Contact

Malaysian Investor

Malaysian businessman targeting to raise capital through potential new launches and hedge against Ringgit

Client Profile: Malaysian Investor

Estimated Net Worth: Aim to fully pay down a $2.5M 3-bedroom condo ​through the above strategies (excluding capital growth and inflation).

Profession: Businessman (mobile phone exports)
Age: Early Forties as of 2024
Family: Getting married at end of 2024
Net Worth: Living in a gated landed home in Johor

Target Net Worth (Real Estate) upon Retirement:
To raise capital through potential new launches and hedge against Ringgit

Immediate Needs:

  • Invest in private property with capital growth and minimal risk
  • Secure better rents for new projects compared to older properties
  • Use rent collected to cover monthly installments, particularly the interest portion

Budget:
$2M, with sufficient cash for a 25% down payment and buyer stamp duty ​and 5% additional buyer stamp duty for Singapore PR, estimated at $700k.

Concerns & Challenges:

  • Only new launches to capitalize on IPO effect and first mover advantage, ​ensuring entry prices are comparable to other buyers, unlike resale properties ​where previous owners have already profited from capital growth.
  • Desire for properties with large pool of tenant base for good rental yield and ​ease of finding tenants
  • Entry price must be competitive compared to surrounding new launches without ​compromising on project quality

Solution Implemented (After Audit):

  • Purchased a brand new 2-bedroom condo in Tanjong Pagar area for under $2M ​(2023)
  • Paid ABSD of 5%
  • Integrated development to ease the worry of finding tenants
  • 8-10 years or until achieving at least a 35% profit, whichever comes first

Future Solutions:

  • Upon achieving their 35% profit, reinvest the proceeds into another property
  • Wife plans to buyer another property under her own name by 2026 to further ​raise capital

By adhering to this strategy, the couple aims to accumulate sufficient funds ​through buying and selling properties. Ultimately, they intend to use the capital ​and savings to fully pay off one property, thereby generating passive income ​from the rental.

Bought a new launch in 2011 at Waterfront Isle (Bedok Reservoir) for $1,23M, sold ​in 2020 for $1.48M. Profit and capital raised estimated $210k, excluding rental ​income over 5 years (2020).

Bought a new launch in 2012 at Ripple Bay (Pasir Ris) for $950k, sold in 2018 for ​$1.29M. Profit and capital raised estimated $310k, excluding rental income over 3 ​years (2018).

Related Posts