THE INVESTMENT APPROACH OF CALVIN TAN

FLOW OF HOT MONEY - HOW MARKET BEHAVES : REAL ESTATE OR STOCKS MOVE ALIKE

calvintaneng
Publish date: Thu, 17 Mar 2016, 08:35 AM
calvintaneng
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Hi Guys,

I have An Investment Approach I which I would like to all.

FLOW OF HOT MONEY COMES LIKE AN INCOMING TIDE BY WAVES UPON WAVES.

In Year 2007,  A Powerful Flood Of Foreign Money Came Into Singapore  Like An Ocean Wave And Lifted Up The Prices Of Properties In Prime Location Like Orchard Road. Prices Broke All Previous Records And Surged Upward Due To This Infusion of Hot Money!

Yes, we should go for Properties In Prime Location. Since Location! Location! Location! Is The Mantra In Property Investments. But Like All Other Types Of Investment, we can Overpay Above The Intrinsic Or Actual Value Of A Thing! The People That Blindly Bought At The Peak in Orchard Road suffered A Collapse in 2008 When Lehman Brothers’ Crisis Hit. Until today, prices have not recovered to 2007 level.

That’s What Happened To Tokyo in the Late Eighties, when Prices Skyrocketed Into The Stratosphere.  Land in Tokyo was valued at 350 times more than Manhattan. The Land Beneath the Imperial Palace of Tokyo is more valuable than The Entire State of California! When The Property Bubble Burst in The Late 1980s, prices crashed for many years. Till this day, prices have not returned back to the Prices of Those Lofty Peaks.

The Next Wave Sent Property Prices To Move Up In Holland Area – By- Passing Those At The Peripheral Like Bukit Batok or Jurong area. For the people of Jurong, the Wave didn’t arrive till much later.

Finally Development Comes To Jurong. At the last Tender For Executive Condo (EC) Land in Jurong – prices reached a New Record!

You see, Prices Surge In Waves. First The Center, then It Spreads To  The Circumference. When The Tide Comes In, Big Ships Or Vessels Are The First To Rise, Then As The Waves Reach The Shore All Other Smaller Vessels Will Also Rise. A Rising Tide Lifts All Boats Ring True.

That’s Why When Foreign Hot Money Comes In, Blue Chips, Well Capitalized Share  Prices Are The First To Rise. Then Followed By Second Liners. And When Third Liners Or Penny Stocks Finally Come Into Play – they say That The Bull Run In Share Prices Is Almost Over. So the First Wave – being the Strongest lift up Blue Chips. The Second Wave Moves The Second Liners & The Final Weakest Wave, Moves the Lightweight penny stocks.

What About Iskandar? There was an Initial Surge Into Gated & Guarded Properties Like Horizon Hills, ADDA Heights, Nusa Duta, Bukit Indah, Setia Indah, Mount Austin, Taman Laguna, Taman Molek, KSL Bestari Heights, Senibong Cove   & Other New Prime Properties In Gated & Guarded Locations.

This Is The First Wave! Not Many Singaporeans Are Here Yet. Almost All On Offers Are LANDED PROPERTIES, with a sprinkle of Condos.  And This Constitute The Very CREAM OF THE BEST INVESTMENTS FOR THOSE BRAVE SOULS WHO BOUGHT EARLY!

Older Houses In Locations Like Taman Perling, Taman Pelangi, Taman Johor Jaya, Taman Bukit Kempas, Taman Iskandar, Taman Desa Harmoni & Other Tamans Or Gardens Started To Move, Albeit, slowly but steadily. This Is The Second Wave! Developers Have Raised Prices Drastically In The Second Phase Due To Red Hot Demand.

At ADDA Heights, a Buyer returned a Unit Booked just Above RM420,000 For A Semi Detached Cluster House. Unfortunately, his loan was rejected by the bank. So he returned the Unit  to ADDA Heights. Demand was so hot that ADDA Heights immediately raised  the price of   this last available returned unit to RM480,000! It was SOLD IMMEDIATELY!

Same Thing Happened In NUSA DUTA. For The Those Priced Around RM700K The Last Unit Was Sold At RM788,000! You See Prices Subject To Changes According To Market Demand! In This Case Demand Far Exceeds Supply, So Prices Must Surge Upward!

At Bestari Heights, KSL, Semi-D Cluster Houses Were First Lauched At RM550,000. The Prices Kept On Rising As The Stock Dwindled. And The Last Few Units Were Sold Above RM700,000!

For Senibong Cove, First Phase Was Sold At RM500K. For Second Phase Semi-Detached with slightly bigger land and built up, Prices Jumped To RM1.2 Millions!

UNLIKE SHARE MARKET & UNLIKE SINGAPORE, PROPERTY PRICES IN ISKANDAR  SURGED STRONGER & EVER MORE STRONGER AT SUBSEQUENT LAUNCHES.

FINALLY, WITH PRECIOUS LITTLE LAND BANK LEFT, DEVELOPERS ARE MAXIMIZING LAND USE BY BUILDING SKY HIGH CONDOMINIUMS!

At The Same Time, At Property Auctions, Even Houses In Faraway Places Like Kota Tinggi, Pekan Nenas, Kulai, Kota Masai, Ulu Tiram, Pontian Are Coming To Life! The Third Wave Finally Reaches The Properties At The Fringe Of Iskandar.

NOTE: LATEST UPDATE ON 18TH SEPTEMBER, 2013
ECO WORLD (Own By Ex Directors of SP Setia) has Taken Over Focal Aims for An Offer Price of RM1.40 according KLSE Bursa News. Focal Aim has over 1,000 acres of Freehold land at the fringe of Iskandar. 2 Years Ago Focal Aim Shares were traded as low as 25 cents a piece.

The Spectacular rise of Focal Aim Share Prices indicate that the BEST IS YET TO COME For TAMAN KOTA MASAI, TAMAN PASIR PUTIH< TAMAN AIR BIRU, TAMAN SCIENTEX & TAMAN NUSA DAMAI. Taman Nusa Damai has over 600 Acres Freehold land and is Owned by MP CORP. Surprisingly, MP CORP Share Prices only moved slightly to end at 40 cents even though Taman Nusa Damai has a better location than Taman Kota Masai. THE ENTIRE ISKANDAR IS NOW IN HOT DEMAND! AND BY THE WAY, ALL THE RULES THAT WE LEARNT FROM EXPERTS OR BOOKS ABOUT PROPERTY INVESTMENTS  ARE ALL  BROKEN! WE WERE TOLD TO AVOID BUYING HOUSES WITH THE UNLUCKY NOS. 13 OR ANY NUMBER THAT ENDS WITH 4 (Four Means Death In Chinese), NOT TO BUY ANY HOUSES FACING T-JUNCTION, HOUSES NEAR SEWAGE OXIDATION POND OR NEAR HIGH TENSION POWER CABLES ARE NO! NO! AND DON'T BUY PROPERTIES FACING NOISY HIGHWAY, BIG DRAIN OR GRAVE YARDS!! I TELL YOU - ALL THESE STUFF OR CRITERIA  YOU KNOW ARE ALL THROWN OUT OF THE WINDOW!! Chinese Are Fighting Over Houses With No. 4!  I Lost One House Facing A Big Chinese Grave Yard In Auction! THIS IS THE BOOM TIME IN ISKANDAR!! THE SUPER BULL RUN IN PROPERTY CRAZE IS ON!!  EVERY TIME AT AUCTION,  PRICES ARE BREAKING ALL PREVIOUS RECORDS!! COMING OUT OF THE AUCTION COURT ROOMS YOU FREQUENTLY HEAR EXCLAMATIONS LIKE "CRAZY PRICES" "SUDAH GILA!! (Malay For MAD ALREADY!)  SEOW LIAW (Chinese For "GONE MAD!) MORE AND MORE POWERFUL WAVES OF FOREIGN PARTICIPATION IS COMING!

QUOTABLE QUOTE:- “SUSTAIN YOUR PATIENCE,  GREAT MOVEMENTS TAKE TIME TO DEVELOPE…”

Calvin comments (March 17th, 2016 for i3 Investors' Forum):

Yesterday Top Gainers Were Blue Chips like Tenaga, Genting, several Banks & 2nd Liners. This is the indictation that Foreign Funds are Trickling back into KLSE.

With Euro & Japan going into negative interest rates, Hong Kong now given a negative rating, Singapore with anemic growth of only 1.9%, China struggling, Arab Banks in possible bankruptcies there is really few other places to invest monies other than Oversold & Very Undervalue KLSE!

Malaysia will still be growing a decent 4% to 5% in a World of minus, zero or no growth.

More so as Fed Yellen remarked that the entire US Economy is too weak to justify raising interest rates for the foreseeable future.

THIS IS IT!

EXPECT MORE FOREIGN FUNDS TO RETURN BACK TO MALAYSIA AT LONG LAST!

SO INVEST EARLY BEFORE PRICES REBOUND AND THEN ONLY START CHASING

AS THE SAYING GOES, "THE EARLY BIRDS GET THE BEST JUICY WORMS. SO THOSE WHO ACT NOW GET THE BEST BARGAIN STOCKS!!"

 

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1 person likes this. Showing 3 of 3 comments

Jonathan Keung

with negative interest rate. the properties and equities will likely attract more FDI. the degree and amount will subject to each countries individual risk profiles. FDI Funds are businessmen. at the end of the day the bottom line matters

2016-03-17 09:17

XXXvalue

kipidap Calvin..

2016-03-17 14:21

calvintaneng

XXXvalue,

kipidap? You mean "keep it up?"

Thank you!

2016-03-17 23:16

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