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Princess Cove R&F
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Well, for me, I just look at it more simply and short term...
Is construction still going on? Can anyone who is around that area update? Is there still works going on at the site, can we see piling or is there noise? That is why I am waiting for the superstructure to come up so I can tell more easily...
I figure if they have not asked for the next 10% the piling works is not complete yet. Anybody can tell me if they are still working?
Is construction still going on? Can anyone who is around that area update? Is there still works going on at the site, can we see piling or is there noise? That is why I am waiting for the superstructure to come up so I can tell more easily...
I figure if they have not asked for the next 10% the piling works is not complete yet. Anybody can tell me if they are still working?
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I am the kiasi type.
I always hedge my investment within a fixed cost and if possible no loans at all.
After that, then only I move forward. Trembling hands cannot handle so many variable investments at the same time.
PCove started digging on the site early last year. 2 days ago saw them digging deeper into basement 1. Cant see any concrete structure yet. I am wondering if this pace is the norm.
An Ang Mo expert suggested to max the loan and to set aside 2 years loan instalment amount, calculated using a higher interest rate. The rest of the money is free for further investment. Personally I agree with the approach, but of course different people would have their own view-points, which is quite fine.
This mode of operation is for those who really want to get rich, and thus has to take more risks by leveraging on debts. Most people in this forum are those relac relac want to retire type, so most of us take the safest route of minimum debt. I also don't see the sg kind of super duper appreciation here in Johor. The best it can happen in Johor is modest appreciation to beat inflation.An Ang Mo expert suggested to max the loan and to set aside 2 years loan instalment amount, calculated using a higher interest rate. The rest of the money is free for further investment. Personally I agree with the approach, but of course different people would have their own view-points, which is quite fine.
JB is indeed going to be a superb state in future. Thanks to the China Developers again.
Latest News, Jan 21: Greenland Group, a Shanghai state government-owned firm, is looking to bring a “Gold Coast” outlook to the southeastern corridor of Johor. The first phase of the project will feature a snow world theme park, an opera house, a hospital specialising in Chinese traditional medicine and a school.
Read more: http://www.therakyatpost.com/business/2015/01/21/china-firm-brings-gold-coast-johor/#ixzz3PRndCtnh
Latest News, Jan 21: Greenland Group, a Shanghai state government-owned firm, is looking to bring a “Gold Coast” outlook to the southeastern corridor of Johor. The first phase of the project will feature a snow world theme park, an opera house, a hospital specialising in Chinese traditional medicine and a school.
Read more: http://www.therakyatpost.com/business/2015/01/21/china-firm-brings-gold-coast-johor/#ixzz3PRndCtnh
If you are going to remind me of something please renin the others the same. Don't choose selectively. Meanwhile feel free to discuss about how expected rising rates are going to impact your investment. Yesterday received rumors that in line with najibs latest slew of cost cutting measures govt is mulling over the gradual withdrawal of subsidies for essentials. We will all know it when Sh!t hits the fan. No royal wealth can stand in the way of a financial tsunami.
Erm.... Two way sword I think. I don't think BNM will raise rates any time soon. Economic growth is set to slow already, then there is GST which will further dampen consumption. The budget has been revised - actually not so bad, no developmental cuts but some infrastructure, as well as oil & gas exploration - and there will be some decreased public spending. To raise interest rates now will not be the best idea.
On the other hand, stronger sing dollar makes it easier to pay for properties in the short run... Breaching 2.7 soon...That is $185,000 for a RM500,000 property... Throw in discounts...If you pay in cash you can get a studio at Country Garden or maybe even R&F for $180,000...
In fact I wish R&F would have got the limit lowered to RM500k earlier... Then I would have no worries...
All this are longer term "feel good" news to brighten up the current gloomy market sentiment that will only happen 10 to 15 years down the road, so don't be overly optimistic.
There are some much bigger problems now that need to be resolved that may make or break the developers' future.
The falling ringgit is going to spook the developers at least for now.
Units sold last years, if compared to today's value, had depreciated by about nearly 5% on paper while the purchasing cost of imported building material will be increased by about 5%.
This is going to be a great squeeze on the developer's margin.
If the ringgit falls further this year, all profits will be all wiped out!
This had already happen to the Rouble and its drastic negative effects on the Russians and its economy in just 6 short months!!!!
We all know the Chinese developers had special tax exemption to bring in raw materials from China. With the depreciation of RM, they are going to spend more ringgit to bring in the same amount of materials. Then when they repatriate profits, the RM is of lesser value. It is double whammy. Personally I think Greenland, R&F or Country Gardens will honour their commitments in the first phase but future launches would need to be seen. Maybe they will go slow and keep the land bank for capital appreciation. They don't need to build all to make money. Having said that, I wonder if there is a time limit for them to start and finish building it all.
The developers are really caught in a dilemma now.
First, they need to clear all the current stock on hand as quickly as possible to get cash.
But despite the good locations and all the aggressive marketing, sales which was expected to be roaring and selling like hot cakes, had been just lukewarm at best.
And yet, they cannot increase prices to hedge against the falling ringgit and yet has to give incentives to drum up sales!
Hopefully they don't compromise on the final finishing quality to cut cost.
For some developers, there is normally a 5 year period (60 month) and for others a shorter period to complete a project once they get their kick start and get their KM approval etc.
They will get into trouble if they are not able to complete the approved project by then.
They will get into trouble if they are not able to complete the approved project by then.
No worry at all. Malaysia PM just declared that Malaysia is not in crisis. The fact is Malaysia ringgit will never be allowed to drop more than Rm3.80 = 1USD. Capital control will come in then. Malaysia still have many foreign reserve. The ringgit drop now is a blessing in disguise for PC. More singaporeans are keen to buy this project. Low value of Ringgit currency is just temporary. It create a gold rush for properties now especially those that at good location like PC. Furthermore, RnF is cash rich. Not like the local developers who are suffering due to the low value of RM currency. Local developers are most likely to compromise on the final finishing quality to cut cost.
KUALA LUMPUR (Jan 22): The depreciating ringgit is deemed a "silver lining" for the Malaysian property industry, as local real estate would be priced more competitively against world markets, according to IJM Land Bhd (Financial Dashboard) CEO Datuk Soam Heng Choon.
Soam said a weaker ringgit would not affect developers' costs, as long as they did not use imported goods.
"This is actually a silver lining for us. Chances are that people will come to Malaysia to buy properties, because it will become cheaper.
"As long as we don’t use any imported goods, we’re okay," Soam told reporters here today, on the sidelines of the launch of IJM Land's (fundamental: 2.2; valuation 1.8) Sherwood Kinrara South project.
At 3.11pm, the ringgit changed hands against the US dollar at 3.6068. This compared to 3.1463 in August 2014.
http://www.theedgemarkets.com/my/ar...roperty-industry-ijm-land-chief?type=Property
Soam said a weaker ringgit would not affect developers' costs, as long as they did not use imported goods.
"This is actually a silver lining for us. Chances are that people will come to Malaysia to buy properties, because it will become cheaper.
"As long as we don’t use any imported goods, we’re okay," Soam told reporters here today, on the sidelines of the launch of IJM Land's (fundamental: 2.2; valuation 1.8) Sherwood Kinrara South project.
At 3.11pm, the ringgit changed hands against the US dollar at 3.6068. This compared to 3.1463 in August 2014.
http://www.theedgemarkets.com/my/ar...roperty-industry-ijm-land-chief?type=Property
Malaysia has a lot of foreign reserves but it is denominated in US$. The reserves has dropped by 15% already.
The problem with Malaysia is not about its weak RM but the low oil prices which is a major contributor to its economy. The weak RM is due to the large number of foreign investors who are exiting the equity market as US offers better interest rates and high forex.
Malaysia cannot afford to impose capital controls as foreign investors will never trust Malaysia anymore. Once bitten twice shy. Twice bitten....??
More so to defend RM within RM3.80/USD will kill off its foreign reserves instantly as ECB and Japan has plenty of QE funds waiting on the sidelines.
My take is RM will be allowed to drop according to market forces as it means better tourism receipts and cheaper FDIs. It might even drop as much as RM4.00/USD.
The problem with Malaysia is not about its weak RM but the low oil prices which is a major contributor to its economy. The weak RM is due to the large number of foreign investors who are exiting the equity market as US offers better interest rates and high forex.
Malaysia cannot afford to impose capital controls as foreign investors will never trust Malaysia anymore. Once bitten twice shy. Twice bitten....??
More so to defend RM within RM3.80/USD will kill off its foreign reserves instantly as ECB and Japan has plenty of QE funds waiting on the sidelines.
My take is RM will be allowed to drop according to market forces as it means better tourism receipts and cheaper FDIs. It might even drop as much as RM4.00/USD.
International reserves fall
Friday, 23 January 2015
By: FINTAN NG
PETALING JAYA: Malaysia’s international reserves fell further on the back of a climate of global uncertainty and plunging oil prices.
According to a Bank Negara statement, its international reserves amounted to US$111.2bil (RM388.6bil) as at Jan 15, compared with US$116bil as at Dec 31, 2014.
The central bank said the reserves position was sufficient to finance 8.1 months of retained imports and was 1.1 times the short-term external debt.
The drop represents reserves at the lowest since March 2011 while a Bloomberg report noted that reserves declined US$9.7bil in December, the biggest decrease since September 2008.
According to an economist, the drop in the country’s international reserves was due to foreign funds selling Malaysian Government Securities (MGS) in recent weeks.
“They sold Government Investment Issues (GII) in December and now they’re starting to sell MGS,” he told StarBiz.
GII are non-interest bearing government securities based on Islamic principles primarily used for development expenditure.
Ten-year benchmark MGS yield rose to 4.272% on Jan 7 before levelling off to 3.901% on Jan 16.
Yields have since climbed again and closed at 3.976% yesterday.
The funds outflow has also been reflected in the equity markets, with MIDF Research analyst Syed Muhammad Kifni noting in a report earlier this week that foreign funds sold RM1.42bil last week.
Last year, Malaysia saw a net outflow of US$2bil, the biggest outflow since the 2008 global financial crisis.
Global crude oil prices falling below US$50 a barrel prompted a revision of Budget 2015, with the fiscal deficit revised to 3.2% of gross domestic product (GDP) from the 3% target. Malaysia had last October projected a crude oil price range of US$100 to US$105.
GDP growth has also been revised to 4.5% to 5.5% from 5% to 6% earlier.
http://www.thestar.com.my/Business/Business-News/2015/01/23/International-reserves-fall/?style=biz
Friday, 23 January 2015
By: FINTAN NG
PETALING JAYA: Malaysia’s international reserves fell further on the back of a climate of global uncertainty and plunging oil prices.
According to a Bank Negara statement, its international reserves amounted to US$111.2bil (RM388.6bil) as at Jan 15, compared with US$116bil as at Dec 31, 2014.
The central bank said the reserves position was sufficient to finance 8.1 months of retained imports and was 1.1 times the short-term external debt.
The drop represents reserves at the lowest since March 2011 while a Bloomberg report noted that reserves declined US$9.7bil in December, the biggest decrease since September 2008.
According to an economist, the drop in the country’s international reserves was due to foreign funds selling Malaysian Government Securities (MGS) in recent weeks.
“They sold Government Investment Issues (GII) in December and now they’re starting to sell MGS,” he told StarBiz.
GII are non-interest bearing government securities based on Islamic principles primarily used for development expenditure.
Ten-year benchmark MGS yield rose to 4.272% on Jan 7 before levelling off to 3.901% on Jan 16.
Yields have since climbed again and closed at 3.976% yesterday.
The funds outflow has also been reflected in the equity markets, with MIDF Research analyst Syed Muhammad Kifni noting in a report earlier this week that foreign funds sold RM1.42bil last week.
Last year, Malaysia saw a net outflow of US$2bil, the biggest outflow since the 2008 global financial crisis.
Global crude oil prices falling below US$50 a barrel prompted a revision of Budget 2015, with the fiscal deficit revised to 3.2% of gross domestic product (GDP) from the 3% target. Malaysia had last October projected a crude oil price range of US$100 to US$105.
GDP growth has also been revised to 4.5% to 5.5% from 5% to 6% earlier.
http://www.thestar.com.my/Business/Business-News/2015/01/23/International-reserves-fall/?style=biz
Since Zeti has promised no interest rate hikes in the near future n our oh so clever PM declare we are not in a crisis yet, the only way out is more budget cuts and printing of the ringgit. US , Euro n Japan has done it in the last two years. Clearly it's now a race to see who can print the most money and believe me Malaysia will outdo everyone. Expect the RM to fall more than 3.80 against the greenback. Foreign developers have more to lose than local developers when ringgit depreciates. Don't forget they have spent so much paying the Big Man of Johor for land and now the land value has depreciated on paper. Local developers have been building up their land bank over the years and their main focus will be to contain rising costs in building materials. Projects that are due for completion in the next 3 years should not have any Quality issues. Having said that local developers have an edge over foreign developers as their land bank is ready for construction at any time. Foreign developers who have no land bank I suspect will be stuck with rising reclaimation costs for the next 5 to 10 years which will inevitably eat into their profits n I suspect they will pass the costs to buyers.worst still compromise on the finishing to contain rising reclaimation costs.This is probably the worst scenario for foreign developers in Malaysia.
Wouldn't a smart company like Greenland have considered the over-supply situation and the falling ringgit, before committing RM 2.4 billion to Permas Jaya? There's probably some asymmetry of information here between us and them.
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