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Old 27-09-2013, 02:31 PM
lazyplane lazyplane is offline
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Default Not a maths whiz

Quote:
Originally Posted by Zhang View Post
So for the maths whizzes amongst us, key numbers are as follows:
1) Purchase price: RM510k
2) Transaction cost (legal/stamp duty/loan docs etc): RM40k
3) Renovation : RM45k

Total cost: RM595k

Monthly considerations
1) Rental: RM3k
2) minus Maintenance + mortgage = RM2.5k
3) Nett CF = RM500
On the whole, honestly, it looks like you did quite a good deal. I agree that expectations in internet forum tend to be biased. But for your benefit and since i have itchy hands today, thought i do some number crunching for your case just on your FX risk.

Here is the past trend of SGD/MYR

SGD/MYR Currency Conversion Chart - Yahoo! Singapore Finance

I dont know when u transacted your purchase cost . I am hoping you did it after may at least.

If you see the chart, May FX rate is around 2.4. June is around 2.5
Now around is 2.55

Based on your purchase price of 595K, you spent about either 238k SGD - 248k and every MYR/SGD 10 cent change makes gain/lose by 10k SGD
Take note that we are talking about only the past few months ie 3 months

What is the impact of 10k SGD for a 500 MYR net monthly rental ?
The answer is 50 months of rental or 4+ years.

The upside is the rental pays for your liabilities. But hopefully, MYR doesnt depreciate anymore against SGD. If it continues, honestly, the erosion can be bad.

I dont know the future. But if anyone is thinking of going Malaysia or other countries for gains in property, i always ask them to remember the FX risk.
It can make u have gains like 1.5x or make u initial investment down by similar effect...and unfortunately, history has shown Singapore dollar really has been rather strong. .
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