u mentioned is at old age, the risk level should be conservative?
From the message,i assume "the old man" want to buy cash. Form Faizul webinar,if not using leverage, property investment is not ideal for "the old man"

Of course I am not sure how old is the old man u mentioned.

Even buy the "low cost" must have strategy on how to double the investment in 5 years.

Above just my view.free to debate on it.

You may refer sample Strategy here for your reference

My first property Buy and sell index in Singapore

CAGR=5.84%

From:http://www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/RPIchart1Q15/$file/RPIchart1Q15.pdf

interest trend SIBOR:

 What is SIBOR?
The SIBOR (Singapore Interbank Offered Rate) is a reference rate based on the interest rates used by banks in Singapore when lending unsecured funds to each other. Simply put, the SIBOR reflects how much it would cost banks to borrow from each other.

Another one is the  Singapore Average Overnight Interest Rate

 Source:http://www.tradingeconomics.com/singapore/interest-rate

Below is the CPF contribution rate:

Source:http://aric.adb.org/pdf/aem/external/financial_market/Sound_Practices/sing_cpf.pdf

After 2002, the rate is as below:

Source:https://mycpf.cpf.gov.sg/assets/employers/documents/conbook_above65years_arc2002.pdf

Analaysis on Dutamas

Auction: Taman Impian Ria Bukit Mertajam

Just now after work i went to see an auction house. with below provided address:

25，Lorong Impian Ria 10= $135,000  
Auction date=23/6/15

I talked to the neighbour in front and get some information.
She said that the house is renovated with very nice interior design.
Currently is rented out to Malay. The owner is Chinese.
Few years back also bought from Auction about RM60,000
They are wealthy and not sure why the house can under "auction"

  This house with Awning sold for RM208,000.

 This house with Waja just sold for RM200,000.

Affordability at Kerichi/Pantai