Banyan Curve Latest

[Goldberg Global]

Got some figures from Malaysia today.
50% overseas mortgage not 60%.
Maintenance costs 4% a month.
PROJECT DOES NOT STACK UP FOR INVESTORS. NICE PROJECT FOR HOLIDAY HOME.

[andyk2]

Darren, do you have a source? I have been offered (for clients) 70% draw down mortgage at 6.5% and have maintenance costs quoted per square foot - amount to less than 1%. Saw your comments earlier regarding variations in currency exchange rates (with which I agree), but past performance is no guarantee of what will happen in the future. Nice holiday home though!

[Goldberg Global]

Darren, do you have a source? I have been offered (for clients) 70% draw down mortgage at 6.5% and have maintenance costs quoted per square foot - amount to less than 1%. Saw your comments earlier regarding variations in currency exchange rates (with which I agree), but past performance is no guarantee of what will happen in the future. Nice holiday home though!


I have been speaking to developer is 50% mortgage for foreigners, the rates, I have not quoted. Yes, it appears I have been, wrong they broker down the figures and the yields after deductions appears to be around 7.2%. The whole deal hinges on if the payments are made in HARD currency or SOFT currency. eg. Sterling or Malaysian Currency. If it is in Sterling ok, this is the real deal. But if paid in local currency your real returns will be minimal lower than inflation. So we shall see.

[Goldberg Global]

No the past is no guide to the future for currency changes. But if a currency is devaluing over 10 years, I can not advise my clients to invest in something. If it was appreciating over 10 years I have more confidence in the deal.

I think you have to be prudent. If you think it is going to go up you buy the currency, but why will it go up? it is on a downward curve. It is quite simple. It has been going down for last 10 years (ie. as long as records have been kept.) Why buy something which today 10 pounds and next year it is only worht 9 pounds 30 pence? If it has been doing that for last 10 years why will next year be different ie. are all the people in malaysian going to suddenly change become like Swiss people. Probably not, so that is why, dont buy something which year in year out is going to lose you money. Is simple.

[Goldberg Global]

Hello Everyone, after the shock of depreciation of currency I have some new GOOD NEWS.

The figures I had from the Central Bank of Malaysia, whom print the Kuala Lumpur currency ringgets, have exchange rate charts only over last 10 years.

In 97, there were 2.46 ringgets to the US Dollar, and 4.06 to the Pound Sterling. In 97 CRASH in currency by 50% to 3.66 Ringgets to the Dollar and 6.12 to the Pound.

The Ringget continued to slide in 98, so they pegged to US Dollar from 99 to 2005 at 3.8. Then floated again in 2006. So really they have only been floating 2 years. 2006 and now 2007! The good news is that it has stood its ground and floats 3.68 ringgets to the dollar in 2006 and has strenghtened agains dollar to 3.45 ringgets to the dollar though it has lost strenght against Sterling and Euro. to 6.79 ringgets and 4.61 ringgets to Euro.

So what does all this mean?

In summary since 97, the bad year for asia. It has stayed fairly stable though pegging to the dollar and now it is only falling about a little against sterling and euro. So the currency risk is still there but it does not appear to be too bad. Not 7% a year, but one year 50% and the other 9 years the rest, 2 or 3% probably less now.

The other thing that Asia has is China, Europe has the tax savings directive so maybe the currency will strengthen. Time will tell. Sleep well now investors.

If you wish to get involved in this project let me know. We are working with the developer and we will provide preferential Goldberg and Partners terms for our clients.

Thanks for reading . Darren