53% of Gen-Y owns a property……. in Australia.

Realestate.com.au is a major property site in Australia. I think, by far the biggest. In an article by Emma Sorensen in relation to their annual Housing Affordability Sentiment Index (HASI) survey for 2014, it shows that Generation Y (born between 1981 and 1994) is buying property earlier than other generations. Out of those Gen-Yers who has properties, 89% of Gen-Y of them bought their first property before they were 30 years old. While I am not sure about Malaysia, but on top of my mind, the few more capable Gen-Y friends I have really do own properties and they really did buy them before they reach 30! In terms of actually owning a property, over half or 53% of all Gen-Yers already owns one property and 23% owns more than one! 47% even have ambitions to buy a second property within the next 5 years.

I do hope that a similar survey can be done here in Malaysia. Perhaps iProperty or PropertyGuru or Propwall can think about it. 🙂

I have written about Gen-Y before. Read it here:
Gen-Y and property
 There are many traits which I do not lie about Gen-Y.  One example is that majority of them think way too highly of themselves. Even though they have just a few years of working experience, they wanted to buy condos and not even apartments. They think only condos are fit for them. Thus they continue to shout that the prices of condos are beyond them etc. My wife and I lived happily with my sister and my brother in-law for many years in a RM123,000 apartment until I saved enough to upgrade to a condo. The same apartment can still be bought for RM250,000. Do not tell me that this is ‘UNAFFORDABLE’.

However, despite these, I also acknowledge this amongst the above average Gen-Yers whom I know. They are really fast learners. It is hard to change the opinions of the ‘know everything’ Gen-X friends of mine but the Gen-Y staffs whom I had, they soaked up the coaching and mentoring within a short period of time and suddenly when you look back, they were already so experienced! They can also work hard and typically afraid of nothing and will always try to be better and bolder. Gen-X? Well, I think majority are no longer that young these days, so maybe it’s great that Gen-X can work together with Gen-Y, infusing them with the experience and gaining from Gen-Y’s vibrancy. Okay, let’s wait for the survey results from the few companies mentioned above yeah. No idea if any of their editors are reading this though but for a survey to be at least representative, it should be answered by a minimum of 5,000 respondents.

written on 2nd Aug 2014

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If 53 tenants decided not to renew, time to worry?

If you did not know, WCT Holdings is the builder of the Paradigm Mall in Kelana Jaya and KLIA2. The ‘airport within a shopping centre,’ like what has been mentioned by many people sarcastically. To be honest, I seriously think all airports should follow this design. Whether it’s a mall within an airport or the other way around, it’s important that airports are lively and have lots to see, do and SHOP. Yes, I am considered a shopaholic. I used to drop by Paradigm Mall every week when I was still staying next to it. I like it’s design and I think there are more than enough shops for me to shop and even dine.

Well, there’s a negative news recently with regards to Paradigm Mall. 53 of its tenants or 18% have decided not to renew their tenancy two months ago. This has left gaps which are still not filled. According to WCT Malls management Sdn Bhd’s general manager Vincent Chong, replacing these tenants can take as quickly as one month to as many as 5 months. The positive news is that the anchor tenants have all renewed their tenancy agreements. Of course current market is also getting tougher too. Read here:
Retail numbers and credit cards spending down but..
I think one most important anchor tenant has to be Tesco’s. I never fail to visit it every time I am there. Besides trying to get new tenants, they have also been talking to the 53 to reverse their decision.

Personally, I think when the renewal is due, there are bound to be shops which would decide not to renew either because of business or perhaps because of a higher rental rate. As everyone would have noted, the number of malls are also increasing and this would of course increase pressure on all existing malls. However, it is important that the vacant units be filled up as soon as possible. Imagine visiting a mall where there are vacant units everywhere you look, would you feel good? The more interesting shops, the more shoppers and more shoppers meant more potential retail business and thus more tenants queuing up for a lot.

I think Paradigm Mall has quite a good catchment area. It’s own residential towers in the future as well as the existing condos beside and nearby. It has also been quite pro-active in organising many events which helped to boost number of visitors during weekends too. The current time is a challenging one. Read here:
Tough to do business these days; malls too many
 If it can fill up most of the units within the next few months, I think it’s still positive. the next renewal period is definitely some time away. Happy visiting!

written on 14 Aug 2015

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550sf vs 1,000sf, choice is clear to me

On and off, I read articles on how best some interior designers redesigned a tiny small space into a liveable space. For some cases, it is tagged as desirable space. In a recent article, someone bought a small garage, made it into a very nice little home which can even be used to host parties for friends. He made into two levels, so that he can have a bed on the 1
st
 floor and sleep right below the ceiling. Is this a lifestyle that I would want in the near future? Well, even if I am single, not for me. To me, size is very important to me. No matter how awesome a 550sf space can be redesigned into something which looks like a 1,000sf, I would prefer that 1,000sf place anytime. Yes, call me a ‘traditionalist’ but I am quite an objective ‘traditionalist’. Why do I say so?

Space is a premium. This means that whether you own a 550sf or a 1,000sf today, it is likely that these sizes are the maximum that you can afford for the same price levels moving forward. In other words, if a RM400,000 buys you a 550sf today or a 1,000sf in a less popular area, this is likely to the biggest money can buy. There is no need to look too far. Just refer to the Hong Kong and Singapore examples. Yes, there is every possibility for another financial crisis and the prices may drop 20% or even 30%. However, we have to understand that once prices drop way too much, it is more likely that supply will stop because there’s just no way to build. Then, the demand and supply takes over and space is a premium would be true again.

Size is what I see, not just what I think I have. I open my door and saw that I have just a 550sf studio unit but hey I have two floors which extends the whole unit into 800sf. Wow… not for me. Many ‘traditionalists’ like me would still like to open the door and cannot finish viewing the whole place without moving about. Yes, if possible with my loved ones or for those with family, then with their families. I am very sure the singles would argue that 550sf is more than enough. I agree but always remember, between a 550sf versus a 1,000sf unit, it is not always that people would choose the 550sf unit. For Malaysia, I think until today, the preference is for a larger unit. Ask any Singaporean or Hong Konger and tell me if you think majority of them would prefer a smaller unit versus a larger one. Let’s be objective on this one, ok?

If you really love small units and wants to stay in it forever, yes, please do buy one and enjoy it for the rest of your life. If however you are buying small units because the sales people are telling you this is the trend of the future, think again. Even the Singaporeans and the Hong Kongers would still tell you that they prefer bigger units instead. Especially units big enough for a small family gathering. Definitely not a unit big enough only for the whole family to sleep on the floor. If you buy with your eyes wide open, you should do just fine. Reason being with its affordability price tag, these small units are unlikely to depreciate much even during crisis. However, with its already high overall price vis-a-vis its size, please do not put high hopes that it would continue to rise to the sky. Happy buying and staying in one, if you truly love one.

written on 26 Jan 2015

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Oh dear, 580,000 businesses facing closure by October

Before we start today’s topic, this is the explanation about fatigue.
“Fatigue
 is a symptom, not a condition.”

Second thing we should know is this. “Facing Closure” and “already closed down” are very different thing as well.

For both cases, whether it’s fatigue or facing closure, it tells us that something could still be done in order not to have this final outcome happening. I give you a good example.

If I have a business which is generating many thousands of ringgit in earnings per month and it’s under a lockdown currently, I would definitely have to pivot quickly. Quickly learn how to sell online, for example. Setting up online shops is easy as ABC these days.

Quickly become a delivery rider for some hours everyday. They need more people not less people all the time.

Quickly take the time to learn about property investments so that I could use in the future. There are many things to do. In fact, this is what Jezz Bezos (one of the richest man in the world nonetheless) said, “Stress primarily comes from not taking action over something that you can have some control over.”

We have full control on our self and many other things too. Please remember that in many countries, even if you like to do what I suggested above, you have no such opportunities.

Last but not least, it’s definitely possible to stop the business and just go back to the 9-5 every day and just receive a salary every month. Climb the corporate ladder, continue increasing the earnings slowly over the years, invest those money and having far lower stress levels than owning a business and does not know what to do during a lockdown and thus suffering from fatigue and facing closure.

Article in themalaysianreserve.com
  Minister of Entrepreneur Development and Cooperatives (Medac) Datuk Seri Dr Wan Junaidi Tuanku Jaafar says that up to 580,000 businesses representing 49 % of the micro, small and medium enterprise (MSME) sector — are at risk of closing down by October.

He said, “If we don’t do something to help them now, I am worried that many of these MSMEs will fail and will not be around to help rebuild the economy once businesses are allowed to open. The longer businesses are not allowed to operate, the longer it will take to recover.”

To make it worse, he said many businesses are now suffering “business fatigue” syndrome and declining confidence as a result of lockdown. Do read the full article here:
Article in themalaysianreserve.com

SMEs will rise faster than any large corporates

As soon as there’s demand, someone will try to capture that demand. This is what all SMEs are about; agility and speed. It’s very true that lockdowns are not helping but businesses and especially SMEs would have to find a way to weather this because it’s never fair weather all the time. There are bound to be ups and downs and every business must also be prepared for such times.

Imagine someone earning a lot of money but spends it all without saving some money? When the ‘winter’ comes, this person earning a lot of money would have no money to last the winter. This should be the same for businesses too. By the way, banks will approve if the SMEs were to apply for the moratorium of 6 months. All the best and may good days return soon.

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6% growth 2014. Strong domestic demand.

Finally, the number is out and the number is a good one. 6% growth in 2014, higher than even 2013. Yes, higher growth than when Ringgit was much stronger compared to today. Yes, higher growth despite all the ‘awesome’ news reports by many analysts. Yes, higher growth despite everyone saying the economy is not doing well and is on the brink of collapse because of a RM2 Billion debt owed to Malaysian banks by 1MDB. Do read online and look at some of the out of this world comments. Yes, I have written about this before earlier. Here:
Oh No! Oil prices falling means Bursa stocks and Ringgit will fall too!

Actually, while it is true that there are hiccups here and there, Malaysian economy is definitely not on the brink of collapsing and unless the whole world goes into crisis, there is little chance for Malaysia to jump into a financial crisis by itself.

The growth was largely driven by the domestic demand. Look at the cafes that is sprouting and the continuous opening of even more new retail stores and the frustration of not being able to find a car park in majority of all the popular departmental stores. Be worried when cafes are empty, retail stores have no one inside them and parking is very easy to find. There’s no need to rely on economists who will always be 6 months late. Open our eyes and note all these changes ourselves.

Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said that Q4’s stronger growth of 5.8% is mostly due to stronger private spending. Since this is 75% of the Malaysian economy, this meant that  as long as domestic demand is strong, Malaysia is strong enough to withstand some external shocks. Exports also provided another cushion while beginning 2014, Malaysia benefited from the lower oil prices as we have turned into net importer. After years of pushing for a stronger banking sector, it has remained strong and well capitalised. Health check? Passed.

written on 12 Feb 2015

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6-month stamp duty exemption to all, not just first-timers (good suggestion)

Penang Rehda chairman Datuk Toh Chin Leong is urging the federal government to consider opening up the 6-month stamp duty exemption to all house buyers instead of just first-time purchasers.
Article in TheMalayMail.com
 He shared that the association has submitted the proposal for the government’s consideration. He said, “We welcome the government’s move to introduce stamp duty exemptions for first time home buyers for properties priced between RM300,001 and RM1 million for six months but we are appealing to the government to extend this to all house buyers so that we can clear more unsold stock.”  Besides this extension, he said Rehda is also appealing to the government to increase the property price threshold so that the exemption can also be extended to those buying properties from RM300,001 up to RM2 million, instead of RM1 million.

With all these extension and exemption, the unsold units could be cleared faster. On the Penang state government’s announcement yesterday of a one-month exemption of the three per cent approval fees imposed on foreign purchasers, Toh said the period was too short. He said that the association hopes that the state government could extend it up to June 30 because promotion of the properties needs time. He also said that Penang property market is still a very good investment destination despite the market being soft for the past two years. Toh shared that the perfect time for prospective home buyers to buy would be next month’s Malaysia Property Expo (Mapex) here in Penang. He said, “All properties on exhibit will have a 10 per cent discount and buyers will also get these extra perks such as the stamp duty exemptions.” Next month’s Mapex, will be held at Udini Square, is from February 7 to 10th.
Article in TheMalayMail.com

Let’s understand that if we are relying on just first-time home buyers, they are unlikely to be the ones leading the market. It’s their first time and when they see the figure of RM300,000 for that affordable home, they feel dizzy. Even those who have worked for a few years will still feel RM300,000 is just too big an amount. This is why measures must be wider and not focused on just first-timers. Beyond just buying a home, some of these households may be better off with renting first and own later. Rent-to-own scheme would be much more suitable for them. The National Housing Policy
touched on these too which is good. Earlier article here.
 Happy viewing and comparing because even deciding whether to buy or not to buy. If we did not find anything which meets our requirements, please do not buy. Cheers.

written on 30 Jan 2019

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6 Months Moratorium returns. Should I go for it? This was yesterday’s Pemulih announcement by
Prime Minister Muhyiddin Yassin. (click to read in full)
 Now that we know moratorium is making a return, the question of should we take it up or not returns as well.

My
good friend Jessica Jong
 who happens to also be an expert with regards to home mortgages posted this very simple explanation about moratorium. She explained what it may do to your home loan if you opt for it just because you was offered it by your bank.

Please take note that every situation in taking up the moratorium is different and the below sharing by Jessica is just an example of one particular scenario and does not necessarily apply to everyone and every loan scenario. A different loan repayment period, for example at the start of the loan or towards the end of the loan would provide a totally different calculation too. Please do proceed to check with your bank for your particular case.

Do note that if you really need the money for some financial distress, you would still have to opt for the moratorium yeah.

— start of Jessica Jong’s sharing —

SHOULD I OPT-IN FOR MORATORIUM?=========================

After the announcement on 6-month loan moratorium by our PM yesterday, I received at least 10 calls from my friends asking me whether or not to apply for mortgage loan moratorium. Here’s a true story that I shared with my friends, and I thought it’s good for me to share with my FB friends as well.

I met with Mr.X last month. He told me that his mortgage loan seems to have problems because the loan outstanding balance has significantly increased more than his actual loan amount. He felt cheated by the bank when he thought bank will not charge interest during moratorium period

After I gathered his loan documents, here’s what I found:

 Mr.X took an Islamic Mortgage Loan from RHB.
 Loan Amount – RM429,080.00 for 35 years
 He started servicing his loan on 5 Nov 2019. He opted in for 6-months moratorium on 1 Apr – 30 Sep 2020.
 On 1 May 2021, his Loan Payoff Amount – RM435,812.90. The remaining instalment to be paid – 44 years 11 months

 Mr.X loan tenure has been extended to another 9 years ++ as a result of taking the 6-months moratorium
I told Mr.X that bank will continue to charge daily interest/ profit on the loan. This means, accumulated repayment amount will be added to the outstanding loan amount.

For Islamic loan, profit will continue to accrue on the outstanding principal amount. Such profit will not be compounded in line with Shariah principles. Actually Mr.X did not face any financial difficulties when he opted in the 6-months moratorium in year 2020. He was influenced by his friends to took the loan moratorium just to conserve cash.

He thought that bank will not charge interest during the moratorium period and at most his loan will only defer by 6 months. After the moratorium period ended, only he realized that his loan tenure is extended to another 9 years ++ What a costly mistake!

My advise to my friends and those that are reading this post:

 Don’t go for moratorium unless you really face a cash crunch. Why shell out higher interest outgo later when you can service your obligations today?

 Nevertheless, if you face some serious cash flow issues during this period and have no emergency funds, this deferment is to alleviate this concern.

Due to MCO, all my mortgage talks are conducted via online Zoom meetings. If you are keen to find out how my clients & I paid off our mortgages in 3 years,
you may register by clicking here.
See you soon.

#MortgageManagement
#EarlySettlement
#BuildCapitalAssets
#ConvertLiabilityIntoAssets
#DebtFree
#FinancialFreedom

— end of Jessica Jong’s sharing —

Reminder – spending tomorrow’s money today is never a good option

Moratorium is to give breathing space. It is not to give us money to spend on things we like. Not paying for 2 mortgages every month may make someone RM3,000 “richer” but this amount will still have to be paid, plus the interest too. It is a well known fact that many asked for automatic moratorium because they WANTED the money and not because the NEEDED the money. This was why Bank Negara Malaysia (BNM) does not agree to it. I am on BNM’s side.

However, as usual when people pressure becomes too much, the politics take over and we have the blanket moratorium again. Anyway, what has been announced has been announced. On my part, I can only write to provide the necessary view. The decision is definitely up to the person to take. It’s their life, not mine. Happy reading.

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First 6 months, SP Setia’s net profit margin at 12.83%

Want to know what’s the net profit margin for one of Malaysia’s most famous developer, SP Setia? It’s 12.83% for first 6 months. For the first 6 months, it’s net profit stood at RM328.51 million versus a revenue of RM2.56 billion. YES, this is just for 6 months. Yes, the margin is not that amazingly high, unlike what I thought but the absolute number at the end of one financial year will be huge. It said the increase in profit was because of increased revenue as well as the profit recognition from the handover of the group’s first residential tower in Fulton Lane, Melbourne.

As for it’s Malaysian operations, SP Setia said that challenges such as weak buying sentiment and tighter lending from banks would continue to weigh on its results. In fact, with these cooling measures, it is revising its sales target for FY2015 down by RM600 million. From RM4.6 billion to RM4.0 billion. As it is now focussed on mid-priced properties as well as some amazingly huge unbilled sales of RM11 billion, it should continue to do well. Its acting president and CEO Datuk Khor Chap Jen said, “We are confident that with the right products and the strategic location of our remaining landbank, we will continue to witness strong demand for our projects in the current financial year.”

For any real slowdown in the economy, property developers’ results would be another reliable sign. You can see other signs here:
spotting signs of a property bubble, 3 points (updated)
 It is not possible for the Malaysian economy to do badly but their profits to rise continuously. With a slowing economy as well as negative sentiment, this will affect the results from developers. When we refer to SP Setia’s result, it has not really shown these ill-effects BUT do note that it has revised its sales targets down by RM600 million. This by itself would have given us a hint of how tough the situation has become even as many of these branded ones switch their focus to more affordable homes. Happy buying.

written on 21 June 2015

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6 reasons I love secondary properties

If you prefer to buy a home which you are the FIRST owner, then you may skip this article. 🙂  However, if you are looking at buying something of ‘What You See is What You Get?,’ then this sharing is written just for you. In my property investment adventure thus far, I have bought both new and secondary properties. My first was a secondary and my second was a new property. Both have its advantages but today, we look at 6 reasons to like secondary properties. (Tomorrow, we look at 6 reasons for new properties)

#1 – What you see is what you get.
 Yes, that leak you see will still continue to leak, so it’s either skip this property or negotiate for a lower price so that you can use the savings to fix the leak. The awesome thing is this, you know immediately what you are buying. That toilet door is too flimsy, the whole house needs a fresh coat of paint or even the kitchen cabinets which you like and you are looking at a saving of RM15,000 for it.

#2 – JAM or NO JAM?
 It’s already an established fact. If you need to change your lifestyle in order to stay there, Google Map would have told you so, too. This is not going to be a surprise like a new development where there were no jams before the development was completed but when 1,000 new people move in, the congestion starts.  By the way, jam or no jam will be with you for a very long time… unless you be a good Malaysian and take the public transport.

 #3 – FASTER returns.
 You may buy for own stay or for rental investment returns. For both, they will come much faster. Usually within months instead of within years when you are buying by looking at the brochure. In other words, you put in the downpayment, get a loan and a few months later, you save from not paying rental (which you gain nothing) or you start earning rental from your tenants for a very long time.
Here are some tips on how to choose them.

#4 – Renovation savings.
 Okay this is a real fact. We could spend RM200,000 on renovation but any valuer would tell you that this RM200,000 is NOT going to be automatically added into your house price. This meant that if we are buying secondary properties, how about looking at the renovated units? Here’s an earlier article:
Advantages of buying renovated units
. Of course, this also meant that we should like the renovation done earlier too. If we do, we save a lot of money and a lot of time too.

#5 – Mature neighbourhood.
 This is definitely one major reason to buy secondary units. Newer projects are usually further away. If the new project is within a mature neighbourhood, then the price is likely to be extremely high. When we buy into a mature neighbourhood, we start to enjoy all the amenities immediately. For example, the nice restaurants, the nearby schools, hypermarkets and more. New townships may not have everything which a mature neighbourhood has.

#6 – CHEAPER.
 Yes, the price is usually cheaper when compared to a new project in the same place. The reason? Well, you are buying at today’s price. The new development meanwhile could only be completed a few years later. All these must be taken into account. Do note also that the prices are cheaper is also because there are some potential maintenance we need to do also yeah. Over 10 year old homes, it’s best to really check the piping and the electrical wirings. Doing it when we have moved in will be terribly inconvenient.

It’s not all good okay. Secondary properties usually have older design. Even the colour is no longer considered ‘modern contemporary.’ The external paint has faded and looks jaded. Haha.  Maintenance has been mentioned above but I think it’s very important that we really check the property we are about to buy before buying. This is a few hundred thousand thing or sometimes over a million ringgit. We can choose to throw away the vegetable we bought from the market that was not fresh but a property will be with us for a long time. If it’s high-rise that you are looking at,
then here are some tips in checking them out.
 Happy buying.

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written on 22 Nov 2018

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6% return for 9 years or a landed property in Melaka?

A friend asked me today, if I am to choose, which would I choose. A very small fully furnished suite for RM350,000 with a 6% return for 9 years or a landed terrace house. I told her, until today I have never owned a landed property because I did not buy for own stay, thus I chose to buy condo. As for my own stay, I buy something which I love to stay, thus I buy a condo. I told her too, I do not have SOHO units. However, I still tell her that between these two, personally I would choose the 6% return for 9 years. My reasons?

Guaranteed return. 6% return per year meant that no matter what happens, at least 6% is guaranteed. Unless of course the developer goes bust. 6% is not that high but compared to majority of places where the prices has gone up tremendously, even a yield of 5% is tough these days. Besides that, even if I calculate the increment based on 1% per annum, my ROI based on my 10% capital after 9 years is still slightly over 10%. It is true, I would have to pay lawyer’s fee, stamp duties etc but I still do think 1% is a very conservative number.

Maintenance issue. If I rent out the landed property, it is unlikely to give me any good rental yields. There would also be wear and tear. Just imagine after 9 years, how many things would you need to fix. If you do not rent out, the problem would be worse. Are you sure you want to leave a house empty for 9 years? Then, hope to sell at a high price? Yes, it is true, the potential capital appreciation may exceed that of the condo but then again, this is not a guaranteed matter. As long as you are able to accept this and not feel bad that the return is low, you may choose this option.

There is no need to follow my choice because the truth is, everyone has their own way of investing. In fact I told

my friend that both the choices are definitely better than to leave all the money in FD. Oh yeah, be reminded that
before you start any investment, FD is a must
. She has yet to decide but in terms of Melaka, it is definitely an option that I would consider in the near future.

written on 25 feb 2014

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6 things about the future homeless generation.

There are some news saying that the next generation may not be able to afford their own property. There are also news saying that in future, most people will rent instead of buying. They will point out to UBER / GRAB and Airbnb and expects me to agree. 🙂  I disagree with this view though. Perhaps I share 6 things about the future property market for this generation?

#1 – Buying is ok. Liking is another.
 A property which is big and near enough may be out of their reach. For example, a full facility condo of 1,000 sq ft and within 15km from the KL city centre is not likely to be affordable to this younger generation in future. They may be able to afford half the size of 850 sq ft and the price may still be affordable. Else, they can buy a much bigger place but the distance will easily double that of 15km. Yes, I am very sure by then they can rely on public transport too.

#2 – Support will continue. Perception stays.
 Government will still support with affordable projects even then, just like today. Of course, the issues such as unattractive location, not-so-attractive price and even the perception will remain the same. Remember the thought of low cost flats of yesterday? Things are changing but the perception cannot be changed overnight yeah. In future, they will compare with those nicer but more expensive projects from private developers.

#3 – Downpayment is still needed. It will still be tough to save.
 Looking at the number of things which are in trend these days meant that people will be attracted to buy versus saving up for a property. No wonder the national savings rate of Malaysians are dropping fast! Here’s an earlier article:
“
So many have zero savings
“
 about the state of savings for Malaysians. In brief, it’s not looking bright.

Source:
https://www.macrobusiness.com.au/2017/01/2017-demographia-housing-affordability-survey/

#4 – Median property price vs income will inch upwards.
Just look at the numbers for the advanced countries would already tell us this fact. Okay, unless Malaysia is a country which is different from others. Instead of 3x annual median household income which will be affordable, chances are this will be higher than 4.5 like most other nations. This will either be under the ‘Seriously Unaffordable’ or ‘Severely Unaffordable.’ This is why PA and MA’s savings will come in handy. Or Pa and Ma better buy a unit today in advance for future. Here’s an earlier article about savings for the children being complemented by buying a property:
Education savings fund can be complemented by property too

#5 – Loans will still be tough to obtain.
Imagine a time when Bank Negara Malaysia forces every commercial bank to lend to anyone and everyone who wants to buy a property. I think this is a disaster waiting to happen because soon, the buyers will not be able to pay their monthly mortgages, banks will then have to take a huge pay cut to auction the property off and what IF more than half of all their loans go this route? This is why banks must only lend to people who can qualify instead of anyone and everyone.

#6 – Car cannot be compared to a property.
It’s really possible to take the public transport these days in most part of the Klang Valley. It will be even more connected in the future. However, to say that the next generation will just rent because of GRAB or Airbnb culture is going to be very wrong. Without a car, one can survive. Without a property, it’s hard to sleep by the roadside and if we want to rent a place, it also meant that the owners will become much richer than the tenants simply because they bought a property earlier.
Here’s a true story about property vs poverty.

Happy understanding and noting that that next generation needs to also understand that the world does not revolve around them. Richer parents may help but for the majority of us working Malaysians, please continue to read more and understand that financial savviness will be that main ingredient whether we are comfortable when we get older or we start complaining about the unfair world in the future. Cheers.

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written on 19 Sept 2018

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6 things to think about when you buy a property and getting a loan

My good friend who’s also a colleague asked, ‘if I am almost ready for my second property and getting a mortgage loan can you give me some advice?’. I feel that you need to consider 6 things. However, beyond that, you must decide on item 1 first.

1) Are you serious about property investment? The reason I ask is because you need lots of time.
‘Property Investment? You need lots of time’
 Do you already know enough about the property? Are you buying simply because your friend is buying? Decide with sufficient information.

2) If you have
decided, viewed and found a property,
 then think about the type of loan. Traditional term loan or a Flexi Loan. I think these days, majority would go for Flexi Loan but personally I prefer fixed amount per month. I do not normally pay more because I would love to also save for my next property. Note, this is just a personal preference. If you want to save on interest, you should pay more every month.

3)
Interest Rate.
 It can be very different from bank to bank even if the difference is 0.1 – 0.5%. Always call a few bankers instead of one. By doing this, you may be able to get the bank which is giving the best rate at that particular month. I used to prefer banks with more branches but these days I think any bank with your account should be fine. Just TT. Per transaction is just 10 cents.

4) Margin of Financing (How Much the bank would lend you). If this is your third property, it would be a maximum of 70%. Else, you may get 90% but all these depend on the value of the property, your
 credit rating

and the bank themselves. Different banks may have different way to evaluate your loan application.

5) Lock In Period. If your bank loan has a Lock-In period, you cannot finish paying off the loan any earlier or else you may incur a penalty. Nowadays however, there are a lot of banks who would waive the lock-in-period provided you provide sufficient notice. Check before you take.

6) The Bank. It would be wise to choose a bank for which your salary is credited every month. Alternatively, one which is near your office. This would give you the convenience should you need to go to the bank or when you need to TT the payment. I have had bad experience with a certain foreign bank before but my friend said foreign banks are the best. Choice is yours. Everyone has their preference.

If the banker has served you well, it certainly pays to treat him a cup of Starbucks. Be good to everyone because they may share even more good deals with you in future.

written on 21 Feb 2014

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6 things we can do to retire without too much worry.

Studies have shown that we need a lot of money to maintain our lifestyle when we retire. Please ask your insurance agent friend about the actual amount yeah. They have a calculator to help you. If they refuse to help you, let me know yeah. I will provide you contacts. Briefly, if we wish to retire with enough money to live comfortably, we should save a minimum of 1/3 of what we have today and invest it so that by the time we retire, the money we have should be around 2/3 of what we earn today. Beyond just having enough money however, these are the 6 things we can do well in advance so that we can maximise our savings as well as to avoid unforeseen circumstances.

Medical i
nsurance / card is definitely a necessity.
 All over the world, the poor and the middle class are suffering from crazily high medical costs. This is not to say everyone will have medical complications when they retire. However, as soon as we have one, then it will empty a lot of what we have saved. A minor surgery today would easily cost many thousands and with inflation, in the future, it will cost many times the thousands we pay today. This is not a chance we should take.

Car loan.

Get a reliable car. One that requires little maintenance. Come on, google and we will have the answers on the car models and brands with least issues. There is little need to buy a new car as soon as we retire to show that we have a lot of retirement money. This is basically spending money to show off to people we dislike while good friends would not care much about the car we drive. There is little need to continue paying monthly car instalments when we retire! Better use the money for travelling every few months?

Housing loan.

Actually, until what age should we pay for our homes? Strategically, when we retire, we should not carry too much debts. By then homes we bought much earlier would already be giving good rental returns. In fact at that time, it’s even possible to just sell one of those homes and use it to fund some of our interests too. Yeah, after we retire, it’s possible that rental may be a better option than to buy a home. Travel a bit, stay where you like. (This is my plan…)

Credit Card.

A close friend said he does not own a credit card because he accumulated too much debts previously due to overspending. My father even called the bank to limit his credit limit because he wants to ensure he would not be spending too much. Treat credit card as a convenience and not as a credit extension. Perhaps by then credit cards would already be obsolete? Spending within our means would mean paying what we spend within the same month. Do not overspend!

Luxuries?

If it ain’t broken, don’t replace it. As a start, your smartphone. By the way, BRAND has nothing to do with NEED yeah. Buying what we need would easily be savings of many thousands every few years. Over a period of 10 years and 5 smartphones, the savings would easily top RM20,000! There are also the hundred vs thousand handbags even if those thousands ones could last like many more years than the hundreds? 😛  As for the rest, you know yeah. Luxury items are really not needed by the time we retire.

Planning holidays ahead.

When we retire, we could plan our holidays based on prices; flight tickets, hotels and even currency exchange! Haha. When we plan ahead, every holiday would save us hundreds or even thousands. One very real example? Buying KL – Bangkok flights in advance could be as cheap as RM250 per return trip OR double the price when we buy last minute. OR… buy at the very last minute. Some friends have informed me that hotel rates booked on the day before travel can be 50 percent cheaper than if we book earlier! The catch is… it depends on availability.

I know, there are a few more points. For example, learning how to trade stocks, do some freelance work when we love what we do. Open an online store and automate the process and just focus on writing good content is another. Perhaps even start writing a blog and slowly push up the visits. You may reach 40,000 visits per month like kopiandproperty.com! No limits actually. Just remember to prepare in advance and making some clever decisions when we retire. It helps tremendously towards having a smoother retirement, financially.

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written on 17 July 2018

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6 great tips to get your home loan approved.

How do you get your home loan approved? It was such a lively KopiTalk #14 session just a few days ago. My guest-of-honour was Ms. Jessica Jong who shared with listeners on how she managed to fully paid off her first home loan within 3.5 years. Yes, it took her just 3.5 years. . If you like to learn
from her, this is the FB Live link (click to view).

Trust me, lots to learn and it’s free too. Saving 50% off the interest for your home loan is within the things she shared in the FB Live session too. She also shared how much we may need to prepare for our children’s education in the future too. If you are able to get your home loan approved, then you have done the first step.

Photo by Ketut Subiyanto on
Pexels.com

First Time Home Buyer, get your home loan approved.

In her presentation, she shared one particular slide which I think is a very useful one, especially for first time home buyer. By the way, the approval for home loan is pretty stringent yeah. Banks may not want to lend if they feel you are working in a high-risk industry. They may also not want to lend to you because you were buying an overpriced property too. They may choose to offer you a much lower Loan-to-Value (LTV) but if they do so, you may not have enough downpayment to cover the gap.

So, do follow the steps outlined below for a much higher chance to get the loan approved yeah. If you prefer to get in touch with
Ms. Jessica Jong, click here.

click image to download the PDF copy yeah.

Click here for the pdf copy for download.

Pay earlier, pay later, up to you

Please do note that I am not asking everyone to settle their home loans early because everyone may have their very own investment plan. However, settling the home loan early also meant that one pays much lower interest amount and actually in the very near future, once the home loan is settled, then investing into that next property may be easier since we no longer need to allocate one big chunk of our salary into home loan monthly repayment. The choice is yours to make yeah. Happy listening.
Here’s the FB Live link again.

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Return of over 60 percent above FD rate. Good job and keep it up!

The Employees Provident Fund (EPF) has declared a dividend rate of 6.9 percent for conventional savings (Simpanan Konvensional) and a 6.4 percent dividend for shariah savings (Simpanana Shariah) for 2017. Total payout for the conventional savings is RM44.15bil while that for shariah savings is RM3.98 billion. We can see that as at currently, the shariah savings in fund size is still below 10 percent of the overall EPF savings. Media wise, it has been reported like a wild-fire. I mean, every media I know is reporting it. However, I only saw it on the Facebook of ONE (1) friend. Perhaps most of my friends do not own any savings in the EPF. Anyway, this 6.9 percent is the highest ever since 1997. In other words, right after the 1997 financial crisis, the returns has always been lower than 1997.

One reason why this is pretty high? According to the
article in TheStar,
 gross investment income for 2017 was RM53.14bil and this is the highest since the EPF’s establishment in 1951. RM4.60bil of this was attributed to Simpanan Shariah, proportionate to its share of total shariah assets while RM48.54bil was attributed to Simpanan Konvensional. The returns for Simpanan Konvensional were enhanced by the income generated from non-shariah investments following the outperformance of global banking stocks
(Yes, I think we are all aware that banks are really earning good profits!)
 while Simpanan Shariah does not include conventional banking stocks due to their non-Shariah compliant status. The Simpanan Shariah was also affected by the equity impairments from shariah-compliant stocks, particularly the oil and gas, and telecommunication counters.
(Yes, last year was not that awesome on the whole for the oil & gas sector but I think 2018 should be better?)
Here’s another full article in NST.

My views remain the same. Whatever I have inside EPF, I will leave

it inside EPF until my retirement.

Hopefully, sooner than 58 years old? I have been investing into unit trust funds for at least 12 years. As I have two very good and attentive agents, my returns have been good, very slightly better than EPF’s average actually. However, be reminded that with unit trusts, the returns are almost always depend on the type of funds we buy. The higher the equity, the higher the possibility for high dividends or well, nearly none. The

stock market prices do not always reflect the strength of the company
.

If we were to buy bond funds instead, the returns would be pretty flat.  This is why unit trust must be something EXTRA from our salary. Diversify our savings because whether it’s EPF or unit trust, it should not give us returns faster than actually buying a good stock or even

property investment ROI over a couple of years.

Happy investing!

written on 9 Feb 2018

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600 units RUMAWIP, 882 sq ft from RM300,000, 4km from city centre

I think this is an interesting proposition for the first-time home buyers who wants affordable units but only if it’s near enough to the city centre. Do read on about the RUMAWIP units known as Platinum Splendor Residence. The full article here, in
propsocial.my
 Else, do read on. Their editor can write better than me. I think better let the article explain in detail about the conveniences and detail of other sizes but with a slightly higher premium compared to the 600 RUMAWIP units.

— Start —

Platinum Splendor Residence: Splendidly Affordable Homes in KL

Incorporating condominium residences and RUMAWIP units,
Platinum Splendor Residence
 is a home within the city which does not compromise on affordability while providing the comforts of modern living, along with convenient connectivity.

The 3 blocks of Platinum Splendor Residence each towers at 32 storeys, with modern facades, as well as touches of greenery. The complexes will hold 600 units of RUMAWIP homes and 1,400 condominium units.

Providing splendor at reasonable prices

The RUMAWIP units will occupy a single complex of Block A. The homes are a joint effort between the developer, Total Solid Holdings Sdn Bhd, and the government to provide more affordable yet quality housing.

The RUMAWIP homes, also known as the Type A units, are priced at just RM300,000, offering ample built-up space measuring 882 sf. The 3-bedrooms and 2-bathrooms layout is also functional, being able to meet the needs of all home buyers, whether individuals, married couples, and families.

The other 2 complexes house condominium units, which are further divided into variants, namely, Type B, Type B1, Type C, Type C1, Type D, and Type D1. Like the RUMAWIP units, the Type B homes also offer a 3-bedrooms and 2-bathrooms layout, though with a little extra space, at 926 sf. Understandably, these units are slightly pricier, though still considerably value-for-money with launch prices being around RM400,000.

Following that are the Type C, which are ideal for those who want a little more space, with 3 bedrooms and an extra study room, as well as 2 bathrooms within 1,065 sf of built-up space. The Type D homes also come with 3 bedrooms and a multi-usage study room, along with 2 bathrooms. However, these units differ in terms of built-up size, measuring 1,184 sf. The Type B1, Type C1 and Type D1 are noticeably larger, with built-ups of 1,152 sf, 1,431 sf and 1,550 sf respectively.

When it comes to pricing,
Platinum Splendor Residence
 is without question a rare gem, where spacious homes within the city are still priced reasonably, with all unit types priced within a range of RM400,000 to RM500,000.

While the condominium types will have a balcony in each unit to enable residents to savour the views of the city, the RUMAWIP homes do not. However, the lack of a balcony does not equal any less impressive views, given the towering height of the Block A complex as well as the development’s location just beyond the KL city centre.

Platinum Splendor Residence offers a range of facilities on the common podium, which include a swimming pool where residents can swim their daily reps or just take a dip to cool down. A gymnasium is also available for those who need their everyday run or some heavy lifting to work on their physique. Young ones can also have their share of fun, with a children’s playground within the property. On top of that, 24-hour security also provides residents with peace of mind to go about their daily routines.

Strategic location in KL a must

Being the ideal home for city-going working professionals and families alike,
Platinum Splendor Residence
 is situated conveniently within reach of amenities as well as routes of connectivity. Households with growing children will be glad to know that schools are within the vicinities of the residence, which include SMK Padang Tembak, SJK (C) Chiao Nan, SMK Tinggi Setapak, and the Beacon House Sri Inai International School. Other higher learning institutions nearby are the Universiti Teknologi Malaysia (UTM), as well as the TM Multimedia College.

On top of that, running errands or getting daily necessities will also be convenient for residents of Platinum Splendor Residence, with the Wangsa Walk Mall and the Suria KLCC shopping mall being in the area. Medical attention is also at hand, with a number of renowned hospitals and healthcare institutions nearby, constituting the Prince Court Medical Centre, Hospital Pusrawi, Tawakal Hospital, as well as the Institut Jantung Negara.

The
KL
 city centre is located just 4km away, and can be accessed via Jalan Sultan Yahya Petra, which was known as Jalan Semarak, where the property is situated just off. Jalan Sultan Yahya Petra links to Jalan Tun Razak, which heads southwest towards the city centre of KL. However, what makes Platinum Splendor Residence the talk of the town is its proximity to the Duta-Ulu Kelang Expressway (DUKE), which is the gateway to a range of other major roads and highways. The DUKE Highway connects to the Setiawangsa-Pantai Expressway (DUKE 3), which leads to
Wangsa Maju
 and
Setapak
.
Ampang
 is approximately 6km southeast along the route, along with
Setiawangsa
.

A number of other major arterial roads in the vicinities of
Platinum Splendor Residence
 are Jalan Padang Tembak, Jalan Gurney, as well as the Ampang-Kuala Lumpur Elevated Highway (AKLEH). With that, the property is also located pivotal to key locations, such as
KL Sentral
 (9km),
Mont Kiara
 (12km), and
Petaling Jaya
 (15km).

Platinum Splendor Residence is also situated near the Setiawangsa Station of the Light Rail Transit (LRT), under 5km away. With that, the KLCC Station is just 4 stops away, while the Masjid Jamek Station comes a stop after that, where the Sri Petaling Line of the LRT converges with the Petaling Jaya LRT Line.

See below aerial video of Platinum Splendor Residence’s surrounding area:

[youtube
https://www.youtube.com/watch?v=u_CtaCKKFpM%5D

A knack for knowing home buyers’ needs

The visionary developer behind
Platinum Splendor Residence
 is Total Solid Holdings Sdn Bhd, where affordability does not necessarily mean a compromise on quality and connectivity. Their thoughtful approach to home design also ensures that homes are not just dwellings to live in, but also integrate functionality, style and value into the lives of home buyers with innovative lifestyle solutions. Platinum Splendor Residence is built on the essence of these principles, providing quality homes at attainable prices located within KL city, allowing for convenient connectivity and accessibility.

Don’t wait to get your hands on the Platinum Splendor Residence homes. Click here to register your interest now! Want to check out the show unit? Got more questions? Call
(+603) 4023 3666
 or shoot an email to
sales@platinumvictory.com

— End of article —

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Jan 2016 : Whopping 62 percent loan rejection

2016 is starting to look like an extremely bad year for property market Malaysia. In an article in theheatmalaysia.com, it was reported that the loan rejection for residential property was 62 percent! The total rejected loan is RM9.42 billion. If a comparison was made between the total loan applications for December 2015 and January 2016, the actual amount for January 2016 was higher! Quoting numbers from Bank Negara Malaysia, total loan applications in December 2015 was RM14.88 billion and this increased to RM15.27 billion in January 2016. The rate of approval for January 2016 was lower by 20.4 per cent.

I have not yet read about any particular bank where the loan growth was negative in 2015. According to Standard & Poor’s Ratings Services (S&P), after an average loan growth of 10 percent for the past 5 years, Malaysian banks loans growth will moderate to between 5 – 6 percent. Its (S&P) credit analyst Ivan Tan forecast a gradual increase in non-performing loans (NPLs) to 2.0%-2.5% over the next two years, from about 1.6% in the latest Bank Negara Malaysia report of November 2015. This increase in NPL is manageable and the Tan said that the credit fundamentals of Malaysia’s banks remain stable over the next 18-24 months and has sufficient capitalisation and liquidity to withstand downside pressure.

While this assessment showed that the banks are resilient, it also meant that with rising NPLs, the banks are going to be much more cautious during loan approvals. Besides that, I must share what my friends in the banks are saying. These days, the credit ratings of buyers are getting worse. It’s getting harder to just approve because the risk of default is going to be higher. More importantly, are the buyers really buying within their capability instead of aiming one level higher? Is everyone skipping secondary properties altogether? Is everyone only buying at popular areas at a premium? Of course, last but not least would be BNM’s stricter guidelines for second and third properties and also the abolishment of developer interest-bearing schemes (DIBS).

I believe banks are also getting uncomfortable because a large number of high-end condominiums are flooding the market since 2015 and more are coming in 2016. Cautiousness aside, I believe buying with an end in mind is more important. That potential that we have to hold for some time is going to be there. Someone I trust very much said, ‘lowest point has yet to be reached.’ Keep reading and please do let me know of any great deals yeah.

written on 4 Mar 2015

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64 sq ft home is all it takes to feel safe and comfortable and “it works”

Many years ago, a friend told me that she was going to go to Singapore to work. I asked her many questions and one of the questions were about her accommodation. She said she will get a room in Singapore for SGD300 (RM931) per month. I asked why so cheap because typical room rental is SGD600 (RM1,863) or higher. She said she will share the room with someone else.

I wish her the best but I also tell her that when I was a student, I am okay to share a room. However, when I started working, I prefer to have the room to myself and if possible, a unit to myself instead. Anyway, that’s just me. Maybe majority prefer to share a room with others even after they started working?

As I have shared many times, a home or we can call it a shelter is a basic need. Not many people want to sleep by on the 5-foot walk way or under bridge for example. This is the same whether in Malaysia (26th largest trading nations in the world) or the world’s largest economy, America. Americans also do not want to live on the streets if they have a choice.

Article in nst.com.my
   Miniature prefab homes have been built in a parking lot Los Angeles. This is one of a few sites where “tiny homes” are being put up to help homeless get back on their feet. In the Tarzana neighborhood, 76 tiny homes paid for by the city have been erected. Each is 64 square feet (six square meters), and is equipped with two beds and shelving as well as air conditioning and heating.

Each one of the “tiny home” costs $6,500 and can be set up in just 90 minutes. Toilets and showers are shared, and state-of-the-art washing machines face large, bright orange tables under umbrellas. Zuri-Kinshasa Maria Terry, 46, has just moved into the Tarzana development. She said, “It was the scariest thing in the freaking world to be out there.”

A view of housing units at the Tarzana Tiny Home Village which offers temporary housing for homeless people. — AFP

To read the full article with even more details, please click here to read:
Article in nst.com.my

We can debate until the cow comes home on home ownership but fundamentally it is a need

A place to stay should be made simple and available to all those who need one. Looking at the condition and the size, I doubt anyone would think of this as a long term solution. However, this is definitely a better solution than to sleep on the streets or on a bench somewhere in a city with expensive homes.

For all the ones who could afford to buy one, then please do buy one. One major reason why people remain poor forever is because when they do not own a place, they pay for the place forever. RM1,000 rental per month? It’s not high for some people but it’s a big number when we have to pay for it for 30 years and when we retire, the children has to pay for it for the next 30 years.

RM1,000 x 12 months x 30 years = RM360,000 (that’s until the person retires and assumes that rental remains unchanged)

RM1,000 x 12 months x 30 years = RM360,000 (that’s the next generation, the children who would have to continue paying so that the family could continue staying)

Please do not let this situation continue perpetually. THINK before we spend everything we earn and STOP thinking that renting is cheaper than buying if that’s what some personal finance “experts” are advocating.

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65% probability – recession by end 2015

65% of probability for a recession by end 2015. Yes, you can read this on many news site online. This is the latest prediction by a company which was famous for its accurate predictions of the 1929 crash as well as the recent mortgage crisis beginning in 2007. The Jerome Levy Forecasting Center said that its half dozen analysts have attached a 65% possibility of a worldwide recession by end of 2015. It’s chairman said, ‘clearly the direction of most of the recent global economic news suggests movement towards a 2015 downturn’. Of course, this prediction is on the other end of what Morgan Stanley and Goldman Sachs are saying. The two banks predicted that the current expansion in the US market still has plenty of room to grow. Earlier, another prediction. Read here:
9 Months, Financial Crisis may happen – Arturo Bris of IMD

The reason for the prediction? The Jerome Levy Forecasting Centre said that it’s because many advanced economies still have balance-sheet excesses exposing them to renewed financial crisis. There’s just not enough room for any of the policy makers of these economies to reverse any slump that may occur.
(I think he was referring to the already very low interest rates of many of these advanced economies)
 Besides this, American companies are also getting a historically large proportion of earnings from abroad.
(If external markets slowdown, it will impact all these American companies easily)
 Lastly, households are vulnerable to any bear market before their ratio of stocks to disposable income is higher than any point aside from the start of this century.
(As soon as the stock market declines continuously, many households would face financial difficulties)
Remember all those reports about Bursa Malaysia being in trouble when there were lots of selldowns by foreign funds? Well, for those people who were hugely exposed to Bursa Malaysia stocks based on a speculative mode, they might have been hit pretty hard during those few weeks.

Do note that if America goes into a recession, the sentiment is likely to turn bearish here in Malaysia even if America is no longer our largest trading partner. It’s just 4th largest today behind Singapore, China and Japan. So, even if you do not believe of such a prediction, it’s best to still keep it in mind before you buy even more properties or stocks from the stock market. I think our property market should be ok, especially those for the middle income group. However, the high end ones, I am not sure if the middle class is able to save fast enough to buy them so soon. One latest article quoted over 4,000 units of the luxury condos coming into the market by Q4 2014.
Here: New launches same area, lower priced than previous launches? Post-GST ‘trick’?
  Happy thinking about this and then deciding.

written on 11 Nov 2014

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650 sq ft @ RM326k. Branded developer, Sentul.

Regardless of price attractiveness, I think many Malaysians would consider location as a primary reason for the purchase of their first property. Of course, this ‘location’ consideration depends on individual because some would look at distance as a major consideration. For those looking at distance, then there is one potential development for you. It’s within 9km from KLCC within Sentul. Of course duration wise, due to the number of cars and traffic lights, it may slightly lesser than 20 minutes. Near enoughlah if you ask me. Beyond just being nearby KLCC area, Sentul is considered a growing area with many new developments. There’s one article talking about
’10 things to look out for when buying properties in Malaysia’
which also touched upon Sentul as changing its usual perception into an attractive area for consideration. There’s another potential consideration in the future by a branded developer no less.

As per article in
TheStar.com.my,
Mah Sing has acquired 78 percent of Cosmowealth Housing Development Sdn Bhd for RM54.96mil. Cosmowealth had earlier signed a sales and purchase agreement (SPA) to acquire 8.5 acres of prime freehold land in Sentul, fronting Jalan Sentul Pasar, for about RM95mil. Mah Sing said, “Based on preliminary plans, the group will undertake a residential development named MCentura on the land comprising serviced apartments.” The indicative built-up sizes would be 650 sq ft, 850 sq ft and 1,000 sq ft priced from RM326,000 per unit. It is thus targeted at the mass market segment, especially first time homebuyers, some upgraders, medium income households and working professionals looking to stay close to the city.
(I think this will be mostly for first-time home buyers who are single or a couple and especially working professionals who are non KLites but is currently working here. (KL). At this moment, there are no further information but I think once the plan is finalised, more information would be forthcoming.)

650 sq ft is definitely not big
 but I think I am one of those few who can still accept it. I stayed in a 700 sq ft apartment with my wife, my sister and my brother-in-law for over 4 years. Yes, that was my very first apartment. Assuming 2 people occupy this new 650 sq ft apartment, it’s still 325 sq ft per person compared to just 175 sq ft for me and my family then. By the way, new units are just 180 sq ft in Hong Kong these days, for affordability. Here’s an article:
Marriage provides property affordability, seriously

For those with kids, I think the 850 sq ft units would be a better fit. Do note though that distance should not be the only consideration. Duration should be one too, depending on the working place for the buyers. Sometimes, shorter distance may not mean shorter duration. Do drive around a bit to understand yeah. Happy following and perhaps buying.

written on 27 May 2017

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Just 3 workers and 14 days to build a 6,088 sq ft building. Serious!

How many workers do we need to build a home for a family? Say a 20 x 70 terrace house? Well, what about a building of 6,088 square feet? What about cranes and other construction machines? Probably, the better question to ask before we get a good answer is how long would the given duration be. If we are given 14 days, probably many workers and many machines. If we are given 60 days, then we could afford to have fewer people and machines.

The actual answer is just 3 workers and 1 crane for a building of 6,088 sq ft and 14 days in total. 2 weeks yeah. None of the three workers are brick layers! This happened in Dubai, not Malaysia but with technology, it’s just time that it will be available here in Malaysia too. Cost will play an important part. Imagine if there’s a shortage of construction workers as well as the need to complete the construction within a certain short lead time?

Article in inhabitat.com
  The builder is Apis Cor and its motto is “we print buildings.” Apis Cor has become a prominent leader in the world of 3D-printed architecture. It has build a tiny home in Moscow to affordable homes in California and Louisiana too. Now, it has printed this new building in Dubai where there’s severe climate temperatures rise and drop suddenly.

Image Source: inhabitat.com

The construction site spanned approximately 7,000 sq ft and would usually require lots of scaffolding. However, because of the company’s custom car-sized 3D printer which was mobile, the building was constructed DIRECTLY onsite faster and more efficiently than a traditional construction project. This machine worked along side just three workers and a single construction crane. The machine printed out the structure section by section and after that traditional construction methods were used to install the windows and roof and rebar supports added to reinforce the walls. Please do read the article for more details. Fascinating stuff.
Article in inhabitat.com

Actually, what this really meant for the construction world is that we will need ever fewer workers and machines. A scary thought indeed for many stakeholders including people and the companies providing all these construction related machines. However, this may still be a long time to go because if construction costs continue to be affordable, developers will continue their usual ways and everyone will continue to do what they are currently doing; brick layering for example.

Hopefully, someone get Apis Cor over to Malaysia to build something here in Malaysia! kopiandproperty.com would love to be invited to the project wherever it may be in Malaysia and we will be excited to write about it and tell the world too. Perhaps to build something on an empty piece of land which belongs to DBKL? Yeah, certainly looks like it may just happen. Happy anticipating yeah.

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7 great benefits from the MRT which we get to enjoy directly and indirectly.

Some of may be taking public transport daily. Most probably it may be one of the LRT lines. It may be the Mass Rail Transit Sungai Buloh – Kajang line or also known as SBK Line but is now known as MRT Kajang Line.
 You may refer to the MRT Corp site for the latest names.
 MRT SSP or Sungai Buloh – Serdang – Putrajaya is now known as MRT Putrajaya Line.

Mass Rail Transit (MRT) have these 7 advantages for us whether directly or indirectly.

#1 – Lower travelling expenditure.
Without public transport, just buying an ‘affordable’ car would already require us to pay an instalment of RM350 per month. If we add in fuel costs, that may be another RM200. (1,000km including jams). RM7 parking fees per day = RM140 per month. Let’s not even start to talk about car maintenance / service intervals yeah. Meanwhile it is only MY30 for UNLIMITED travel on MRT, LRT, Monorail, BRT, Rapid KL’s bus and MRT feeder bus services. This is applicable until end of 2020. After that, MY100 and MY50 will be back.
Here’s that announcement.

#2 – Time-Saving
While some may want to debate this but I do think it’s time-saving because if it says that the duration is 30 minutes, it will be 30 minutes. Thus, instead of having the unforeseen circumstances, when we take the MRT, we will know almost to the dot the time which we will arrive. This saves a lot of time because we do not need to leave earlier just to ensure we are on time for example…

#3 – Safety
  If we look at the number of accidents and the fact that many times, it may not be caused by us, we should realise that accidents happen much more often when we drive versus if we were to take the MRT. Let’s also not forget the fact that sometimes, when it rains heavily, we would feel very stressed inside the car trying to see as far ahead as possible and doing our best to keep to our lane. Now imagine standing or sitting in the MRT and just letting the MRT take us to the station we want to go.

#4 – Time to reduce the jams
 Once upon a time when I was still staying in Kelana Jaya, I was just 3km away from home and I called my wife and told her.  An hour later, I was STILL stuck in the jam. The main reason? I have no idea at all except for the rain. Sigh. Now, imagine if 400 of us took the MRT, that would reduce the number of cars on the road by up to 400 cars or if two to a car, then 200 cars will be off the road. Now imagine 150,000 people taking the MRT daily…

#5 – Convenience and Comfort
We may get a seat. If we do, we could even switch on our laptop to do some work. Now even if we are standing, we could still browse Facebook too. Let’s also not forget the fact that there’s also air-condition inside the train as well. Based on my own experience thus far, it’s comfortable too.

#6 – Great for the economy too
 Look at the stalls in the MRT stations. Look at the bakeries or the convenience stores too. These are businesses and these would provide more employment opportunities too. By the way, there are so many malls / places which are connected or very close to the MRT stations. All these help in connecting the people to them and economic activities happen.

#7 – Good for properties too
  It used to be just a few areas which people love to stay since it’s closer to the city centre. These days, it could be further away and the duration of travel may be almost the same. It meant that the property choices are expanded. It meant that people could actually choose to stay slightly further away and pay lower prices too. It also meant developers could build further away and if it’s connected to the MRT, people would actually buy them.

Of course, there’s no end to the number of benefits but let’s just stop at my favourite number, 7. For those who are taking the MRT, keep doing it and save more money to invest yeah. For those thinking of taking the MRT, it’s just RM30 UNLIMITED for 1 month and valid till end of 2020. Anyway, even if it is back to MY100, it is still just RM100 per month… Happy riding.

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7 important Financial Rules for Malaysians

Are there such things as financial rules? What about financial rules for Malaysians? These 3 financial rules for Malaysians (it seems) advice was trending recently. Many were forwarding it and I do think the advice given makes perfect financial sense.
Please follow #financialGory in twitter
 if you love more of these tips yeah.

#1 point

it says is that one should not be renting a place and having to pay over 25% of one’s salary every month. I would like to add that the salary should be a net figure and not the gross number. Example, you are earning RM3,000 net per month then the MAXIMUM rental you should ever pay is RM750.  If you are paying more, find a cheaper place or room (if you are still single and a nice human being).

Then
#2 point

tells us to only borrow money if it is to make more money. By the way, I think it is more for investing rather than for speculating or gambling yeah. As for making more money, just remember to only go into investments which we have enough knowledge about. Rushing into some investments which we have just heard for the first time? That does not qualify as investment at all. By the way, using credit card and not being able to repay it in full every month is also ‘borrowing’ money. Please do not use credit card money even if it’s to invest into stock market yeah. The risks are too high for most Malaysians.

Next is
#3 point

and that is to ensure how we spend our money stays the same as the time when we had less money, even after we start to earn more money.  Your salary used to be RM3,000 and you could make do with RM2,000 every month, if you earn RM5,000 in the future, keeping your expenses at RM2,000 will help tremendously in wealth accumulation which is an essential ingredient for investments. Save first, invest later.

I have 4 more suggestions for financial rules for Malaysians since most Malaysians are working people.

#4 – Salary first.

Work and take up more responsibilities especially to learn more skills and gain experience faster. There’s a huge difference in 5 years of working experience and every year learning different things versus doing the same job for the last 5 years. Once we are good, we could command a better pay and if our company does not appreciate us, some other company would.

#5 – Protection always needed
.
 Remember that unforeseen circumstances especially those of accidents or medical complications will zap a lot of our savings in a short period of time. I had to spend RM25,000 for an appendicitis ops in Singapore because I was on a business trip there. Imagine what would have happened to my savings if I did not have a medical card which absorbs most of it. Insurance and medical cards, those are protection, not expenses.

#6 – Property or poverty.

Now, I know, renting seems to be way cheaper than buying. Just remember that we may have to pay like crazy for 30 years and by the end of the 30 years, the actual amount paid may have more than double the property price. As for rental, I have not met any home owner who tells the tenant to stop paying rental after 30 years. Well, it means from 55 all the way to 80, your rental would have to continue… Surely it is not going to be cheaper than buying by then?

#7 – Another income stream.

It could be driving a few hours every day and gaining enough to pay for the mortgage every month. It could be e-commerce, buying in bulk and selling it or even dropshipping. (google to learn). It could be weekend photographer or baker or even tour guide. There are lots of things which may interest us and could allow us to gain some extra money. These could be the seed money for more investments too.

Happy learning these financial rules for Malaysians and doing the recommendations.  Cheers.

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7 out of 10 will buy a home in 2019? (survey…)

If we ask 10 of our friends without a property to their name if they would like to buy a property this year, I think more than half would say, YES.

The next few questions will reveal if they will ACTUALLY buy.

Where will you be buying?
What’s the type of property you intend to buy?
Do you already have a targeted name of the kind of development you want to buy? and last but not least,
What’s your budget to buy and renovate?

If these four questions are asked and the person could answer convincingly, then I think they could really be buying. Else, it’s more of a ‘dream.’ As for the few who said NO, they are pretty objective.  Probing further would reveal some of the reasons in the 4 questions above or more.  Here’s another survey for everyone to understand the minds of those surveyed.

Article in NST.com.my here.
 A Malaysian Home Survey was conducted from 27
th
 December until 25
th
 January and the conclusion is that 7 out of 10 people would consider buying a home in 2019.     Nevertheless, a third of them said they were not ready for a lifestyle change. One of the comments, “I am turning 28 this year, I do own a car and pay monthly installment.  After work I usually hang out with my friends and on weekends, we take long drives to Port Dickson or Ipoh.  I don’t think I am ready to give up my lifestyle just to own a house.  Even if someday I get married, it will take me a few years to buy a house as I don’t think my income would have increased that much.”  Another said, that he could not get a property in the RM500-700k range near KLCC, Bangsar or Petaling Jaya.

Other notable conclusions from the survey include the following:
(My comments in bracket)

One in five respondents said they’re worried about making the wrong decision on home ownership.
(lacking in right information will definitely increase the chance of buying the wrong property for one’s purpose)
23% of the respondents said they couldn’t afford the down payment and 13% couldn’t get the desired loan margin.
(this is one major reason why financial management literacy is needed, actually)
69% of Malaysians want a home for the sense of ownership.
(sense of ownership is valid for all items, not just property. People love owning branded handbags too…)
Most respondents prefer landed property over high-rise ones.
(will be true for some time still. However preference and price will play a ‘changing’ role.)
The top priority when looking for a home is location and connectivity.
(more often, it’s also ‘acceptability of a new area’ because that location everyone wants is likely to be super expensive…)
Design, security, amenities and neighbourhood matter when looking for a home.
(Agree. Developers of new townships always have this in mind when they plan and build)

For a full reference of the all the other conclusions, please do refer to the
Article in NST.com.my here.

Long time ago, people used to think one home is enough to last forever.
Earlier article here.
 These days, it’s more of buying first, upgrade later. If the mindset is still to buy the best ever property one could afford at that point in time, then the chances of getting a loan rejection is high. Property will continue to be a natural hedge against inflation because when salaries go up, it does not mean that money is appreciating. However, when salaries go up it will push property prices up. Thus, when one has no property but the salaries and property prices continue to go up, it will result in poverty in the future.

Earlier article here:
Own property and skip poverty
 Happy understanding. Surveys may not tell the whole story but we should still be able to draw some conclusions from it.

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News article summarised by Dina Batrisyia. Article written and edited by Charles.

written on 1 Mar 2019

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More money back into the economy affected by COVID-19.

There’s no need to read further if you already know about this and wishes to download the form to submit to your HR so that the deduction for Employees Provident Fund (EPF),
here’s that link from EPF. (click to download)
 However, if you like to know a little more about what’s happening beginning April 2020. This is part of the economic measures announced recently to contain the effects from
COVID-19.  (Click here to read yeah)

Article in thestar.com.my
   From April 2020 onwards, the employee’s statutory contribution to the EPF will be reduced from 11% to 7%. The employer’s contribution remains the same and there are no changes.  EPF said that this measure will continue until December 2020 and that this is part of the recently announced Economic Stimulus Package (2020).

As per EPF’s statement: “The new statutory contribution rate for employees applies to those below 60 who are required to make the contribution. The statutory contribution rate for employees aged 60 and above, however, remains unchanged.” Employees may choose to maintain the current contribution by completing
Borang KWSP 17A (Khas 2020) and this would be made available on epf.gov.my
 . To read this article in full it’s here:
Article in thestar.com.my

The deduction difference is 4%. Someone earning a salary of RM3,500 for example would only have an extra RM140 into his salary instead of going into his / her EPF account. How would this be able to help the economy then?  Well, if most of everyone were to spend this extra RM140, then 1 million people will be spending RM140 million and this goes back into the economy. With a multiplier effect of 4 for example, this RM140 million will have an effect of RM560 million per month to the economy.

What is a multiplier effect then?  Assuming we spend this extra RM140 for groceries at the local hypermarket. This hypermarket would then need to order replacements from their suppliers, the manufacturers. The manufacturers would then have orders to continue production and could then pay their vendors. Within this environment too, the employees at the hypermarket, the manufacturing plant and even the vendors will continue to have a job too. They would then have money to spend as well.  I would not want to imagine what will happen when no one spends or when no one has money to spend…
If you want to maintain the 11% contribution, click here for the form.

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7 Reasons to buy in a slow property market

If you do not know, there’s always news about the state of the unsold units of properties here in Malaysia.
Here’s one latest one.
  It seems to be still just as bad as past few quarters. Okay, before we get all worried, scared and hiding all our cash under the pillow due to these unsold units, please understand property investment
a little bit better first. Article here.
 Once we feel a little better and we start to think of buying a property in a slow market, here are 7 reasons to do it.

#1 – Negotiation is now possible. It’s now possible to tell the home owner sincerely that you love the unit but you also love another unit you viewed. The home owner will ask for a few days to think about it but hey, they no longer reject you immediately like what happened a few years ago when the market was hot….

#2 – Choices, real choices. From newly completed ones to new launches, sub-sale market and even property auctions, there are now more choices than ever. Gone are the days when developers assign you a number and 3 minutes to pick a property or they will call the next in queue. Gone were the days when people queue one week in advance prior to new launches.

#3 – Prices, good prices. Be realistic yeah. It’s good prices and NOT low prices. For some areas for which the demand is far higher than the available supply, prices will still be resilient. Ask ourselves. If we own a home in an area we love today or the home is right next to our parents, will we sell the home for a lower price? However, our asking price is definitely not as high as a few years ago.

#4 – Nothing lasts forever. There’s a cycle to everything. What’s up will come down and what’s down will go up again. The only thing about property investment is this; property prices on a longer term will always be rising.
Here’s the reason why it is so.
(We should look to the advanced property markets to understand why)

#5 – Banks need to survive.  Contrary to popular belief which is banks are no longer lending actually banks love to lend. This is how they earn profits… However they prefer to lend to borrowers who look like they could pay. Good customers are now harder to secure and some banks are definitely doing more to woo customers too.

#6 – Developers have to do more for less. It’s harder for developer these days. Instead of just one time newspaper and sell everything, they now needed to advertise more, build more interests and equipping their sales staffs or real estate agents with more ‘firepower’ so that the sales numbers are better. They are thus more accommodating. Let’s not wait for the turning point…

#7 – The main supporting foundation; economy is still strong. This was where
Malaysia was ranked among peers in the world when it comes to economy
. No property market could survive if the economy is in a crisis or when the unemployment numbers are high. Without a job, who could buy a property?

There are definitely more reasons but I will stop at 7, my favourite number. If the question is, should I still buy a property today? It’s a YES. If the question is, could I simply buy and expect prices to go up, the answer is a NO. It might have been because there was a period when everything went up. As for the best question of all time, ‘When’s the best time to buy a property?’ The answer is … buy when you could afford to buy (skip that barista coffee too). Happy investing.

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written on 17 Dec 2018

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7 reasons for Kota Kinabalu property

7 reasons for Kota Kinabalu property. By the way, there is no property to buy at the end of the article yeah. Haha. This is a personal view since I like Kota Kinabalu.

Do note that for now we could not travel lah.  However, this will not be forever. Soon, we could travel again. Foreign tourists could also visit us again in the future, maybe next year.

Property Market must be supported by many catalysts.

One such catalyst would be people. The more, the merrier. So, what’s happening to the Kota Kinabalu property market then? Actually, quite a lot. In fact most of these are already happening and we are not speaking about some new townships in the suburb.

Kota Kinabalu is already a well established property market. The question is what are the things which are in favour of further growth for Kota Kinabalu when it comes to the property market. Below are 7 reasons why people including me love KK property.

#1 Adventures and Attractions abound.
Oh yeah, did you know that I have climbed Mount KK two times? I was successful both times too.
Read about my successful adventure yeah. Stay healthy, go climb Mount KK.
So, the first thing which is in Kota Kinabalu’s favour is that it has access to both the highest peak in South East Asia and a sea which fronts the South China Sea. Whether high up or a jump into the sea with sandy white beaches and islands to snorkel merely 40 minutes away, KK has them all.

#2 Strategic location for overseas travellers.
 It’s only a few hours away by flight from China, South Korea and Hong Kong. When tourism prospers, the city prospers because of tourism ringgit. Imagine just 1,000 people arriving daily and all these people need a place to stay. They would need 500 rooms even if they shared rooms.

What if these tourists do not leave so soon and the next day another 1,000 arrives? KK International Airport is the second busiest airport in Malaysia and it handled 8.6 million travellers in 2019. This is 23,561 travellers DAILY and not the 1,000 I used for my calculation.

#3 Recovery may take time but value has been established.
There are expectations that the property market may be recovering in next year. Note, no one can promise anything. However, what’s important to note is that even as at today, in popular areas such as Luyang or Likas, the double-storey on the market has an average price of
RM650,000 – RM800,000 and semidee units are going for between RM1 million to Rm1.5 million. (source: edgeprop,my)
.

These prices tell us that KK property market is up-to-date with typical landed home prices and that people do recognise home value there.

#4 – Locals, Expats and even Tourists from West Malaysia.
We spoke about the international travellers earlier. Actually, the travellers would include locals (from smaller towns in Sabah), expats (not that many but definitely a number) and also lots of tourists from West Malaysia.

Beyond just the mountain and the sea, everyone comes to Kota Kinabalu for the seafood too. Let’s understand that siakap (barramundi) is NOT considered a common fish yeah. Typical fish? Garoupa… Typical prawn? Sea prawns. Typical Seafood? Alive and swimming in the tank for many seafood restaurants…

#5 – Connectivity will get better.
Pan Borneo highway is now under construction. With more connectivities, the more economic activities will happen.
This is 60 percent completed in Sarawak and 40 percent completed in Sabah.
Good accessibility is a top consideration for property investors.

Flying into KK is one thing but with nearly every Malaysian with a car, roads become that catalyst. The Pan Borneo Highway will open up KK even further, going  through Putatan, right up to Sepanggar.

#6 – Kota Kinabalu is already a city.
This is not a small town trying to grow into a city. KK as a city has a population of 500,000 and Greater KK is said to have a population of 900,000. If we count just the 500,000 and a growth of 2% per annum, this is 10,000 new population every year.

Demand for everything will continue to increase and do note that population increase does not come from just new births. It’s coming from all other towns in Sabah and this is why urbanisation will always benefit bigger cities.

#7 – Future Proof property market?
This is one latest article about East Kalimantan. The Indonesian government is allocating 1.7 TRILLION rupiah (RM481 million) for the development of East Kalimantan this year. Yes, this is only for 2021.
Article in antaranews.com
 So, this is certainly not just all about announcing and nothing about implementing. If anything, this seems like a project which receives the biggest attention from the government and it will have to be successful.

KK property market will definitely benefit from being the closest Malaysian city to the new capital city of Indonesia.

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