4 MYR = 1 SGD coming

[sohguanh]

Friend just entered into JB real estate without thinking of the currency depreciation.

For close to 600k spent on a new property there for a weekend home, I don't think this investment will make any senses at all.

Not only this. Those buy US stock ETF in USD later may face same issue as SGD is strong whereas MYR super weak so easier to plan for future if want to change back to SGD

 

[andyhtc]

Friend just entered into JB real estate without thinking of the currency depreciation.

For close to 600k spent on a new property there for a weekend home, I don't think this investment will make any senses at all.

The good ones that are either near RTS or landed are being snapped up quite fast.

There should be quite a lot of room to grow given that private property prices in Singapore are very expensive.

Even many humble HDBs are going above $1 mil now and $1.5 mil is the recent benchmark.

 

[compro_1975]

sian.... went back to 3.4 already..... i was hopping for 3.6 to 3.7

 

[BBCWatcher]

Not only this. Those buy US stock ETF in USD later may face same issue as SGD is strong whereas MYR super weak so easier to plan for future if want to change back to SGD

Ah…no. You can purchase a Singapore Straits Times Index stock fund that’s listed/quoted in U.S. dollars. The ticker symbol is EWS, and it’s holding exactly the same stocks in exactly the same ratios that ES3 and G3B hold.

The listing/quotation currency doesn’t matter, except possibly for purposes of computing total roundtrip costs (including currency conversions in and out). What you’re actually holding (the investment itself) is what matters.

Now, that said, what is real estate in Johor Bahru? Real estate in Johor Bahru. Its value, expressed in any currency you care to choose (Turkish lira?) will be based on the supply and demand for real estate in Johor Bahru. That’ll certainly depend on factors peculiar to Malaysia and the local area. To some extent it’ll be based on what’s happening across the border in Singapore. It won’t be materially based on the strength of the restaurant business in British Columbia, Canada, as another example. To a considerable extent the value of real estate in Johor Bahru will be affected by the Malaysian ringgit’s exchange rate because developers and buyers in that part of the world are.

There’s an interesting current counterexample. KFC, Starbucks, McDonald’s, and other branded restaurant/fast food chains are currently facing headwinds as many consumers in Malaysia and elsewhere stop patronizing their establishments. They’re doing that because they feel it’s a good way to protest Israel’s actions in Gaza. Would the fact that Starbucks stock happens to be listed and traded in New York, and quoted in U.S. dollars, tell you anything about those investment risks? Not really. Starbucks and other restaurant/cafe/fast food brands are often very global. Their earnings are greatly affected by what happens in other currency zones and countries. If there’s a beef scare in Japan for example then McDonald’s could take a serious hit. Or conversely if some big Bollywood star happens to eat KFC food in the year’s biggest movie then KFC sales in India could soar, materially affecting their prospects in India and their stock valuation. These are real businesses operating in lots of different places (if that’s what you’re investing in).

Quotation currencies do not matter.

 

[BusinessFinancing]

The good ones that are either near RTS or landed are being snapped up quite fast.

There should be quite a lot of room to grow given that private property prices in Singapore are very expensive.

Even many humble HDBs are going above $1 mil now and $1.5 mil is the recent benchmark.

Probably.. I think if I were to buy a property in malaysia, it has to be a landed.

 

[henrylbh]

Probably.. I think if I were to buy a property in malaysia, it has to be a landed.

For landed, are you prepared to throw in at least RM1m or RM2m in certain location (even in JB) with no visibility, now and in the future compare to throwing the same $ in Sg?

 

[manics]

if invest in JB real estate, might as well invest in real estate in KL.

In KL, the demand will be from the local Malaysians and yourself (Singaporeans).

In JB, the only demand will be from yourself (Singaporeans)

 

[BBCWatcher]

if invest in JB real estate, might as well invest in real estate in KL.
In KL, the demand will be from the local Malaysians and yourself (Singaporeans).
In JB, the only demand will be from yourself (Singaporeans)

I don’t see how that follows. There are zero Malaysians living in Johor Bahru?

 

[gold_eagle36]

I don’t see how that follows. There are zero Malaysians living in Johor Bahru?

Malaysians buy different quantum.

 

[BBCWatcher]

Malaysians buy different quantum.

Not 100% of them.

 

[terriblee]

Myr strengthening drop below 3.5 already more good years ahead for the rayat

 

[sohguanh]

A lot of Msian using IBKR for US stock ETF investment. It is a logical move becuz looking at USD MYR trend even I can almost guarantee 20 years later USD will be strong. So if I Msian retire sell all from IBKR convert back to MYR I will be laughing to the bank. For SGD hmmmm need to hold on a bit.

 

[BusinessFinancing]

I don’t see how that follows. There are zero Malaysians living in Johor Bahru?

Maybe when investing in foreign countries, always look to invest in their main city.

 

[BBCWatcher]

Maybe when investing in foreign countries, always look to invest in their main city.

Why does that follow?

 

[henrylbh]

if invest in JB real estate, might as well invest in real estate in KL.

In KL, the demand will be from the local Malaysians and yourself (Singaporeans).

In JB, the only demand will be from yourself (Singaporeans)

That's what you think without knowing what's going up there.

I can say definitely in JB, the only demand is not from Singapore. The Malaysians, especially those working here are pushing up the demand in JB especially in the city area, in view of aggressive courting by developers and agents and due to crazy rent in Sg, the favourable forex to the Malaysians working in Sg and the upcoming RTS. Young Malaysians, many singles working in Sg with about 3k are are enticed or lured to jump in with expectation that property prices would go up out and so are snapping up property without much thoughts except that monthly housing instalments are cheaper than the monthly rent they are paying in Sg. As such, properties in term of purchase price and rental income in JB are getting more expensive than KL. A master bedroom of RM1800 with condo facilities and parking is cheaper than renting a common room HDB flat. Landlords in Sg are are driving the tenants to take a plunge in JB properties despite having to travel in and out everyday for work. Room rental can go up as much as $1200 and for slightly lower, 2 tenants got to share room and in some cases 3 tenants to a room, each paying $400 or so. Even a 3-rm flat for 6 pax can command $3k plus rent. Madness. That price tenants can pay/rent a large landed properties with 4 to 6 bedrooms with bathroom attached to each and every room. But for that they have to travel to and fro from their work place, like what some Singaporeans are doing.

The situation is that more Malaysians are coming here to works and that include many who previously never wanted to come over. Now JB is very short of workers. Sales girls, mechanics, cooks and restaurant waiters and waitresses, cleaners, nurses and all types of people are crossing over enticed by the exchange rates and with the extra wages many are looking at properties.

 

[andyhtc]

Once people see the RTS tracks are laid next year, the JB property prices will go into a frenzy.

 

[henrylbh]

Once people see the RTS tracks are laid next year, the JB property prices will go into a frenzy.

That's what developers and agents are banking on to lure buyers. It's known that RTS will be ready at end of 2016 and the selling prices have taken that into account. For Malaysians planning to work long term in Sg, it may make sense to buy instead of renting a room in Sg or JB, but for foreigners we face many uncertainties and restrictions.

 

[stanlawj]

Good pullback to RM3.47 to SGD1.
Due to the impending change in monetary policy for SGD for 2H 2024, the MYR-SGD rate may be range bound for rest of 2024.

Appreciation of MYR relative to SGD is limited as long as we have a spend-spend-spend mentality among Malaysians, instead of earn-invest-spend. Refer to this thread below for more information.

The last sentence is the key: ""I am fortunate because my wife, aged 62, is a government retiree who receives a pension, which helps support our expenses in our old age," he said."

https://www.msn.com/en-my/news/nati...1&cvid=50ee65713f9444b59c6e44592d17867c&ei=16

KOTA BHARU - A former manager of a direct selling company in the East Coast, Abdul Rahman Abdullah has depleted his RM750,000 Employees Provident Fund (EPF) savings within seven years of retiring in 2017.

The 64-year-old former private sector employee said that his savings were also used to cover living expenses during his retirement, which began in 2017.

After serving for 27 years with an overseas-based company, he decided to retire at the age of 57.

"I received a retirement sum of RM750,000, comprising RM500,000 from Account 1 and RM250,000 from Account 2," he told Sinar.

Abdul Rahman detailed his expenditures, saying, "The money was used to renovate the house, costing around RM200,000, which included building a concrete fence and adding a kitchen and garage.

"An additional RM70,000 was spent on the wedding ceremonies of my two daughters in 2016 and 2018, while the remaining amount was used for daily expenses such as food, utilities, internet, and car fuel throughout my retirement."
The father of five noted that he renovated the house to provide comfort for his married children when they return home for festive seasons.

He added that the high cost of living and the expensive prices of goods also contributed to the rapid depletion of his retirement funds.

"Every time I go out to buy groceries, I need at least RM100 or more.

"My advice to retirees is to be thrifty so that their EPF savings can continue to support their lives after retirement.

"I am fortunate because my wife, aged 62, is a government retiree who receives a pension, which helps support our expenses in our old age," he said.

What about the datacentre investments? LOL, those are energy and water intensive resources industries that take advantage of Malaysia's cheap resources while creating little value add. The bulk of profit margins in datacentres goes to the software cloud providers (MSFT, GOOG, AMZN, BABA) who just pay a low rental fee to the infra owners.

 

[crimsontactics]

Good pullback to RM3.47 to SGD1.
Due to the impending change in monetary policy for SGD for 2H 2024, the MYR-SGD rate may be range bound for rest of 2024.

Appreciation of MYR relative to SGD is limited as long as we have a spend-spend-spend mentality among Malaysians, instead or earn-invest-spend. Refer to this thread below for more information.

The last sentence is the key: ""I am fortunate because my wife, aged 62, is a government retiree who receives a pension, which helps support our expenses in our old age," he said."



What about the datacentre investments? LOL, those are energy and water intensive resources industries that take advantage of Malaysia's cheap resources while creating little value add. The bulk of profit margins in datacentres goes to the software cloud providers who just pay a low rental fee to the infra owners.

Malaysia has an incentive to depreciate their currency!

 

[stanlawj]

Malaysia has an incentive to depreciate their currency!

Watch how the spending of whole nation goes up faster than revenue or productivity.