I missed a good Sabah property show (Shareda) in Sandakan

I was in Sandakan last weekend. It was an enjoyable weekend as these days, when I travel to Sandakan, it’s more like going home. No more watching one of the rarest monkeys in the world, the Prosboscis monkey (long nose monkey), no more walking just a few metres away from crocodiles at the crocodile farm, no more sweating like crazy walking onto the platform to watch the Orang Utan at Sepilok Rehabilitation Centre and definitely not driving from Sandakan to Kota Kinabalu for 8 hours with my in-laws. Everytime I am in Sandakan, I start with a good bowl of ‘kon low mee with honey glazed char siew’, one of the best I have ever tasted. Yes, it is in Sandakan! This is the shop (photo beside).

Oops, nearly forgotten, the reason why I am writing this is because I am going to miss a very good property show for Sabah to be held in Sandakan; the SHAREDA property show. I would have loved to visit it. I also do not know if the talks are by real property gurus from East Malaysia or imported ones from ‘ubi kayu’ part. Seriously, I believe for East Malaysia, you should be based there if you were to talk about properties there. The situation in KK is different. Even in Sandakan, where the condos are now starting to boom, it is different from Klang Valley or Penang. Then, why am I saying I am going to miss a good show? Well, I have lost a chance to really talk to some of the developers participating about their thoughts and also see what’s the pricing like against everything on offer.

One example, IJM’s Condo in Sandakan. Talk about price. I went to my brother in law’s condo and I  have just dipped in the kiddie pool last weekend. The facilities were ok, build quality average, no underground car parks and every condo comes with just ONE (1) car park. Then again, the price is only starting from RM228,000 and I missed it. Let’s not talk about the price today, condo prices are not yet certain unless there are more condos being launched and all taken up. IJM has launched another condo and as usual, nearly everything taken up. prices start from RM289,000 if I am not mistaken. Cheap right? Well, in terms of rental, there are already people advertising for RM1,200 in online sites. I have no idea if this price is certain. Have to wait till my brother-in-law rents his out then I may update here again.

Talk about preference. I can safely tell you, NO ONE in Sandakan would prefer to stay in condo compared to a landed property. To them, condo? Apartment? Flats? They are of lower class compared to landed properties. Everything has to start somewhere though and I think IJM may have just started something which will continue well into the future. Oh yeah, why did my brother-in-law buy the place? He has been to my condo in Penang and can see the lifestyle is really not that bad. In fact great getaway for the family either after work or during the weekends and the price is still so affordable why not? Do you think only my brother-in law travels? I think you get my meaning. Perhaps not this year or next year but if we are taking a longer term view, rest assured that condos are here to stay and the lifestyle of anyone and everyone in Sandakan will slowly change to reflect this. Non Gated, Non Guarded Terrace House for RM300,000 or something smaller but with facilities? You decide. Sigh, I missed the Shareda property show in Sandakan.

written on 9 April 2014.

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I need a holiday. (Even if it seems we were on a holiday?)

Yesterday, I logged into booking.com and started researching about some of the places I would like to visit and the availability of hotels. As everyone would have read, some of the hotels were closed. Not necessarily for good, just closed for this period when there were no travellers. Now, they may have to make arrangements to reopen. Travelling locally is now allowed. Okay, before we now think that everything will be back to normal quickly, let’s be objective a little. People will need time to arrange for holidays…  They will need to research, to plan and then to schedule this into their calendar too.

One piece of news caught everyone’s attention. The one which said over 1,000 rooms in Langkawi hotels were booked? Yea, that one has been debunked as fake news.
This was what was reported today in malaymail.com
  Not all are gloomy yeah.

The image below is a screenshot in thestar.com.my (9th June, 9am) which basically paints the picture which I would like to say. ‘Set for rebound’ (means on the way, not suddenly beginning today).  ‘raring to go’ (means everyone is getting ready for the surge, they have not yet received those bookings). ‘Melaka hotels ready to welcome guests again.’ (Again, this means they are ready, does not mean they are now fully occupied.)

Remember, COVID-19 is not running away, yet. However, if we are looking at the situation, Malaysia is now generally free from COVID-19 where infections among huge number of Malaysians are concerned. As for the existing numbers, the clusters have been identified and isolated. It’s usually very quickly done by the army and the police as soon as the Ministry of Health declared that any area be under Enhanced Movement Control Order (EMCO).

Holidays are awesome. We spend at hotels, we buy souvenirs, we pay entrance tickets to some entertainment shows and all these people who go tour money could also spend them elsewhere. Hey, we are the source of an economic multiplier! Do our part but just remember, social distancing and wearing proper face masks are required at all times. We do our part and everyone gets to enjoy a Cuti-Cuti Malaysia.

The only issue I would like to know is for the Tourism Minister to clarify if the facilities in hotels could also be used as well. No point in booking a hotel just to sleep at night yeah. If that’s the case, I think all the 4-star and 5-star hotels will not get much booking. Also, what about the SOPs for these facility reopening? Hopefully all these could now be communicated and I could then finish my booking to that state I love to go a few times every year; Melaka. Need good food and just do nothing but go out of Kuala Lumpur for a weekend.

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Key theme is affordability? It’s beyond property yeah.

You know the government has been talking about affordable properties for a very long time. It’s continuing to push for more of these cheaper but with minimum quality homes so that more Malaysians could own a roof over their heads. The private developers are also now doing the same. They would have loved to just build 200 units of RM1,000,000 homes and finish selling it versus now having to build 800 units of RM250,000 each and having 800 headaches versus just 200.

Everyone knows that iPhones are in a class of its own versus typical Android smartphones such as OPPO. It has that special something that people are willing to pay a high premium for. In fact, the premium they pay meant that Apple manages to get most of all the profits in the whole smartphone industry despite selling much lower number of handsets versus all other major brands.  Look at the chart from CounterPoint Research.

Source:
https://www.counterpointresearch.com/apple-continues-lead-global-handset-industry-profit-share/

This high margin and lower number of handsets may not be what Apple intends to do in the near future. This is the most recent news. Apple is now working on a low-cost model. This is what Bloomberg is saying: “Bloomberg reported that a cheaper offering may help Apple better compete in the most price-competitive and fast-growing emerging phone markets, particularly in countries like India.  Most experts suggest the base model of the low-cost iPhones needs to be priced at least between RM1,700 to RM1,900. It is also expected that Apple will be revealing official details about the low-cost iPhones around the end of this month.”  Please read the
full and comprehensive article in themalaysianreserve.com here.

In case one wonders why would they want to come up with a low-cost model when they continue to sell pretty okay and continue to earn high profit margins, well, mass market will always be the key to continuous profitability. There’s a limit to how much higher that next Apple phone could sell because salaries are not rising that fast and people could not keep buying the next new phone on instalment when they have not even finished their 24-month instalment!

By the way, this is the same for property market. To understand if the property price could actually rise higher, look at the median salary instead for clues. Happy waiting for that low-cost iPhone. I will not be queuing for it together with you.

Header image from
https://www.apple.com/my/shop/buy-iphone/iphone-11

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I prefer today, not yesterday

A good friend forwarded an image to a group WhatsApp the other day. It showed three 50 ringgit notes and the things it could buy then and now. Of course, it showed that the things we could buy today are much lesser. I assume this is true. I told the group that I would personally prefer to live in recent times and not then. I explained.

Many years ago, when we were having lunch in a restaurant to celebrate my brother’s birthday, my mother told me that when we were younger, we could only afford to eat fish or meat a few times per week. Egg was something used to substitute our protein needs because the earnings from my parents have to be used carefully. Even buying the first home, borrowing from banks was not as easy and straightforward as today. The banks then had less funds and the options then were few too. Even the number of properties available to buy is low too.

My brother, sister and myself together with our spouses are working for foreign multi-nationals or local companies with businesses with the world today. When we change jobs, we would still be joining another similar company. Changing job is also not longer a matter which we would be thinking for months or years. If we feel stressful, we would take steps to change that situation. None of us would be willing to just rough it out because of lesser job opportunities then. In fact, we may even start an online business if we are pushed to our limits.

Everyone said that today, the younger generation are no longer loyal to the company they work for compared to long time ago. Is it because of these younger generation or because of the available opportunities today? I am talking about talents who are able to get another job easily if they hate their manager today. Last time, everyone is ‘loyal’ because it’s hard to find a good job or even another better job. There were really not that many to begin with. A job which pays a stable income and potential career growth. Is it any wonder then that during a crisis, majority would not be changing jobs? Since it’s always last in first out.

The houses then were cheaper, according to experts. However, today we get lots of choices, lots of opportunities to invest and rent. Long time ago, there’s just very little opportunity if we did not have parents with lots of money. Today, even a junior executive may just be lucky with his first property purchase, earned enough profits to turn that purchase into two properties within a few years. Millionaires then, tend to be older. Millionaires today may just be our younger course-mate from the university. Urbanisation rate is getting faster and for those who could see this and learnt about investments and took actions, the world is their oyster.

This brings me to the question of whether I would want to go back to the days when I could have bought more for the amount that I could earn from my salary. Apologies, I prefer to have more opportunities, thus earning more than that RM50 instead. Oh yeah, this trend of money getting smaller is true in all countries and not just Malaysia. Just look at our neighbour, the HDB flats used to be S$70,000 for a 5-room HDB flat. Please go online and check the prices today. The question should therefore be, ‘Did I take advantage of whatever I have to build more of what I do not yet have.’ It is not whether yesterday or today is better or even when money was bigger. Happy investing.

written on 31 Oct 2015

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I regret I lost US$41.4 million. “No end to this regret.”

Do you have regrets after losing some money? Specifically your friends were ‘winning’ so much money from the stock market and you have that FOMO (fear of missing out feeling)? Unfortunately, the unlucky one is always us. Our friends usually buy much earlier and when they were celebrating, we went in and that’s when we start losing. Nightmare of selling with a loss or holding on and see the price dropping further has started. The stock market is quite volatile, especially for stocks which has relation to the COVID-19 pandemic and the expected potential vaccine.

If you were one of those who bought the glove stocks and held it until it went to the peak and sold it for a super huge profits, congratulations. If you were one of those who kept buying at the wrong time and kept losing money when it seems everyone else around you are earning big money, you are not alone. If you have done nothing in the stock market thus far, it’s perfectly fine. Go invest into something else. The world does not move only because of the stock market.

Now, what happens if we lost US$41.4 million? (RM172 million) and we lost this amount of money through continuous short-term trading of stocks? Here’s the story.

Article in finance.yahoo.com
 . Yusaku Maezawa is a Japanese billionaire. His networth for 2020 has dropped by S$215 million and because of this, his networth is now only at US$3.5 billion (RM14.54 billion) according to Bloomberg-compiled data. He said he lost money in day trading and that this is a skill he has failed to master.

Regrettably, he said, “I was blinded by the virus-driven market swings and lost 4.4 billion yen through repeated short-term trading of stocks, something I haven’t familiarized myself with. With 4.4 billion yen, how many people could the money have been given out to and saved? There’s no end to this regret.” There are other interesting details about him too. Just read the full article yeah.
Article in finance.yahoo.com

Risk appetite versus ability to assume risk are different

Some of us believe the market is on our side. We borrow to “invest” everything with the aim of getting everything back plus profits soon. By the way, the soon could always be at the wrong side and it may not be profits. It’s super important that we think of investment as an investment and not as a gamble.

Mr. Yusaku Maezawa did not borrow to do day trading. He was already a billionaire. He also did NOT trade using all his money.  That was why his position as a billionaire is still intact even after losing RM172 million. Question is, how many of us could even afford to lose just RM172,000 and still keep a millionaire status?  This is why risk appetite must be managed based on ability to assume those risks. When it comes to either succeed or fail totally, that is NO longer an investment. It’s just a gamble. Do not regret only after it has happened. We may not be able to stomach the actual loss…

To stay away from regrets from negative fluctuations, there’s Real Estate Investment Trust (REITs) too which is usually much less volatile and will provide a stable dividend income instead. Else, those typical dividend stocks perhaps. Happy buying stocks and managing our risk appetite…

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NO condition i-Sinar opens for application. Are you applying yet?

I do think this is a big news for many people, tomorrow. Yes, we are speaking about i-Sinar application. Yes, it’s about applying to withdraw our EPF money for the purpose of survival since many people were affected by COVID-19 pandemic. One thing is for sure, the money withdrawn will move into the economy quickly if it is indeed to survive. Else, we may see the stock market getting another boost.

As for the applicants, this includes for my good friend who told me that he will reapply since his first application was rejected. You see, he did not qualify previously. Well, this time when he reapplies, I think he will get it. It’s now non-conditional yeah. It will be a big amount for him. As for what he intends to do with it, let’s just leave it to him. It’s his money and thus it’s his sole decision.

Article in themalaysianreserve.com
   The non-conditional i-Sinar application will open tomorrow, for all other members below the age of 55, subject to their available Account 1 balance. The new applications will be processed within 5 working days of submission and these would be the conditions:

a) For those who have
RM100,000 and below (Account 1),
 they have access to any withdrawal amount of up to RM10,000. The payments will be staggered over a period of six (6) months with the first payment of up to RM5,000.

b) For those who have
 above RM100,000 (Account 1),
 they have access of up to 10% of their Account 1 savings. However, the maximum total amount withdrawal allowed is RM60,000. The payments will be staggered over a period of six (6) months with the first payment of up to RM10,000.

For further information, members may contact the i-Sinar hotline at 03-8922 4848. Do read the article in full here:
Article in themalaysianreserve.com

Photo by Cytonn Photography on
Pexels.com

Before we end the article this evening, let it be known that I am the few minority who disagrees with NO-CONDITION application for i-Sinar yeah. I seriously do hope that anyone applying it do understand the implications to their future. Hopefully everyone would still have sufficient time to add back what they will be withdrawing this time. Hopefully, the economic recovery really do happen as per planned; after the vaccinations have reached 70-80% not just for Malaysia but throughout the world.

Happy understanding that spending future money today may not be a good decision but it will only be felt in the future. That’s the issue. Article here for reading:
Using future money today is not a wise move

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i-Sinar is now available to more people

i-Sinar seems to be a hot topic recently. Here’s an update.

If you are an Employees Provident Fund (EPF) member, then this is news to you. If you are an EPF member and you are facing financial difficulties, for example lost your job, being put on unpaid leave and even having no source of income, then this is good news to you. This is about i-Sinar programme. The amount which one could withdraw is RM10,000. This is an increase as it was RM9,000 previously. This withdrawal is available to those from the formal sector, self-employed, and whether or they are still active contributors.

Article in nst.com.my
.
  Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz told the Dewan Rakyat today that the decision to widen eligibility for withdrawals was made after a meeting with EPF this morning. He said, “Whether you have lost your job or experienced pay cuts; whether your do formal work or are self-employed; whether you are an active member or not, you can apply for the i-Sinar facility.”

He added, “From the two million eligible members before this, now more than eight million members will be eligible. Members can apply for this online, or go to an EPF office. Just show proof of job loss or pay cuts.”  Zafrul had announced that the government would allow those who lost their jobs or had their incomes reduced as a result of the Covid-19 pandemic to withdraw from their EPF Account 1.
Article in nst.com.my

Important note

EPF savings are meant for retirement. The money we withdraw today, even if it’s just RM10,000 could actually become RM40,000 when we retire because we continue to receive annual returns to our savings in EPF. Thus, when we withdraw that RM10,000 and uses all of it today, then the future cost is that we have used up potentially RM40,000 of our funds which could have helped us a lot when we retire. This is why it is so important that any politician who simply just want to win and kept asking for this should be AWARE too.

Only one wish

I just hope that the COVID-19 pandemic will be over soon and we could all go back to our normal lives. Then i-Sinar is not so needed like currently. When this happens, the number of unemployed Malaysians will also drop and this will help many get back on their feet versus relying on this withdrawal which may not last for a long time unless they get back a job which pays them regular salary. Vaccines are said to be in final stages of testing and production has actually started for some of them. Keeping my fingers crossed that everything will be just fine within 2021.

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I want, but it’s too far, nobody wants and it’s not developed

A relative asked me yesterday if there are good properties to buy in Penang. I told her, for the bigger developers, you can view their projects online. Every new project is always preceded by a nicely designed website. For the ‘amazing’ small and ‘been there done that’ developers, she would know better because these developers typically love leaflets, buntings or billboards and even the black and white regional sections of newspapers. I asked her what’s her criteria. She said, bigger than her current home which is close to 1,300sf, must not be farther away than her current home and should have a good environment like her current home. I told her, in that case, ‘NONE’. Haha. Sorry, not a joke but I really told her that.

Then, I replied briefly. Since her current property has already risen around 250% from the price she paid for many years ago, she should consider buying a newer place, slightly further away. Even if it is farther away by 10 minutes, after 1 month of driving through it, she would not feel it anyway. 10 minutes meant her options expanded tremendously. Batu Maung or Gertak Sanggul and other less developed areas would now be possible. It is still possible to buy a slightly bigger or similar sized units or even landed properties. She would then be able to sell off her current place, get the positive difference and then invest in another one or two properties for rental etc. If not in Penang, then in KL. She neither disagreed or agreed but I think it may not be easy for her to accept it emotionally, at least not yet.

Many times, when we are looking at properties, we tend to use less of our ability to be objective and uses more of our emotions instead. For example, even before we start, we would already have in mind that ‘that place, everyone said so far away’, ‘that place, everyone said is less developed’, ‘that place not many Penangite wants’ etc. First one, ‘that place everyone said so far away. What is far to them may just be an additional 10 minutes. Note that 10 minutes is already equivalent to up to 10km away! Second one, ‘that place everyone said less developed’, of course it is less developed. The more developed ones are already so expensive, are you sure you are prepared for the huge premium? The next one, ‘that place not many Penangite wants’. For this reason, just bear in mind, majority of all the new engineers working in Penang are NOT Penangites! Think objectively….

Okay, I think I will let my relative think about what I told her. I think she may be thinking for a long time but it’s ok. She’s happy with her current home and there’s no rush to get a new one anyway.

written on 14 Aug 2014

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I want to buy and I am ready to buy… (2019)

Interesting survey by StarProperty.my in its latest Buyers’ Sentiment Survey.
Article in TheStar.com.my here.
It says that majority of the 3,000 respondents in the latest survey said that they are keen to buy in 2019. 42 percent says they will buy within 12 months. 34 percent says not thinking of buying while 24 percent says they are undecided. (This is why the last mile is so important!
Just getting more leads are not going to close the sale yeah.)

Out of those surveyed, 84 percent says they prefer to buy versus renting. This is actually very predictable. The issue is that these days, people are renting homes which they may not be able to afford to buy in future. Today, owners of properties are under pressure and thus they are renting their homes at a lower rate than their monthly mortgage. When we have enjoyed such a nice place at a lower rental, it’s tough to choose to pay a similar mortgage for an inferior home. Earlier article here.
Once you rent high, you may never buy
  I also think it’s very important for people who’s thinking of property to note that property is not an investment which is low risk and low returns yeah. Here’s one earlier article:
Property investment is not low risk and low returns

For those who have listened to my talks recently, I have shared that property demand will always depend on affordability and it’s not location, location and location. Unless of course one has unlimited financial capability. Fact is, if KLCC remains extremely affordable, there’s no way my friends would buy in
Semenyih for landed properties.
 The findings of the survey also revealed that the price of property (with a weighted average of 3.85) tops the list of factors that influence buyers, followed closely by safety and security (3.82) with location (3.80) in third spot. To know the results in full, do refer to the
Article in TheStar.com.my here.

Let’s also understand that wanting to buy versus actually getting ready to buy are two very different things. This is why we could set our yearly goals in January but at the end of the year, we may not have even started… If we really intend to buy, then read this article:
10 reasons why we will fail to buy property
 As for the actual results from the survey, we should start seeing some results by H1 2019. Just look at the transaction numbers which will be announced on a quarterly basis. Someone asked if 2019 is a good year to buy when it is an investment property. Actually, whether it’s 2019, 2020 or even 2021, the answer is the same. “Have you identified the type, location and project? If yes, is the affordability okay?’ Answering YES means a buy. Anything else means not yet. The year matters very little.
Why invest in a property? Here’s one recent article.
Happy following.

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written on 21 jan 2019

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I want to get married at 30. A bit of strategizing is good, too.

A young colleague was having lunch with me today in Penang. He announced that he wanted to get married when he is 30. He is 26 today. He said prior to getting married, he will buy a home sweet home first. When I asked where, he said somewhere near the working place of him and his future wife. What a good and clear answer? Well, he does not have a girlfriend yet. In other words, he wants to buy a place only when he is getting married because only by then that he would know where his wife works.

First of all, it’s great to get to get our partner’s ideas before we get a place. However, when it comes to ‘best time to buy,’ it’s always best to start by understanding what’s available first. Once we understand about what’s available, chances are we may find a place which we like and may just be priced lower today than last year. In Penang, there are already a number of such places. Just ask your favourite agents to understand where. However, do not expect those areas to be facing the sea and right next to a mall for example. Those places are well still stuck at almost similar prices and may not be moving much unless Malaysia spins into a crisis.

Secondly, it’s even more important to buy if we could
already afford one
.

Assuming we already have RM50,000 as downpayment for a RM500,000 property. If we have bought and on a yearly basis, the property rises by just 2%, that’s RM10,000 extra. Yeah, it’s a gross number and we need to minus interest and whatever but assuming we saved this RM50,000 into
fixed deposit
, it will give us RM2,000 per year. 🙂  By the way, if we do not have a home, we need to rent. The owner gets richer and we stay the same. I would not say we are getting poorer. Note though that this is true as long as we did not buy the wrong property.

Thirdly, the chance of this young friend in attracting his girlfriend or future wife or even the future wife’s father-in-law is definitely higher if he already have a
property to his name
, I mean paying for one. Haha. Well, true for at least one father, ME. The reason is simple, getting a home requires discipline. One of the most important trait to have. Yeah, debts are bad, that’s why buying a house takes away the money we would have spent on other stuffs that we do not really need. Getting that first home would also make us realise that it’s not really that hard once we are used to ‘lesser’ pay every month.

My young friend, after a few more questions finally answered that he would like to buy in Tanjung Tokong! When asked where, he said he will start looking soon. Well, I think he wants to get a girlfriend first before buying that property. I think this is normal and I did not pressure him further. As they say, the generation nowadays do not want to own properties and cars… Last but not least,
FIXED DEPOSIT should start today
 and not when one has a girlfriend. Happy thinking.

written on 6 Sept 2017

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ICU Utilisation still over 70%. No need to rush inter-state travel.

Someone said we can travel interstate in a week or two. As per official media, it’s early October or mid-October. Sorry, I do think end October would be a better timing. The reason? I provide two charts as below. First one is ICU utilisation. This remains at above 70%. yes, it’s on a downtrend but 70% simply meant if the cases start going up, ICU beds would suddenly be overwhelmed again.

ICU Utilisation remains very high for comfort

Instead of mid-october, just two additional weeks and I do think the ICU utilisation will probably be down to 50% capacity and for states with higher vaccinations probably lower. Frankly, there is no need to rush at all. Not with Delta, not with potential of people flouting SOPs and remember that as soon as inter-state travel is allowed, this is many millions of people at the same time… Look at the first chart to know why I say so.

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IDEAL home for Malaysians? The WHATs and WHYs.

What’s an IDEAL Malaysian Home? We can ask me or we can ask a lot of Malaysians. LAFARGE and EdgeProp did a MYHOME survey to learn more.
 Here’s that infographic for our reference.
 Briefly, these are some interesting results from the survey yeah. Perhaps this is why there are so many unsold units? My personal conclusion at the end of the article yeah.

Total respondents: 13,745

82.1 percent
 prefers a LANDED type of home. (Yes, this is just a survey about an ideal home yeah.)   Just like the most liveable city in the world does not need to be the same as the best place to retire. Here’s an earlier article:
Best place to retire vs most liveable city

71.8 percent
 thinks SECURITY is a TOP PRIORITY. This is the reason why landed homes without any security arrangements versus landed homes with have a huge price difference today.

53.2 percent
 households have TWO cars. (Will this change in the near future? Perhaps unlikely because the government is not against people owning cars, unlike some countries where the policies are skewed towards having their population taking the public transport. By the way, policies may change, just like a major CHANGE we had recently in GE14.

45.5 percent
 wants 1,000 – 1,999 sq ft.  If given a choice, everyone wants a comfortable size. I think this is something doable but perhaps the government and the private developer may have to both discuss transparently on how to do this.

40.1 percent
 are okay with homes priced from RM400,000 – RM600,000  (Yes, Malaysians can definitely afford to buy within this range BUT they may not want to buy currently due to sentiment or the type of homes they want as their ideal home is not available… )

37 percent
 wants partially furnished – I would personally want my home to be partially furnished too. It’s lesser hassle for me too.

When we look at important amenities, it is quite clear that nearly everything is important which meant that locations with everything is preferred. In other words, mature neighbourhoods. This is the reason why those few hotspots will continue to have a good price appreciation and they will continue to lead in price appreciation. 56.5 percent thinks having MRT / LRT / KTM is very important but as we can see, this is merely a few percent above public parks / green spaces. Can we think of a potential reason why? Actually only 70 percent of the total respondents are from KL / Selangor. I believe if the respondents are solely from KL / Selangor, ths percentage for the MRT / LRT / KTM may be higher. This is also because 70 percent of all respondents are from the 18 – 35 age group too. This is the group which will will drive the ridership of public transport in the future.
This is the full survey by LAFARGE and Edgeprop in an infographic. Please refer yeah.

I do not think the ideal home for Malaysians and the ideal home which could be built by the developers based on the ideal home can be matched easily. 🙂  However, I would definitely hope that with the advancements in construction technology as well as the potential of little / no wastage (from a single affordable home agency), perhaps the current crop of unsold homes can really be lessened. All built are sold, that would be the best. Else, the unsold units would have to be subsidised by the units which were sold and that’s also one reason why prices cannot become cheaper too. Happy taking more surveys yeah.

written on 26 May 2018

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Are you waiting to buy a property? Me too

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IDEAS: Property bubble Malaysia set to burst

According to an interview by FreeMalaysiaToday (FMT) with the Institute for Democracy and Economic Affairs’ (IDEAS) senior fellow, Carmelo Ferlito, the Malaysian property market is close to crashing because of the high unsold properties in the market. He explained that two economic dynamics will cause this. They include the prices of most homes beyond the reach of most Malaysians as well as a huge oversupply of such homes here. Do read the full article in FMT here.
IDEAS in FreeMalaysiatoday.com
He added that the government should not intervene if the bubble bursts so that the market forces can help to coordinate the supply and demand. Figures from the National Property Information Centre (Napic) have indicated that as of the first quarter of 2017, some RM10.08 billion worth of residential units are unsold in Malaysia.

Ferlito further explained that the bubble started when the property market is expected to boom after the 2008 global financial crisis
(actually, this was more of a U.S property crisis)
. It got worst because of the intervention of Bank Negara Malaysia which set low interest rates. This sent ‘wrong signal’ to the market. He asked that banks be free to set the interest rates based on the free market proponents and this would better reflect the relationship between supply and demand.
(I disagree. I think one major reason why the interest rates was set that way was because of an accommodative stance to economic activities. Of course, we cannot stop people from buying properties but BNM has also set responsible lending guidelines which ultimately lead to many people blaming the banks for not approving their loans. High interest rates on the other hand might have snuffed out many business activities too, not just stopping the purchase of properties)
Please do read the full article with his full explanations in FMT here.

I personally believe there are reasons for a property bubble building. However, for the property bubble to burst, there has to be an overall market of expensive homes and not just the oversupply units. Furthermore, it is not true that most of the oversupply are the luxury homes.
Around 30 percent of the oversupply are for homes priced between RM200k to RM400k.
 Please be savvy to the fact that should the world goes into another financial crisis, Malaysia is definitely going to be affected. Google ‘financial crisis’ or ‘property bubble’ and you will get my meaning. There are already a lot of such predictions too. I also think BNM will act in the best interest of the economy, definitely not just for property buyers regardless of whether or not the bubble bursts. Note that
Oversupply need not be all bad lah
. As for understanding all the other reasons for a property bubble to burst, here are a few signs to look out for. We do not need economists to tell us about these signs until it is too late.
Signs to look out for property bubble
 Believe what we believe and remember to take appropriate actions. Remember, if we believe the property bubble is about to burst, it’s time to start selling today? 🙂

written on 21 Aug 2017

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Property market oversupply? Improve by mid-2018 and recover in 3 years

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Identify, Price Set and Buy. Else, keep talking.

Majority of everyone would like to own a property. The feeling of ‘I own my own home’ is definitely better than I am paying so that others can buy another home. Assuming we are really serious in buying one, what can we do in order to ensure one of these days, we really could do it? Let’s assume the
market would continue to be slow, negative
 and perhaps even on a downtrend for some time more. As per many predictions which we can read online, it does seem that 2018 may be a more probable year for the transactions to rebound and of course followed by increase in prices. There are three steps that I propose.

Identify. Do we know why are we buying? WHY is important because if we are buying for own stay, then it may be a bit more flexible, buy further for cheaper or buy nearer but smaller so that the price that we pay is almost the same. However, if we are buying to
rent out some of the rooms
, then it should be near enough to office towers or other commercial properties. This is the WHY that we must answer before we can then start identifying where and what. Remember, WHY is first, way before the where and what.

Price Set. Set a price. How do we set a price? Use the rental as benchmark. Anything positive should be good enough as property prices has indeed jumped a lot and rental has yet to catch up. Of course the higher the better in terms of returns.
Setting a price

means we want to wait / negotiate for the price we want before we buy. There is little need to keep moving your targeted price unless the price set is too high. Do note that just like stocks, no one would know when is the lowest price…..

BUY.  If the place we want to buy and the price we set arrived, buy lah. Don’t just talk for fun. Else, we have just wasted a potential return a few years down the road and perhaps this may be the property that would at least give us something because relying on just
EPF savings w
hen we retire is going to be hardly enough. By then, sell this place we bought, then we rent a room and we can start travelling a bit. Life is meant to be enjoyed as long as we have something valuable we can sell when we needed to.

Simple, right? Identify, Price Set and Buy. I would like to dedicate this to all the most awesome young people in Malaysia today. Oh yeah, any new handphone costing RM3,600 and to be used for one year would set us back RM300 per month. In property price terms, RM300 extra in mortgage payment per month would have enabled us to buy a property which is RM80,000 higher. (35 year term). Quite a lot of difference. It may mean a condo versus an apartment. Or an apartment versus a flat. Think about it and act. It’s your life that we are talking about. Cheers.

written on 14 Oct 2016

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Big in size, small in price, available?

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Idle money, savings in bank, unit trusts and more

What do you do with your money these days determine how far you can stretch it and
how fast you can grow it
. I read in an article in a local daily that the bank deposits growth rate from individuals are actually rising the slowest for the past few years. One main reason stated was that due to the higher costs of living, people stretch their ringgit a little further than before, thus this meant less savings into the bank. This has been the trend for the past 2 years. Of course, for the banks, this is not a good sign because it meant that their loans may become more expensive because these savings are normally the cheapest form of funding they could have. Yes, you are right, when you save money into the bank, banks use these to lend to others for mortgages, businesses etc. This is how banks earn their profits.

I may not be an economist but I think this trend would be continuing. Besides the usual causes such as more people are paying higher mortgages, buying more expensive cars, changing phones every year, buying ever more expensive handbags etc, this may also be caused by the fact that the knowledge about money has also been growing. Many years ago, I have hardly any friends buying their personal medical plans. Today, I have many who have started to have their own medical plan, even if they are still working today. Unit trust sales are also increasing every year because their promise is that you can invest in unit trusts which matches your risk appetite and the results has been good for the past few years. I have quite a large chunk in unit trusts too.

One more issue which I think is also contributing to this is the new workforce in the market. They have been told by far too many reports that they would not be able to
 afford good properties
. Not many reports however told them that they should buy something smaller and cheaper first. Thus, with this mindset, many of them no longer think it is necessary to save. Plus, their Gen-X parents would have the money to support them anyway. Savings would earn them paltry returns. Asking for money is easier. Long time ago and even today, their Gen-X parents continue to drink their Kopi-O but just look at the mushrooming of all the new cafes serving freshly brewed Arabican coffee and you get my meaning.

In America, majority of everyone has hardly any savings. Will Malaysia be like them in the future? The possibility seems to have started showing. Only difference? We still have a huge population that is used to saving. Thus, the rate of decline in growth should still be slow, I hope. For those who are reading this, always remember that whatever you may believe, savings remain as a very good virtue to have. When you save you would also think objectively how you use your money too. Happy Saving.

written on 5 Oct 2014

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IF affordability = low quality

Are properties very expensive these days? It must be expensive since everyone I know say properties are expensive. In fact, whenever I write about how prices have risen, the clicks to that article increases. What about affordable properties? The new ones which are planned by both the federal as well as the state governments? Most of the time, the prices of these properties are very much cheaper. Some are so cheap you can hardly believe. Most important question, what are your thoughts about these affordable properties? Do you see them as potentially your new home? Or do you equate these affordable homes with low quality? Oh yeah, if you do need to know where some of these properties are, please do visit
PRIMA
 or for Penang, try
penangpropertytalk.com

Actually these affordable homes are supposed to have the same quality but the prices are cheaper because the land cost may be much lower, the density may be higher and other concessions from the government. These are reasons why the prices are cheaper and it has no concern with lower quality. If the prices are lowered by 30% but the quality dropped by the same percentage, I think this is the end of the road for the affordable property plans. As soon as the first batch of buyers get their keys and found out the quality is unacceptable and spreads the news online, all other future launches of these affordable properties would fail. Be reminded, today, bad news can reach the whole country within minutes with Facebook alone.

From the conversations with some friends, it is clear that they think these affordable homes are of lower quality compared to the current ones. After speaking to Ken of penangpropertytalk.com, he gave me another important point. Sometimes, it may not be the developers. It may just be unscrupulous contractors. Cutting corners through cheaper materials or even sloppy job. The reason is as usual, due to lower margins for these affordable projects. I seriously hope the quality of these first few projects to be completed would be good enough to give confidence for later ones. Otherwise, it may not be such a wise decision to buy these units because it may not be possible for the property to increase in price if there are lots of quality issues. Just look at some of the secondary properties which has stayed almost stagnant in prices.  Of course if you qualify, my advice is still to register / apply for one soonest.

written on 6 Feb 2015

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IF Interest Rate up Tomorrow, are you sweating now?

There has been many predictions about Bank Negara hiking the interest rate which is at this moment is still considered very low. Assuming, this really do happen tomorrow, should you be sweating now? I think, for the 86% who owns just one mortgage loan in Malaysia today, it is not likely that they would be sweating. Assuming you have a RM500,000 loan today, with 4.25% interest rate and a 30 year term and the interest rate goes up 0.5% tomorrow, you would have to fork out an additional RM133.73  Table as follows:

Oh yeah, did I mention that majority of all analysts are saying that it’s only a 0.25% hike and it may or may not happen tomorrow. What an accurate prediction. ‘It may or may not happen tomorrow’. 🙂 Would it slow down the property transactions further? Well, it might, if everyone is very negative about it. Anyway, RHB Research said that from the third quarter onwards, we should see a better set of numbers. It gave  a few names of property developers which are selling more homes. They are Tambun Indah Land Bhd and Matrix Concepts. Besides that, loan approvals has also started to move up since late first quarter.

Actually, my friends in the industry are still saying that many agents are today struggling. Reason being, every buyer is so much more cautious and is checking everything and researching everything since information is readily available. Some even stopped their purchase when they learnt of dengue cases in the condo they were about to buy!

The bad thing about slowdown is, everyone is negative about it. My friends, my colleagues, many kopiandproperty.com readers said the same thing. The good thing about slowdown is, after the slowdown, as long as the economy does ok, it will start to inch up. Malaysia is too young a country to have reached maturity. Definitely not yet.

written on 9 July 2014

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If the COVID-19 vaccine is found, do you know what does it mean?

This message came into my FB yesterday evening. “Coronavirus Vaccine Tracker by New York Times.” What it says is that 2 Vaccines are in Phase 3. This is that stage before approval for final use. This also assumes that Phase 3 was successful yeah.” I was like WOW. This is a good update and if all the vaccines are really as per what was depicted, I think a vaccine is likely to be found this year. Before we now jump for joy, please read on.

PRODUCTION take time as well.
Please understand that after approval, then it has to go into production and this is not like approved today and produced tomorrow and ship out the day after… Production will take some time, yields have to be monitored, tests have to be conducted to see if the produced vaccines have the same effects as the approved vaccines. We do not even know if the production plant is in the same country… Then, the logistics comes in.

LOGISTICS is the next stage.
Depending on how sensitive the vaccines are to temperature etc, the packaging would be important because the vaccines are supposed to be ship to countries in the world and not all are within an hour or two from the production plant. Anyway, just wanted to let everyone understand that vaccines found today does not mean we suddenly could have it the next weekend… Now, let’s look at that great news by
New York Times.  Click here to go and read their full article okay. Good progress.

https://www.nytimes.com/interactive/2020/science/coronavirus-vaccine-tracker.html

STILL positive even if not immediate.
Okay, now that we know that it’s not going to be immediate, what else do we know? Well, we now know that the current COVID-19 issue really do have an upcoming solution which will make us think of COVID-19 like the flu in the near future. Do we hide ourselves at home during flu season? Answer is no. Reason is because there’s an available flu jab. (Which a lot of people never got the jabs because it costs money and that they think the chances to get that flu is low).

Normalisation happens.
We also know that the reason why all businesses have to shut has a new reason to stay open soon because COVID-19 would have its vaccine soon. In other words, those people who got unemployed should get back their jobs. The industries affected by COVID-19 will mot probably be able to operate as normal again. Not immediate okay. However, in the near future it will really be back to normal. By the way, for those staffs who are currently working from home and has an office to go back to, I think majority would have to go back to the office yeah. Happy understanding.

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If you do not ‘qualify’, please don’t buy

A man went down on his knees in Penang today. His plea? He hopes that the developer would not force him to pay extra on top of the RM72,000 that he has paid for the medium low cost housing that he is paying for. He said that the developer is forcing all the buyers of the medium low cost unit to pay an extra RM100,000. He has no such money to pay and he hopes that the Chief Minister would intervene and help him and a group of 52 other buyers. Later, the State Housing, Town and Country Planning Committee chairman, Mr. Jagdeep Singh said, ‘The price is RM72,500 per unit and you must follow. I will call the developer to get an explanation next week.’

The purpose of this article, besides highlighting this sad fact is also to remind developers to be more responsible where medium low cost properties are concerned. You are not just building a house for profit but for such units, it is also a community service. If you really cannot do it, then do not build it. Thus far, I do not know of any state government which is able to point a gun to a developer and forces them to build.

The second plea is echoing what my friend told me just few days ago. Her mother’s relatives asked her mother to go and apply for these medium low cost housing since she has never owned any property before. However, her mother said no because she already have a roof over her head. Besides her daughter, my friend is a successful manager in a multinational. Why want to take away the opportunity of those who really need it? Reminder. If you do not qualify, please don’t buy!

Next suggested article:
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Photo Source: http://www.thestar.com.my/News/Nation/2014/02/14/Buyer-brought-to-his-knees-over-lowcost-home/

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If you earn MORE because of currency, then you better INVEST.

When we have the opportunity or rather we found a way to work overseas and we earn in a currency which is 3 times higher, what do we do with the salary over there? Well, let me tell you a real story.

My brother works in a multi-national factory and he eats in the cafetaria occasionally. He says that the foreign workers, they will pile their rice high and then just pour curry gravy on the rice. No vegetables, no meat, no eggs. Just rice and gravy. They have been doing that for years. During dinner or weekends when they (foreign workers) cook, then they will have some meat but mostly vegetables.

They were doing this because they know that they have to SAVE the money and SENDs it back to their home country. By the way, I have friends who visited their colleagues who were foreign labours here in Malaysia. They actually OWN the property they stay in their home country. It’s only in the overseas country which they work that they stay in hostels or rent a room.

Nope, I am NOT telling anyone who earns three times the salary in ringgit because of currency exchange to start eating just rice and gravy in that foreign country. I am telling you that you have such a HUGE advantage. 3 times…  If you just save half of the salary. Say you were earning SGD4,000 and you save just half, that’s SGD2,000 and that’s over RM6,000. Have you every imagined what would have happened if you have invested this instead? Well, it’s RM6,000 x 12 = RM72,000 per year. At 7% per annum returns, this same RM72,000 will become RM720,000 in 10 years and that’s just based on that first year total invested!

Of course, one may also prefer to earn in that country and spend as usual in that country. Instead of the SGD4 chicken rice, maybe it will look more classy to be in a restaurant and having a lunch set at SGD12 instead… Of course, instead of SGD500 for a decent smartphone, it will be okay to buy a SGD1500 for the top range smartphone. (since RM1,500 cannot buy that same model in Malaysia…)

I could go on but it will not include a car because in some countries, buying a car will mean the end of any savings because of the many requirements including cost of parking, fuel and toll. All in the local currency where one earns their pay…

A good question is thus, when you earn MORE because of a better currency, do you INVEST to create more wealth? Do you INVEST on yourself so that you can also keep upgrading and up-skilling and could soon be earning double your salary instead of almost the same pay and are scared that you may lose the job because someone from your home country may be willing to do the SAME job for the SAME pay as you are getting today…

Be prepared yeah. Employers will not be increasing your salary every year if one day they realise they could hire someone from your country for the same pay as what you enjoyed in the beginning a few years ago. The reason is also because of currency strength. It is not because you were no longer good in what you do. Happy understanding that this is just fact of life. We take advantage of whatever advantage we have.

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If you leave it empty, I will Tax / Charge you.

There’s a potential for Hong Kong to have Vacancy Tax for developers because the government does not want the developers to hoard unsold units. They prefer for all the units to be sold instead. “Under the bill, first-hand units that remain unsold and have not been rented out for more than six months during the past 12 months will be subject to special rates. Special rates will be collected annually at two times the rateable value of the units concerned, which roughly equals to 5 per cent of the property value.”
 Please read the full article in South China Morning Post here.

In Vancouver, Canada the city collected CA$39.4 million (RM124 million)  just for year 2018 alone. This is part of the empty homes tax and this number is already lower because of the shrinking number of vacant homes in the city. This tax revenue was collected from owners of 1,989 properties and in 2017, a total of CA$38 million (RM119 million) was collected from 2,538 homes. 2018 has thus shown a 28% drop when compared to the year before. Mayor Kennedy Stewart said, “The main objective of Vancouver’s Empty Homes Tax is to influence property owners to put their empty properties on the rental market and the data shows that is happening.” The full article on it here:
globalnews.ca

Meanwhile
as an article from contributor in nst.com.my

 A writer has put forth his argument that developers who built too many and thus have unsold units currently should be penalised with a vacancy tax. This is where any property left vacant and unsold for a certain amount of time should be charged with a penalty based on a percentage of the gross price. The higher the selling price, the higher the tax quantum.

He said that such a measure will force developers with high-priced properties to lower their prices in order to sell them easily. It will be a win-win situation where property prices are lower and developers’ cash flow improves though the developer may incur a loss if the cost was actually higher than the selling price. He also gave an example of properties on auction where if there were no bids, then the next auction will see the price being lowered by 10 percent. This is continued until the property is sold. He has also put forth many other points. Do read it here.
An article from contributor in nst.com.my

Actually, there are already countries implementing the vacancy tax. Plus the tax is used for affordable housing for the poor which is a noble goal indeed. However, it may be better if the vacancy tax is announced and a future date is determined. In other words, any new developments beginning from that date onwards would all be subjected to vacancy tax if it remains unsold for a period of time. To suddenly announced it now and subject all the developers who did not know many years before that they will be imposed such a tax will definitely be unfair.

As for pushing prices down, let’s understand that developers are profit-oriented entities. If they did not get enough margin from earlier projects, they will get back the margin from later projects. I am just not sure who will be the ones suffering from higher prices. Perhaps those who bought properties later? Let’s see if the Minister of Housing and Local Government will respond to this letter contributed to The Star. Happy following.

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If you really want the moratorium on your Hire Purchase, just do what your bank says.

By the way, it’s very important to understand that when we owe someone some money, we need to pay it back. That someone may tell us that they will not charge us interest because we are their good friend or they may tell us that interest will be levied. To me, both are just fine. We borrowed and thus we pay back, slowly perhaps. In this case, an extra 6 months is given due to the current COVID-19 situation.

The only Hire-Purchase I have at the moment is for my wife’s car and it’s under Public Bank. So, they sent me a message just days ago telling me the below message. My HP a/c is eligible for 6 months moratorium from April 2020. Deferred instalments will attract interest. Just go to that site to confirm and they even gave me a period of 1 month plus to complete the form. That’s by 28th May 2020. I think this is fair enough and I do think we need to also do our part as well.

This was what
Bank Negara Malaysia has clarified. Article in FreeMalaysiaToday.com
   BNM deputy governor Jessica Chew Cheng Lian said no one needed to apply for the moratorium but the banks had to comply with the Hire Purchase Act 1967 and obtain an indication of agreement from customers. She said the banks would be reaching out to their customers to guide them on what to do.

BNM Prudential Financial Policy director Cindy Siah Hooi Hoon said the central bank had never stated that interest would be waived, adding that it had made it clear previously that interest would continue to accrue.  Chew acknowledged the confusion and said, “We do regret that very much and we do hope that we can help to set things right and clarify matters.”  Do refer to the full
Article in freemalaysiatoday.com

Three findings.  (1) Moratorium is still in place from April till September 2020.  (2) Reply to your bank and follow what they ask you to do to confirm the moratorium. (3) They will provide options to you on what to do with the interest, choose one.  Happy understanding.

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“If you want to work, sure got job.” (Important for the economy!)

Today, I GRAB to my office. The driver was 60 years old, driving the same car as me, an Exora. 🙂  He kept me entertained with a couple of old stories including how his friend’s new VIOS was damaged by the flood and now his friend has to pay for the car but could not use the car. He has been driving a taxi ever since he lost his job 15 years ago. He said, “If you want to work, sure got job. Just don’t be lazy.” Guys, this is so true! Instead of blaming the world for everything, how about just do something about it? Yes, I am talking to all those who has graduated but is still lazying around simply because they wanted a higher pay than what was offered or they felt that they are graduates and deserve something better. Frankly, only those who has worked
very hard should deserve something better

and not before.

Assuming this driver earns just RM3,000 per month net. It meant that if we did not work for 6 months, we have lost the earning opportunity of RM18,000.  This RM18,000 could have been spent on things within Malaysia and with a multiplier effect of 4, this RM18,000 has just become RM72,000! Benefiting so many other businesses. Yes, that’s the reason why unemployment is bad, for all countries not just Malaysia. That is the exact same reason why as soon as unemployment number drops, the Federal Reserve will up the interest rate. The reason is simple, when millions of people has a job, the multiplier effect to the economy becomes ‘crazy.’ Adding this by a number of years
meant that the number of people having money

as downpayment for property increases tremendously! Yes, this is the demand side of the story. Well, when demand increases, supply finds its way to start coming in. Whoa, the economy thrives.

Until today, there are still news of graduates unable to find a job but the issue is always about attitude. Come on, let’s be frank. How many jobs are 100% related to what we study. If you think this is just Malaysia, you are being very funny. There are thousands if not millions of people studying in less popular subjects and many continue doing well. My friend who has a 3rd class degree in Georgraphy is today a very successful businessman who can even afford to take time off just to go mountain-biking. I think for many of us, including myself, this is impossible to do. Perhaps it’s not just “if you want to work, sure got job.’ Perhaps it’s ‘
if we excel in what we do, the world is an oyster waiting for us to open
.’
 Happy finding your dream but first step is to start working. I know.. some have their parents supporting. For these, as long as your parents continue contributing, I think it’s okay. Cheers.

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written on 13 Dec 2017

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Property investment is not sure-win. Cautiuon needed, always

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Financial news: IHH Healthcare’s RM1.5 billion profit and KPJ Healthcare’s RM500mil capex

Ageing population and access to quality healthcare

The world, especially the more advanced nations are all having ageing population themes. Even Malaysia is becoming an ageing nation.  The demand for quality healthcare is thus growing by leaps and bounds and we can see this in Malaysia where the private hospitals are usually full and Malaysia is also a favourite destination for many when it comes to medical tourism. We have both quality and affordability especially when compared to many much more advanced nations

An old friend’s daughter was working in the US. Recently, she needed medical treatment and after checking out the medical procedure prices there in America, she flew all the way back to Malaysia to get the treatment instead. In other words, it is still cheaper after taking into account the flight costs. It will just get more expensive whether in America or here in Malaysia. This is also fueling more supply for such services too.

Article in themalaysianreserve.com
  IHH group COO Joe Sim Heng Joo said the company will add over 2,000 new beds across Malaysia, India and Turkiye over the next three years to meet growing healthcare needs and demand both domestically and from the region. Specifically for Malaysia he said, “We will pursue organic growth in Malaysia by driving bed occupancy and increasing our capacity by adding another 600 beds over the next three years.”

IHH operates a network of 83 hospitals in 10 countries, including Malaysia, Singapore, India, Turkiye, China and Europe. The group offers over 15,000 medical beds and hosts over 65,000 workers. Among hospital brands under the company include Gleneagles, Parkway, Pantai, Mount Elizabeth, Acibadem, Fortis and Prince Court.

Dually-listed on Bursa Malaysia and Singapore Exchange, IHH’s market capitalisation is RM51.6 billion as of May 5, 2023. Japanese investor Mitsui & Co Ltd owns the majority stake in IHH at 33%, while Khazanah Nasional Bhd, through Pulau Memutik Ventures Sdn Bhd, and the Employees Provident Fund (EPF) own 26% and 10% respectively.

For the financial year ended Dec 31, 2022, IHH registered a net profit of RM1.55 billion on the back of RM18 billion in revenue.

Please do read a comprehensive article here:
Article in themalaysianreserve.com

Article in nst.com.my
  KPJ Healthcare Bhd (KPJ), one of the main healthcare service operators in the country, has allocated capital expenditure (capex) of RM500 million for this year.  Its chairman Datuk Md Arif Mahmood said, “The capex for this year will not only include the upgrading of the existing hospitals but also be use to buy new equipment and managing the data infrastructure.”

Meanwhile, Md Arif said the company was optimistic about the outlook of  health tourism industry this year underpinned by the returning medical tourists.

He said since the borders repening and resurgence of the global and regional economy, the industry had provided new opportunities to the country’s healthcare service sector including KPJ. Do read the article in full here:
Article in nst.com.my

Many ways to join into this potential growth

One way would be to buy the share of IHH or KPJ. Some details of the share price as below. Dividend yield is low but if we assume the company is growing, then there’s also a chance that the low number is because the share price has increased as people anticipated the future result and has thus paid more for it currently. Please do your own due diligence yeah. I do not own stocks in IHH nor KPJ and thus did not study in-depth of the stock. However, if stock is not your cup of tea, you can also participate directly into the growing healthcare demand too. Read on after the image.

Directly own a piece of the action is also possible

One example is to buy property units which could be rented out to the doctors, nurses, patients etc. Just find out the location of hospitals, then start asking around if there are any property units nearby which is the favourite of visitors to the hospitals to stay after treatment or during recovery phase etc. Here’s one potential too. As usual, please do your own due diligence and I do not own a unit nor get any commission from any sale of the units in KL Wellness City (KLWC).
9 Important Things to Know about KL Wellness City (KLWC)

If we intend to read more about the demand for healthcare. Here’s an article with a lot of numbers:
Dynamic Duo: Property Investment and Healthcare Demand

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IIBD, JB and Singapore right next door

Surprisingly, I did not read this news from a local media. I read it in Straits Times online. Hopefully it’s just a miss rather than local media choosing to ignore it since Iskandar at this moment is only full of negative news of oversupply, no further catalysts and even due to VEP, everyone is o longer driving into Johor Bahru. By the way, all these are as true as what you intend to believe. Please do read and belivee accordingly. According to the article online in Straits Times, Johor Bahru will be transformed from its current state into an international business district to be named the Ibrahim International Business District (IIBD). It was launched by Sultan of Johor, Sultan Ibrahim Iskandar.

This new IIBD will occupy the area located just after the former Johor checkpoint at the end of the Woodlands Causeway. I think one of the most popular mall in the city centre today is City Square. I remember the booths for the MAPEX (Malaysia Property Expo) JB which was held in City Square were quickly taken up and it was hard from to negotiate for a space for my ex company. IIBD hopefully would become the second KL, according to Johor Menteri Besar Mohamed Khaled Nordin. It is after all next to the advanced Singapore. This allows it to provide Singapore businesses with lower costs as well. There are also plans to link the malls and major buildings in the area with overhead pedestrian bridges.

The jewel of the business district is the RM3 billion complex called Coronation Square. 2.6-ha project will have serviced apartments, an office tower, a hotel and retail podium and a “medical suite”. It is not a hospital but will provide facilities for mainly outpatient services. ]I think this will keep a steady stream of patients into Malaysia. Not many but if there are long waits in Singapore, the next best thing would be the private hospitals here in Iskandar.    No further details were made available but I think the services apartments may look attractive, especially if IIBD really have a comprehensive plan. I do not think the price per sq ft is going to be low but yes, I think I have no issues to buy and hold for a while until the number of workers increase and the demand for rental or secondary properties increase.   Happy deciding.

written on 23 Nov 2015

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IJM: Aiming at hitting yearly target of RM1.6 billion (better than last year?)

If we want to know if the developers are in good shape, look at the results for the listed ones. No developers are immune when the whole market is suffering. Another one has just announced a positive outlook. IJM Corp Bhd’s chief executive officer and managing director Datuk Soam Heng Choon said, “We are quite confident that we will be able to hit this target given the sales we have already achieved in our first half ended September 30 2017. We do see some challenges in making the buyer getting the right financing margin, in the lower end market. That said, we are doing very well with our township sales in Seremban and Cheras.” Their sales target of RM1.6 billion is higher than last year’s RM1.4 billion. So, for the property arm of IJM Corp, it meant that they had a better year for this financial year versus the last one. They are not the only one though. Recently, this happened:
Just EcoWorld or is the property market improving?

The full article in NST here.

Soam further shared that the group’s property division current unbilled sales amounted to RM1.9 billion, also as of September 2017. IJM Corp’s construction sector is performing extremely well and is now contributing 30 percent to their profits versus 16 percent for the property division. (By the way, 16 percent is still considered high when compared to the many property developers in more advanced property markets, usually the margin is in single digit) He then said something which I think would make their shareholders happy. “That said, property is a very cyclical business and based very much on market demands, while our strategy towards construction is more on quality, rather than quantity. We are lucky to have clinched numerous projects that are of good quality and yields good return to our shareholders.”
The full article in NST is here.

Personally, I have not bought any properties from IJM property before but many years before, I ‘forced’ my sister to cancel her booking and to switch over to one of IJM’s Penang project.  She has been thanking me since completion because the project which she cancelled was not delivered in the quality promised and the maintenance is deteriorating. As for the project she bought, Summer Place in Penang, it has done extremely well in both prices and maintenance wise. Selling it today would have earned my sister a handsome profit too. There’s little need to speculate on whether the property market is about to collapse. Just look at the results of all the listed property developers. All these are information available to all of us, the occasional property buyers. Happy following and viewing yeah.

written on 20 Jan 2018

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IJM Corp, IJM Land, RM1.98B privatisation deal

If IJM Corp’s RM1.98 Billion share-swap deal plus cash is successful, IJM Land will be privatised and no longer listed. One less property stock that you can buy from Bursa. IJM Corp is asking IJM Land to consider it and reply by 23 June. I think the objections are likely to be low. If I am the shareholder of IJM Land, I am ok to take the deal. I get 40 sen cash for every two IJM Land shares as well as one IJM Corp share worth RM6.70. This in effect valued IJM Land at RM3.55 per share which is still 11% higher than its last traded price of RM3.20

Okay, now what should be the fair value for IJM Land? Well according to a report in The Star, out of 12 analysts tracking IJM Land as surveyed by Bloomberg, the consensus price is RM3.71. Based on this fact alone, as IJM Land shareholder, you should NOT sell. Yet, IJM Corp’s shares are valued at RM7.39 by 17 analysts based on consensus. Now do you know why I would be willing to accept this offer? The only unfortunate thing is that I do not own any shares in both IJM Corp or IJM Land. Haha. If you have read my blog, you would have noticed I love property but neutral about property stocks.

Why do companies privatise a listed entity? Why not just expand its business while it is still listed? Well, there are many reasons. I think for this case, IJM Corp wanted to have a much higher control over IJM Land’s direction. One example, if IJM Land would like to buy even more land, what can happen? Well, it can borrow funds from banks, which increases it’s liabilities and perhaps cause its stock price to come down. It cannot raise cash in the market because this may seem to be negative to some shareholders. Lots of questions may arise. The easy way out? Especially when IJM Corp has a huge cash pile? Privatise it.

written on 10 June 2014

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Press Release by IJM Land: A Fun Run in Bandar Rimbayu

Press Release by IJM Land

— start —

A FUN RUN IN BANDAR RIMBAYU

Runners make new friends and memories at Bandar Rimbayu’s Run With Me 2017.

KOTA KEMUNING, 9 July 2017
– It was a day full of fun, friendship and sportsmanship at Bandar Rimbayu’s Run With Me. The fun run saw 2000 runners from all walks of life getting into the spirit of togetherness, with friends and family by their side as they ran, walked, danced and sashayed to the finish line.

Held for the third time, the 10km run was flagged off at 6.30am at The ARC, Bandar Rimbayu’s show gallery. The Aloha-thon themed run once again focused on the laid-back feel of previous runs, with speed, timing and competition taking a backseat. With positive vibes, good times and camaraderie taking first place, runners embraced the chilled out Hawaiian concept, taking breaks to enjoy watermelon and banana in two stations along the route and quenching their thirst with fruits and coconut drinks after completing the run.

The fun on the road was not limited to lively cheerleaders encouraging participants to reach the finishing line or the bonding between runners with their family members and new friends. Excited runners also took the opportunity to win cash prizes by grabbing themed items from Run With Me volunteers during the course of the run. The first 50 groups consisting of all four family members at the finish line were rewarded with a cash prize of RM200 per group, with a total of RM10,000 given away.

With Run With Me joining in the list of must-go running events in the country since 2015, many fans of the run continue to be a part of the event, this time bringing more friends and family with them. “For this year’s run, we have seen many repeat runners who have joined in our #runwithme events since the beginning.

We are happy that we have so many runners who come back every year to have a glimpse of Bandar Rimbayu’s progress while enjoying themselves in their own way, even creating new friendships along the way” said Susan Teh, Sales and Marketing Senior Manager at Bandar Rimbayu.

Every participant was presented with a complimentary PUMA t-shirt and a goodie bag with a pair of PUMA socks, Munchy’s Oat Crunch samples, Sensodyne toothpaste, Scott’s DHA Gummies and beauty items from FACESHOP. Runners also took home a unique finishing medal that represented this year’s Aloha theme, a symbol for fun, friendship and togetherness. Participants also had the chance to visit the Livia Type A showroom and find out more about Livia Type B homes – which are now open for unit-selection, after the public’s overwhelming response to Livia Type A homes.

Besides giving positive vibes and the opportunity to run with new and old friends, Run With Me also gives the community a chance to embrace a healthy lifestyle, a philosophy Bandar Rimbayu shares with its property owners through various events. The next exciting event will be Bandar Rimbayu’s Raya Open House on 16 July, from 6pm to 9pm at The Arc. Visitors can look forward to enjoying scrumptious festive delicacies; watch a dance performance and a spectacular 12 minute firework display.

For more information, please log on
http://www.rimbayu.com

— end —

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Need a protection on your home purchase? IJM Land’s HomeTIPS.

Developers are creative these days. I do think it’s a good sign for buyers who want better deals. Yes, some may term these as marketing gimmick but the truth is, we should only buy because the property is what we want. We should be buying simply for the marketing gimmicks, agree? The new one is IJM Land’s HomeTIPS, or Triple Insurance Protection Scheme. It offers protection for buyers who are buying for their family and it is working with Allianz Life Insurance Malaysia Berhad and Allianz General Insurance Company (Malaysia) Berhad to underwrite three insurance schemes offering peace of mind to all its home buyers for 36 months from the date of signing the Sales & Purchase Agreement. Below would be the actual Q&A to IJM Land and Allianz. Read to understand better.

To IJM Land:

Why has IJM Land decided to offer these specific options for the house buyer insurance scheme?

IJM Land believes that a home buyer should not have to face undue distress especially when they are embarking upon an exciting time in their lives with the purchase of a new property. Besides the obvious financial commitments of purchasing and paying for a property, life can throw all manner of twists and turns your way, and cast uncertainly over long term plans. IJM Land’s HomeTIPS, or Triple Insurance Protection Scheme, will enable you to invest in a home for your family and allay fears associated with being unable to cope, in case of an unexpected set back in life. This 3 in 1 form of protection for home buyers is a first in Malaysia, and we are proud to be able to collaborate with Allianz who are the underwriters of the policy.

What are the benefits of these schemes to house buyers?

The Term Life, Personal Accident and Involuntary Unemployment benefits are extended to house buyers for 36 months from the date of signing the Sales and Purchase Agreement.IJM Land home buyers who are involuntarily terminated from their employment during the tenure of the policy, will benefit from a timely pay out by the Unemployment Insurance. Home buyers from selected properties are also eligible for a Group Term Life Scheme and Personal Accident Scheme where financial benefits are paid out in the unfortunate case of death or total permanent disability.

How much does it cost to participate in these schemes?

Because we are invested in the well-being of our house buyers, IJM Land Home TIPS is offered as a generous additional benefit to the existing property purchase promotion, which includes free legal fees, free MOT and cash rebates amongst others.

Are there any restrictions with regards to the price of the property in order for this scheme to be effective?

IJM Land HomeTIPS is applicable to select residential development projectswith selling prices ranging from RM300k to RM2 million.

Do the insurance schemes only apply to new properties, or can second/third buyers avail of them too?

IJM Home TIPS applies to properties purchased directly from IJM Land during the campaign period from now to December 2016. The policy benefits are not transferable, and it will be null and void if the first purchaser terminates the Sales and Purchase Agreement or sells the property within three years from date of the Sales and Purchase Agreement.

To Allianz:

Why has Allianz chosen to work with IJM Land to offer these insurance schemes?

Allianz sees this as a smart and timely collaboration with IJM Land. We truly appreciate the trust given by IJM land to develop these insurance schemes where a developer / organization (IJM Land) really has the customer’s interest at heart. On top of value for money property sold, buyers via the HomeTIPS scheme will be protected with Unemployment Insurance and be eligible for a Group Term Life Scheme and Personal Accident Scheme.

Could you take us through some of the pre-requisites in order for a house buyer to be eligible for the schemes?

In order for a house buyer to be eligible for these schemes, the following are the main criteria

General Requirements

1)      The buyer’s home loan must have been approved

2)      Entry Age is between 18 to 64 years old

3)      The property purchased must be by an individual / individuals. A Corporate Entity is not entitled to these schemes

Specific Requirement for Unemployment Benefits

1)      You must be gainfully employed on regular, full time basis for at least 30 hours per week for at least consecutive weeks immediately prior to your unemployment date.

2)      Your unemployment date must occur during the coverage period

How quickly can I expect a payout in the case of a policy claim?

Under normal circumstances, claims will be settled within 72 hours and not more than 7 days, once all relevant information is given. For complex cases, payout is usually within one month from the date of complete documentation.

What is the scheme about?

It is called the HomeTIPS, or Triple Insurance Protection Scheme.

The scheme offers three insurance arrangements which give peace of mind to all IJM homebuyers, from the date of signing the Sales and Purchase Agreement.

The unique assurance of this insurance is the Unemployment Benefit, in the case where IJM Land homebuyers are involuntarily terminated due to economic reasons from their employment with the policy term.

The others are eligibility for a Group Term Life Scheme and Personal Accident Scheme, where financial benefits are paid out in the unfortunate case of death or total permanent disability, is also offered to homebuyers of selected IJM Land properties.

From the Media:

How is the IJM House Buyers Group Term Life Scheme different from other MRTA policies available on the market?

Typically, the MRTA covers the duration of the loan tenure and it is on a reducing amount.  IJM Land’s HomeTIPS extends its benefits for only 36 months but covers the purchase price, rounded down to the nearest rm50k

Is there a Takaful option for these insurance schemes?

No there isn’t.

So, is this scheme for you? Well, you would have to decide. As for projects that you would like to buy to enjoy this, do google and take a look at IJM Land’s projects then. Happy viewing.

written on 24 Aug 2016

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Press Release: IJM Land – Feel The Pulse Of Life At Nadi RIMBAYU Bizhub

Bandar Rimbayu by IJM Land has seen tremendous growth in the past few years. IJM Land’s commitment  to building sustainable world-class townships has helped transform Bandar Rimbayu into one of the most  sought after addresses in the southwest of the Klang Valley.

Through their endeavours in continuously building a wholesome township for its residents, Bandar  Rimbayu has answered the rise in demand for quality education with Oasis International School, while also  providing The Club, a resident clubhouse featuring first-class facilities.

Set to lift the township to greater heights, IJM Land is unveiling NADI, a brand new business hub. It will  comprise a 221.59-acre commercial park and a 41.10-acre industrial park. NADI has a total Gross  Development Value (GDV) of RM 2.4 billion.

“We have always envisioned Bandar Rimbayu as a one-stop and self-sustaining township for all of our  residents, and we are working tirelessly to realise that goal every day. With the exciting addition of NADI,  it will be a well-known business hub offering a variety of business activities. NADI will also double as a  bustling central meeting point and a gateway for trade among the community as it sits at the heart of Bandar  Rimbayu,” said Mr. Chai Kian Soon, Senior General Manager of Bandar Rimbayu.

Bandar Rimbayu’s proximity to commercial and residential hotspots of Shah Alam and Kota Kemuning  has transformed the region into a high catchment area. This growth is also catalysed by extensive road  networks connecting the areas. Harnessing the potential of its strategic location and connectivity, NADI  will become a highly-strategic hub where nearby residents, visitors and business communities can converge  and carry out daily work or leisure activities.

Uptown @ Rimbayu at NADI Commercial Park

The great variety and flexibility of lot sizes and shop types available at Uptown @ Rimbayu were  purposefully designed to attract a broad spectrum of businesses. The 2
nd
quarter of 2021, NADI commercial  hub will soon see its maiden launch of a collection of 68 shops (Uptown) with excellent visibility. With a  total GDV of RM198 million, Uptown @ Rimbayu features different designs that cater to different needs  within its 8 premium linked shops, 55 linked shops and 5 single-storey shops. Modern and lifestyle  businesses, for instance, can opt for lots with sizeable balconies that could add value to their customers.  Nearby, A McDonald’s outlet is tentatively scheduled to open in Q3 2021, while an adjacent 2-acre land  has been sold for the construction of a corporate office tower.

IJM Land is confident the commercial park will bring together businesses such as food & beverages, hotels  & institutions, residential malls, sports centres, show rooms and corporate offices to transform the area into  a bustling economic hub.

The expected mushrooming of convenience stores, courtyard and night markets, weekday bazaars,  restaurants, outdoor delis and pet stores will ease the day-to-day lives of families and visitors in Bandar  Rimbayu.

NADI Industrial Park

In line with IJM Land’s commitment to sustainability and the safety, health and wellbeing of the residents,  NADI prioritises the operation of non-polluting, light and medium industrial tenants for its industrial park.  In doing so, NADI is seeking to attract more clean industrial sub-sectors such as logistics, warehouses, life  science, 3S/4S service centres, manufacturing and technology. It is also seeking to drive more opportunities  and collaborations with established and sustainable industry players in cultivating an eco-friendly industrial  park.

Bandar Rimbayu’s robust township development and growing population along with increasing purchasing  power will drive NADI business potential.

Much-needed socioeconomic boost

During these economically-challenging times, the development and growth of the commercial and  industrial segments of NADI in Bandar Rimbayu will create job opportunities for the surrounding  communities. The housing components will complement the incoming workforce by providing  accommodation to the industrial and commercial workers.

The accessibility and connectivity solidify NADI as an up-and coming-industrial gateway. NADI is located  28km from the country’s main gateway by sea, Port Klang, 32km from Subang Airport, and 35km from  KLIA. Business and trading are made easier with smooth accessibility to Shah Alam (15km), Putrajaya  (25km) and the Kuala Lumpur city centre (40km).

As for the commercial component, NADI aims to attract residential communities and visitors from within  Bandar Rimbayu and neighboring hotspots by capitalising on the seamless connectivity of nearby  expressways. From the township, communities are in close proximity to entry and exit points of Lebuhraya  Shah Alam (KESAS), Lebuhraya Kemuning – Shah Alam (LKSA), Expressway Lingkaran Tengah  (ELITE), the South Klang Valley Expressway (SKVE) and the West Coast Expressway (WCE), which will  be completed in 2024.

For more information, log on to
www.rimbayu.com
.

-End-

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IJM Land and recurring income strategy

Companies get listed in stock exchanges to get funding from the public or investors. However, after the business has stabilised and earning good profits, many companies come to a realisation that perhaps listing may not the best option anymore, once they have reached a certain size and especially if they have quite a lot of cash. In other words, why still maintain the listing and thus have to comply with many BURSA requirements when as a private entity you answer to no one but the parent company or the owner? The decision making would also be much faster and there is the added advantage that one day when you feel your value has increased substantially, a relisting may yield an even higher valuation for the parent company. Reported in an English daily recently, IJM Land is going towards this privatisation route.

In fact the plans have been outlined for it to increase its recurring income so that during slow times, it can slow down its development without having no income. In other words, better flexibility. During slower times, development can thus be slowed down accordingly. There is really little incentive to build if the demand is weak and contribute to a squeezed margin and definitely a higher risk too. It’s parent company, IJM Corp CEO and MD Datuk Teh Kean Ming said that for now, IJM Land is not looking to establish a real estate According to IJM Land CEO and MD Datuk Soam Heng Choon, IJM Land still has 4,900 acres of undeveloped land with a gross development value of RM30 billion.

I think I have read many of these ‘recurring income’ theme amongst developers these days. Some examples include Tropicana, Hunza, Tambun Indah and Ken Holdings. This is no different from an individual investor who has gained quite a lot from his property investments for the past many years and is now buying secondary properties for rental basis so that it’s not so volatile and yet still have the potential for future capital appreciations. For all these listed developers, I think this is a good trend. It enables the owner to reap the maximum possible profits without the need to share them in the future with huge number of shareholders. IJM also announced that it is looking to launch another RM1 billion worth of new properties before the end of its financial year ending March 31 2015.

written on 14 Jan 2015

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