Thursday, 31 December 2015

Full Speed Ahead - 2016

End Goal.

My quest for financial freedom starts in 2007-8 where unit trust investment takes a huge chunk of the investment portfolio. Unit trust was the darling of the investment world, it gives you exposure to a basket of goods, managed by a professional. Well, that professional’s pay is from a percentage of your investment. So far, unit trusts have proven to lose money. 

I just spoke to David, a very lousy salesman and got him to admit that unit trust can’t do the trick for me. Well, I concurred, but since at the beginning, he was so sure and cocky about trading unit trust. I smiled. Though I lost some money, it affirms my knowledge and this is something that no one can take away from me. I seem not to have any luck in stocks which is one of the world’s largest gambling den. With people like David selling these products, it is no wonder, the stock market will always collapse, it is a matter of when.

Since 2008 financial crisis, stocks have more or less recovered to their historical high, it is now time to take stock again (pun not intended). The Federal Reserve office WILL raise rates soon and it means a strategy realignment. 

Now I’ve invested in a few properties, Malaysia running at 5.25% and Australia running at 5.25% as well, Malaysia having a downward spiraling currency and Australia at an all time low. Comparing the 2 I’ve lost 20% based on exchange rates for the Malaysian properties and I’ve hit AUD at its lowest. I can imagine MYR continue to fall and AUD continue to rise. Now I’ve some spare cash, where would I put them. AUD.

Reason 1 – AUD loans are in Offset Account – I can extract money anytime
Reason 2 – AUID are at it lowest rates to SGD – A potential upside.

For MYR, it is attractive if I have a 200k MYR, that would allow me to gain a Premier Status worldwide for some of the international bank like HSBC.

I’m on a growth phase, the only thing on my mind is to gather more bullets and gain more cash producing income streams.

Co-Assets are quite interesting to look at now since I’m looking at 12 months horizon and the returns from such – crowdsourced investment typically are in the region of 10% upwards and only requiring $5000 to start. For Co-Assets, the degree of control is also almost zero. This is what happened to my Thailand and Cambodia investment. Thailand’s case will be heard in February and Cambodia’s case, haiz…. Well, just need to submit documentation again. 

The other options are to put them in AUD offset account to reduce cost of holding. I’m weighing on this as namely, it is only a gain on paper. I’ve prepared for the properties to be negatively geared over 5 years and this would allow me to tap on equity gains. Putting them in MYR is not an option at this stage of life as MYR continues to erode and money put there can’t be taken out easily.

Aging Parents
I have not been giving my parents much money as they do not seem to know the value of money. I’ve taken the liberty to “starve” them of cash and invest in income streams that could feed them for life. I’ve yet to achieve that elusive dream as Thailand hits a snag – the income stream broke and its now in litigation and Cambodia hits a snag as well. Both are quite unstable. I’ve a HDB that still produces good money and I think its time to use these streams to give them a little money for however they want to spend. There have another 20 years left?

I’ve discussed with the old parents, now all my brothers are well on their way to getting a HDB, it’s a milestone which I do not need to worry anymore. In truth, I did not contribute a cent, I did in giving some advice where its needed.

Today is the first day of 2016, while there are a few hiccups along the way, the past 4.5 years was a good one, lets be grateful. 

I went all out in 2015 and in 2016, expect more. I'm negotiating a Malaysian property deal in Japan on the last day of 2015 whilst on holidays. It was here that I decided that Japan may not be the ideal place for me. Japan, to be exact, Tokyo had such low legislation standards in insulation, that houses need not be insulated at all... its bloody cold in the japanese house. This I conclude to have lower value to me. I saw a 20m2 parking lot going for 2.6 million yen though and it looks interesting.

Where should I go in 2016? 

1. I have leverage in Malaysia and should go for a Malaysian property with minimal out pay.
2. Continue to exchange for AUD while its low, economy is improving, regardless they say.
3. Look for development site in Aussie and build my own place.
4. Press for Pattaya property litigation results.
5. Press for Cassava Plot payment.
6. Press for payment for Zephydom
7. CoAssets?

Deals done without control is not wise. I'll look closely at CoAssets on what kind of deals it can bring me. 

Hmm, full year 2015 income? Nett income - Nil.

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