Negative GDP growth of 2.7pct? Can this be positive news?

Yeah, Malaysia’s Q3 showed a negative GDP growth. Let’s talk about that shortly. I am very sure many thinks this is very negative?

We see what we want to see, really

When we scroll through our Facebook and we click on some news which was forwarded by our friends and those news were all negative news, very soon, Facebook will show more of those for you. This is because higher engagement is a super important metric and relevance happened to be that trigger for engagement. When we click a new car launch news, soon we will see more new car launch related news. This is the same for POLITICS too. What we believe is what we always see and this meant that our belief grows stronger, whether or not there are changes to the other side which we did not read.

News about the negative GDP growth

Take a look at the below about the Q3 GDP growth for Malaysia which happened to be a negative number. There are news article titles which look neutral; just stating the fact. However fact here; contraction has a negative connotation yeah. There are positive ones showing that this contraction is getting smaller. Another shows the news as positive because this number actually showed a rebound! Well, there are even one which used negative titles! Anyway, just wanted to show to you that generally we prefer to read negative news. The media has to write things which we like to read yeah.

Is the Q3 negative GDP growth really considered a negative news?

My personal view is that if this is already showing a recovery or in this case considered a rebound since it was negative 17% in Q2 2020 to negative 2.7% in Q3 2020, then this is good news. The catch is however that we have the CMCO restarted in October and this has since been expanded to nearly all states in Malaysia and extended till December 2020. Would our number show a very small positive in Q4 2020?

Since many are saying no, so I will be a contrarian and say that because most businesses are still allowed to operate, we should see a small positive Q4 GDP growth. We will see yeah. For our sake, I do think it’s better for my prediction to be coming true.

What’s coming in 2021 then?

Many continue to question if we are on the right track. Well, our current Finance Minister is really pretty qualified and having the necessary experience too. Bank Negara Malaysia (BNM) has also decided not to reduce the rates any further pending a further assessment of the economy. This is a good sign by the way. Anyway, these are the following predictions / forecast by external agencies. Means those which I think it’s not possible for us to FORCE them to say good things about us unless they wanted to.

IMF says our GDP for 2021 is likely to be 7.8% (click to for the article)

World Bank says our GDP will be positive 6.3% for 2021. (click here for the article)

Fitch Solutions says our GDP will be positive 6.32% for 2021. (click here for the article)

Moody’s say 7% growth for 2021. S&P says 8.4% for 2021. (click here for the article)

What if I was wrong and 2021 really showed a negative GDP growth again?

By the way, the ONLY truth which we could safely claim would be to look back at what has happened. This has been true and many economists with much higher credentials have predicted wrongly many times and that one time they predicted right, they told the world… Even here in Malaysia, we have many predictions about how the property market should have crashed since 2014. Do go and google for it yeah. Will not share here.

Yesterday, I had a cup of coffee with an accountant and she said, “I think 2021 is going to be another negative year. Just have to see how bad is it.”  She may be right. I may also be right. Just remember, keep ensuring that our income stream is positive and find opportunities to inves to get good returns. This need to happen no matter which prediction comes true. Happy doing what you think is right. In the mean time, read both sides of the story and your social media will start showing you news from BOTH sides. Skew to one side and very soon you have just one perspective.

Love to be updated of investment news?
Sign up for KopiWeekly. (once per week for property, finance, investment news and more)

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
Do not worry? GDP contracted by 17% in Q2 2020

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Malaysia: Negative Sentiment, Positive Luxury car sales

Can the above happen at the same time? “Negative Sentiment and Positive Luxury car sales” Most of the time, when times are bad, buying a new car is nowhere near top priority. I know, someone wanted to say but Malaysia’s public transportation is so bad, of course everyone needs to buy a car. I have no wish to comment on public transportation because I currently drive despite staying in KL but I will definitely try the MRT as soon as it starts by the end of 2016 (MRT Sungai Buloh). Coming back to buying car, assuming it is a necessity to get a car but may I ask if buying a new car is a must during bad times and while secondary cars are by far cheaper than a new one? Surely it’s a choice, right?

Well, according to one major car site,
carlist.my

the sales of Mercedes cars are now nearly 50 percent more than BMW. However, both are enjoying record sales in 2016 when compared to 2015. Before we conclude that these are the only two brands going up, take a look at the image. Others like Isuzu, Volkswagen, MINI, Volvo, Renault and Subaru are all going up when compared to the same period in 2015. So, do we conclude that 2016 is the year of recovery? Wait a minute, when we look at top 5 car brands, from Perodua to Honda, Proton, Toyota and Nissan, all 5 have suffered drops! All these are definitely considered the mass market cars. So, overall what has happened? Well, the overall new car sales volume is down by nearly 14%. Yes, a double digit drop.

Personally, I think it’s very clear that Malaysia is definitely not in any form of recession. The wealthy Malaysian group is still doing fine and buying a new luxury car is still within their reach. I think this is the reason for my friend’s question of ‘why are the developers still launching luxury units above RM1 million? Can these units really sell?’ Well, the total number of transactions for properties are still holding and is not falling like a jet plane. As per latest stats, as at Q1 2016, total residential property transactions still reached 49,612 units (Source: NAPIC). Who are these 50k people? I think it’s very safe to say they
managed to get their loans approved
 and that banks continue to lend to them. In brief, sentiment is definitely negative. As for whether everyone is doing badly, the conclusion is up for us to decide. Happy thinking, whether it’s anew car or property.

written on 27 Oct 2016

Next suggested article:
Top 6 cities with potential for property bubble bursting

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Negative thoughts but contrary actions?

Is the property market extremely negative currently? Transactions falling and even pricing? I noticed one thing recently. Many people say but they do not really mean what they say. Seriously, I think something must be wrong somewhere. You see, nearly every one I know is negative with regards to the Malaysian economy. It’s as if we are about togo bankrupt. However, instead of making preparations to save for potential rainy days, many changed their expensive smartphones from last year or the year before which are still working to that few most expensive smartphones this year. Two spent huge amounts on renovations and said that it’s a home they would be staying for a long time, so they have no choice but to spend. Well… during a crisis, renovation is going to be the LAST item on my list.

A few negative ones told me that they are looking for a property to buy. Some already bought. I hope they understand that property is the hardest to sell or cash out. In fact buying today in view of a collapsing economy in the near future is also one of the worst decisions. Perhaps they just intend to hold until the crisis is over. Well, if they are expecting a crisis to come and they can hold, why not buy during a crisis instead? That would be buying from distressed buyers and most of the time get an undervalued deals. During a crisis, there would be lots of sellers but very few buyers. The amazing thing is, even some real estate negotiators are negative themselves. I am not sure how they can sell any property at all in this case. Has everyone forgotten that attractive opportunities emerge during downturns?

One thing is for sure however. When the crisis comes, everything will be cheaper than they are today. Many restaurants would be fighting for survival and suddenly are willing to take a lower profit margin instead. Malls would be having sales virtually everyday. Developers may be forced to look at breakeven instead of current profit margins. The only tiny issue is this, during a crisis, many people would lose their jobs, thus this may increase the non-performing loan (NPL) for banks. This in turn would drive the banks to reduce their lending to ONLY those who can really qualify. This would shrink the demand for properties even further.

There is little need to be over-confident and try to say the market is awesome when it is not. Everyone knows. However, it is not a clever thing to keep saying negative, spreading negative and yet hoping what we buy today will give us great profits tomorrow. When the whole market is too negative, no one gains, not even buyers who bought yesterday, today or tomorrow. Oh yeah, 2016 is going to be flat, as per many experts. Read here:
Flat 2016? Good 2018, 2019 and great 2020?

Happy understanding and not simply spreading.

written on 24 Dec 2015

Next suggested article:
Malaysia: Consumer confidence drops to new low

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


PropertyGuru: Negative views on property market is UP!

PropertyGuru
 has been conducting the The Property Affordability Sentiment Index survey for many quarters. In its latest report for H1 2015, the results are pretty negative. People’s perception about the property market’s affordability is going up the other way; they think it’s getting harder to buy a property. In fact, the people’s views were positive until the second quarter of 2013. It started turning negative after the fourth quarter of 2013 and the current number for H1 2015 is the worst thus far. Take a look at the image to understand more.

The percentage of respondents with a negative view stood at 58 percent. Only 13 percent are still positive about the market. I think this ties in with what REHDA has been saying. That the sales for new launches have been slow and in fact the number of properties unsold is increasing too. Read here:
Property sales down 9%, only 40% of launches sold
   The two main reasons include the current economic situation and the sudden hike of property prices. Well, for these two points I am not sure if they are the reason because as at H1 of 2015, growth is still considered positive while based on NAPIC’s data, prices have not really increased that much when Q1 2015 is compared to Q4 2015. f it. Read here:
Selangor property? Average price RM442K – Q1 2015

or here:
Kuala Lumpur new condos are now RM700k instead of RM600k last year

It quoted a recent Khazanah Report which said that most properties are now ‘severely unaffordable,’ especially in Kuala Lumpur and Penang. Khazanah warned that if these are not handled properly, soon it will be the whole of Malaysia and no longer just confined to Kuala Lumpur and Penang. One major reason for the continuous price increase is because urbanisation is increasing the demand for housing. I think based on the current demographics, the rate of urbanisation still has some way to go before reaching the peak. In other words, I think opportunities remain open, just buy very objectively.

written on 27 Sept 2015

Next suggested article:
10% buyers own 40% of property purchases. Aiming to be that 10%?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Nestcon IPO on the way. June 2021

Nestcon IPO on the way. June 2021.

An initial public offering (
IPO
) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Briefly, the company wants the public to participate in the company’s potential growth as an investor. It was actually a low year for IPOs in 2020. There were just 18 of them. Recovery in IPO number may be coming. It was earlier forecasted that there may be up to
30 IPOs for 2021 (click here to read)
.

I think we start to see the trend for Initial Public Offering (IPO) coming back. Just a week earlier, I wrote about this
Tuju Setia IPO in May 2021 (click to read)
. Today, there’s another company going for IPO. it’s in the construction industry and it’s eyeing on pushing adoption of industrialised building system (IBS). Do note that I do not know anyone in the company and whether you subscribe the shares or not is your decision yeah.

Article in nst.com.my
   Nestcon said the IPO entailed a public issue of 161.0 million new shares and an offer for sale of 32.2 million existing shares via private placement. The listing is scheduled for June 2021 in ACE Market.

Group managing director Datuk Ir. Dr. Lim Jee Gin said, “We are thrilled, to say the least, as this IPO brings not only capital funding but also other indirect benefits such as an enhanced brand presence as well as the flexibility to tap into the capital market in the future.”

Lim said one of the company’s strategies was to embrace mass production principles via the adoption of an industrialised building system (IBS). He said, “With a part of the IPO proceeds, we plan to establish our own on-site IBS facility that will expedite project delivery time and reduce reliance on foreign workers while simultaneously improve the quality of work.” Do read the full article with more details here:
Article in nst.com.my

Construction sector is growing

again in 2021

With economic recovery comes construction recovery too. Construction sector contributes 4% to the GDP.
Please refer chart below from theedgemarkets.com
  However, for 2021, it is expected to recover strongly with a growth of
11% year on year. Article for reference here.

Investing into a company via stocks is of course much easier versus buying a property yeah. Cost of entry is low and nearly everyone could start buying a share they like. Plus it’s much more liquid too. Happy deciding after understanding more about the construction industry as well as sufficient due diligence.

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:
Why buy and why not to buy for stocks

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New 4,000 units of affordable homes closer to city centre!

When it comes to homes, Malaysians in general prefer to stay as close as possible to their working place. Nope, not because they love their office but they prefer to face as little traffic jam as possible. Staying nearer also meant that they could sleep more and wake up later and still be on time to the office. These are the perks of staying very close to the working place. It’s the same everywhere which is why properties within the city centre is usually far higher than properties 30km away for example. Here are good news for Kota Kinabalu folks.

Article in propertyhunter.com.my
   Local Developer, Wecojaya Sdn Bhd is now developing City Residences in the proposed location of Alam Mesra, near University Malaysia Sabah, Tun Mustapha Tower and One Borneo Hypermall. This is part of the Ministry of Local Government and Housing to help ensure more affordable housing closer to the city of Kota Kinabalu to meet the demand of the growing population who are in need of housing, such as the M40 group.

The programme is called My First Dream Home and it is aimed at the M40 group.  City Residence will stand tall on approximately 21 acres of land in Alam Mesra. The affordable units will have a build-up of approximately 850 square feet and offer 3 bedrooms and 2 bathrooms. It will also boast ample facilities for the residents including a multi-purpose hall, surau, sport court, children’s playground and gym. Furthermore, 40 units of commercial shop lots within the project will address the needs of the community as well. The homes will not cost more than RM300,000 each.  Please read the full article here.
Article in propertyhunter.com.my

RM300,000 is indeed an attractive price. Kota Kinabalu is a city of probably around 600,000 people. This is huge. However, there are not a lot of land to build homes because it’s surrounded by hill slopes which are deemed unsafe for development of residential properties. This is why when there’s a need for any huge piece of land, it will usually be outside the city centre. In this case, University of Sabah is around 11km away from the city centre. This is where the affordable homes, City Residences are located. Let’s hope the development will be completed on time to benefit the targeted group.  Hopefully we continue to see more of these initiatives all over Malaysia and not just in Kota Kinabalu.

Love to be updated on all investment news?
Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Header Image Source: City Residence and taken from
 propertyhunter.com.my

Next suggested article:
the KopiTalk #2: Let’s visit Kota Kinabalu!

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New Baby? New Property.

One of my old friend said that having a
baby means extra expenses
. I totally agree. Then he asked me how am I planning for the baby since the education fees are getting more and more expensive especially when the baby is ready for university. While I do think
university fees are going to get more expensive,
 I told her that I will only be setting aside RM100,000 for this purpose. She gave me a puzzled look. I told her that if my baby is great in her studies, most probably she can get a scholarship and go to a top-notch university. Minimum 1% top ranked in the world. I do not need Cambridge or MIT. Top 1% is more than enough. For this top 1%, it already includes many of the universities near us including Nottingham University, Monash University, University of Reading and many more. This is, if she’s great in her studies.

If she is average in her studies, I do not wish to overburden her. Any recognised universities would do just fine. For this, there are so many of the UK programmes which can be completed locally. I also have high regards for Sedaya University, Help University, Petronas university, MMU and many more. To me, these are way better than the bottom half of the UK, Australia or even the US universities. Imagine a university which allows the student to only borrow 5 books, having one tutor to nearly 100 students for their HONOURS project or even allowing the students to transfer to the university even when they fail, simply if you are willing to pay additional tuition fees to retake the subjects there. I even have a course-mate who did not do too well in Malaysia and yet after she transferred to the overseas university, she could take more subjects and gets high scores! Hmm….  One bottom 20% student in my class even scored higher marks than me in his overseas university! Ok, ok, maybe it was because I suddenly got far worse…..   😛

Back to my baby. I am however doing one more thing. I bought a property for my baby. I calculated that if I buy the
 property at RM500,000 today,
 by the time she really needs the money, it should have been fully paid for and the value by then should have doubled. Perhaps RM1 million then may not be as valuable today but
RM1 million would definitely be sufficient
 for my baby to do a lot of things that she may want, perhaps as a seeding for a business if she has an entrepreneur mind? I think this is a good plan for her and it also forces me to save for her in the mortgages that I have to pay.

I encouraged my friend to do the same. He just smiled. I think he does not agree yet. It is ok. Everyone should have their own way of planning. As long as there is planning, it should be okay. How are you planning for your baby?

written on 30 Jan 2014

Next suggested article:
‘Start as young as you can’

Alternatively read this to
start your property investment

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New banknotes by BNM and only your friend knew about it?

Sometimes, I really do wonder if we are so gullible. Cheating cases continue to happen for the online scams. Some unknown prince would somehow contact you to ask for your help to transfer his money out of his country. You will get half of it, but you must pay some sort of clearance fees first. Haha. Let’s not even venture into the casanova cases or the lottery scams. Another viral Whatsapp happened. This time about Bank Negara Malaysia (BNM) discontinuing old notes and beginning 1st January 2017 would have new notes. So, this is supposed to do with the depreciation of ringgit? Or like one article said, the ‘disappearing ringgit?’  Be reminded that should ringgit be disappearing, I think most of the emerging Asian currencies would also disappear. In the end, all of us can use the US$ I guess. Well, if I could choose, I would prefer the Chinese Yuan instead. I would not want to hold a currency which the country continue to have deficits year after year and continue to incur ever higher debts…… Here’s the
news.

Coming back to the news about the changing of new notes. First of all, this is BNM that we are talking about. This is not some political party fool with some awesome statement to gain attention. Tan Sri Zeti worked extremely hard but the current one I heard works even harder. Why would BNM want to hide any intention to change notes and furthermore doing it suddenly? By the way, within these few years, I have replied two times when my friends forwarded to me about some new notes. When they forwarded it, I replied, ‘The signature on the notes is not our current BNM governor, Tan Sri Zeti Aziz. New notes can’t have signature from old BNM governors.’ They did not believe me because they did not even know who the BNM governor was! In the end, nothing happened and we continue to use the current banknotes.

Secondly, this news about the changing of banknotes was not even reported by any mass media. Not even in bnm.gov.my? Zero news about it and the whole world does not know about it except that friend of yours who forwarded it to you saying it’s totally reliable? Plus the friend of your friend whom I believe must be someone high up in BNM. Actually, this is not all. Within these few years also, I have often been receiving news of the death of some famous personalities. They include Sylvester Stallone, Will Smith and many more. Sometimes, some friends even told me that they are so sad because their idol has passed away. I would just go online, check the news site and reply my friend, ‘Fake news.’ Most of the time, they would be so surprised and asked, ‘how you know you are right?’ Latest one forwarded to me just a few days ago was about some lipstick causing cancer due to excessive lead within it and that to check whether it contain lead or not, just use your gold ring to touch it. It even quoted some doctor (Dr. Nahid Neman) and some institute. Yet, no one bothered to even check and kept forwarding. I no longer know how to and he works in Mt.Sinai Hospital in Toronto. Oh yeah, the image showing it’s another hoax is attached too, just for fun. Please do check before you forward. Be responsible for your actions. Yes, I do have a few friends working in BNM too and they are all good people. Cleverer than me too. Cheers.

written on 19 Dec 2016

Next suggested article:
Chill, this is not Tun Daim’s comments

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New Chinese primary schools? Definitely a plus.

A good friend moved from her previous home (not so awesome area) to her current home in Sri Damansara about 1.5 years ago. She wanted to ensure that her kids get to enroll in the nearby Chinese primary school which is just 1km away. Registrations are always based on distance of home to school. The closer the home is to the school, the higher the chance that the application for that particular school would be successful. There are many such cases and in fact, education is a very important subject for all parents. There are more reasons to rejoice for parents with kids who prefers to enroll their kids into a Chinese primary school. Another 16 new schools would now be available and many of them in newer areas too.
Here’s the article in TheStar
 and below are the full list of all the schools whether totally new or relocated.

 SJK (C) Kuek Ho Yao in Mount Austin, Tebrau, JB, Johor

 SJK (C) Sim Mow Yu, Tmn Bisdari Perdana, Plentong, JB, Johor

 SJK (C) Tan Kah Kee, Kulai, JB, Gerbang Nusajaya, Iskandar Puteri, Johor

 SJK (C) Cheah Fah, Pulai, JB, Sunway Iskandar, Johor

 SJK (C) Lee Loy Seng, Bdr Seri Coalfields, Ijok, Kuala Selangor, Selangor

 SJK (C) Sunsuria, Bdr Sunsuria, Sepang, Selangor

 SJK (C) Tun Ong Yoke Lin, Gamuda Cove, Kuala Langat, Selangor

 SJK (C) Tun Lim Chong Eu, Eco Grandeur, Puncak Alam, Selangor

 SJK (C) Too Joon Hing, Dengkil, Sepang, Selangor

The six schools to be relocated are:

 SJK (C) Poay Chai, Singkir, Kedah to Tmn Bkt Indah, Johor

 SJK (C) Poi Min, Gopeng, Perak to Puchong Perdana, Puchong

 SJK (C) Aik Hua, Taiping, Perak to Kota Seriemas, Negri Sembilan

 SJK (C) Ladang Regent, Gemencheh, Negri Sembilan to Bandar Elmina, Selangor (new name to be revealed)

 SJK (C) Panching, Kuantan, Pahang to Kota SAS, Pahang

 SJK (C) Ladang Grisek, Bkt Gambir, Ledang, Johor to Tmn Kota Masai (new name to be announced)

Relocation happens when the existing school has no students so that it can be built in a new area and more students get to enroll and benefit from having to work hard everyday in school. I am not from a Chinese school but I think I worked hard enough too in school. 😛  As for my kids, I have no yet decided. As you can see, many of the schools are located within a certain development. Many times, the developers would provide a lot of funds for these schools because it is a huge advantage and based on the
demographics of the current Malaysian population
,
 this is the time when kids need to be enrolled in new primary schools. I would think of this as a win-win situation for all stakeholders. Perhaps this is one way to relocate people from some mature neighborhoods. By the way, there are also many very
good national schools in Malaysia
 and they are usually better equipped too. However, 6 years in a primary Chinese school is n advantage for future and I have to agree to this too.
 The full article in TheStar here.
Happy buying and relocating.

written on 31 Oct 2017

Next suggested article:

Free and Fun for family with small kids (Saving for property, haha…)

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


WE disagree with new cooling measures. Please let the market recover.

More cooling measures were rolled out by our neighbour just last week. Of course the ‘WE’ in the title of this article is not kopiandproperty.com  It’s the Real Estate Developers’ Association of Singapore (REDAS) in their joint statement on the Singapore government’s latest property cooling measures. They disagree with their government’s latest action aiming to cool the market. They said that there is no rationale behind the curb.
This is the article in FreeMalaysiaToday.com Singapore developers attack cooling measures
 According to an article by Bloomberg, the three key reasons for the Singapore government’s latest cooling measures were because of property prices (it has rebounded since middle of 2017), En-bloc sales (perhaps the activities were too strong for the government’s linking) and local demand (local buyers are now dominating the buying and it’s no longer the foreign speculators). Here’s that article in
Bloomberg: Three Charts that help explain Singapore’s new property curbs

Elaborating
 further in the FMT article,
 REDAS has claimed that the Singapore property
market is only in the early stages of a recovery. They shared that the market has only picked up last year and the volume of transactions is within expectations. Thus, the recent measures are tough and the government should let the market find its own course in due time. The government has raised buyers’ stamp duties for entities such as developers and tightened borrowing limits for individuals taking their first housing loan. This tightened rules were announced late Thursday (5th July 2018) and came into effect hours later. This was because the central bank (Monetary Authority of Singapore) noted the ‘euphoria’ in the property market. This is not the first time that the government has stepped into the property market to restrain demand and prices. The next day,
Singapore’s benchmark Straits Times Index dropped 2% as property developers and banks led declines, with City Developments Ltd. and UOL Group Ltd. sliding more than 13% each.
Here’s another article in Singapore Business Review.

I think it’s fair to note that the property prices cannot be left to the market alone. If it’s fully FREE without any intervention from the government, then the property bubble will burst in the near future once the majority are priced out of the market. That was one major reason for the 2008 mortgage crisis which happened in the U.S. The failure to afford a property will ensure the owners of these properties continue to be richer while the tenant continue to spend a substantial amount of their income to rent a place which they could never own. This is the reason why Malaysia’s new government is pushing for 1 million new homes within the next 10 years. (Affordable ones of course). Here’s an earlier article which tells why it’s so important for everyone to own a property, even if it’s just a small one. Anyway, I do not think the Singapore government would ease their cooling measures after listening to REDAS’ statement. As for Malaysia, this happened:
Malaysians within B40 and M40, a special loan scheme is coming by August 2018? Hmm…

 Happy following.

written on 9 July 2018

Next suggested article:
When we are 60, just have a RM1,000,000 property, possible?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Lowest number new Covid-19 infections but still a 5-figure number

I am happy with the latest low number for new Covid-19 infection.  This is the lowest since 6th February 2022 and that was at a time when numbers were on the way up. it’s very slightly above 10,000.

Article in nst.com.my
   Health director-general Tan Sri Dr Noor Hisham Abdullah said that Malaysia recorded 10,002 new Covid-19 infections on 4th April. This is the lowest daily toll in the country reported since Feb 6.

He shared that total cumulative coronavirus cases are now at 4,256,469 while total recoveries are now at 4,041,723.  Out of the 10,002 cases, 99.11 percent were in Categories 1 and 2 while 0.89 percent were in Categories 3,4 and 5.

He added that the national infectivity rate was at 0.86 on April 4.

For the past seven days, an average 1,113 Covid-19 patients were admitted, a 27 per cent reduction compared to the past week; ICU seven-day average stood at 262 as of yesterday compared to 302 recorded a week ago; while total active cases had dropped to 179,620 compared to 211,766 on March 29.

On vaccination, 67.4 per cent of the adult population or 15,862,983 people have received the third dose of the vaccine and 38 per cent of children aged between 5 and 11-years-old had been vaccinated. Please refer to the article for full details:
Article in nst.com.my

What I do today as a responsible person

I wish to continue having the freedom to do more versus just being confined to home. Icontinue to remind myself that it’s my responsibility to continue doing al the necessary to keep this number down. There is no need to go into that restaurant if it’s just too full of people. There’s no need to expose the kids to the risk that they could be infected.

Keep on reminding and ensuring they wear their small masks properly. In the mean time, I think we are moving towards the direction of endemic. Thank you for your efforts too.

Property News Malaysia?
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
Why we usually fail to buy that property we wanted

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New Engineer, New Penang Property?

Penang is one of the best place to be for graduates of engineering, with two conditions. You get a good degree and you get into a good organisation. In terms of pay, it’s very competitive and typically your salary from one organisation to the next varies little. If you are able to enter a good one, please work hard and gain relevant experience because after a few years, no one sees what degree or where you graduated from because the most important is whether you perform well or badly in your job. (long sentence yeah).

However, everyone of us must understand that the value of money decreases over time due to inflation. With inflation, it also meant that even without speculation, property prices would continue to rise over time. Thus, it is very important that everyone understands the value of property investment. I am not talking about one graduate buying 5 properties. That is speculation and I hope you go bankrupt because you are distorting the market! I am talking about you buying your first property instead of renting. If you have worked for 6 months, chances are the bank will approve your loan if it is just 30% of your take home income.

You may ask, but I may not yet have the 10% downpayment. There are two ways, save more and wait a little longer or go to PAMA bank. PAMA bank? (Papa and Mama bank). Please do not tell me that you want to buy a property worth RM500,000. Buy something you can afford. There are lots of property choices in Penang priced from RM150,000 – RM200,000. Let’s see if you can afford?

Referring to the mortgage calculator in Iproperty.com.my

Don’t worry about the car, just get a Proton Saga SV. In total, there are 3 Sagas in my family and all three are doing ok and there are no problems with power windows.

written on 3 dec 2013

Next suggested article:
Penang properties, what Singaporeans ask first

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


NEW highways, NEW developments, SURE objections

Another article was published in The Star newspaper on 2 July 2014 about the 6 new highways being built but benefiting few. It said that this is the question being asked by the residents affected by the projects. Some reasons mentioned include the fact that it cuts through some forest reserves, cuts through old housing develop, pollute the neighbourhoods, endanger pedestrians during their construction and clog up local roads. It also mentioned about the non availability of EIA, the Traffic Impact Assessment (TIA) and even the social (SIA) and environmental impact reports (EIA).

I am not sure if I should support the residents if their argument is that it cuts across the developments which has been around since 1950s. Ok, if this is the case, I think we need to look at the significance of these developments. If they form part of a very significant history, it should be preserved and there should be no changes. However, if the only reason is because this is an old development and thus should not be touched, this is very shallow indeed and the report must be done objectively by all sides, including the media, the political parties and everyone included.

The four new expressways are as follows: SUKE (Sungei Besi-Hulu Klang Expressway), DASH (Damansara-Shah Alam Elevated Expressway), EKVE (East Klang Valley Expressway) and the latest Kidex (Kinrara-Damansara Expressway). Every one of these are being opposed by the affected residents in Cheras, Kota Damansara, Ampang and Petaling Jaya. They other two which are still in progress are Serdang Kinrara Putrajaya Expressway (SKIP) and West Coast Highway (LPB).

Actually, the objections would not just happen due to these expressways. Objections would happen even if there is a new condo being built right in front of your current project and it may affect your view, cause the area to be jammed and pollute the environment during its construction. However, just as we have the right to object, the developers who bought the land has equal right to build if they are doing everything as per the local guidelines. The land owners has the right to sell their land for a premium since currently, land prices are hot.

Everything should be as transparent as possible and developers must submit and follow all necessary guidelines. Anyway, these days if they do not, within minutes, everyone would know about it via Facebook, whether it’s real news or fake news. Beyond that, if I am the affected resident, I am obliged to accept if it is proven that everything that I could do has been done. I would definitely not resort to blocking the roads or stopping the contractors from starting their work etc.Seriously, every affected party must play their part, stay objective and clear.

written on 12 June 2014

Next suggested article:
Oxley Holdings, RM10 billion GDV, shoe box concept success

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New home in few months and not few years. Interested?

Building a new home in a few months instead of a few years. What’s the possibility of this happening here in Malaysia? Well, a Japanese Fortune 500 developer, Daiwa House Industry Co. Ltd (“Daiwa”) will enter into a Memorandum of Understanding (“MOU”) with Sunway Group (“Sunway) to undertake a study to examine the feasibility of selling and manufacturing pre-fabricated or industrialised housing in Malaysia. In fact, the very first showcase residential development may come true once a potential site is identified within the next 6 months.

Prefabricated housing is the manufacturing of houses or housing structures offsite in a factory environment before final installation onsite. In comparison to conventional construction methods, prefabrication promises to deliver benefits in terms of higher and more consistent product quality, reduction in delivery time, reduction in materials wastage, and better site management.

Besides the time needed, prefabrication meant less dependence on foreign labour, increased productivity, quality and safety. Daiwa has delivered over 1.5 million prefabricated homes in Japan and has also completed a prefabricated house prototype in Sunway Eastwood in Selangor, Malaysia. The 3-storey bungalow prototype, with a built-up area of 3,968 square feet, was completed within a short five months. Amazing yeah?

Personally, I am not sure how much cost savings can this bring but if the processes are ‘manufactured’ instead of built, you will see a good savings because labour costs can only increase, especially during boom periods, the costs go up even higher and the quality may suffer. I think I will drop by to take a look.

Want to take a look at that prototype? Visit it at Sunway Eastwood from Monday to Friday 9am – 6pm by appointments. Kindly contact Mr Daisuke Usugi and Mr Kanta Tokuda at 03-2142 1515 , 012-906 5787 or send an e-mail to daiwa.malaysia@gmail.com for more information. For more enquiries on Sunway Eastwood upcoming launches on its premium collection semi-d homes, please call 1-800-222 988.

written on 31st 2014

Next suggested article:

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New home? Water… serious issue. Plus a few more key checking points too.

I wrote this article some time back.
The To-Do list for inspecting your new home (click to read)
 An experienced
real estate negotiator (click here to know him)
 read it and added a few more important points. I do think all are logical and easy to follow tips. Please do read what he suggested and take actions yeah.

#1 KEYs are key

First thing when we enter the house, use all the keys given to us by the developer. Please check the set of keys they gave you. The reason is because during a recent key collection, I noticed developers are getting sloppy and usually 1 out of 3 sets of keys are not usable. (It may not be a major issue but hey, they are supposed to provide USABLE keys!)

#2 Water is a serious issue

Turn on the taps and let the water run. For the sink and the toilets and bathrooms. Try and hear any weird noise(s). Let the water run to check leaks on sinks and check the floor level in bathroom. If the water doesn’t flow fast enough (10 min of constant water), then that’s a defect. (nobody wants to wait 10 minutes after shower for the water to drain properly)

#3 Electric is next on the checking list.

Electric point is a bit hard if there are only light points but no lights. At the least, bring a phone charger and just try and charge using all the available 3 point plug first. Those are the most important ones as any renovation would need to use these points.

#4 – Slanting floor is common too.
(but not for all areas)

Floor wise, bring a water bottle filled with water. Put it on the floor and see if it rolls. If it rolls fast, u know it’s slanting. Of course certain area like kitchen  or even shower room might be purposely designed as such for water running purposes. Of course, the living room area should not have a slanting floor yeah.

#5 – Gap in tiles

Tile gaps are usually 2mm indoors n 3mm outdoors. Note down the model and the supplier of the tile for easy future replacement. If it’s timber vinyl, developer nowadays will be giving a thicker 4-6mm ones. Just check for gaps and and floating ones or not. Floating is usually caused by over heating n you know you will need to do tinting for that area. Timber floors are sensitive to heat especially in Malaysia.

#6 – Yards are supposed to hold water

Test the wet area too if you have one. The yard is suppose to handle water n soaks. So test the water point, let it run, see any complains from the bottom unit if you are buying a condo.If landed, check ur water tank area. Usually above the stairs. Many units have water leakage issue as developer did not put enough water proofing. Hence you may be able to see dry marks or fungus marks. For fungus marks, you can usually see with your eyes. Or you may be able to feel wet patches and certain cases powdery ones too.

So, home sweet home guys
 the rest Charles did a good tip guide

— end of tips from Leon. —

Love to be updated on all investment news?
Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Next suggested article:
Selling your Home faster? Some tips for you

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


2,001 sq ft double storey terrace by Sime Darby Property from RM617,088*

Press Release by Sime Darby Property

Exciting New Launches at the City of Elmina Carnival

Enjoy special rebates up to 6% for a limited time only

SHAH ALAM, 28 June 2018 –
Sime Darby Property will be hosting its much anticipated carnival at the City of Elmina

in conjunction with the launch of a new phase in Elmina Green, one of the bestselling residential products in Elmina West, and Semanea Hills, the last landed masterpiece in Denai Alam. The launch carnival, on 30 June 2018 (Saturday), will be for 3 different products catering to the diverse needs and expectations of its customers, along with a myriad of activities tailored for adults and kids.

The award-winning City of Elmina comprises several townships including Denai Alam, Bukit Subang, Elmina East and Elmina West. A key design feature in City of Elmina is the Elmina Central Park, located in the most prime area within Elmina West and connected to the Subang Lake Dam Forest Reserve. The Elmina Central Park is also 30% larger than the Lake Gardens in Kuala Lumpur.

City of Elmina is strategically located between popular suburbs within the Klang Valley such as Subang Jaya and Shah Alam, and is well-served by an excellent road network. It is easily accessible via the North Klang Valley Expressway (NKVE), the Guthrie Corridor Expressway (GCE), the Federal Highway and the ELITE Highway. The expressways also link the townships to the Sultan Abdul Aziz Shah Airport, Kuala Lumpur International Airport (KLIA) and KLIA 2.

The upcoming Damansara-Shah Alam Highway (DASH), which is expected to be completed by early 2020, will significantly shorten travel time to the city centre, further enhancing the connectivity and accessibility of the townships.

The new phase of Elmina Green comprises 211 units of 20’ x 70’ double storey terrace homes with a built up area from 2,001 sq ft, suitable for young families. All homes feature an open-plan floor layout that combines the living, dining and kitchen areas to optimise the usage of space and for ease of movement, fitted with sustainability and wellness features such as the usage of stone wool insulation materials to provide a pleasant interior temperature. Additionally, residents will enjoy access to an expansive 20-acre lake park, comparable in size to that of 20 football fields. Prices start from RM617,088
*
.

Semanea Hills, the last phase of landed homes in Denai Alam, is a freehold development comprising 114 units of 24’ x 80’ superlink homes suitable for upgraders, with built up areas starting from 2,580 square feet as well as 48 units of 40’ x 80’ distinctive semi-detached homes with built up areas starting from 3,320 square feet. Prices start from RM792,850
*
 for the superlink homes and RM1,442,360
*
 for the semi-detached homes.

Sime Darby Property General Manager, Appollo Leong said
, “What better way to launch these great residential products in City of Elmina than with a launch carnival for the whole family! We achieved a strong 85% take-up rate for the first phase of Elmina Green at the end of last year and we are confident that the new phase will reprise this success. As for Semanea Hills, it is the last phase of landed homes in Denai Alam, one of the more matured townships within City of Elmina with a host of amenities and facilities for residents to enjoy.”

The City of Elmina, with an estimated gross development value of RM27 billion, is the first township dedicated to wellness and liveability in Malaysia, planned and developed in line with specifications set out by Mercer’s Quality of Living Survey, an internationally recognised standard that measures liveability.

For more information on the City of Elmina Launch Carnival and the product launches  of Elmina Green in Elmina West and Semanea Hills in Denai Alam, kindly contact Sime Darby Property at +603-7831 2253 or visit
https://www.simedarbyproperty.com/event/city-elmina-launch-carnival
.

Updates on Sime Darby Property activities and developments can be found on
simedarbyproperty.com
, Facebook (
facebook.com/SimeDarbyProperty
), Instagram (
instagram.com/SimeDarbyProperty
) and the Sime Darby Property Mobile App (available for download via the App Store and Google Play).

*All prices listed are after 7% Bumiputera discount and early signing rebates.

— end of press release —

Next suggested article:
Sime Darby Property launches City of Elmina – townships for the future

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New launches same area, lower priced than previous launches? Post-GST ‘trick’?

I always think when market is slow, new launches tend to give prices which are more realistic just to sell faster instead of selling slowly. Well, my friend just spoke to me the other day on two projects by two different developers which is selling their new projects on similar areas at prices which is very slightly below that of earlier launches. Both the developers are pretty well known and I think they would need to get ready some explanations to their buyers of earlier projects. While the type, the density etc are not really exactly the same but if project is by the same developer, in the same area, do you normally launch at prices per sf which is lower than your previous launch 2 years ago? Actually, these are not the only two examples. I think the developers who could not wait are now willing to sell with a lower margin. Thus, this reinforced the idea that for GST next year, even if there are some rumours saying that residential prices will increase, I think it will be easily absorbed by the developers. My earlier article here:
Property prices up due to GST? Developers should just absorb it.
 Especially if the current situation persists.

Oh yeah, I think the pressure for the higher end units would be higher by one notch soon as well. I read in a report stating that by end of Q4 2014, there would be a total of 4,604 high-end residential units entering the market. They include the following: The Elements (1,040 units) by Elite Forward, Sky Residence-Phase 2: Celesta & Divina (450 units) by SP Setia and Icon Residence (260 units) by Mah Sing Group. I know of one which is a little late, Icon Residence by Mah Sing. I pass it every morning and there was a banner which said that keys would be handed over by August 2014. Well, if it’s within the 3 year building period, I suppose it’s ok. As for The Elements, this is quite a famous project as it was marketed in Penang as well few years ago. How strong would be the holding power of the owners of these 4,604 units? Assuming 50% bought because they wanted to stay, perhaps there are some still good deals for buyers who love the area where these properties are. As for losses, I think not likely because the prices that the first batch of buyers who bought previously is definitely below the current market rate of today. Furthermore, all are by the top developers. Hmm….

Another friend said he will wait a bit more. Just after GST would be the best. I think there are some truths to his belief. Remember, the selling or buying is always based on sentiment or even herd mentality. Suppose the sales continue its downtrend, what do you think will happen when GST starts? Well, there would be lots of articles saying that prices are going up. There would be even more reports about how the lower income group is going to suffer etc. Don’t get me wrong. For those who are feeling the hardship today in terms of prices, come GST, it would not change by a lot. However, the sentiment will turn totally bearish if every newspaper and online media kept reporting on the adverse effects of GST. By then, I think my friend may have a hard time identifying the best and possibly lowest priced property. Note: Only if everything remain as today moving into post-GST months.

written on 10 Nov 2014

Next suggested article:
Buying a Property, away from Analysis Paralysis

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New mall; DPulze, Cyberjaya.

Cyberjaya has nothing. No one is staying there. No one is there during the weekends. People are there because they needed to work, that’s why they are there. I do not wish to debate on all these statements which may be true or may start to be false. However, there’s another piece of good news. Another choice. DPulze shopping mall. Not a regional mall but it is a mall with the following brands and retailers: TGV, Jaya Grocer, FOS, Celebrity Fitness, MPH, Yamaha, U Bowl, Song Box, Molly Fantasy, Tune Hotels and Regus. Most importantly, it is in final stages of completion and is already 80% tenanted.

There are also retailers in the mall as follows: Ace Hardware, Kitchen Shop by Katrin BJ, Akemi Uchi, Royal Sporting House, Adidas, Plan B by the Big Group, City Chain, The Coffee Bean & Tea Leaf, The Loaf, Rakuzen, Sushi Zanmai, Ole Ole Bali, Homst and Thai Odyssey. The mall also has a 200-room hotel and is said to be the only limited service hotel in Cyberjaya, Putrajaya, Dengkil and Sepang areas. If you intend to start a company and needs an office address, Regus Serviced Offices, comprising more than 120 workstations will be opened too. This will then be followed by a serviced residence operated by The Ascott Ltd called Citadines.

According to a report, there are another 11,000 residence units to be completed in Cyberjaya within the next 2 ytears and over 6 years, there is another RM14 billion worth of developments! It has been quite some time that I did not drive to Cyberjaya just for the sake of driving around and perhaps have a lunch there during the weekends. I think I will do it when DPulze opens. Must support all these new malls. To me, the more malls, the merrier. I hate everyone going to the same mall making the car parks full and you have to drive around for 1 hour just find a car park. Thus, I always skip such malls, no matter how amazing they may be, unless I happen to be there very very very early in the morning.

written on 17 May 2014

Next suggested article:
Sungai Buloh (RRIM) – 20 Tier 1 Developers Announced for RFP

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


“Ya Bi” – New malls, new investment destination

Did you know Kota Kinabalu is also a property destination for many people since many years ago? Yes, “Ya Bi” is just the mandarin name for Kota Kinabalu. Let’s talk about their malls scene today. Do you fancy shopping in Kota Kinabalu? Anyone who’s been to Kota Kinabalu over ten years ago would have shopped at some familiar malls including Wisma Merdeka, Centre Point Sabah and Karamunsing Complex. I have been to all three. In fact I think as someone from Peninsular, I have visited Kota Kinabalu more times than a typical Penangite visiting Kuala Lumpur. I think these older malls are still okay but everyone would always be asking for newer ones and recently there has been some sudden increase in malls. There are now new ones like Suria Sabah, Oceanus and Imago.

According to an article in Daily Express (Jan 2015), there is increase in retail space as well. This happened within past two years and the increase was said to be about 7-8 percent over the past few years. This has been brought about by the growth in population, higher purchasing power and even tourist arrivals. Kota Kinabalu is the primary city for all the Sabahans from smaller towns aspiring for a bigger city with opportunities but prefer to stay within Sabah. Before everyone start questioning about purchasing power, please look around you. The smartphones that people carry, the ever increasing new cafes and even the willingness to pay hundreds to hair stylists. This is the world of today. On and off, my parents are still questioning why people would be willing to pay RM12 for a cup of coffee with milk. Lastly, the tourist arrivals. Kota Kinabalu international airport is still ahead of even Penang’s international airport in terms of passengers per year.

Datuk Kenneth Yen, Chairman of VPC Alliance (Sabah) Sdn Bhd said that any new mall would need about two years to establish themselves. For example, even the Suria Sabah was not impressive in its initial years. Today, it is one of the best performing malls in the state capital. Well, these malls are now in Kuala Lumpur but I think they should really be benchmarking the best in KL today. Read my personal wish list for malls here:
My MUST have list for malls, both old and new
  Yen said that in order to attract shoppers, malls must provide an experiential shopping environment. Newer malls will attract visitors for the very first time but they may lose out to the bigger and more established malls if they have nothing special to offer. There’s not enough time to visit two malls per day if that one mall has everything under one roof.

For 2016, Kota Kinabalu is projected to have 3.7 million visitor arrivals. Yen said that based on his own estimation, there are at least 800 Chinese (China) landing in Kota Kinabalu from the many major towns in China. One awesome point that he provided is that during the great times before the MH370 incident, some high-street shops in Jalan Gaya selling seafood products and traditional Chinese medicinal products could command a rental of up to RM15,000 per month! He elaborated, “Such days are returning. Chinese tourists buy a lot of the local cosmetics, bird’s net and dry seafood as the products are cheap and they are assured that they are original and of good quality.”

One thing’s for certain. Competition is heating up and there are more upcoming ones such as PacifiCity by Pacific Sanctuary Holdings Sdn Bhd, Aeropod by SP Setia Bhd, Sutra Avenue by Mah Sing group, GM Mall by Grand Merdeka, International Technology & Commercial Centre (ITCC) in Penampang by Sabahnilam Enterprise Sdn Bhd, City Point shopping mall and hotel by Kinsabina Croup of Companies and Skycity and 360 Boulevard project by Homesign Network Sdn Bhd.

As usual, even within the Klang Valley, many of the smaller malls would disappear after a while. Let me explain why. On weekdays, if the area is a residential one, not many people would be visiting a nearby mall. Due to jams, majority of the working population may choose to work late or have dinner before coming home. Thus, the weekday traffic is likely to be slow. During the weekends, if I am the younger ones, I would most probably visit the bigger and more established malls. If I have a family, I would need a mall which can cater to everything my family wants. From Toys R Us to supermarkets for grocery shopping and even a variety of cafes for lunch, tea break and dinner! Read here to understand a little more:
Seriously, when there are just too many malls

More malls do not mean a more vibrant property market. Agree? Well, if you were to tell the buyers of the many newer high-rise here in Klang Valley that there are NO MALLS nearby, they would suddenly lose half their interest and the willingness to pay a premium drops by half too. So, yes, malls do help. Thinking around, without more residents in Kota Kinabalu, there’s no way that these new malls are popping up. Not many owners are building these malls for fun. Let’s wish these new malls all the best and I also think that we can put Kota Kinabalu as a potential property investment destination. Happy visiting Kota Kinabalu or ‘Ya Bi.’

written on 16 Jan 2016

Next suggested article:
Kota Kinabalu, one of the best for MICE in Asia

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New Marina Park in Penang island on a 129,000 sf reclaimed land?

I read something exciting if it materialises in Penang. A new Marina Park in Penang island, along the Tanjung Bungah road on a piece of 1.2 hectares (129,000 sf) reclaimed land by the sea? According to an online article, the state government’s investment arm Penang Development Corporation may be developing a new marina park in 2015 on the site opposite a luxury condo project, the 1 Tanjong project. 1 Tanjong consists of 147 upscale residential units within 2 towers of 41-storeys. It is now at 79 percent and 90 percent completion for Tower A and B, respectively. The report also stated that the developer Province Valley has reclaimed the land illegally but that’s for the state government to deal with them. Oops.

Anyway, I think if reclaimed illegally, the developer would have to hand it over to the state government at no cost but if Marina Park is up, it would benefit them as well, right?  In fact it was said that some Tanjung Bungah residents have filed complaints as they lost the access to the sea and beach and this is being actioned upon. No further plans were announced with regards to the Marina Park but with the Marina Park, then the state would have another avenue for tourists as well as Penangites to enjoy themselves. Imagine a city with everything you want, the heritage, the food, the hill, the sea and in the near future, even a Marina Park for families to just enjoy themselves? Yes, that’s Penang. 🙂

My personal opinion is this. Whatever the plans may be, please award it to capable companies. It is no longer an acceptable thing to award it to a company and tell the world only for the said project to be abandoned after the company which said great things suddenly announced they were closing due to unforeseen circumstances. I have never believed in a strict tender policy because IF the lowest tender by far is from an unknown and newly set up company which has no such experience, do you still award them the project? If you do not, would they have the avenue to sue you? Find a good company, one with experience, negotiate and get a good deal and start it. If people were to criticise, let them be. Show them by opening a successful Marina Park in the near future.

written on 14 Nov 2014

Next suggested article:
Man-Made Island for a new Penang International Airport

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New market high in 2018, property actions today

If someone were to tell you that the next market high will be in 2018, what would you do? Nothing? Good decision, you may have just stopped yourself from buying because of some predictions and that’s great. However, it’s also bad if you do nothing because what if this is true and you missed earning your first ‘pot of gold’? This prediction came from the Chief Executive Office of PPC International, Siva Shanker. Reasons given include
pent-up demand, improved buyer sentiment and even overall business environment.

Pent-up demand is easy to explain and see for ourselves. Think what would be the reaction or response today if a developer launches a RM450,000 condo project in KL and the size is at a minimum of 1,000 sq ft? Yes, it would receive lots of views and lots of attention. Everyone would like to know where is the exact location, who’s the developer and more. What if the project is RM800,000 or higher and is said to be ‘the most luxurious condo’ you can ever buy for that price? Fewer responses without any doubt but nowhere near the
frenzy of the very affordable one
. Pent-up demand is very certainly true based on the usual Facebook responses in the property related Facebook pages.

Improved buyer sentiment.

My agent friends said that in terms of viewing of properties, it has been similar but in terms of actual closure, it has dropped tremendously. Reason is because buyers want to buy but buyers are unsure if the value they are paying is too high for the current sentiment. Would it drop further? Sorry, please do not try and ask the buyer to think a few years down the road. If the sentiment is negative today, majority would be very cautious and that’s the fact. Furthermore, there are lots of murmurs that the Malaysian economy will be severely affected by so many different issues. From the famous 1MDB to the hated GST and even the unneeded political chaos, negative messages are everywhere. Fortunately, some of these may pass after some time. So, perhaps the sentiment may recover in the near future, I hope.

Overall business environment. Has anyone been following the results of the listed companies in BURSA? Actually, it has not been bad news all the time. This is true even for developers who were supposed to have been hit hard in 2014 and will continue to be subdued in 2015. In fact even the
land buying continues and ever higher prices are recorded.
 Reason is simple, the business environment remains intact but there’s way too many negativity and not many businesses would be pouring money to expand. Certainly, it’s more prudent to be careful how money is spent today, agree?

Yes, the above briefly explain with a little more detail why I also think the current situation is temporary and why I believe opportunities continue to exist. In fact if a crisis do come, the number of opportunities would expand horizontally, at least for those who are already prepared. An article earlier about numbers of transactions can explain a little more as well. Read here:
Malaysia residential property market recovery in 2014

or if you would like to read more specifically on Penang, please refer here:
Property market Penang better than national, number wise.

Do not rush because when we rush, we may not think objectively. Waiting for a better deal is good, just don’t try to wait until the BEST deal comes along. Most of the time, the best deals go to the people closest to the deal. Are you close enough? Happy thinking or believing.

written on 20 May 2015

Next suggested article:
Perhaps marketing is getting more sophisticated.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New MB should review the latest property guidelines by the last MB

Recently, there was an article in a local media which asked the new MB of Selangor to cancel off the new foreigner property purchase guidelines by the last MB. These are the reasons. Stakeholders should be consulted before these measures are implemented. Neither the MIEA nor REHDA was consulted. The measures will cause the market to slowdown even further. For Klang Valley to be an international and habitable destination, foreigners should be allowed to buy and not find it hard to buy properties in Malaysia. There are rarely any foreigners buying in Hulu Selangor and Sabak Bernam areas, why have the new rules?

I have no advice for the new MB based on the above. I only want to say that consultations are good but the more important thing is a good intention. The reason is because when you consult with too many stakeholders, each telling you opposite views, who would you listen to? However, when the intention is right, then naturally the decisions made would be for the best intentions. It may not serve everyone but there is no need to serve everyone. Imagine if you are a buyer and you listen to 4 different property gurus, each with a different advice? How would you decide? As usual, you look back at your intention. What did you want to achieve in the first place. Then, you decide.

Land is a state matter. Therefore the MB wields considerable power and influence on the way that he wants the property market to go. Prices should not go up too fast. Developers should not only be looking at profits. The state must also not put profit as main criteria when they sell lands to developers. Yet, without profits, the state may not have enough money to also carry out some of the affordable projects for the needy. Do you note now why it is not just about ‘New MB changing the decisions by the Last MB?’ We will see how the new MB decides then, after consultations with all the relevant parties which has expressed their intentions loud and clear.

written on 5 Oct 2014

Next suggested article:
80% of developers for Greater KL, Water Shortage, Project Approvals

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New norm is FORWARD THINKING.

Cambridge Dictionary explained Forward-Thinking as,
  “the act of thinking about and planning for the future, not just the present” I think this is the new norm. Gone are the days when we keep doing the Business As Usual kind of life. Gone are the days that we think our business would not be disrupted. Gone are the days when we think of survival as competing against the competition. It’s also about preparing to survive should a pandemic suddenly strikes the country and the world where we do our business with. So, are we prepared, enough?

My good friend who’s considered a marketing authority when it comes to the real estate world shared the following things which all of us, whether we are working for a salary or even running a small business could learn from.
She is the Founder and CEO of RECONSULT PLT.
  She has over 27 years of experience in country’s property development industry including with companies such as Sunway Property, UEM Sunrise and iProperty.

Her advice as follows:

MCO may be over or may be extended but the truth is, vaccine is not yet ready.  Be prepared to think forward on what we need to to for the next 6-12 months to be safe.  Some guiding

Be creative; old method no longer work (If it keeps working, we are very lucky but no one can be lucky forever)

Stick to online / facetime dealings (this is not the time to do nothing just because we are staying at home)

Put more effort and focus on businesses that is needed at this point if time. Make your business relevant  (Do people understand the value of what we bring? Do they know we are in marketing or do they know we are connectors of their project with potential customers?)

Start planning what is possible to launch or execute after the MCO. Think forward.

Take up loan moratorium to ease the cashflow (If you have loans?.  Preserve cash. Focus on survival and grab opportunities that come along)

The staff to work on projects from home. Give them specific task if you are still paying their salary.  (New norm is to work anywhere, it is not to stop working. Give them the required hardware or software and training to do so)

Take the opportunity of negotiating the best deal as everyone wants business.  (This is the time to really push through because businesses must still continue)

The best negotiator wins. Select the right people to do business with.

Ready for the new norm?  Then start doing new things. The competitiveness of our business will continue adjusting itself based on what we do and what our competitors do. When we change faster than our competitors, we thrive. When we fail to adapt and change and the whole world moves ahead, we will disappear from the marathon. Happy learning and applying and do connect with her anytime yeah.

Pn Rozalina with her two good friends, Khalil Adis (blue jeans), Tahir Hussain (blue suit)

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market. Else,
follow me on Twitter here.

Next suggested article:
Buy because of business, that’s safer

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New norm is smaller offices? New norm is flexibility, not about smaller offices.

Are you working from home? I bet you have to because it’s either work from home (for those who could do it) or no work to do (many do not get their monthly salary). With so many people working from home, some say that in the near future office space will be in trouble. The new norm is to work from home, right? So, everyone will now use their home as their office, right?  Their bosses will now have meetings with them via zoom, right?  They will call their customers and pitch deals via zoom, right?

If you ask me, my answer is NOPE. New norm that everyone is talking about is about how to get back to normal and yet be flexible enough for any sudden changes when it is necessary. There will be lots of demand for office space still and with ever growing companies, the office space will continue to be needed yeah. Now if the question is whether there are indeed more office space supply than demand, then maybe it’s true. At least for now anyway. 2020 may not be a year when everyone is thinking of expanding. Does not mean 2021 is the same yeah.

Article in themalaysianreserve.com
  Asiacap Valuer & Property Consultants Sdn Bhd property valuer Kit Au Yong said businesses may look into flexible working space or working with co-working space operators after the pandemic. He said, “Rental rates will certainly face downward pressure with decreased demand. Companies might take drastic measures in reducing headcount or delay their expansion plans.”

CCO & Associates (KL) Sdn Bhd ED Chan Wai Seen said working from home could be a new norm post-Movement Control Order (MCO). Chan said, “(Working from home) could be an avenue for companies to reduce their operational costs with less office space and the trend may increase the vacant office areas. The Covid-19 pandemic will impose further downward pressure on the rental. The rates may go lower if the economy does not recover soon.” The article is a long and comprehensive one, do refer:
Article in themalaysianreserve.com

When the company remains a small entity, it is best not to rent a big office space. However, as soon as that company starts to see some good growth, the synergy will come from working as a team and NOT by having all the 24 staffs in 24 different places and using zoom for meetings. Sorry yeah. That short discussion where some important matters needed to be agreed upon really does not work that well in zoom.

Or when you just need to confirm a couple of things within a few minutes and you call / zoom and the person just was not around….  Or someone tells you that they were working very hard and you believe them but you could not personally help and guide them closely….?  Or when you need to hire someone and you zoom interview the person instead of having the person come over and actually meet everyone in person and build that camaraderie spirit…?

I have not even started to talk about 2 different companies bidding for the same important project. One company presented via zoom… Sharing the screen…   The other just bought a plane ticket, flew over, shake the hand of the potential customer, have a friendly discussion and right after because it was already 4pm, go for a cup of coffee at the cafe downstairs? Business relationship needs to be built FIRST before technology steps in and continues it under Business As Usual.  It cannot start with technology…

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market. Else,
follow me on Twitter here.

Next suggested article:
Embracing technology will make RENs better.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New norm to work from home? ‘New’ salary may be awaiting too.

Many people believe new norm is where everyone works from home. I do not believe so and have written and even spoken about it too. Working from home is suitable for certain circumstances even before the pandemic and will continue to be suitable after the pandemic. No changes over there.

As much as more people may choose to work from home, it’s also quite true that more office space will be needed, just not the usual and typical offices we have last time. As for majority of everyone who used to work in office, get ready to continue working at the office. You can choose not to believe me yeah.

Just need to note that companies such as Google, Facebook, Twitter (yes all are online related which is the usual work from home ready companies) have all announced that staffs wishing to work from home may get lower pay. Especially those who stay at less expensive areas.

Article in reuters.com
   Google employees based in the same office before the pandemic could see different changes in pay if they switch to working from home permanently. As this is Google, it may set the trend for other large employers too.

Facebook and Twitter are cutting pay for remote employees who move to less expensive areas.  A Google spokesperson said, “Our compensation packages have always been determined by location, and we always pay at the top of the local market based on where an employee works from.”

Screenshots of Google’s internal salary calculator seen by Reuters show that an employee living in Stamford, Connecticut – an hour from New York City by train – would be paid 15% less if she worked from home, while a colleague from the same office living in New York City would see no cut from working from home. Screenshots showed 5% and 10% differences in the Seattle, Boston and San Francisco areas. There are a lot more details in the
Article in reuters.com

Productivity is better with Work From Home?

In an office, if I need to speak to 3 people for a quick decision, I walk over to their desks, discuss and we have a decision in minutes. Now imagine doing that with a message for a quick meeting via an online meeting app, waiting for response, sending the link, coming into the link, one said his internet speed not so good, another said his ‘awesome’ Microsoft Windows decided to update at the same time… All the best.

Meeting a VIP customer is better at home?

If I needed to meet a few VIP customers for a big contract, do I meet them at some cafes (hopefully it’s not noisy and no nosy people listening to my conversation) since I do not think the VIP customers would want to meet at the lobby area of my condo? Even if the lobby is a nice one, there would be people walking in and out all the time…

I am certainly sure they are not going to feel comfortable to speak in the living room of my landed home too. Let’s not even talk about having the meeting in my home office which is just a small room. Okay, perhaps I could drop by my VIP customers’ office instead. Oh… they have an office! (Yes, that’s what I meant, office space will be needed)

Whatever, as long as our skills are needed, we are safe

Regardless of working from home or from the office, if we have some skills and experience which not many other employees have, then our job will be safe.  If our skills are easily replaceable, then it will be more likely that someone willing to follow the company policy of working from an office who will get our current job instead.

So, perhaps the real argument on whether working from home  (which some prefer) or working from office (as most employers prefer) will depend on the person himself / herself. Be valuable, okay. Then, one gets to choose the place which one loves to work more versus being asked to choose between working in the office or working with some other employers. Cheers.

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:
Why office demand new norm will be back to the norm

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


COVID-19 arrived. What’s the new norm?

This was a slide a presented with regards to the new norm many months back. Naturally, many people disagree with my view and said that the new norm means that people will not be working from home most of the time. In fact online shopping will be ‘killing’ the malls and that’s why malls are all dying.

One more assertion is that the demand for offices will be dropping.
My earlier article on some reasons why office cannot be abandoned just like that
  Then, these people will give those news about some companies closing, one bank closing and then forgetting that MOST of the new online startups are hiring ever more people. It’s only whether we could adjust and pivot ourselves towards these new jobs which will matter the most in the very near future. Anyway, do refer to the 3 slides right after to show what it means by a picture tells a thousand words.

Picture #1:  Scene at 1 Utama
, just outside a ramen shop I like called Ippudo. Do try their tonkotsu soup yeah. (Non-Halal) By the way, it was full house yeah. Masks are all worn and there’s definitely social distancing and by the way, this is the current norm if the mall is a popular one.

Picture #2:  This is the news about probably the biggest online company in the world
. (AND PROFITABLE too, not just with high valuations but losing billions every year)  Google is asking the staffs to come back earlier than planned and putting limits on future of remote work.
Source: CNBC.com

Picture #3:  Google was not alone.  These three giants have started doing the same
, even if they may not be asking 100 percent of everyone to go back to the office just yet.  Three other big names are doing the same too. Facebook, Uber and Microsoft. All are not under the ‘traditional’ company category.

Happy understanding that new norm, as I have explained will be to go back to the norm. Productivity gains from working anywhere but in the office is not easy to quantify after a while. In fact even the yearly assessment is likely to be way harder.  By the way, when I could not see you face to face, I may also forget you and many companies may realise actually I do not need that many people…

Interactions between people, teams and even customers, those could not only happen online. We are humans after all. A smile a cup of coffee in the morning in the same cafe beats showing off the coffee from some screens and each drinking their own coffee. I have not even started about travelling again versus ‘virtual travel’ where one see a video of that place and try to imagine one is travelling. Yeah… sure… if that’s what you really want when it comes to travelling. Happy understanding.

Love news like this and more?
Sign up for daily investment news updates.
 Alternatively, Follow me on
 Telegram here
.

Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles. Else,
follow me on Twitter here.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

Next suggested article:
New norm is to shop online. Do I look like one?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


KL: No approvals for new office except for own use

KL is said to be facing an oversupply offices. This is especially with another 118-storey tower coming up. Read here:
118 is higher than 88 definitely, but

Perhaps this is the reason why the Federal Territories Deputy Minister Datuk Loga Bala said that new office building projects which are not for own use will not be approved. Actually, why not let the market decide? I do not think developers would want to build if they could not sell and I do not think buyers would be foolish enough to buy especially with so many reports about office oversupply. Besides, the sentiment is also negative too, compounding the effects to oversupply.

In a separate article, AllianceDBS Research said something worth reading, “While there is no property bubble for now, we do fear an oversupply of office space in Kuala Lumpur.” Bank Negara Malaysia (BNM) also recently highlighted that there is overbuilding of office space and retail malls, particularly in major cities. Yes, major cities here definitely include Kuala Lumpur. BNM said this overbuilding may impact the real estate market negatively and this may then spillover to other sectors. With a slowing Gross Domestic Product (GDP) for Malaysia to potentially just 4.4 percent for 2016 (as per IMF), it meant that the take-up rate for new office space will be subdued. BNM’s views here:
BNM: Risk of oversupply is real within the next 2 years

After listening to so many bad news about KL’s office market, what are your thoughts? My thoughts are here:
2019 should have cheap rental for office space in KL

In brief, it’s best to let the favoured ones (offices) be very competitive and for the older and less favoured ones to slowly disappear into the background. If we are indeed trying to attract even more multinationals to set up office space here, let’s give them a good deal. Office rental is often a huge chunk in terms of fixed costs and for Malaysia’s sake, the lower is definitely the better. There are today many old office buildings. Read here:
Occupancy at 85 percent but 75 percent over 16 years old

My current employer is also thinking of moving next year and has recently started to look for options. Unfortunately, the options are not plenty for the size that we want versus the price that we are looking at. Let’s see if my company would get a good deal with all these oversupply news currently.

written on 18 Apr 2016

Next suggested article:
KL Office rental under threat due to over-supply

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New project launches in 2014 – what may happen?

With the whole Malaysia property transactions going down except for Iskandar as at November 2013, what may happen to the new launches next year? I read comments by DTZ Nawawi Tie Leung executive director Brian Koh in The Star. He said, ‘Developers are likely to launch less projects, downgrade specifications, reduce sizing, squeeze on construction costs, and accept lower margins.’ I think he has sufficient information and market data to said that and I agree to most of his opinion. Let’s look at his comments one by one.

Launch less projects. Most likely this will apply to bigger developers. For majority of the smaller developers with one or two projects each, it is unlikely to happen because if there are no launches, there would be no sales and thus no profits. Nevertheless, I think it is likely that if it’s an integrated developments, it will now be launched in more phases, perhaps even stretching all the way into 2015.

Downgrade specifications. This is most likely as any developers who are launching anything beyond RM600,000 or RM600psf will likely find it hard to convince buyers who are now more cautious due to the many pessimistic reporting by a lot of media. If they launch at cheaper prices, the would have to cut the specifications. This is because of the fact that everyone continues to think bubble is happening despite the fact that in Malaysia, prices are increasing too much only in certain areas and not in the whole of Malaysia. Some even compared this to US mortgage crisis which is a gross exaggeration because here in Malaysia, the failure in obtaining loans are very high as soon as you hit your limit while in the US, almost everyone who needs money gets the loan. Ask any developer and a lot would tell you that at least 20-30% of potential buyers fail their loan application.

Reduce sizing. For prime locations, this is a must. Thus, it will make the overall price still palatable. 500sf @ RM800psf, together with early bird discounts meant the SOHO unit is still affordable to single buyers.

Squeeze construction costs. If I believe what REHDA is saying, this is unlikely to happen because the number of projects are still way too many that the construction industry can absorb or keep up. So, you can decide which party you would want to believe.

Accept lower margins. I think margins would have to be almost maintained because if margins are reduced further, the risks for the developer would balloon especially in this bearish environment. The likelihood of lower take up is much higher now compared to previously.

It is indeed going to be a better market for buyers in 2014. Perhaps not good for speculators? Hopefully.

written on 28 dec 2013.

Next suggested article:
Frothiness building up in property market – Nouriel Roubini

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New property prices up 50%, how much is your profit?

A friend of mine who is a sales manager in an online company told me that she earned 50% profit the other day as soon as her new property was completed. I said, do you own the property or are you paying loan for it? She said she paid just 10% for the property which is RM30,000 for a RM300,000 property and the selling price is now RM450,000 which is extra RM150,000. She bought the property 4 years ago.  Let us see what she has really earned in terms of %.

Four years ago, she invested RM30,000 as 10%. If we add all the other things like lawyers fee, interest payments etc, perhaps it comes to RM40,000. If you have invested RM40,000 in FD and left it untouched for 12 months, it’s RM1,200 interest. If we calculate the compounded interest over 4 years period, total interest you earned is RM5,020. Seems ok. However, on the other hand, with this property, she is earning RM150,000 which if you do the below simple calculation showed she earned 90% in ‘interest’ on a yearly basis.

RM150,000 (gross profit) / RM40,000 (gross investment) / 4 years = RM37,500 per year or in simple % is 90% per year.

If I were to tell you that you may earn 90% interest per year on your investment, you would tell me, it must be a scam. In property investment, if you are very lucky, you may be earning such a return. BEWARE though because IF the property price does not increase when it is completed, then you may be suffering negative returns from your initial investment. Thus, the balancing act of risk versus profit must be considered very carefully and seriously because the truth is, initial investment itself is HUGE. This, versus the risk of FD which is nearly zero.

Next suggested article:
Penang properties around RM250K

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New property purchase guidelines in Selangor. Issues?

Recently, Selangor announced a new set of guidelines of property purchases in Selangor by foreigners, PR and foreign companies. Suddenly, there were many reports. Some said this is very bad for the market because these restrictions would cause the foreigners to shun Selangor. Some said, this will help to prevent foreigners from buying up everything that’s available in Selangor. Some said, this will cause the current slowdown to slow down even further. Oh yeah, the new guidelines would also govern the participants of Malaysia My Second Home programme and these participants are to buy directly from the developers and not from the secondary market and they are allowed to only buy one residential unit per family.

My view? Let’s support this ruling at least for the next 1 year before we decide on what’s the best step moving forward. My reasoning is simple. The current market is already slowing down. Luxury properties are also slowing down, whether this ruling comes in or not. Foreign purchase are not likely to be the main cause of this slowdown anyway. Also, today when we look at RM1 million properties, at areas which the foreigners like to buy, we can safely conclude that there’s none, not even condos and certainly not any gated and guarded projects by any reputable developers. RM2 million is a much more ‘real’ number compared to RM1 million no matter which online property site you refer to.

If this ruling came during good times, I think the grouses would be even louder. 🙂   This however would cause some sellers of secondary properties to feel unhappy because the prices for such properties may be affected by these new guidelines. If I am a genuine foreigner looking at staying in Malaysia for the long term, the prices are still reasonable, even when compared to some other ASEAN countries. If I am a business owner, the prices stated here would not deter me from buying. It will make me think even more objectively whether should I come to Selangor or other states but if my target is Klang Valley, it will not change my decision. Of course, I am not a foreigner and I am not a business owner, so my view is still just my view.

written on 26 Sept 2014

Next suggested article:
Kuala Lumpur new condos are now RM700k instead of RM600k last year

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


New RENs? Your friends should buy / sell via YOU.

I recently had a good 2-hour coffee break with a close friend. She’s semi-retired after leaving her senior manager role in the corporate world around 2 years ago. She told me that she recently joined a real estate agency as a REN. I congratulated her because this is a great career. She sheepishly replied that she had not announced to the world because some of her relatives asked why become REN? She was a senior manager in a MNC before this! I told her this, ‘My dear, your friends, relatives and even acquaintances will STILL buy property whether or not you tell them you are already a trusted REN to them. If you tell them however, they could then buy / sell through you instead of some stranger who’s a REN.’ I shared with her three tips for a start. (Tips from a non-REN like me. Oops…)

#1 – Tell the world that you are now a REN!
If you do not, then after a few months, you have not much viewings and not many properties to sell and you tell yourself that this is not for you. When your good friend knows you are a REN, they may also share with their friends that you are a REN if their friends are buying a property and this goes on. This is why when the commission starts and you work even harder, it increases!  You get two closures per month and 12 months later you have 24 closures. Next year, half of these 24 people recommends you and you get another 24 by yourself and the total is now 36. By the 3rd year, you still get 24 closures by yourself but you are now closing more than 40 deals because of recommendations! (but you must be a good REN, look at the next tip)

#2 – Be a good REN please.
 E.g Customer wants to sell his land. You need to also understand how the land could be used by the potential buyer. If the potential buyer uses the land to build a bungalow for example, what would the cost per sq ft be like? (Knowledge) Customer wants to buy a landed and their budget is limited, you need to be able to tell them straight in the face that it’s either cheaper but further or more expensive but nearer. (Facts) If a customer wants to sell his home of 20 years but wants a super high price for it, you need to be able to tell him rationally that NO ONE has any emotional attachment he has for the house. They are not buying because you have STAYED there for 20 years. (Persuasion)

#3 – Get a mentor.
Half the battle is already won if you have a good mentor. Of course, this may be your team lead or the real estate principal or even your seniors. Get someone who’s already successful and is willing to share. Just remember to follow his / her advice.  Have coffee with them every time you face any issue. By the way, the best is to join an agency where your good friend is already doing well. You are thus joining a proven team and the success rate is now much higher. Please do not join an agency where everyone is for himself and the principal is nowhere to be found.

I have so many friends who are successful RENs and frankly, their monthly earnings are sometimes more than the yearly earnings of a junior staff. Plus they could even take one month break and bring their families for vacations. By the way, a career as a REN may not be for everyone yeah. If you hate dealing with troublesome people, hate bringing 10 different people to view a property before one buys, hate waking up early occasionally during the weekends for a viewing and hate having a sudden five-figure commission then skip this career. If you work in the corporate world, you get fixed salary every month, how nice. Anyway, you will still have to deal with troublesome colleagues. Haha.

written on 22 Feb 2019

Next suggested article:
Even the richest are not immune to a slowdown in the market

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


‘New’ RPGT to ‘assist’ unsold units reduction?

I received messages from a few friends as soon the below measure were announced: RPGT on gains from disposals of properties and shares in property holding companies (5% for individual and 10% for companies) even for 6th year onwards starting Jan 1 2019. “Is the government really that desperate for money?” Well, some say that it’s a “Robin Hood” budget too. There is now an additional exemption. Malaysian property owners who dispose of their residential properties priced below RM200,000 will not get any RPGT charged, as long as it’s 6th year onwards. As for the ‘historical’ properties, the valuation in year 2000 will be used. Earlier article here.
RPGT based on year 2000 as valuation
 Perhaps we look at some industry leaders’ views.

Article in Edgeprop.my here.
 Malaysian Institute of Estate Agents (MIEA) President-elect Lim Boon Ping said, “Imposing RPGT for sales beyond the fifth year of acquisition will definitely discourage people to sell their properties especially in a soft market but it could help to cool housing price growth which has exceeded the majority wage earners’ affordability.”

Chur Associates founder and managing partner Chris Tan concurred, saying that it will now be more difficult for property owners to decide whether to sell or not and to determine the asking price as they will need to take the 5% RPGT (10% for company owners) into consideration.

Malaysian Institute of Professional Estate Agents and Consultants (MIPEAC) deputy president See Kok Loong said that eventually, property owners with holding power will choose not to sell their properties or may want a higher price to cover the tax. However, the market is expected to adjust itself in the long run.  For a full list of all other comments, do refer to
Article in Edgeprop.my

I think one main thing stands out from all these comments. It’s generally going to stop people who may have wanted to sell but is not looking at selling below market price. This meant that the supply of properties in the market will be reduced very slightly. It meant that people looking for property to buy will be ‘pushed’ towards the available supply instead. Perhaps the government’s main aim was the reduction of the unsold inventory which is at a
record high (earlier article here)
and not the RPGT gains. One thing’s for sure. If the existing stock in the market is not what the buyers want, then the wealthier ones will be willing to pay higher for a property they want. Transactions wise, it may still show an increasing property price trend. The less wealthier ones may just keep waiting. This is why it’s important for the government to quickly outline its plans for the affordable homes too. Happy understanding.

written on 3 Jan 2019

Next suggested article:
Worrying overhang but should clear over next two years

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...