p.Sigh! Another Blank

The last part is here:   Capital - How Did It All Begin

!@#$$#@$%#%$&^%*&^*(&() ...

Sigh! Another bad outing ...

Fuck them ... I am going in again for another week ...

Bad tengri, bad ...

Better bless me lah ...

p.A Twist in the Tale (Part II)

The last part is here:   A Twisted Road Ahead

Everything is driven by money and yet everything is not driven by money.

I just lost another auction ... fuck them ... the norms didn't apply ...

There were 4 bidders and the price went up by 18% which is not supposed to be the case. The increase in bidding was unusual. I have budgeted for 11% increase (Just 1% percent above the 10% norm, because I like the property). With only 0-5 bidders, theoretically I was supposed to get it by 10% increase in price. But shit do hit the wall.

Well ... A miss is a miss. No love lost.

The next auction is first week August. I will find a better bargain there then.

My micro-analysis is:

There were 4 bidders. The starting 1st bid was at the reserve price (+0%). A 2nd up-bid was done (+5%). Followed by my 3rd bid (+11%) and lastly 4th bid (+18%). I didn't up-bid as I felt it was not worth it. All 4 bidders has bidded.

Basically, I wouldn't fight it.

I found that if there are 4 bidders, there would be 4 bids. Simple.

Fuck ... Let's prepare for the 1st week Aug bid.

I am still feeling restrictive. Cannot overbid and fall in love with the properties I viewed.

b.Before You Gear, Watch Your Waist-Line

The last part is here:   The Best of Both Worlds (Loan)

The bank is basically a bitch. It is never a friend.

Some suggested that if I become too big to fail, the bank will be my friend. There is no such thing. The bank is run by human staff and human staff are prone to corrupt, i.e., these staff will bankrupt you officially, raid and take away your properties and hard-earned cash and then tell all their relatives to bid for the cheap properties to be auctioned coming online. This is how these human bank staff cheat. Don't blame them, they are just good at their job. There is no need to build a good relationship with them. When the time is ripe, they will turn asshole bandits. They will line their pockets with your ills. No amount of good relationship will avoid that raid.

How then to avoid an asshole bandit raid?

• Property Price:   This is the number one killer. So buy property that has a true rental value and rate it. If the rental goes down, what could happen? Can you still lower the rental till it click "rentable" again? With this in mind, never buy a property during a bull market, no matter how tempting.
• Rental Return:   This is a must if you are into rental yield. The only time you don't talk about rental yield is your own house, but even then, you are talking about the possibility of renting your basement apartment away at all times. The rental yield should cover 150% of the instalment. Tall order? You bet. There must be a buffer in the event you need to lower the rental to rent the property out.
• Commercial?   Never get involved with commercial property. Commercial properties are not only expensive to collect. They are prone to not having a rental for a long time during a down time. Never be tempted even if the rental yield is 20%. Residential is still the safest.
• Land:   There shall be no gearing when buying land. Lands are hard to rent. But they give the best pleasures.
• Paying Instalment On-Time:   Never miss a single instalment. Don't give the bank an excuse to close on you. It helps but asshole bandits are the bad ones, not the banking system.
• Refinancing:    Never refinance your loan. You may transfer it from bank to bank, but never increase the gearing just because your property has risen in value. Let the property rise in value. So even if there is a recall by the bank. The bank will usually starts with the property that is out-of-money rather than in-the-money. They can't recall a loan that is in-the-money all the time, i.e., no matter how bad the market is, your property is still worth more than the bank loan. That way, the asshole bandits would not be able to raid it as you have an easy time servicing the instalment, due to the low gearing. In the event, your property is raided, don't despair, you are still positive. You are allowed to restart with zero to no risk. Asshole bandits hate these group of property owners. They are so blameless and pay instalment on time. They have no good opportunity with them.
• Buy Only On the Down Cycle:   This is surest way to protect yourself against the asshole bandits. They were willing to lend you because they need your loan as their key-performance-indicator. So win-win.
• In the Event of a Raid:   Sell off the worst performers first. Try your best not to sell off your better performers. Don't do it the other way round. It is going to be tempting.

All being said, good luck to one and all ...

Property investment remains the best way out of poverty. It is very easy to get real rich very fast, but the converse is also true. It can made poor a guy real fast too. So if you need to gear, play it real safe. Buy properties at only 5-15% of your cash flow. Time-line your property investment, i.e., don't buy all at one shot. Buy one at a time and let the new one settles down before moving again.

The property price is running away ...  This is only true in a bull run. So stay the fuck-out. Otherwise, you can mostly take your time.

While you are it, use some of the rental yield to fund your luxury. It doesn't hurt to enjoy a little more.

Fly MH now. It is so cheap.

b.The Best of Both Worlds (Loan)

The last part is here:   xox - Fuck-You-Up Loans

Sometime back I have always suggested no bank loans.

But with the cute and long depression underway, we are living in interesting times.

With the deep, deep, deep depression, property prices are very, very, very low. They are going down every now and then. In fact, one must learn to understand the psychic of the banks. Banks are now at very low confidence about the economy. They are not lending in big ways. Hence, if you have a solid job or strong cash flow, the banks will love you deep deep. But, they are still not lending.

There must therefore be a balance here.

Step 1:   Firm up your cash flow, say $200 per month. The bank only likes to lend only at $66 the amount (1/3). Further half that to just 15% of your monthly cash flow, i.e., $30 of $200.

Step 2:   Approach a bank and based on your $30 cash flow, find out how much you can afford to borrow from the bank, say $X.

Step 3:    Locate a property of say $2X-1.5X. Offer the owner $X. This is called a gap-down. You give the owner a rude gap-down. Some will bite. many don't. Be patient and don't fall in love with every property you visit. There is no property that one must buy. Be very, very slow in the acquisition.

Step 4:   Attend every single auction sale. Feel the fire-sale market.

Step 5:   Once you get it, renovate and rent it out for cash flow. It should be in the range of 15% and above. This is a trying times for most businesses. So a good yield is important, i.e., people can afford to rent but not buy, cos they are now poor bastards.

Step 6:   Once settled, the rental is stable and you feel no stress in cash flow and loan repayments. Go for the next purchase of another property. Talk to another bank and repeat the cycle. This next bank usually will feel extremely comfortable with you, even though you are already geared in your first property. Some countries don't even care about your other properties. They just worry about your current purchases. In white land, you can throw them back the keys if you don't like what you bought and no adverse repercussions.

In summary, the property prices are now very low. Banks are very careful in their lending, that means they are now very safe to borrow. There is little or no risk in loan defaults as the properties are priced "very" reasonably and hence, the yield (rental) is strong. One can foresee no issue in loan servicing.

It is for this reason I support the use of gearing, i.e., borrow from banks. Use it wisely. Don't over-gear.

p.How to Keep the Head's Up ...

The last part is here:   Personal Depression

No one can escape depression. I am sucker for it.

So I have to find a new way to counter it. I have found it though. The idea is to have an ambition or a target. The target should not be big. It should be something very doable all the time. By focusing on it all the time, I realised that I have no time to weep or sulk. Isn't it nice?

My humble target is to buy an auctioned property every 3-6 months. Once the bidding starts, I do need to spend about 2 weeks to hurry-hurry. Hurry to collect past property price trends. Do comparison analysis. Hurry to find out from auctioneer whether the property is any good. Check valuation. Visit the property. Check if it is tenanted or owner-occupied. If owner-occupied, whether I need to release snakes and scorpions when I finally owned it to chase away the original owner. Are there any body died in the house? Hurry to check surrounding tenanted rent. Do caveat search on the said property to see if the fucker owed anything else. If the property is too expensive, see if the banks love me.

Go for the bid. Excite other bidders to overbid and screw themselves. The last one I attended over-bidded by 25%-30%. Fucking stupid. They are now at least 10 more years into the 40 years pay-back time. The last I heard from the vines is that the winner is from a group of investors who own a property company. They will then attempt to borrow the monies from the bank, failing which, they will forfeit their initial deposit and re-auction again in 3 months' time. Most of the time they will fail to impress the banks for a loan. The feedback was bad-bad-bad. So even if I don't win, I enjoy screwing others along the way by bidding. In order for them to win me, they have to over-bid me. What a lovely idea. I am in the auction because I am bored and feeling depressed. I just need them to entertain me and my depression. What a fun-fun-fun game!

After I have won the bid, I would pay up and then do the chasing away of tenants or owners. Another 3 months will pass with busy-busy-busy activities.

Minor or major renovation will begin in 3-4 months' time. Again another busy-busy-busy activity. After the renovation, either tenant it out or keep for own fun.

Some properties may not need so much attention to detail.

A good 3-6 months will rush by.

After that, I will lay sight on another auction again. By this, I truly hope to feel better and not so hollow inside of me. It is very painful that with so much success in me, I have no cheer leader beside me. Sigh ... Emptiness is now my form.

b.xox - Considering The Hotel

The last part is here:   xox - Considering Oil-Palm Farming

I have the good fortune of talking to a 8-hotel owner in white land. He has given me many hours of joy. I am indebted.

Owning a hotel is a sexy idea. So is owning a police station. I am actually tempted to buy a former police station just to show off. Well ... another cute story for another time.

Let's begin the analysis (I am against it, it is too high a capital as well it wouldn't last - Hilton was sold and many others):

• Large capital outlay - Comparing to other property types, each hotel room is expensive to build and own. I am actually sucker for land size. So, a hotel is densely geared, i.e., it has a dense plot ratio compared to other property type. I don't like this because it leaves no quarters to move, i.e., it has already reached its maximum plot ratio usage. The land use is maximum and further improvement is limited. There is no more leeway.
• High manpower needs - Over time, the staff needed to run the hotel is so expensive that a slight mistake would cost the hotel a fortune.
• High plot density - As discussed already with high capital cost. Never invest in maximum cost item. It would clearly return a negative when the economy dives.
• Ultra high land cost - If there is no traffic, no hotel would be built. If there is, then the land cost kills.
• Expensive complimentary services - Some complimentary services are needed to compete for guests. They involve good restaurants, shopping malls, banks and limousine service. In some part, gal services such as pubs and clubs are a must-have. 

In conclusion, of course you may conclude otherwise, it doesn't matter, I just wish you good luck, I am still a sucker for land as first priority, followed by low plot ratio property, followed by property with an attached business. It proved that I am weary of businesses that involved too many manpower needs. I don't trust human in general. They proved problematic when the business improves. They are okay if the business is bad but who likes the business to be continuously bad? Crazy.

b.Auction, Auction, Auction, Where Forth Art Thou?

The last part is here:   Bank Lelong (Auction)

Every problem sum has a solution. But, one has to work at it.

Fuck, the recent open-bid auction got 10-15 people bidding for the property of my choice. Fuck them. In the end, of course, I lost the bid. It was bidded at 25-30% higher than the reserved price.

@#$%^$^&%^&_(&) ...

Since I have been to enough open-bid auctions, I should be able to summarize my findings.

• 0-5 bidders:   10% above the reserved price.
• 5-10 bidders:   20% above the reserved price.
• 10-15 bidders:   30% above the reserved price.
• Above 15 bidders:   Please don't try, you would be fucked for life.

I love open-bid auctions. It implies the sellers are fucked and the reserved price is always a steal, i.e., at least 20% below the lowest price in the market place.

How about bidding more than the reserved price? This is for the stupids. Loads of people don't understand that increasing the bids is the most stupid thing to do.

Let me try to illustrate:

A typical property takes about 30 years to finish the instalments, let's call it 100% or simply 3.33% per year (simple approximated). If you pay 10% more, it implies your loan would need to increase by another 3 years to 33 years (10%/3.33%=3 years). If you pay 20% more, it implies your loan would need to increase by another 6 years to 36 years (20%/3.33%=6 years). If you pay 30% more, it implies your loan would need to increase by another 9 years to 39 years (30%/3.33%=9 years). This is obviously not for the faint hearted.

Why?

Well ... I would keep my money under my pillow and see within the next 9 years whether I can find another deal that matches your bid and during a deep deep recession. Surely I can. So what's the hurry? In the end, I still can get what I want and do what I like.

If you do take up a bank loan which I advised against and assuming you are also very credit-worthy, you are able to borrow at 90% loan and 10% cash. But, banks are clever bastards. They would only valued the property AT its reserved price. If you itchy backside, outbidded every body as in my most recent auction by paying 30% above, you will need to fork out a total of 40% (10%+30% over the valuation provided by the "conservative" bank). See how fucked, one can be? And you are given only 3 months to pay up. Otherwise, they are going to fire-sale again and you have to foot the difference and administrative and legal fees. An auction's reserved price is at this value is because people do get fucked bad.

Every property after spending time to evaluate, one would fall in love with it. It is very natural. But, do take heed and learn to walk away.

If you cannot buy at reserved price, just walk. There is another 16-years worth of depression to go.

Also, during this last auction, I overheard some bidders saying if he is successful he will open a car showroom and rent it out. He was dressed in shorts and fucking sandals. I don't look down on such dress code. I just find it amusing on how dreamy things can get. What make you think that you can confidently clear the government-of-the-day's control and change the land use in shorts and sandals? Depending on where is your property, in white land, it takes the better of 1 year to approve a restaurant. Bidders who dream big, die fastest. Just a case-in-time, I have just visited some of my lost auction bids. The properties were not even renovated nor improved. Where is therefore the money for such dream team for a car show room? Talk is cheap, renovation is pure cash. Some property owner can't even afford to paint their house regularly, let alone change of use. Fuckens are fuckens.

As at this writing, I just heard another neighbour has just died. Most probably if I am patient enough. I can grow my portfolio again. I just have to wait and smile at all my neighbours.  No harm getting into their good books. Hehehe ... Winter's coming. Action time.

p.I Buy a Super Market?

The last part is here:   Greyhawk is Here

Greyhawk ceased my throat and shouted into my ears, "You have been fornicating with my daughter for eons now. What are you going to do about it?"

It is true that I have been fornicating with his daughter, white crane, for the longest of time without me saying anything substantial to forward that relation. White crane also knew that I have constant companions, lotus and chrysanthemum. I can't just abandon them and go for her.

I gave a wry smile in place.

White crane must have been pressurising her father to help her to do me in.

"To cut the long story short! I will sell you a supermarket cheap, without any down payment, if you agree to marry her within a year of owning the supermart." Greyhawk again shouted into my ears. It is truly funny that a man of his stature could stoop so low to find favour for his daugther.

Greyhawk's supermarket is not a big one, but one that took the better of his 35 years in white land to build. He just wanted to seek happiness for his daughter. With that, he suggested giving his prized asset to me.

Suddenly what I saw in Greyhawk is not just a loving father, but a greying old guy. Did he regret all these years he has spent in white land? Or is he reminiscing the possible good old familiar playground he used to play during childhood in India?

I couldn't tell. He has moisture in his eyes. The cool summer wind is taking its time to warm the white land.

I breathed a heavy sigh and replied in the negative. I am a poor bastard and my means are humble, but I don't need another guy to give me a lift to reach where I want to go.

I told him that I would be fair to white crane when the time comes.

I left the old man to ponder about his unoriginal outburst.

Just today too, funny that another gal`s father is also offering me to buy us a big house cash as our wedding gift if it even takes place.

Wow ... all my gals are so bloody rich. Why do I still need to worry ...

b.Who Would Hear Me Cry?

The last part is here:   xox - Banks Are Now Fucked

I had failed in business before. It was a truly painful experience. It took me many years to recover.

Now I see my business development in a much clearer light.

When the business is small, it will have small problems. But each small problem can kill any progress. Luckily these problems are small in nature. As long as I am careful not to over-stretch my reach, these problems will always go away when I have given them enough rubbing. The small business will survive somehow.

I don't have a chance to operate a large business. What I know are normally read from the media and from the business operators in my transactions. Recently I noticed many large companies are selling their buildings to shore up their books. They even agreed with the reit buyers that they would rent back their buildings at 7% p.a. in rental returns for the next 15-20 years. On top of that, these businesses even guaranteed their buildings to be fully tenanted. Why such poor terms?

[These business owners are fucking dumb. At 7% p.a. rental, at exactly 14 years, the reit owner would have gotten back his cash purchase 100%. The reit owner needn't  worry as the building is normally very purposed built for the current incumbent. The fucking business got nowhere to go! 

This simply means the business cost is still high, if not, higher than before.]

Based on normal business development, it is usual for the successful company to buy up their own pad to operate their business. This will ensure that the cost of operating from the production premises to be fixed and not keep adjusting through the years by their greedy landlord.

Unfortunately in certain fucken little island, such a purchase decision is bad. The premise would normally go for very high price, i.e., the instalment payment is way more expensive compared to pure rental. Nonetheless, since the company is successful, such a purchase decision is very sound. Given the current healthy cashflow, the bank is also very supportive. A purchase is then made.

Unknown to the business owner, all businesses go in cycle, i.e., boom and bang. In harder times, the business owner got no choice but to release the property again into the market. He simply can't afford to pay the super high instalment due to poor business cashflow. The market is bad. The reit vultures swoon in for the kill. They create very bad terms for the property purchase, i.e., low selling price and very high rental per month for very long period. Soon after, the business still goes belly-up due to ever increasing operating costs.

The big countries did it right. They move on to cheaper countries for their production and business.

This is very sad. Many of such big businesses were so sexy and suave that I can't even talk to their ceos. They stopped treating me as a friend. They were so high up there.

Well. Big business means big problems. One small wrong move, the banks would still bankrupt the business owner, as the bank wouldn't lend any money unless it is personally guaranteed by the business owner himself.

I don't have tears for these business owners. I was never treated well by any one of them anyway. It is fun to see them boomed and banged within one life-cycle. Small people small joy. Big people big bang. I had always chose to be a small person.

My father is damn good. He always advocate cash. Now I truly learned his value. Love him deep deep.

b.To Strange Land

The last part is here:   Strategy - Strangeness In White Land

With the world cup well underway, the strangeness in white land is so unique that I am now brought to a new height. Now they are offering me to buy a white land that is a few times bigger than some of my current assets. They are so awfully nice. The reason is the land owner is a second-generation that refuses to return to that birth place that once nurtured him. He said it was too much of a burden. He has let go and moved on.

I smiled. They are so sweet. They even throw in a very large lake connected by a long river for my pleasure. They said the water is very sweet and full of minerals. I am only interested in the lake view. LOL.

A nice show:   同桌的你

The value in romance is not the look of the young gal but the passage that traversed by both the guy and the gal. The value is maximum when the connection is perfected.

Let's enjoy the show ...

b.Every a Big Project falls

The last part is here:   Business Jinx

Sigh ... Sad, sad, sad ... One of my big projects is postponed indefinitely.

There is a damage hit and I am now licking my wound.

Keeping it in view lor. Painful.

Hope I can return to it fastest.

As Tengri is great, he will always open a small window for me. Love my Tengri deep deep.

The other small project of white rental property is also off. Can't trust the fuckers.

In white land, it is important to note than rental properties are not great assets. Only in Asian markets can one be more certain. The reason being that the white properties are normally made of paper. It is useless running them. It costs too much to maintain and pay taxes.

Working off the land is still the safest path for me. Love myself. In land, even if you don't have power or water, you can still depend on Tengri to supply the plants with water and sunshine. You only need to bring in the seeds and fertilizers. It is that simple. Without roads, no problem. The seeds are light. No power, no problem. Stay warm in town. The plants don't need warmth all the time. When it is time to grow, the plants will grow. You just need to own the land. Even planting trees is super lucrative. Ask any Malaysians, they will tell you. You can harvest teak in 7-8 years.

I am now in battle mode. In battle mode, I am not allowed to go into depression.

Even if I were to fall now, I don't really care. I build my own reality. A friend just told me that I am beginning to look like a scavenger. I asked really? She said in no uncertained term that I am looking more and more like her father. Every 5 years, changes to a smaller car and smaller house. Fuck her! She is so sharp.

a.The "Oracle of Omaha" of the East has Spoken

The last part is here:    Property Investment - White Knights

'China's Warren Buffett' Selling Off His China Assets 
On the 8^th of Jun 2014, Pacific Century Premium Developments and PCCW announced they had signed an agreement to sell Pacific Century Place.  The disposal of a landmark project in the center of Beijing—two office buildings, two blocks of serviced apartments, and a mall—confirmed that Li Ka-shing undefined and son Richard have turned bearish on Chinese real estate. Li, reputed to be the richest man in Asia, and his family have been on a selling spree in Mainland China since last August. During that time, “Superman,” his nickname because of an almost-infallible sense of market timing, has unloaded Guangzhou’s Metropolitan Plaza, Shanghai’s Oriental Financial Center, and Nanjing’s International Financial Center. With Richard’s disposal of Beijing’s Pacific Century Place, the Li family has reportedly sold about $2.9 billion of Chinese property in less than a year.

Li did not earn his nickname for nothing.  He started as a salesman of plastic flowers and bought big in the wake of riots in Hong Kong at the time of China’s Cultural Revolution, snapping up bargains.  He was also an early investor in Mainland China, jumping in before it became fashionable.  That proved to be smart.  He has, wrote one observer, “a record of being able to predict the mainland property market.” 

Li’s maneuvers are now considered a leading indicator.  So what is the significance of his recent sales?  He told the respected Caixin website, just before the Pacific Century Place announcement, that the disposals of properties in China were “sell-high-buy-low” moves.  As he noted, “The talk of our disinvestment is a big joke.”

Yet Li, No. 20 on last month’s Forbes rich list with a fortune of $31.0 billion, is selling in China and not buying.  And it looks like he is leaving not a moment too soon.  Dongfang Daily, a Chinese paper, quotes an unnamed “industry insider” who tells us Superman “will always sell his assets two to three years ahead of crises.”

This time, the crisis will surely hit sooner than that.  Why?  Values are already tumbling.  The sales price for Pacific Century Place, for instance, is thought to be 30% lower than last year’s asking price.

Now that Li is moving out of major China developments, others will probably take the hint.  “Why would you buy anything when Li Ka-shing is selling?” asks Euromoney.  The magazine posed the question in connection with Li dumping assets in his home base, Hong Kong.  There, he has gone on another “de-risking” binge, with among other things, an initial public offering of Power Assets Holdings , a sale of a 24.95% interest in retailer AS Watson, and a disposal of a 60% stake in Terminal 8 West in the Kwai Tsing container port, all this year.  Li also tried to offload supermarket chain ParknShop last year, but the effort failed. 

In March, Li made it clear that just about everything was for sale in the next 12 months.  “We will not rule out the option,” he said.

It would be nice to think that Li, an octogenarian, is dumping assets at the end of an illustrious career so that his China sales say more about him than the state of the Mainland property market.  Yet Li is busy redeploying assets to Europe, indicating he is not exactly contemplating retirement.  And in some ways the Hong Kong disposals are an added indication of his bearishness because the city’s economy is so tightly bound to the rest of China these days.

That’s why Simon Black, an investor and entrepreneur, looks correct.  “Li wants out of China,” he writes.  “All of it.”  Superman’s sudden move out of Chinese property has been termed an “evacuation,” and it looks like he hopes to get out of the rest of his Chinese investments too.  Li, for instance, has been progressively selling his stock in ChangYuan Group, a Shanghai-listed electronics manufacturer based in Guangdong province.  When viewed in connection with his Mainland China and Hong Kong disposals, this move looks part of a relentless trend. 

The Chinese themselves see special significance in Superman’s sales.  Wang Shi, chairman of China Vanke , China’s largest home builder, says the sell-off of “the smart Mr. Li” is a warning.  Critic Luo Zhiyuan said the sales imply “the coming of a crisis.”

We should probably take our cue from the man called “the Warren Buffett of China.”  After all, the Chinese Buffett is unloading his China assets.  

Mr Li Ka Shing is a clever man. He single-handedly built his empire from the 60s-70s. He was early in his game. Now he has huge number of financial analysts to read for him, he is now more invincible than ever.

Typically Asia will feel the crisis 2 to 3 years after the USA or Europe felt it. The reason is simple:   There is always enough juice to fund the Asian markets for a while from USA or Europe's sales proceeds, before the Asian markets ran out of juice too. From the depth of the USA crisis in Mar 2009 to now 2014, the Asian crisis is now long overdue in outing.

Soon this Asian tsunami is going to whip the asses of all fuckens. As I have always said, this is a rather fair world. You fucked others before, you will get fucked in return. That's what life is all about.

Buy assets only during the bitterest winters. In your terms, buy during the ghost months. Buy during the deadest part of the year - July-September. Buy cash please.

I know life is bitter if we choose to label it so. But, there is always a choice. A choice that we can call it our own. I have made that choice my own.

Depression or self-hate, I don't care, I build my own reality. May Tengri bless those who have been honest and kind. In times of darkness, may there be light and warmth in the cold tunnel ... In time, may we all understand the meaning of living a full life.

b.Property Investment - White Knights

The last part is here:   Megatrend - Depression Pushing Through

Finally I am back to my cave. So nice to be home, sweet home. The plane had only 150 passengers, of whom only 5 are yellowskins, i.e., 3%. This is an important percentage. It meant that the yellowskins are not here to push up the property prices. The whites are stuck in their own problems.

Just when I thought I got killer investments in Malaysia, the white agents gave me offers I cannot refuse.

The depression continued to bite. ECB moves deposit rate into negative territory for the first time, as of 05 June 2014, hoping to avoid a Japan's lost decade. This is how serious the case of massive quantitative easing is.

The average return-on-investment in Malaysia is 8 years. I thought I was brillant. How wrong!

The white properties are giving me a return-on-investment of 2 years. This is really a joke. I can't believe my own eyes. Now I have to count my chickens and eggs and hatching them. Shit! I got so little money.

My partner-in-crime always remind me that in every investment, we must always consider its return-on-investment and that return-on-investment must also be immediate. He is wise beyond his years.

b.A Home an Investment?

The last part is here:   A Property is a Property is a Property

Years ago, I made one of the most stupid mistakes on earth:   I listened to the garmen.

The garmen told me that a property, not only can be a home, it could also be an investment. So I went to buy a house and I lived in it. A few years later, my house has appreciated in value and I also got a promotion. The banker told me that I am worth it.

I bought a bigger house and I stayed in it. I not only got a bigger house, my net worth has gone up by a quantum. This net worth could never be saved by me throughout my lifetime. My instalments were paid for by my salary. I was brilliant.

Another few years later, I again got a promotion. My banker once again told me the same fairy tale that I am worth it. I again bought a bigger house and I stayed in it. I not only got a bigger house, my net worth has gone up by a quantum. This net worth could never be saved by me throughout my lifetime. My instalments were paid for by my salary. I was brilliant.

Suddenly, I was retrenched. The banker told me that I am not as worthy as before. He has no choice but to fire-sale my beautiful house. Over-night I was left with nothing. I was stupid.

A home unfortunately is not for gamble. It is never an investment. It is the base camp and solace of the heart.

In the home, one can purchase the most expensive fittings and fix the most beautiful bathroom. It is never too expensive. But, one can't do the same for investment properties.

How I wish I learn earlier this expensive lesson.

Lotus suddenly called me today and announced that my home is now ready for occupation. I swallowed my saliva hard. Could I manage more than one home?

p.A Property is a Property is a Property

The last part is here:   Return on Capital

Today I have a very puzzling request:   Why must we buy so old and therefore cheap properties and so far away as well? Why can't we be like everyone else? Buy a normal, nice and comfortable property and get a normal passive income to boot?

From the depth of it, this is a really nasty question. It is very, very, very difficult to answer. Even if there is an answer, it doesn't imply that it is a perfect answer. Even if it is a perfect answer, due to seasons of the market, one's decision may seemed right at the time of decision, it would go dead wrong if the market is somehow misread.

But, I am an old fool. I love challenging questions.

Lots of guys love to time the market. They time it left and they time it right. Most of the time, if they have the staying power, they are proud and successful. But, if they don't have any staying power, they are the most foolish. But, real market is not a game for fools, the cash outlay is huge and the punishment deadly.

Take a hypothetical case:

• A normal property is costed at $300k and rentable at $1,200 per month, giving a Return-On-Investment (ROI) of 21 years or the classic 5% return. This property is almost brand-new (5-10 years) and located at some nice suburbs. Shopping is not too convenient but good enough. It is not near any famous eateries. Commuting to city centre is about 15-20 minutes. It is normally to collect about 10-20% of down-payment ($30,000-$60,000) to secure a bank loan of 80-90% stretched over 25-35 years. Over the tenure, one would need to pay (not including down-payment) about a total of $1,800 per month x 30 years x 12 months = $648,000 or 2.2 times the initial purchase price. Assuming the property is rented out, there would still be a short-fall of ($1,800 - $1,200) x 30 years x 12 months = $216,000 or 0.72 times the initial purchase price.
•  
• On the other hand, a nasty property is costed at $35k and rentable at $350 per month, giving a Return-On-Investment (ROI) of 8 years or 12% return. This property is very old (18-25 years) but located very near to city centre. Shopping is very convenient. It is near famous eateries. Commuting to city centre is about 5-10 minutes. It is normal to pay cash for the property. Based on the initial quantum of down-payment of the other property ($30,000-$60,000), one can collect about 1-2 of these nasty properties (2 nasties = 1 nice-ty in land size). Over the same tenure of 30 years, one would have collected a total of $350 per month x 30 years x 12 months = $126,000 or 3.6 times the initial purchase price. If buying only one initially ($35,000), then one would have collected 1 + 3.6 = 4.6 properties in total. If one were to buy 2 nasties initially, one would have collected 4.6 x 2 = 9.2 properties. Not forgetting, it also have a cascading effect, i.e., every 8 years, each nasty can give birth to another nasty collecting even more rental. Mind you, I don't even need to pay the extra $600 per month for the next 30 years. If that is included, I would have collected another 6.2 nasties on top of the 4.6-9.2. Given that 2 nasties = 1 nice-ty in land size, the potential is way too great to ignore. Also, if the plot ratio is increased due to congestion, these nasties are great cash pockets.

The above showed a very simplistic view of things. In short, the nasty investment is a superior choice.

Overall, I didn't take into account of possible downturn, or upturn, inflation of property prices and so on, just simply too many factors to think about. My primal instinct is that investing in nasties is the way to go. For a fraction of the price of a fresh property, I am able to buy something very near to town. The return would be way superior. I have a chance to own many more properties.

Lots of guys don't understand that the developers exact very heavy prices on building new properties for sale. To sweeten the deals, they have no choice but to have short skirts doing their sales. Whenever this happens, you know you are paying a premium for the things you are buying. These short skirts are not cheap to employ.

The stigma in investing in nasties is that it is not pretty. It is bad in reputation as compared to nice houses. Even living in one caused grief to woman folks. Most people like to classify these nasty dwellers as scum of the earth.

Not forgetting these niceties are nice only in boom times. In recessions, these niceties would have turned nasties too. I might then engage these niceties as if they are nasties. 

Only if my woman folks understand this simple investment principles, they would be richly rewarded 10 years down the road.

It is these troubled so-called "stigma" that is giving me so much joy. I do pray for my woman folks to understand and tolerate me for just 10 years. In the event I am rewarded with expanding business volumes in future, this waiting could be shortened greatly.

b.Size of Houses

The last part is here:   Exploration - Town Planning

I just visited Malacca Jonker Walk. Inside there, there were many Peranakan houses. The houses were very long. Usually each house has at least 2 air wells. Two houses were linked back to back with a toilet separating them. I truly wondered how they can clear their shit during shit clearance. My estimate is that they are about 130 ft long and 25 ft wide. Their staircases are unique and rather decorative. At the top of the stairs, it was normally sealed by closing a hatch. In a few occasions, these houses are combined into 50 ft wide or even 100 ft wide.

I have a theory.

Each lot in the white land is usually 50 ft x 140 ft. It usually has a single dwelling house, built-up is usually 1,600 sf (one or two storey). Some have 2 lots side-by-side, i.e., 100 ft x 140 ft. So I guess the fucken definition of 15,000 sf as a good class bungalow is referring to these double lots.

When these single lots are divided into 2 x 25 ft x 140 ft. This becomes rather tiny. So they built them into linked houses. Peranakan houses fell into this class of dwelling.

It is extremely uncomfortable if the dwelling house is made up of 2 storeys. So it should be considered that a proper dwelling house must not have stairs.

When the double lots expand further into 200 ft x 140 ft. It is about slightly more than 1/2 acre in land size. I would consider this house as ordinary. A properly sized single-storey dwelling house can then be built.

I, on the other hand, am interesting in building - 四合院. I would like to emulate the great court of Trinity College, Cambridge.

The Great Court Run 
Great Court, with (from left to right) the dining hall, Master's Lodge, fountain, clock tower, chapel and Great Gate The Great Court Run is an attempt to run round the 400-yard perimeter of Great Court (approximately 367 m), in the 43 seconds of the clock striking twelve. Students traditionally attempt to complete the circuit on the day of the Matriculation Dinner. It is a rather difficult challenge: one needs to be a fine sprinter to achieve it, but it is by no means necessary to be of Olympic standard, despite assertions made in the press. 

It is widely believed that Sebastian Coe successfully completed the run when he beat Steve Cram in a charity race in October 1988. Sebastian Coe's time on 29 October 1988 was reported by Norris McWhirter to have been 45.52 seconds, but it was actually 46.0 seconds (confirmed by the video tape), while Cram's was 46.3 seconds. The clock on that day took 44.4 seconds (i.e. a "long" time, probably two days after the last winding) and the video film confirms that Coe was some 12 metres short of his finish line when the fateful final stroke occurred. The television commentators were more than a little disingenuous in suggesting that the dying sounds of the bell could be included in the striking time, thereby allowing Coe's run to be claimed as successful. 

One reason Olympic runners Cram and Coe found the challenge so tough is that they started at the middle of one side of the Court, thereby having to negotiate four right-angle turns. In the days when students started at the corner, only three turns were needed. 

Until the mid-1990s, the run was traditionally attempted by first-year students, at midnight following their Matriculation Dinner. Following a number of accidents to drunk undergraduates running on slippery cobbles, the college now organises a more formal Great Court Run, at 12 noon on the day of Matriculation Dinner: the challenge is only open to freshers, many of whom compete in fancy dress.

The lawn is about 2 acres in size. Very manageable.

A nice 四合院 has always been my dream.

b.Return on Capital

The last part is here:   Return From Powerful Retreat

During my most recent sabbatical, I have learned one very important point:   Return on Capital is vulgar only if there are restrictions to the game. Otherwise, it is very normally grim.

Some of the investments I have gotten has a return of 5-8 years. To achieve such a great return requires lots of finesse. I must say it was a cooperative effort that came out very fine. The return on capital was stable and non-volatile. The sums involved were also not very large, mostly manageable bite-sizes, which is great for piece-meal engagement.

Even the coming restaurant share investment is also rather bite-size. So it would have made my original premise of not borrowing from the bank possible.

Now is summer time, the land deals in white land is stiff. Summer time is a time where deals are struck as they were able to see and feel their purchases. Speaking from experience, I always without fail would fall in love with the properties I visit. I used to scold Chrysanthemum about her falling in love with the properties she visited. Truly I was no better. So I would give it a short break. Come winter, the deals would have sweetened themselves. Why? In winter, people are less like to travel. If the sellers are desperate for cash, the deals would be better. Now in the shopping malls, more stores are closed and not replaced. Frequently, these voids were not filled till a year later. It is very painful for the whites. Recently they reopened the flooding gates for more immigrants, hoping to reduce their pain.

As the word implies, I am currently torn between investing more cash into businesses or fixed assets. A fine balance is needed. With the recessionary pressures at their greatest, fixed assets are burning and great deals are everywhere. I am simply spoilt for choice. But, business investments must still have to be ongoing, else these businesses will take forever to fruit.

I am holding 50-50 view over the two investment choices.

People management

This remains extremely tricky to me. Most of the people I engaged were cunning and useless. But, therein lie a few gems. These gems interestingly did yield an overall benefit. Just one gem would have make up for the lost time and money invested in 10 other useless assholes. So it is quite profitable. Just be wary of unusual leeches. They come in all shapes and sizes.

b.xox - The Enslavement of a Young Pinoy

The last part is here:   xox - The City of Rats

Just spoken to a 25yo pinoy. I hate pinoys. They cheat, they lie, they con, they steal and they do things that of a city scorn. Despicable and unforgivable. They infested the white land like the yellow locusts. Everywhere you see them setting self-interest-groups in oblivion of everyone else. I guess all of Indians must have hated all these intrusions into their quiet life. First, invaded and raped by the whites. Then, invaded and raped by the blacks, yellows and browns. Frankly I am no different. Awhile back, I suggested setting up the 四合园 to house our workers and sing only chinese songs. The chinamen were beaming with pride. They managed to talk non-stopped for half-a-day. Indeed I have made them dreamed a little away from their dreaded miseries for a short while.

He started work as a grocery store assistant immediately after his studies in white land. Back in his pinoyland, he is considered a rich family member. His migration slant was investment class. Over the years, his family lost it all. Currently, he has no skills.

Once he managed to get a job, he immediately applied for a car loan and bought himself a big, big white land car. He has to pay the car loan over the next 8 years. All these he claimed is to make his gf's family happy. He hoped to win the heart of the young gal and hoping to get married real soon. His gf now is a nurse, earning quite a sizable sum (nearly 3 times) as compared to his miserable minimum pay. He therefore needs to loan his way to her pussy.

He then explained his dream about starting a tourist agency and buying a big house in the heart of town in the coming few years.

I smiled.

He has caught the famous white land's dream. He was simply not happy with a 8-year car loan, he now wanted a 30-year house loan. By the time, he is out of it, he would be in his 50-60s. Another 30 more years, he would be a dead meat. If he is not careful and continues his white land's dream, he would buy a bigger house and be bonded till 75yo, leaving only another 15 more years before he closed shop at 90 years of age. If he has done it in a far away fucken little island, he would have banged his balls for achieving nothing as he is due to hand over the property for free just 9 years after he is declared a dead meat, making a ripe 99 years worth of slavery.

But, but, but ... Properties in white land are freehold. Wouldn't that make a difference? Always remember: The capital of Roman Empire was Rome. Look at Rome now, nowhere close to its former glory. 北京 (Beijing) was only a recent capital of the chinaman empires. Previously, the capital was in 洛陽 or even 開封. Look at 洛陽 and 開封, nowhere nearly as glorious. Therefore, if you stick to city purchases right from the word go, you are already made a slave - no more hope to fight the evil empire. How much do you think you can make by becoming a grocery store assistant (pinoy boy) or a nurse (pinoy gal) in a city setting where everything is made so expensive and unreasonable? You may make it big but you spend bigger. Then, where are your marbles at the end of this exercise?

I loved this enslavement, else I wouldn't be so at peace with my invasion plan of the land of crescent moon lake. Crimson queen just called me to bring me my much needed food supplies. She is proving to be a reliable ally in this game.

p.xox - The City of Rats

The last part is here:   xox - I have Cancer

If you have not read the all-important essay on Holocaust II - Dr Calhoun's experiment on humans. Please do. It will fill you in on the exact details.

... There was also “sexual deviance”. Dominant males became aggressive, some moving in groups, attacking females and the young. Mating behaviors were disrupted. Some became exclusively homosexual. Others became pansexual and hypersexual, attempting to mount any rat they encountered. Rats became hypersexual, pursuing females relentlessly even when not in heat. The mortality rate among females was extremely high. A large proportion of the population became bisexual, then increasingly homosexual, and finally asexual. ... Dr Calhoun clearly saw these rats and mice as models for man. Life in an unnatural urban environment of ever-increasing density could result in the complete devastation of humanity. He noted that even when population levels dropped and more space became available, the community never recovered. Even when healthy rodents are placed in the new environment, they never breed successfully again. ... The conclusions drawn from this experiment were that when all available space is taken and all social roles filled, competition and the stresses experienced by the individuals will result in a total breakdown in complex social behaviors, ultimately resulting in the demise of the population.

Previously I wrote about renewable resource. Only renewable resources are sustainable. So when one started to build a rat city like in that fucken little island. You would encounter a problem soon enough. How were you going to feed the populace? There was simply no farm resource. That's the reason why one needs to cry on TV to explain away his silly decision to break off from the union among friendly rats some 50 years earlier.

As time went by, the rat city became totally unstable. There were no means of the king rat that could quieten and feed the rats. So the king rat resorted to the idea of expansion. He suggested to the rats that they should give birth but not too many. For each increase in birth, there were added goods and services demanded. (I will explained its fallacy later.) In exchange they worked for MNCs to buy food and materials. All was well till the rats ran out of space and the MNCs like locusts moved on to greener and cheaper places.

Due to the lack of space and living in coffin holes (remember the bees), the rats refused to procreate. The birth rate dropped to 1.20. This was called, for the lack of a better term, the space stressor. The king rat then implemented the idea of foreign importation of fresh rats. The birth rate went back up towards 1.29, the king rat proudly proclaimed. To me, the explanation was simple: Due to the Calhoun's effect, the local rats had stopped procreation due to the space stressor. The imported fresh rats were healthy and had none of the space stressors, they procreated like nobody's business. Hence, briefly, pushed the birthrate index back higher. But, given time, the space stressor would once again set in on these newer rats and they too would stop procreating. These newer rats would behave exactly like the older rats. Greater, newer and fresher rats are more than ever needed. The cycle repeats. The problem would become extremely dire very rapidly, as the birthrate of 1.20-1.29 means for every new born, they will need to support 2 silver adults. This clearly is not sustainable. 

In the past, the rats in the rat city used to try to produce innovative goods, like the creative techie and the thumb drives. But that was in the past. At the present moment, the rats in the rat city produce nothing of originality, they only try to provide nondescript time units in services rendered. One should be able to deduce that a service engineer, lawyer or accountant is useless without the farm products.

The world is a very cunning place. You produced no goods of originality, you only have your nondescript service time units for sale. Your employers will only pay you pittance and only just enough for you to survive. If the entire rat city is on service terms, the whole rat city is being paid pittance. The whole rat city would under perform most of the time, i.e., the payment for each time unit is below food prices. Over time, the whole rat city has no choice but to cannibalize each other to survive. The king rat and his cronies would naturally have the advantage. The gini index just goes worse.

The king rat thinking that he is smartest among his rats would always come out with the most obvious and silly solution, i.e., expansion. He was by far the most stupid, i.e., the king without clothes. Like it or not, the rat city is not just an ordinary place but a nation. In a nationhood, the early rats would grow old and become the next silver tsunami, if not careful, these silver tsunami would get stuck in the rat city and demand health care. So the king rat just willed them away by allowing them to emigrate easily. This explained why it is so easy to leave the rat city through emigration. The king rat just simply not interested in keeping you, as you age. But, this is a double-edged sword. Only the more abled rats would migrate, bringing along with them, very educated rat kids. The rat city hollows out in no time. Corporate knowledge and expertise just drain away. The king rat thinking that these corporate knowledge and institutional skill were easily replaceable was once again proved wrong. Corporate knowledge takes time to build and takes more than a lifetime to perfect. Once lost, the rat city is hollowed out. Just like if all of kikkoman soya sauce makers were to resign totally, kikkoman would be fucked bad. Same thing for a rat city, you need older rats to guide the newer rats so that knowledge (an art) could be passed down by training of apprentices. There is simply no short-cut to corporate knowledge retention.

On the other hand too, the king rat just open the flood gate and allow new fresh rats to enter. The effect is simple: The rat population is now renewed and made young again. Now you have 2-3 young rats to support one old rat. As long as this ratio is maintained, the rat city would be OK. The additional demand for goods and services would be healthy and great for nation building. But, the king rat forgot one big factor - space. The rat city for all its wonders would run out of space. Why? The world is a clever place. Unless the immigrants are strong, healthy and superior, they would not be able to emigrate to another place, i.e., the export of rats cannot be higher than the production of silver tsunami, making the silver population growing at all the time. With growing silver population, it would imply an ever greater need to grow young, fresh and foreign trash. Sooner rather later, the space stressor of the rat city would turn up. The rats would stop behaving like rats and lose all procreation skills, the rat city would go the way of dinosaurs.

I may not sound alarmist, but, the effects are deadly. In fact, by careful comparison, you would already see this wheel of loss in motion. Get the fuck out as soon as it is still possible. The north korean king rat might become alarmist and shut all exits. Genocide is not a bedtime story.

g.Shows - Mongol (蒙古王) and 止杀令

The last part is here:   An unexpected Guest - Bubble Tea

The shows are here:   Mongol (蒙古王)   and   止杀令
The description is here:   Genghis Khan

Genghis Khan was enslaved at a tender age of 9 by his own tribesmen, denied of his rightful place as khan of his tribe. Over the next 25-30 years, he struggled and only claimed his prize at 35-40 yo. He died approximately 65 yo. He went on a journey not knowing if he wins or loses. His bitter experience of enslavery from childhood to very senior adulthood caused him to kill over 40 million people. His murderous conquests killed so many people that huge swathes of cultivated land returned to forest. Do note that to be successful, you need to apply 10-25 years of your life on one single quest. 

The Mongol Warlord's promise of terror and mass extermination of anyone opposing him was a well-tested Mongol tactic. The alternative to submission was total war: if refused, Mongol leaders ordered the collective slaughter of populations and destruction of property, as the source of oppressive evil. The success of Mongol tactics hinged on fear: to induce capitulation amongst enemy populations. Although perceived as being bloodthirsty, the Mongol strategy of "surrender or die" still recognized that conquest by capitulation was more desirable than being forced to continually expend soldiers, food, and money to fight every army and sack every town and city along the campaign's route.

***

Lotus asked, "My dearest King, you looked extremely tired today. Ever since you returned from white crane sister's palace, you don't look your usual self."

I replied, "I am concerned over white crane's quest of the Land of Crescent Lake. Not only I have external worries, I have to contend with spies from within. I am not at rest."

Lotus said, "I am afraid white crane sister is right. With land, a farmer would use the renewable energy from the sun to grow plants and rear animals. When the produce was plenty, the farmer would employ help to till the land. Some smart helpers would produce cute little tools which the farmer would use to reduce his backaches. These little blacksmiths later branched out to become artisans and craftsmen building all kinds of things such as buildings and roads for the farm and helpers. These helpers later became popularly known as doctors, mechanics, technicians, engineers and architects. As the sheep and cattle became too numerous, some helpers called themselves bin-counters (or accountants) and assisted the farmer in keeping track of his sheep and properties. Over time, due its rich produce, the farm was frequently raided by robbers and thieves. The farmer then started to have some helpers to double-up as security. At the same time, some highlanders started to organize themselves and called themselves the high-leaders and law-makers. These were none other than the robbers themselves known by their other name. They would exhort high fees in the name of taxes in return for the peace in producing plants and animals. Other helpers branched out to provide sex and night clubs for the tired and weary."

"Other land owners might not like the farmer's way. They started to sack the land for its non-renewable mineral deposits and oil reserves. This, however, was not sustainable. Sooner or later, the land would be devoid of its valuable deposits and rendered itself worthless."

"What is sustainable is therefore only the daily energy provided by the sun. If the need of the people around the land is higher than that of the produce of the land, war will form. The answer to this question however is sacred." She finally smiled.

Lotus came from a humble background. her education level was not high. But, through various encounters, she has matured as a competent gal, full of confidence and willingness to lead. To tread where most men fear. Indeed, she is now a competent war councillor. She has taken her place as a constant companion to me. Her only need is for me to give her a son and wanted nothing else. She called it the king's ransom. I have no end of fun thinking about this king's ransom.

I laughed and interjected, "You mean the wicked city of rats in that fucken little island?"

Lotus smiled, "Yes. My lord. That rat city will fail as there is no way they can find a way out of the resource problem. If they commandeer no resource, they will have to eat each other for food. One simply has to give way to the grim reality."

I was quiet.

With a far straighter face than usual, Lotus said, "My dear Sire. I know you were once a princeling forced to go into exile by the king of that fucken little island. You were penniless and forsaken. But, a princeling liken the ugly duckling would one day become a swan. Huge and majestic. You might now be King of nothing. But, you remained a king's worth. Your place is decreed by Tengri (长生天). It will come to pass. This battle of the Land of the Crescent Lake is only but one of the many battles to be fought by you and you alone. You have no choice."

I asked, "Haven't I have enough?"

She replied, "That is if you think your limit is reached."

The world has forgotten that I was once a princeling from a little island in the sun. She didn't. Such a reminder only serves to strengthen my resolve to take up arms once again. I am a true warlord of the mythical east.

I sighed ...

Let's enjoy the shows ...

ps:   What if our own land is instead invaded, what should we do? The complete answer belongs to the private key. However, part of the complete answer is already enshrined in the many essays written thus far.