Even more new malls coming up in Klang Valley

Every weekend, I would go shopping, I meant window shopping. Anyway, the main destination is still shopping malls. I have only a few favourites. Number one is 1 Utama, followed very closely by Sunway Pyramid and then Mid Valley. The rest are just too far for my liking since I stay in Kelana Jaya. I do not wish to be on the road for more than one hour and still have to pay high parking fees. If I go back to Ipoh, my parents love to go Tesco and of course I drove them there. I have also been to Empire, SS2 Mall, Berjaya Times Square and even Pavillion within the past few weeks. So, yes, I love malls.

Do I think there are too many malls in KL / Selangor? Many of the comments online seemed to point to that but I beg to differ. I feel that as Greater KL becomes even more populated, more malls would be needed, especially the smaller, community based ones. It would be very tough to maintain another mall as huge as Sunway or 1 Utama but if it is a community mall, I think the market is still there, provided all the tenants are not exactly the same as the bigger mall right next to you. Would all the malls survive? I think this is very dependent on the mall operators themselves.  There are mall operators which are pretty inexperienced as well.

For 2014, within Klang Valley, there would be seven new shopping malls this year and will thus add even more retail space into the market. It is expected that the take up of the retail space remain to be strong. I think this is also because the entrepreneurial spirit continue to be strong or even stronger nowadays especially amongst the younger generation which wants everything fast. For them to work too long at the same job receiving 5% pay increment per year is likely to be tough. The malls coming up are D’Pulze, The Strand, Main Place (formerly Taipan Square/Newgate 21), Nu Sentral (formerly known as Lot G, KL Sentral), Quill City Mall (formerly Vision City), Jaya Shopping Centre, M Square, Sunway Pyramid Phase 3, Sunway Velocity Lifestyle Mall, The Atria, Sunway Putra Mall (formerly known as The Mall) as well as CapSquare Mall (refurbishment).

From the first day I started to frequent Paradigm Mall last July until this week, I have noticed that the number of patrons are increasing and it’s getting harder to find an empty spot, even on weekdays. I think it is because it is in a great catchment area in Kelana Jaya and the closest mall which is slightly smaller is Tropicana Mall. Oh yeah, if the malls work, the property prices next to it would also increase which is good for the owners. Happy buying.

written on 8 Jan 2014

Next Suggested Article:
Property Prices – 10% up for 2014?

Alternatively do read the
top 10 most read articles

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Ever thought of losing RM1.78 trillion in one day? These 5 companies just lost this much.

Uncertainty causes much instability. Instability causes much worry. Worry causes much illogical decisions too. When some companies are overvalued (or overpriced), its stock price stays perched high up when everyone thinks that the next financial year will surely be even better. When some companies are at the right valuation, its stock price may still drop tremendously when the market becomes bearish or full of negative sentiments. With the current COVID-19 making everyone panic and buying up all the toilet papers, what’s happening to some of the biggest names in the world?

Article in cnbc.com
   The five biggest tech firms, Amazon, Apple, Alphabet, Facebook and Microsoft lost a combined $416.63 billion (RM1.78 trillion) in value on Thursday (12th March 2020) as the markets continued to be very negative due to coronavirus fears and economic uncertainty. Shares of Apple plunged 9.88%, Facebook fell 9.30%, Alphabet dropped 8.2%, Amazon fell 7.98% and Microsoft dropped 9.48%. Just a month ago, these five had been the biggest contributor to the market rally that lifted the S&P 500 to a record high. This drop is even bigger than on Monday when the big five lost $320 billion and recovering somewhat within the week.  Please do read the full details in the
Article in cnbc.com

I think everyone is worried that the market will be so badly affected by COVID-19 that a recession soon follows. Perhaps we should also look at whether these businesses will be affected negatively when the market recovers. Some easy questions to ask?

Will people stop buying Apple products? Will people stop using Facebook as social media and as part of digital strategy? Will we forget google in the near future? Use less of google.com?  Amazon may not be that famous over here but let’s understand this question.  Will the Americans stop buying things through Amazon? Last but not least, anyone believe that Microsoft Office will somehow be forgotten or a replacement product appear soon?  Happy understanding yeah.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market.

Next suggested article:
Anything overvalued best skipped. Stocks too

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Evergrande to complete 600,000 homes in 2022

When property developers could not complete homes which buyers have paid for, it’s a lose-lose situation for both the developer and the buyer. The developer will no longer in operation. The buyers would now have uncompleted homes which they will have to continue paying for because the home would have been purchased with a home loan.

This is why governments would do their part to ensure the developers do complete the homes versus just shutting down the property developer as soon as they face financial difficulties. Here’s one news which is now famous all over the world. It’s about Evergrande.

Evergrande is property developer with over US$300 billion in liabilities (as per article below) and has been struggling to repay creditors, suppliers and deliver homes. However, it does seem that there is some light at the end of the tunnel. At the moment, no one knows how long is the tunnel.  Latest update as below.

Article in thestar.com.my
   China Evergrande Group chairperson Hui Ka Yan said that it will resume construction and said that there would be no fire sales.

By February 2022, it will resume fully (100%) of all its current construction work across China. This is in comparison with 93.2% at the end of 2021.

It aims to deliver 600,000 apartments in 2022. Evergrande started having trouble in repaying its suppliers and creditors in June 2021.  Please do read the full article here:
Article in thestar.com.my

Over-leveraging and unforeseen circumstances

Imagine we bought a home by over-stretching financially and then Covid-19 arrived and we were retrenched. Two things happened. We over-leveraged and unforeseen circumstances happened. If we did not over-leveraged, we could have been able to hold on longer. Meanwhile unforeseen circumstances will continue to happen.

It could be a financial crisis which did not start from within the country. Example, the Mortgage Crisis in 2008. It could also be a pandemic like the current Covid-19. This is why, investment must always be in-tandem with a calculated risk and over-leveraging will always be super dangerous and we may just lose it all and have to restart. There are no such thing as risk-free investment.

For the 600,000 new apartment owners’ sake, I hope what Evergrande has announced will come true in 2022. No idea what would happen to the property market by the end of 2022 but having a completed home versus not having a home is a super easy decision. Stay the course yeah.

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

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

Next suggested article:
5 Must-Do steps for property investment.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Every job can be a career, stop stereotyping!

Is there anything wrong with a graduate or a non-graduate taking up a job as an insurance sales agent or even unit trust agent? Well, according to some people it’s sort of a last choice kind of job. Here’s that article in themalaysianinsight.com
Graduan jadi agen insurans,unit amanah kerana tiada kerja.
In brief, it quoted MEF’s executive director, Shamsuddin Bardan as saying (translated) that this is a loss because these graduates who did the switch would not be able to apply what he has learnt in his study and had to continue to re-learn new skills outside what he studied. Within the article, it also quoted a few examples of candidates who made the switch and surprisingly, all of them were doing well. One of them said (translated), “Now my time is much more flexible, I have more time for my family compared to previous and I have an income which is similar or more than when I used to have a fixed pay.”
Here’s the article again for reference.

First of all, regardless of the job that we embark upon after we graduate, not everyone would get promoted until they reach the CEO level when they are 50 years old. Assuming there are 2,000 engineers in a MNC in Penang, how many would actually be promoted to be a team lead and promoted later to be a section manager, followed by a department manager, followed by a senior manager and even higher? Let’s be very clear that many would stay
below managerial level until the day they retire

and that’s a fact, regardless of what degree we actually graduated from. In other words, pay wise, it will never be at the top bracket  until the day we retire. Assuming we got ourselves a law degree today, how many would move on to become senior partners in some top established law firms in the country 10 years later? Frankly, many would continue to be a lawyer and keep doing the same thing and earning a normal pay until they retire from the profession. This the real life of a job / career and let’s not keep thinking that sales jobs are for those who could not get a job!

Remember the days when someone opening a clinic would earn extraordinary incomes every month? These days, it’s a fixed income (as a doctor in these clinics) because most of the clinics are franchised brand names. These clinics are able to approach organisations to appoint them since they have much better coverage and they even provide reports on a monthly basis too. Of course, it is still possible to operate a successful and profitable clinic but please tell me, are all the majority of the medical graduates able to do this, today or even in the future? There were also time when everyone working in the bank has a rock solid job and stable bonuses year after year. These days, the technology will be ‘killing’ many of these jobs. The only ones left would be those who are flexible enough to change themselves and accept a new scope of responsibilities. If we remember, just two years ago, those in
the oil and gas industry

had a hard time and many lost their jobs. It will not be easy to get back these lost jobs which pay more than double most of the other industries most of the time. With the world changing ever faster, we need to keep adapting.

I think these graduates who could not get a fixed job according to what they studied but is able to get a new career as sales for the insurance and  unit trusts are good people. I wish them all the best and I hope that there is no need to stereotype sales jobs as an inferior one. Do note though that for most sales organisations, the top 20 percent of all the sales people would earn extraordinary incomes that most of other professions could only dream about. Five figure income way before 30 years old? I think a sales job provide this possibility. This is why many of the buyers of multiple properties are also sales people, not just the typical professions that we think about. Happy working.

written on 12 Mar 2018

Next suggested article:
Career ‘safety’, career growth and the investment actions

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Every major property market dropped, Penang stayed steady?

A very interesting finding even if the numbers are a little outdated. For Q1 of 2014, all the major markets showed drops. Double digits drop for Kuala Lumpur at 13.4%, Selangor at 10%. Single digit drop for Johor, at 4.5% down compared to Q4 2013. Penang is quite resilient though, dropping just a marginal 0.3%. However, majority of all my Penangite friends said that buyers for units have gone down tremendously and there were no longer queues of yesterday if you remember. People queued up few days before the official launching! Those were the days. All numbers are from National Property Information Centre (NAPIC) as per reported in The Star on 16 August 2014.

The drops are not confined to just residential but it covers all the different sub-segments as well, including commercial, industrial, agricultural, development land and others. This meant that the market has really slowed down. Residential transactions are 75% of the overall transactions. Besides that it was also reported that the number of properties below RM300,000 is becoming increasingly limited, explaining why the drop may also be due to the affordability issue. The NAPIC research also showed that the greatest number of transactions are for properties between RM500,000 to RM1,000,000.

Just yesterday my neighbour in Penang called me and said that her brother is looking for a new condo unit for his family and would like to view my unit. Three weeks ago, someone offered RM620K for my 1,100sf condo which I feel is way too low compared to the market and thus I rejected it. You can see that actually, there are still buyers looking and offering. Just that perhaps the transaction did not continue as both sides could not come to an agreements. I think the trend moving forward is that the over RM1,000,000 condos will not be moving much and whether price falls or not depends on how strong the current owners are.

As for new launches, most of the developers are looking to launch units which are smaller, below RM500,000. This will enable them to continue to build and continue to gain good profits while waiting for the market to move up again before they start to launch the more expensive units. Even in Penang, where the transactions dropped marginally, go to any new launchings where the units are priced close to RM700,000 and you will get what I mean. Even if there are still small crowd but the buyers are now becoming more wary and some feel uncertain with the potential GST change next year, thus are willing to hold back even if prices may increase slightly due to GST. To them this risk is still worth it.

From friends in the industry, even for Q2, it is not likely to show any rebound and the same situation is likely to persist. If you are buying for your first home as long as it meets your expectations and budget, better buy. If I am buying for investment, which I am still scouting, I will not look at just the price per sf. I will use the rental yield instead. As long as it break-even, I would proceed. Due to the price increase, rental yield is lagging and will no longer give you 4-6% like previously. Buy and rent it out, I think even using a conservative 2% increase in price per year, you should see a healthy ‘margin’ in a few years’ time.

written on 16 Aug 2014

Next suggested article:
With GST, demand may slow down next year. True?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


What if everything becomes unaffordable? Affordability will find itself..

A friend who’s very worried about property prices asked me this question. What if the property prices become so expensive that no one could afford them? Interesting question. Well, I guess I can answer him that when prices get too expensive that no one could afford them, then the market crashes.

Seriously, property bubble bursts when no one could afford a home anymore and the one who has a home could not even afford the mortgage payments. Else, if everyone could still afford their mortgage payment, then the the bubble stays the same. However, it may just burst anytime since no one could afford to buy anything. Here are a few signs about situations when the property market would burst.
The potential property bubble bursting in Malaysia. Signs to look out for
 To answer my friend, below should happen when prices become way too high.

Developer builds smaller sized homes. The key consideration is affordability. If you cannot reduce the price, then reduce the size and the price would continue to still be affordable to come. We do not need to look too far away. Just look at Hong Kong’s newest new flat launches for some signs. This is the latest:

Buy a Tesla or buy a micro-flat? Both similar sized

Even for Malaysia, the sizes are now becoming a little smaller to ensure prices are maintained below that RM400k line.

Buyers start to accept smaller sizes. No buyer would prefer smaller sized homes but if that’s what makes it affordable, they would rethink their options. Actually, if one does not keep too much rubbish, does some clever renovations, even a
700 sq ft apartment can be an awesome place
.
 My first apartment was just 730 sq ft and my wife and I were happily staying there for 4 years. Upgrade can come later after we worked harder.

Developer builds further away. Exorbitant land prices meant that developers buy further away. With the new MRT SBK and followed by the current construction of MRT Line 2 and the next upcoming MRT Line 2, the options remain aplenty. Further away is relative actually. Duration matters more. Jams of 1 hour or a comfortable 1 hour in an air-conditioned MRT coach? Of course, sometimes one may have to stand.

Buyers accept to buy further away. Come on, until today everyone still wants to buy in those few places that everyone wants to buy. Funny but true.
Prices up because of location supply scarcity
 In the future, when the choices nearer becomes extremely unaffordable, one would start to accept a little further, then a little more and would start to accept the fact that some walking is better for the health. Just look to Singapore for signs. They are surely healthier than most Malaysians.

So, the answer is that the prices would not become so expensive that no one could afford them. In fact many more things would happen just to make it become affordable. More units in terms of density. Subsidies for affordable units from the government. ‘Forcing’ developers to build the units within their usual developments. Many more measures are definitely possible. I hope my friend are not too worried but also would not take too long to buy his first property. Certainly, buying earlier is slightly more advantageous as long as we are a bit more objective.  Cheers.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market.

written on 28 July 2017

Next suggested article:
When rental falls, so too would property price

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


When everything we want to buy seems so easy; monthly.

Luxury is easy. Just pay for it SLOWLY. Wow, no wonder everyone is thinking about renting a property instead of buying one. There is just no way that they would have enough since even when they buy a watch, they could pay for it slowly. A good friend asked me the other day about getting a new watch for her husband for his birthday. Her husband has been wearing the same Casio for for nearly as long as I have known him, probably 10 years? She said she wanted to get him a TAG Heuer. If you do not know how to pronounce,
then here’s the link.
 I asked if she knows the typical price of TAG Heuer. She said she was at the shop now and the model that wants to get based on her husband’s taste is around RM8k plus. She then shared that the shop assistant told her not to worry too much because the shop has instalment plans for any model in the shop. Isn’t this a great thing to have? Instalment plans to make a birthday gift seem ‘affordable.’ Make your partner happy!!  Haha…

There are many things in our lives that we would most probably be paying by monthly instalment. Property, for example. A car would be another one. I think of property as compulsory and I think of car as a necessity even if one were to work in KL and has access the the LRT or the MRT. Seriously, I am not so sure if too many girls would be okay to start a relationship with a guy who kept asking her to take GRAB and meet him for a movie or dinner or a date. I asked my wife and she laughed. She said,  ‘WHY NOT?’ Then, she said, ‘but if there are other choices, of course it’s best that the guy picks me up lah. It’s not that romantic if she has to go to the venue of the date by herself and go home by herself…  I think I agree with her too.  However, beyond these two items; property and car, I do believe that everything else should be just based on affordability based on one time payment? Haha. I know, perhaps I am just a conservative guy, financially.

Materialism is considered a huge problem actually. Oh yeah, this is what the C
ambridge dictionary says about the meaning of materialism
: ‘the belief that having money and possessions is the most important thing in life.’  Due to this, many may not have enough to face a potential financial crisis.
In an article in money.cnn.com,

these are some sobering facts about Americans in general. If Americans are faced with a sudden and unplanned US$1,000 expense, ONLY 39 percent could pay for it by themselves. (Yes, they earn their salaries in US$ and not RM) 20 percent of them would use their credit card to pay for this US$1,000. What about us? Are we able to survive a sudden RM1,000 expense without the need to use our credit card? Here, we have this.
Not enough if just EPF

 It’s extremely important to save today because we may need it tomorrow. By the way, that new handphone can wait but
the property prices?

Well, it’s still rising today.

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market.

written on 4 March 2018

Next suggested article:
Savings is the base, we need a strong one

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Ewein founder died after falling from 17th floor condominium

This has been a topic of interest in at least 3 different Whatsapp groups which I am part of. Some have their own theories what happened but I guess the police would have the final say once they have completed their investigations. For now, deepest condolences to his loved ones and wish the truth will be out very soon as to what really happened at 2 am.

Article in theedgemarkets.com
   Ewein founder and executive chairman Datuk Ewe Swee Kheng died after falling from a high-end condominium at Jalan Kelawai, Penang this morning, reported
Sin Chew
.  The deceased fell from the 17th floor of the condominium and into a pool at around 2am this morning, reported the Chinese-language daily.

It was reported that Ewe was one of the prosecution witnesses in the RM6.3 billion Penang undersea tunnel project involving former Penang chief minister and finance minister Lim Guan Eng.

Ewe had been remanded by the Malaysian Anti-Corruption Commission (MACC) in January 2018 for the investigation. During that time, the property developer of the City of Dreams luxury sea-front development in Bandar Tanjong Pinang, Penang maintained that neither Ewein nor its subsidiaries are involved in the undersea tunnel project. Please do read the full article for more details:
Article in theedgemarkets.com

Just wait for the final investigation outcome from the police

Let’s hope the investigation findings from the police will be out soonest possible as this is considered a case with a big public interest currently. As for everyone with their own stories, just note that anything which has not been confirmed is considered a FAKE NEWS yeah. Yes, this is the same as spreading some unverified information about Covid-19 just because you TRUSTED the friend who forwarded you the news. Just wait. Thanks.

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

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

Next suggested article:
Sometimes it’s just too good to be true

Header Photo by
Ono Kosuki
 from
Pexels

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Excess properties? 13 months to sell off.

As written earlier, due to the worry that the property market may have become too cold and become a danger to the whole economy, China has started to ‘warm-up’ its property market. Read here:
China’s Property Market Rescue Package Deployed
. This is insufficient as per China’s largest residential developer, Vanke. In fact, only the two major cities of Beijing and Shanghai are doing well while many other cities are facing great inventory pressure. In other words, way too many supply than what demand can absorb. On average, China needs 13 months to sell off existing inventory. Of course his views are different from many other developers who said that the worst time is over for the property market. Nevertheless, as per statistics from official data, the real estate investment growth has slowed for the first 11 months of 2014. However, in terms of property sales, it has hit the highest level seen thus far for 2014. Perhaps, the warming up has started to show some results.

Except for China, not many market has been more aggressive than usual to prop up the real estate market. For example, in Malaysia, officially the push is for more affordable homes by both the government as well as the private sector instead of relaxing measures such as DIBS or reduction of RPGT or even relaxing the bank lending curbs from Bank Negara Malaysia. Perhaps the market is different. The oversupply situation in Malaysia is definitely not as bad as China. However, looking closely may reveal that prices of properties in KL is definitely not sustainable at current level. Average price is close to RM700k which is exorbitant no matter to which category of middle income Malaysians.  Read here:
Average Value of residential properties in KL is RM673K
 In other words, the lower priced secondary ones are available but so are those which are over RM1 million and yet is just 1,000 sf or even smaller depending on the area which the property is at. I do not think the buyers would suffer losses by selling it because of their much lower entry prices many years back but seriously, there’s no chance to earn huge profits like what these buyers envisioned when they bought it in the first place.

Oh yeah, would the situation warrant some ‘warming up’ measures like that of China? I think we should just watch the Singapore property market for some clues. Already the local developers there are becoming more vocal in saying that the government may need to intervene before the market situation becomes too negative. Transactions are falling, prices are also dropping and this is true for HDB homes all the way to luxury ones in the island including Sentosa. Some sellers are even selling at a loss though actual reasons unknown. Assuming the Singapore government acts 6 – 9 months ahead of Malaysia, we can sort of guess what may happen once the Singaporean government intervenes in its property market. As of now, there has been no indication that such an action is forthcoming. If I do come across it, will share. Happy waiting, if you are still waiting.

written on 14 Dec 2014

Next suggested article:
Should Singapore follow China for property market ‘warming’?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Exciting Happening. We get free money.

Is RM50 a lot of money? Erm… how to answer this question. Never mind, read on. Okay, this free money is not enough to buy that brand new handbag priced at RM500 after a 50 percent discount yeah. However, if we are speaking about RM750 million which is aimed at boosting spending and which will in turn help in the economic multiplier, then this is something very exciting for the whole market. With a multiplier effect of 4 for example, RM750 million will help boost the economy by up to RM3 billion. What is this and how do we get it?

Article in themalaysianreserve.com
  Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement that the Ministry of Finance (MoF) has launched the ePENJANA credit programme worth RM750 million. Under this programme, each eligible applicant will receive RM50 ePENJANA credits per person beginning 31st July 2020.

He said, “Three e-Wallet service providers, namely, Boost, GrabPay and Touch ‘n Go eWallet have been selected for the implementation of this initiative. This programme will be launched in collaboration with the MySejahtera COVID-19 contact tracing app.” Just download one of the three e-Wallets, as well as download and use the MySejahtera app.

He said, “The initiative is open to Malaysians aged 18 years and above, earning less than RM100,000 annually. Each eligible applicant can claim RM50 ePENJANA credits via one of the selected e-Wallet service providers (Boost, GrabPay or Touch ‘n Go eWallet).

“The eligible applicant will also receive additional matching incentives worth RM50 in the form of cash back, vouchers and/or points throughout the campaign period.”
Article in themalaysianreserve.com

Okay, it’s not just RM50 yeah. The e-wallet partners are going to provide a matching RM50 we well. This meant that the total spending is up to RM100 and not just RM50. Still want to ask where the government is getting the money from? Or that the government should have gone bankrupt long time ago? Enough of all these political rhetorics. The money is real and some would already start to get it today. Just remember to spend it and help the economy. We are in this together dear Malaysians.

Oh yeah, for those who do not qualify, always be grateful that your earning is higher than the requirement. Or should we wish to earn much lower salary and get that RM50? Think about that and go enjoy that latte in the cafe. A Malaysia with a positive GDP growth may just give us a good increment next year and that increment would surely also be more than RM50. Happy understanding and thinking on the positive side. Okay, I admit, I also do not qualify but I am happy for all those who are now thinking of what to buy with the RM100.

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

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

Next suggested article:
Serious! Kids spending too much is not the kids’ fault.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Brexit effects? Exiting London, Entering EU (London is not EU….)

A senior manager told me that he believes Britain is right to ‘get away’ from the European Union (EU). This will free it (Britain) and allow it to grow faster. I disagree and told him that without a huge market (EU), who would be Britain’s new top few largest trading partners? Anyway, another colleague has just shifted her attention from sending her son to Australia and will instead send her son to the UK instead. The Pound has dropped significantly versus the weak ringgit. AUD has not moved up but Pound has really dropped significantly and I personally think come March 2017 when The UK Prime Minister Theresa May submits the application to exit the EU, it should drop further.

Of course, the negotiation between London and the EU may go extremely well and London gets back every advantage it once enjoyed without the burden of the immigration which was a requisite for all EU members. Some of you may be smiling now. Yes, I also do not think the negotiation will be smooth at all. Just google for some comments from some of the few stronger EU member countries to understand why. They are not going to make it easy at all even if they will face a women British PM.

As per an article in
Reuters
, following would be some of the potential happenings as per some bankers. UK Head of Citi said, “How do we and when do we start making decisions… knowing the plan is ready to go… it could be in the first quarter of 2017.” Rob Rooney, CEO of Morgan Stanley international warned, “It really isn’t terribly complicated. If we are outside the EU and we don’t have what would be a stable and long-term commitment to access the single market then a lot of the things we do today in London, we’d have to do inside the EU 27.”  The chairman of the Lloyd’s of London insurance market John Nelson said, “We have to be careful that we keep the UK open… and making sure we are able to attract the right talent globally. If we don’t do that we will not remain the financial sector that we are today.”

This is not all. Take a look at what France would be doing on top of being expressive over Brexit.
France offers help to banks considering Paris move after Brexit vote
. Yes, they would love new banking jobs in France instead of Britain. They are not the only one. This is what Germany is doing.
Germany considers changing labour laws to help woo banks away from London
. Yes, both may stand to benefit when some of the banks move their operations away from London. This is what Russia controlled bank VTB is saying.
Russian state-controlled bank considering alternative locations including Frankfurt, Paris or Vienna
 Please proceed to google for even more of such news. No now knows for sure what will happen until March 2017 application is submitted and negotiations start. Everything will be finalised only 2 years later after March 2017. So, for now we can consider all these to be mere rhetorics. Happy following.

written on 12 Oct 2016

Next suggested article:
SG Bank:Sorry no loans for London properties

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


ANOTHER expectation of a rate rise in December 2016, US$ lah.

Again, the ‘expectations’ of a rate rise being reported. As usual, one smaller currency would again be dumped on expectations that that super currency would be the focus of the world. It’s always chasing the one that has the most expectations of a gain
 within a short frame of time
. Funny? Well, it applies to all the kinds of investments we see everywhere. In the property world, this is called flippers. In fact even in jobs, a fresh grad may choose to jump just for a few hundred ringgit extra without realising that very soon he may be overpaid for that same skill that he has. Well, this is the world. So, here’s a bit of world news below.

Reported in an article
here
. The Federal Reserve Chair, Janet Yellen said that as long as the U.S. job market continued to improve and major new risks did not arise, the rate would rise one more time this year. Yes, it should be in December 2016 if it happens. I also read an interesting article in Huffington Post. Do read it in full to understand another point of view about how the
MONEY SUPPLY is being managed in the world’s largest economy.
 Please do not ask me if I support the view. I do not have a Finance nor an Economics Degree currently.

With these, what would be the
expectations for Ringgit or even the BURSA
? Volatile loh, mostly negative I would imagine even if towards the end of the year, there would be some window dressing activities so that the annual report looks better for some companies. For the really good ones, no worries it should still look good. 2016 has not been the crazy year that many has predicted and many companies continue to report profits. Actually during a real recession, majority of all companies would be in red and the retrenchments that is happening here and there would happen almost weekly. Hope the final Q would be great for all of us here in Malaysia. Cheers.

written on 2 Oct 2016

Next suggested article:
Ringgit’s value is determined by the market. Period.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Final few expensive pieces; French Embassy land

Remember an earlier article about the embassy lands? Read here:
Property Prices, Prime Locations, Embassy Land Sale
  Latest update is that the French Embassy Land may be sold very soon and the winner is said to be MRCB. The sale of this last few pieces of embassy lands is via a competitive tender. The land size is 7.9 acres which is considered quite sizeable and thus the bid is likely to be higher than the German Embassy’s 1.87 acres. The likely price is RM3,188 per sq ft. Yes, this is just for the land. The winning developer still has to build in order to sell. Total cost is likely to be about RM1.108 billion.

For the past few years, land prices has continued to increase because there were none left. All the ‘new’ ones being put up for sale were all secondary ones. KL City Hall has also increased the plot ratio and this has enabled developers to be more creative in what they can do even with a smaller piece of land. You can always build higher up into the sky. 🙂   Of course, after the first piece was sold, the owners of the these pieces of land would be trying to sell even higher. As every land valuer would tell you, anytime is good time to buy land because you just can’t grow new lands. Especially those in the highly sought after areas.

Oh yeah in MRCB’s purchase of the German Embassy land, the gross development value (GDV) for it is expected to be around RM1.3 Billion. Thus, the land price of RM259 million is still just 20% of the total GDV. When we look at this, it simply meant that the the room for land prices to move upwards is still possible, especially when the right project is able to generate even higher GDV. In many developed countries or even the lesser developed ones, this 20% land cost versus GDV is still a very healthy number. Happy buying land if you happen to be super-wealthy.

written on 13 Apr 2015

next suggested article:
Land cost of 13% vs GDV? Higher flexibility for property prices

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Expert Series: Bitcoin questions answered by Suraya (ringgitohringgit.com)

Bitcoin is the oldest cryptocurrency. It started in 2009. What is a cryptocurrency? As per WIKI, “A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.” Is it a legal tender for payment? Not in all countries but there are developments happening around the world for Bitcoins. Just a day ago, it is a legal payment method for Japan. Russia is meanwhile looking at regulating it. Article in
CNBC here.
 There are many questions which I would like to ask about Bitcoin actually and it so happened that my famous writer friend,
Aaron of mr-stingy.com
 introduced me to the lady behind
ringgitohringgit.com
,
Ms. Suraya. It was then that I got to know that she has been featured in many mass media outlets about personal finance and one of the subject she talks about is Bitcoin. I then asked and she agreed to be featured in this edition’s Expert Series. Happy reading.

— start —

1)  How do I get started with Bitcoin? Where do I buy, how safe is it and would I be cheated if the vendor is from overseas?

A: You get started with bitcoin by knowing that it’s both a network and a currency. The network mines bitcoin keeps a record of the currency using an underlying technology called blockchain. The blockchain side attracts programmers/developers/IT people to it as it’s an exciting new technology. The bitcoin price side attracts investors.

Like fiat, the are many scams that operate with bitcoin as the currency. This is where the problem lies; without good digital security knowledge, it’s very easy to be cheated of bitcoins. There are HYIP scams, buying/selling scams, and many other types.

Bitcoin itself is safe to use – transfers from one wallet to another will be recorded in the blockchain (something like a data ledger) and proof of transaction is transparent to both parties. Finding ‘safe’ vendors or sellers is dependent on their reputation (as business or individual). To protect oneself, we always encourage the use of escrow services – services that protects both buyers and sellers. Without it, sellers can ‘mysteriously’ disappear after funds transfer. You’ll want to avoid this.
 More guides here.

2) I have been putting my money into unit trusts thus far. Could you tell me three main reasons why I should also consider Bitcoin?

A: My answer is you shouldn’t consider bitcoin as an investment if you’re: (a) not good with digital security, (b) know very little about it and (c) have a low-medium risk appetite.

But you can consider it if you want to diversity into cryptocurrencies as a high-risk investment and/or if you just want to try out how digital and decentralised money works. Additionally, if you’re attracted to low-fee money transfer side of bitcoin. Some countries also sell bitcoin at a higher price, so some people take this arbitrage opportunity. That’s four reasons 🙂

3) The value of Bitcoin seems volatile. Could you explain more and are there ways to manage this better?

A: That’s correct; bitcoin is considered a high-risk investment. Price drops do happen, like when it crashed from USD12xx per bitcoin to USD2xx to back to now (as of time of writing) USD12xx again.

The politics of bitcoin is out of the average investor’s control, thus there is nothing much you can do about it. Some people use technical analysis to trade with bitcoin, but my personal strategy is to buy and hold for long-term.

4) In your opinion, how many years more is needed for Bitcoin to be one common world currency?

A: I am of the opinion that
 fiat system
 is strong and will continue to be strong but using both fiat and cryptocurrencies gives you more advantage as there are benefits to each type of currencies. I think both can exist together.

Additionally, bitcoin value is what it is as it had the first mover advantage. There are now so many cryptocurrencies today and who knows if another will replace bitcoin in market value. Bitcoin is still the clear #1 now, though.
Read more here.

About Suraya

Suraya Zainudin is the author of personal finance website
Ringgit Oh Ringgit,
 where she shares her money journey. Like that time she almost worked for a forex company (who heavily hinted she should get someone to deposit RM500,000 into their account) and that time she rented an apartment in KL for RM150 per month. She likes passive investing, but makes an exception for cryptocurrencies like bitcoin.

When she’s not thinking about money strategies, she works with Wirex, a UK-based fintech startup. She also has a writing business and her work was featured in Hong Kiat, CompareHero, VulcanPost and more.

— end —

Suggested article:
Our investment resources: REITs, dividends, personal finance and bitcoins

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Getting the most out of life need not be all about money

There’s one blog I read occasionally,
mr-stingy.com
 It has nothing to do with me being stingy. It has many good articles and I like the way the articles are written. Professionally written yet very real and touches my heart. Some very good ones are here:
The Best
  I like his story even if it would be some time more before I could do what he did; reject a 6-figure offer from his employer. How many of us could live the way we wanted to live? To decide based on what we would like to achieve out of life instead of how much our employer is willing to offer us? Aaron is the man behind Mr.Stingy.com Below is his sharing on “Getting the most out of life.”

1. You rejected a promotion with a 6-figure USD income. Were you earning too much? 🙂

Actually in my previous job, I didn’t have a 6–figure USD (annual) income yet. What really happened was that my bosses wanted to offer me a promotion which would have paid me 6-figures USD. But at that point in time, I was already seriously considering leaving to do something close to heart: something related to training and developing people. So I said no to the promotion, and instead resigned.

2. For the next 12 months, what’s your investment focus and why?

I’m being extremely conservative right now — because I don’t believe the fundamentals of the current US & Malaysia bull run (longest in the world!) are that strong. So I’m actually investing in (local and Asian) bond mutual funds right now. If/when(?) the stock markets go down, I’ll be looking for some bargain stock buys. And likely some foreign-based ETFs too.

Besides that, cryptocurrencies like Bitcoin and Ether fascinate me. I think I’m pretty late to the Bitcoin party, but if it drops to USD 500-ish, I’ll probably be buying some Bitcoin. I like the idea of the blockchain, Internet “money”, and the fact that governments can’t regulate it. Maybe there’s a bit of a rebel in me 😉

3. Seriously, do you think you will earn serious money with mr-stingy.com and are there any tips for aspiring bloggers out there?

No, it’s not likely that mr-stingy.com will earn me serious money. Not directly anyway. What it will do for me is to help me promote my brand and name. And also give me much-required writing practice. Which will hopefully lead to other lucrative opportunities in the future.

Here are a few tips for aspiring bloggers:

a. Start writing today.

Your biggest challenge will be starting and gaining momentum. If you’re not used to writing (or thinking about writing every day), your natural self will default to doing a hundred other things. Because it doesn’t feel like “work”. So fight it with every ounce of your will. Don’t let your internal questions derail you: “What will I call my blog?” “What if my friends think I’m lame?” “What theme should I use?” Just block all that out and start, no matter how shitty it feels at first. You can figure everything else out along the way.

b. Write useful stuff.

If you want to reach a lot of people, and help them — your writing needs to be useful. So yes, maybe ranting about your bad experience in the Post Office might be entertaining to a few people. But unless you can help your readers with something in their lives, it’ll be difficult to get lots of followers. How can you genuinely help someone through your blog today? That’s a good question to ask when you’re thinking about what to write about.

c. Write as well as you can, in your own way.

I just read an article (from 2015) that says that every minute, 1400 blog posts are published on the Internet. That’s 33,600 new blog posts a day! And that hasn’t even taken into account everything else that’s going on Facebook, Instagram and YouTube. On the Internet, it takes a lot to stand out. This isn’t to discourage you from creating content. But it’s to encourage you to create awesome content! Seriously, do it. Bring your best self to the writing table. The Internet will thank you for it.

d. Be prepared to hustle and promote your work.

Creating awesome content is one side of the battle. The other side of the battle is promoting your work. This means that you need to actively reach out to editors, publishers and other writers who might be interested in what you have to say. Just hitting “Publish” and sitting back is not good enough nowadays. You need to talk to people and build relationships. Say “Hi, I hear you like burgers. And I just wrote an article about the best burger places in KL. It might be useful for you. Do you want to take a look?”

Remember — always try to help (bring value to) other people. Even when you’re trying to promote yourself.

4. It’s tough to save money these days with the rising living costs. Tell us your personal savings tips.

a. I use a phone app to track my expense. I never used to do this, but I started this year. The data has been great! It’s allowed me to really fine-tune my spending each month and reduce unnecessary expenses. I can control my spending and saving much better now — with just this really small change.

b. I pay myself first. The oldest and most boring line in the personal finance advice book is still perhaps the most important one. People like me have a tendency to spend every cent of their money, so the best thing for me is to quickly transfer money out into investment and savings early in the month. So I can’t touch that money any more. Even better — automate the process using standing instructions.

c. I read as much about personal finance as I can. Again, old but true: knowledge is power. Besides, the more you read about interesting personalities who’ve mastered money — the more inspired you are to master money on your own.

About Aaron

Aaron Tang is the founder of
mr-stingy.com
. He writes about optimizing time, money and relationships — to make the most out of life. You might have seen him at places like The Huffington Post, Business Insider, The (now defunct) Malaysian Insider, iMoney and SAYS.

In his day job, he works at a social enterprise — helping young people become better versions of themselves.”

Next suggested Expert Series:
Expert Series with Khalil Adis: The tough questions for those waiting to buy

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Expert Series Q&A – Financial Series – Mr. Miichael Yeoh

Miichael Yeoh is the founder and CEO of GM Training Academy. With his many years of experience in the mortgage banking industry, Miichael has helped thousands of loan borrowers by providing comprehensive mortgage advisory and solutions. He has also trained many real estate agents with regards to mortgage financing. Miichael is also a regular columnist in the property section with New Straits Times Press, Property Guru and also Property Hunter magazine. He has been invited to numerous public talks in Property Exhibitions, Seminars and also developers.

 1) I m buying my second property. Should I take MLTA instead of MRTA?

Whether a person buys either MLTA or MRTA depends on a lot of factors. It is not fair to say that one is better than the other one.

Borrowers  will take up MRTA depending on

1.  If they only need basic protection

2.  Depending on their budget. MRTA is cheaper and you can also finance into your loan.

3.  If you are thinking to flip your property and wants some form of protection in short term you can opt for MRTA. Minimum tenure is only 5 years and is much cheaper.

Borrowers who will take up MLTA…

1.   Wil Have More budget and wants more than the basic protection.

2.   Will be able to use as financial planning. No need to repurchase after you sell your property as you can bring over to your next purchase. Save on the premium and also cheaper when bought at younger age.

3.   Will get their premium paid back upon loan completion. This can be a form of ‘force’ and at the same time protection.

Choose the one you are most comfortable with before making a decision.

2) With the potential of interest rate increase should I take a fixed interest loan instead? Why?

If the BLR increase is very significant such as 2-3% then you might consider fixed rate. I remember more than 10 years back when BLR is very high I use to sell Islamic Package as an alternative as the interest rate is fixed throughout the whole tenure. Today, we even have Insurance companies such as AIA and ING offering fixed Interest rate. These company are offering at an average of 5-6% fixed.

For those who are worried about BLR fluctuations in future can consider these alternatives. Currently borrowers taking up fixed rate are still a small handful. Do read the terms and conditions of the Letter of Offer before signing as the terms might be different than a conventional loan..

3) Should BNM let banks determine the maximum loan repayment period instead of the maximum of 35 years? Would this cause potential bubble?

I think BNM is doing the right thing. I fully support their tightening of lending policies. Loan repayment of 30 – 35 years is fine. Most borrowers will be able to afford the installment. 10 years back the maximum tenure for most banks is only 30 years and nobody complained. This is one of the ways BNM is using to manage Malaysia’s increasing debt ratio. Else we will be experiencing sub-prime crisis which struck US badly. The signs are already showing.

4) Ringgit has been on a downtrend vs US dollar. Are there any effect for this to Malaysia property market?

Since January our Ringgit has depreciated more than 9% against US dollar. This make our properties cheaper to foreigners. I think most of you also notice that there are more foreigners buying Malaysian properties as compared to previous years. I was at a property launch recently and I saw investors from China coming in buses. Cheaper property prices as compare to other countries couple with favorable exchange rate makes our Malaysian Properties very attractive.

Read the next Expert Series Q&A?

Expert Series Q&A with
Adrian Un on ‘Malaysia Property Investment’

Expert Series Q&A with
Ryan Khoo on ‘Iskandar, Johor’

Expert Series Q&A with
Stephen Soon on ‘Penang Secondary Property Market’

Expert Series Q&A with
Rozalina Rahim on ‘First Time Property Investors’

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Expert Series Q&A – Iskandar, Johor – Mr. Ryan Khoo

Ryan Khoo is the Director and Co-Founder of Alpha Marketing, a real estate investment club based in Singapore. He started off investing in studio apartments in Kuala Lumpur back in 2007 and today owns properties both in Malaysia and Singapore with a significant portfolio in both countries. He advises club members on their property portfolios and how to achieve the best returns via property investing. Alpha Marketing organizes regular events on the property market, networking nights, property tours and helps investors to bulk buy property or co-invest together. Membership is FREE. Do sign up as a member via
alphamarketingsg.com
 or on Facebook at Malaysian Investors in Singapore. He can be reached at
ryan.khoo@alphamarketingsg.com

1) After the latest round of cooling measure, specifically the RM1 Million requirement, Iskandar has cooled down tremendously, at least that’s what the public is thinking. What are your thoughts about this specific requirement for short term (6-12 months) and longer term (over 12 months).

Cooling measures always create an initial period of doubt, especially when the implementation is not clear as they have been for Iskandar with the uncertainities of actual implementation date, exemptions for Medini and un-founded rumours on foreigner purchase restrictions. As such we see the number of transactions have dropped significantly as people take time to digest the impact and evaluate options.

My thoughts is that this doubtful period will be temporary and buying interest will return by Q2 this year. The market basically needs some good news to reignite interest, and fortunately for Iskandar there is much good news coming in the coming months.

2) Do you believe the Singapore government would want Iskandar to succeed as well? What are some of the reasons for them to support Iskandar?

Yes its definitely in the Singapore government’s interest for Iskandar to succeed. While I do understand that some people have reservations on this but for both Malaysia and Singapore, the success of Iskandar is imperative and is just a matter of time. Malaysia needs the economic spillover effect from Singapore and earn the strong SGD for it to escape the middle income trap while Singapore has issues with soaring housing, healthcare and education costs, not to mention the long suffering manufacturing and services industries, all of which can be resolved in Iskandar.

This process will take time and different industries will benefit at different timelines as Iskandar matures but anyone who spends some time studying Singapore’s economy can see how Iskandar can help alleviate some of its structural issues.

3) If I am a Malaysian holding Singapore PR and would like to buy for rental income first and capital appreciation second, should I buy Medini or JB first?

There are 2 schools of thought. The first school of thought supports JB city because it is where most of the economic activities are today and where the future RTS will link to Singapore first. Hence people invest into JB city because they foresee increased demand when the RTS is completed, mirroring what happened in Shenzhen, greater Tokyo and other major cities. However JB city has the reputation of being “unsafe” and there are many older, poorly planned developments there so there are question marks if people actually want to live in the city. Though there are many initiatives to rejuvenate the city center, this might take a long time and developments are patchy in nature.

The second school of thought supports Nusajaya (where Medini is in) and because it is a well planned, new city center, it would be a preferred choice for those from Singapore, who have higher requirements (such as security & design) when it comes to the living environment. Nusajaya also has many economic catalysts (such as the theme parks, business parks, Educity, Pinewood Studios, healthcare facilities) that has changed the economic landscape in Iskandar and promise high growth in jobs and other economic activity. It is also still close to Singapore via the 2nd Link. The negative points is that Nusajaya economic maturity may still be a few years down the road, and it is hard to say for sure whether we are buying too early or not.

As a property investor, I would say that the property market overall is in a low yield environment today, whether Klang Valley, Penang or Iskandar. As much of the properties involved are still under construction and much of the new job growth catalysts in Iskandar are still in infancy, its difficult to predict how rental yields will be. Investors in Iskandar today make their decision based on the 2 schools of thought above.

4) It seems that Chinese buyers from China are flooding into Iskandar. Would this pose a potential risk for Iskandar as a whole?

Chinese buyers and developers in Iskandar is a good thing. A good economy/industry is one where there is a vibrant and active market especially if it involves money from overseas. That shows that the market is interesting and attractive enough for them to invest in. Chinese buyers have the funds to buy anywhere in the world, and if they choose Iskandar, that says something about their beliefs. And the reason why they buy is because they see a Shenzhen – Hong Kong relationship and they are buying before the big catalyst, which is the RTS and High-Speed Rail connections to Singapore.

The fear that most Singapore/Malaysian investors have is that Chinese buyers buy with no concerns about rental yield and that they create a false impression of demand. Well that is true, the typical Chinese investor is not going to put too much thought or effort to manage tenants. They are basically buying an asset with the belief that the asset will appreciate in value after some time and why they are confident is because of the Shenzhen – Hong Kong relationship being replicated in Iskandar/Klang Valley – Singapore. Its not right or wrong, just a different investment methodology. The Chinese also have different investment horizons and holding power capabilities.

And the Chinese have put money into not just property but also various businesses. Huawei is opening a shared services center in Iskandar (not Klang Valley or Penang) and there have been many similar investments into manufacturing. Chinese banks such as ICBC and BoC are also very active granting business and property loans in Iskandar vs other parts of Malaysia.

5) In your opinion, if RTS between Singapore and Iskandar happens, what would happen to the property prices in Iskandar? Your conservative opinion.

Property prices will definitely move up once the RTS is completed, and again when High-Speed Rail to KL is completed. How much will it go up to? Don’t know. But I like to use Singapore prices to reference against instead of KL prices simply because Singapore is so much nearer about 50km away (with an SGD earning 7mil population by 2030) vs KL’s MYR earning population 8-12 million that is 350km away. Singapore outskirt prices are about SGD1,000psf today, so basically Iskandar should be lower than that, the question is by how much and if it is connectable by train, the discount should not be too significant. Singapore central prices are hovering between SGD1,800-3,000psf today so that goes to show how much potential upside Iskandar has.

Next suggested
Expert Series Q & A – Penang Secondary Market – Mr. Stephen Soon

Other
Iskandar property articles

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Expert Series Q&A – Penang Property Secondary Market – Mr. Stephen Soon

Today, in our Expert Series Q & A, we have Mr. Stephen Soon. He is the Chairman of Penang’s Auctioneers Association as well as the Managing Director for MNP Auctioneers. He has always been seen as someone dynamic and has a very formidable team working with him in the real estate industry. Let’s learn from him about his expert opinion about the Penang property secondary market for 2014.

1. How do you foresee first half 2014 vs second half 2014 for Penang secondary property market?

First half of the year will be an adjustment period as people are still digesting the impact of the recent budget 2014 announcement, and the new Penang State Housing policy that will take effect on the extended commencement date on the 1st March 2014, therefore transaction is likely to slow down. Even potential bidders are stopping to bid at the Bank foreclosure’s Low-Medium Cost Auction properties! I am sure many experts have already shared the same opinion but my point of view is that Penang people are getting more cautious in spending as the sky is currently cloudy in term of the new policy implementation by the State Government. Thus, people are still observing how it goes. You cannot probably make quick profit from property sale with these new policies, therefore people will start to plan if they have a sustainable cash flow or income to hold a property for a longer period and resell with a more sizeable return on investment (ROI).

Second half of the year will start to see improvement in transactions number as both sellers and buyers would have adjusted their minds after experiencing a change in both market sentiments and movements. However it will not exceed past years’ as property transactions have been gradually declining since March 2013. Good news is, I would say that property prices should become more realistic and touchable compared to last year.

2. If you can only afford RM600k loan, would you buy landed in mainland or high rise in island? In term of potential ROI betwen 3-5 years.

I would say that to ensure good ROI, I should not get high loan financing. Assuming I place 30% down payment to purchase a property, then its selling price will be around RM850,000 (after all maximum loan is only 70% for third property financing, under BNM ruling). With this price I would invest in a spacious condominium in Penang island. Alternatively, I may invest two landed properties in mainland, both choices will surely make good ROI to sell after 3 years.

If I can only afford to pay 10% down payment of a RM670k property and I am eligible to obtain 90% loan financing, I will go for high rise in Penang Island as the demand for below RM1mil property at a good location is generally high and affordable among the Penang people and with the rising of inflationary effect, selling a good condominium in the range of RM900k to RM1mil will be considered normal after 3 years.

3. The difference in price between the new and secondary market is wide, some up to 50%. If this is the case do you think the new property prices are under pressure to go down?

New property prices will not and also cannot afford to go down in prices. One is due to the building and construction cost. Property development requires huge investment and thus needs high returns. Without this, developers would rather not build if the selling price is on a downtrend. Development project will only be competing with other under-construction property and not the secondary market. Furthermore, the winning factors of the development projects are also depending on concept, developer reputation, location and not primarily on price. This is main reason why a secondary property cannot be used to compare to the primary market.

4. Do you agree that it is best to buy now?

Anytime is the best time to buy if one have sufficient cash flow on hand and found the right property. The rationale of my point is that if people are not too heavily dependent on loan financing to purchase a property, and not rushing to buy one, you should be able to find the right property. Although in my point of view these few months will be the adjustment period, I have already seen property developers in the recent Penang MAPEX giving surprises by offering value-buy units to the potential buyers and people are still surrounding their booths after 10pm!

Thank you Stephen!

Read more on
Penang Property

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Expert Series Q&A with Mr. Adrian Un on ‘Malaysia Property Investment’

Adrian Un first embarked on a sales journey in the mortgage financing industry at age 19. Having committed to a career spanning over 20 years in the industry, he has won numerous awards. More importantly, he has learned many strategies on mortgage leveraging which enabled him to make his millions through property investments. A graduate of business with the University of Technology Sydney, he has shared his passion in the industry with both local and foreign banks. Adrian has been a regular contributor of articles with The Edge, Personal Money, Property Buyer and a number of other publications. He is regularly invited to speak at major property events both locally and internationally including Singapore, Hong Kong, China, Bangladesh, Thailand and Indonesia. As the CEO of SkyBridge International, he now shares his property investment knowledge with many would be investors and is recognized by many as the “How To Guy” for property investment.

1)       If I am a Malaysian working in Singapore, should I buy Iskandar today or wait until the market direction is clearer?

AS IT IS PROPERTIES IN MALAYSIA WILL KEEP INCREASING IN PRICES FOR SURE ESPECIALLY IN ISKANDAR WHEN MAJOR PURCHASES WERE FUELLED BY FOREIGNERS. IT’S A QUESTION OF THE MALAYSIAN PURPOSE OF BUYING AND HIS/HER HOLDING POWER IF BUYING FOR INVESTMENT. IF BUYING FOR OWN STAY (AT LEAST FOR THE NEXT 5 YEARS), THEN AT PRESENT ANY PURCHASES WOULD BE GOOD. HOWEVER, IF THE OBJECTIVE IS FOR INVESTMENT/SPECULATIVE, THEN PERHAPS SHOULD CONSIDER AT LEAST TILL COMPLETION OF SOME OF THE UNITS WHICH WERE LAUNCH THE LAST FEW YEARS TO SEE IF FOREIGN INVESTORS WOULD “DUMP”THEIR UNITS AT DIRT CHEAP PRICES. THE STRESS TEST IN 1-2 YEARS TIME WOULD DETERMINE WHERE ISKANDAR PROPERTY MARKET BE HEADING. AS IT IS, THERE ARE AT LEAST 20,000-25,000 UNITS DUE FOR COMPLETION IN 2-3 YEARS TIME AND IT MAY NOT GO DOWN WELL ESPECIALLY THE RENTAL YIELD WILL BE COMPRESSED FURTHER

2)      Is it better to buy in Malaysia versus Indonesia, Thailand and Philippines? What would be the two key consideration I must consider before investing?

MALAYSIAN PROPERTIES STILL BETTER OVERALL IF YOU COMPARE TO THESE COUNTRIES. FIRSTLY, TITLE CAN BE REGISTERED UNDER PURCHASERS NAME COMPARED TO THAILAND/INDONESIA WHERE OWNERSHIP IS IN THE FORM OF COMPANY WHERE THE LOCALS MUST HAVE BIGGER SHAREHOLDING. SECONDLY, YOU DON’T GET TO OWN FREEHOLD PROPERTIES WHERE INDONESIA/THAILAND/PHILIPINES NORMALLY ALLOW LEASEHOLD OF UP TO 30 YEARS ONLY. THIRDLY, OVER THE LAST 30 YEARS, MALAYSIAN PROPERTIES HAVE ENJOYED STEADY GROWTH IN VALUE AND IS LESS VOLATILE SO PURCHASERS CAN EXPECT STEADY VALUE APPRECIATION. ALSO OUR LAW IS BASED ON TORRENT SYSTEM WHERE LEGALITIES IN PROPERTY OWNERSHIP ARE CLEARLY SPELT OUT.

IF THERE’S 2 CONSIDERATION TO CHOOSE, BUY FROM REPUTABLE DEVELOPER AND CHOOSE RIGHT LOCATION

3)      There are predictions that the Malaysian property market prices would only start recovering in 2016. Some say Q2 and most recently, a prominent property guru said Q3 2014. What say you since you are on the ground all the time.

PREDICTIONS REMAIN PREDICTIONS. I AM CONFUSED WHEN YOU SAID “MARKET PRICES WOULD ONLY START RECOVERING IN 2016” WE DIDN’T EXPERIENCE ANY PRICE CONTRACTION RECENTLY, DID WE ? AS IT IS, OUR PRICES IS ON THE UPTREND DUE TO PENT UP DEMAND FROM DOMESTIC AND FOREIGN. AS LONG AS OUR PROPERTY IS STILL INVESTOR FRIENDLY (ESPECIALLY TO FOREIGNERS), THE PRICES WOULD CONTINUE TO SPIRAL UPWARDS.

4)      Singapore’s cooling measures are said to be more effective to the extent that prices have already started falling. Should I get ready to buy Singapore instead of Malaysia?

YES, 8 ROUNDS OF COOLING MEASURES DID PROVE TO BE A SHOWSTOPPER. HOWEVER, BEING A MALAYSIAN, NOW IS STILL NOT THE RIGHT TIME TO BUY SINGAPORE. THE BIGGEST ISSUE AFFECTING ALL MALAYSIANS ARE THE ABSD (ADDITIONAL BUYERS STAMP DUTY)  WHICH IS AROUND 18% UPFRONT. ITS JUST DOESN’T MAKE RINGGIT SENSE. ANYWAY, IF MALAYSIAN STILL INSIST ON BUYING IN SINGAPORE FOR OWN USE, AS LONG AS THE PSF IS AROUND SGD 1,300-1,400, NOTWITHSTANDING THE ABSD, THEN ITS STILL WORTH BUYING. LIKE I ALWAYS SAY, YOU BUY WHEN THE LOCALS BUY.

Next suggested article:
Expert Series Q&A – Penang Property Secondary Market by Mr. Stephen Soon

Or read more about Iskandar:
Expert Series Q&A – Property market of Iskandar, JB by Mr. Ryan Khoo

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Expert Series Q&A with Rozalina Rahim – ‘First Time Property Investors’

‘Challenge the norm and add value’. That’s what Rozalina Rahim, Founder/Chief Operating Executive of Reconsult Plt, a property consultant to developers. She has been in the property industry for over 25 years with many major property developer companies in Malaysia, namely Sunway, UEM Land and was also attached to the leading Property Website in Malaysia, iProperty.com

Rozalina strongly believed that it is important to be well educated on how to master the property game before you embark in the property game

 1) If this is my first purchase, what would be the most important three things I must watch out for.

– Look for hot area eg. Near shopping centres, LRT, areas with alot of economic activities etc.

– Must know your budget and buy within your budget

– Check on loan eligibility

2) I am buying for the first time and I can only afford one unit. Should I buy for rental or buy for potential capital appreciation?

Always look for long-term investment. If rental yield is good, usually the appreciation will also be good. Never think of short-term investment or also known as speculative behavior. It may hit your pocket if you are not ready for it.

3) If I am buying for own stay and I am single, should I buy smaller unit at a hotter area or a bigger unit at a farther away area?

I will personally choose a smaller unit at a hotter area with high growth rate on rental/appreciation. It will be easier to dispose at fast speed with appreciation if need be.

4) Would it be worth the few thousand Ringgits I pay to join a workshop by the property gurus or should I join a property buyers club instead?

Investing in property, you need to have the knowledge to do so as it is a long term plan. The answer will always be education so that you will understand the game well before you embark yourself in it. Thereafter, you can join any investment clubs to start making money.

Note: There’s a lot of effort from the government to encourage 1st home buyer to start buying properties. E.g My Home, Prima etc…

Read the next Expert Series Q&A?

Expert Series Q&A with
Adrian Un on ‘Malaysia Property Investment’

Expert Series Q&A with
Ryan Khoo on ‘Iskandar, Johor’

Expert Series Q&A with
Stephen Soon on ‘Penang Secondary Property Market’

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Expert Series with Asia’s Property Queen, Dr. Renesial Leong

It’s my honour and pleasure to have Dr. Renesial Leong for our Expert Series. The theme for this session:
“Never Work Again Unless You Choose To Through Properties.”
 Dr. Renesial Leong is popularly known as Asia’s Queen of Property and she’s a columnist, Master trainer and best selling author of the very FIRST series of guide books on Malaysian property investment. In fact, her book was the very first one I bought when I decided to think about property investment seriously. Due to her book, “Property Jewels,” my property investment journey started. She brings with her successful property investment experience of over 20 years. Today, she will share some valuable insights into what makes a property a great investment.
Please feel free to know her better too.

#1 – Dr. Renesial, How and When did you first realise that property investment is a ‘goldmine’?

I was inspired by Sir Li Ka Shing’s super wealth which was built mainly through properties. This stirred my interest to start my research on properties and the potential returns from them. In my research, I discovered that many rich and famous people in the world today made their wealth through properties or  have invested into properties. There was no turning back after that and my property investment adventure has spanned over 20 years till to date.

#2 – Some say in the future, there is little need to own a property. One should just rent instead. Your thoughts?

To a certain extent, this might be the future trend because Gen-Y may not have enough funds to pay for a property downpayment. In fact, many of them are spending it or even putting their funds into crypto currencies for example. I am not sure how this will turn out in the future but you know what, that’s great news for property investors. As long as we own properties, there is a giant pool of tenants ready to rent from us.

#3 What are the pros and cons in buying into a newer area? What should we look for?

– Winning points of a good new townships include having better planning. This will result in many benefits to the dwellers in the township. Some examples include:

– Better connectivity.  Some developers would also build connecting roads for the convenience of the township.

– Better and wider roads. This helps tremendously even when some cars are parked outside the home for example. In many older projects, as soon as cars are parked on one side, the whole road turns into a single lane.

– More greenery and better landscaping and a greener township; rainwater harvest, solar heater, lightings and more.

– Safer too because these townships usually offer a gated & guarded scheme.

– Amenities and facilities are well thought of and last but not least, there are sufficient parking spaces too.

#4 Gazing into the future, what would be your prediction for the Malaysian property market 10 years from now?

For homes which are well kept, well managed and desirable, it would have doubled in value. Even if we are not looking at it from the demand and supply factor, we should look at the simple fact that costs are rising for everything and in particular inflation will run its course whether we like it or not.

We should also look at the population growth. As at today, we are a very young nation with a median age of 28 years and a large population of Gen-Y and Gen-Z as well as a healthy household formation. This is averaging 70-80k annually. With all these factors and more, the right property will do wonders!

Please LIKE
kopiandproperty.com FB page
 or
Sign Up for free
 to get daily updates about the property market.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


High-Speed Rail cancellation: versus flight tickets and experts’ views

The topic of High-Speed Rail KL – SG was a hotly shared one yesterday and today. Long time back, there were predictions that this HSR may kill the airlines. Well, the
KL – SG route is the busiest in the world actually,

so perhaps HSR will affect it. Today however there was one Facebook post which detailed how the HSR would fail because no one would be able to afford the ticket anyway. According to some earlier reports, the round trip ticket is likely to be priced below RM400. If we buy tickets earlier, say 1-2 weeks before the flight, the HSR ticket is indeed higher than low cost airlines but may be almost similar or cheaper than MAS or Singapore Airlines depending on when we buy the ticket. I do not think we need to book HSR tickets one month in advance to get special price like flights. By the way, if we look at buying a flight ticket in order to fly the next day, the prices immediately jumped above that of HSR. Hope everyone gets my meaning. The price is definitely not the main issue here yeah. It should be whether it’s beneficial or not. For this, perhaps best to wait for more details, especially from the TEP team.

However, if we are looking at how it will affect the property market, it seems that it would not affect it much as per some industry experts. In an
 article in Edgeprop.my
a few experts were asked for their opinions and these were their comments. Savills Malaysia executive chairman Datuk Christopher Boyd said, “I think some of the hype along the HSR [bringing added value to locations along the alignment] was misplaced and might has been over-optimistic in any case.” He added, “This is because there are already very good communications between Malaysia and Singapore with the reasonably good rails, air and road communications. Furthermore, studies overseas have shown that in many cases, the benefits that HSR links are able to bring are often overestimated. Stations along the alignment can actually pull value away rather than bring value in.”

According to the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) president Foo Gee Jen, the cancellation would affect corridors of growth such as the Batu Pahat-Muar and Melaka-Seremban corridors and especially the Malaysia Vision Valley in Negeri Sembilan. He added, “However, I believe that despite this big announcement, not many people are buying big tracts of land around the station locations. The investments are more small scale. The losses would be more in terms of time and planning. There was not much speculative buying around where the stations are supposed to come up.”

I think a neutral view came from Socio-Economic Research Centre executive director Lee Heng Guie. He said “It is hoped that the government will weigh on all aspects of costs and benefits, as well as the long-term spin-off from the HSR. Much has been said about the desired spin-off from the HSR amid some questions over the need to build the rail given the existing rail and air transportation. Obviously, the decision lies on whether the government’s balance sheet can assume more contingent liabilities or government guarantees, which is largely to finance infrastructure and strategic projects.”

A different opinion came from KGV International Property Consultants Sdn Bhd executive director Samuel Tan. He prefers fo the project to continue because, “It will bring long-term benefits to Malaysia.” His suggestion is to stagger the HSR construction. Key stations such as Bandar Malaysia, Putrajaya, Melaka and Iskandar Puteri  are developed first.

Professor of economics at Sunway University Business School Dr Yeah Kim Leng said that the investor confidence will be affected but the country can revisit the project when we are more financially sound. He said, “It is prudent to call off the HSR and other mega projects that can be revived when the government is in a stronger financial position.” He concluded by saying, “I believe that the longer it is delayed, the more attractive it will be.”
Full article in Edgeprop.my here for reference.

What are your thoughts from all these experts views? Generally they are not against the High-Speed Rail. However many would have their views as to how the HSR could be carried out and if we noted, I think it is only a matter of time. Perhaps it is true that we may not need it so soon but the current schedule is for HSR to be ready in 2026. Does this mean we only need this much later, perhaps beyond 2030? Let’s be savvy to the fact that for HSR, it’s never a profit and loss kind of accounting or town planning kind of calculation. If it’s based on just the usual profit and loss, then there are many mega projects today that should not have been built many years ago. I think the next article would be on Singapore’s formal response on this matter since it has been confirmed that they have not been informed officially. Happy following.

written on 29 May 2018

Next suggested article:
When three becomes one – Thailand – KL – SG

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Experts said, ‘affordable properties’ NO MORE (nonsense)

This article was written one year ago but affordable units are still available even today. To show this, the article has an update on 16 Dec 2015. Do refer to the image for some latest affordable secondary choices in many areas in Selangor. Do refer below for some choices from property guru.com.my You can also search in many other major property portals for even more choices. Read on to understand my personal views.

Every few days, I read a few more news about experts saying that properties are becoming so unaffordable that no one will be able to own properties. This article is aimed at EXPERTS who does not provide any answers or help to fellow middle income Malaysians and kept fanning the price appreciation of ever higher properties by saying properties are getting too expensive etc etc etc. I have read many EXPERT views about how middle class Malaysians could not afford a property here in Klang Valley. To these EXPERTS, can you stop trying to sound as if every single property out there is so expensive and that no one can ever afford one? Seriously, if you are an expert, did you not surf online in any of the property portals or at least read some newspapers about the fact that for secondary market, there are still HUGE numbers of available properties even below RM500,000? or even RM400,000 or lower? My colleague even bought a condo for only RM250,000 few months ago!

If you are an EXPERT, please tell these middle income people objectively that they should try secondary market. There are still choices. Why kept on complaining but refuse to make a decision objectively? Do your study, tell them where they can find these properties. HELP THEM. Not be an armchair critic and simply say, middle income people can never ever afford a property in Klang Valley. If this is true, do you know how many people are now sleeping along the corridors of offices and on the streets? Why must every middle income Malaysians be staying in Mont Kiara or Desa Park City? They can’t stay in slightly further or lesser known areas?

Sometimes, I just feel that even these middle income Malaysians are just so choosy. Do you know that in some countries, you cannot even choose because there’s just NO SUCH properties available? My wife and I bought our first apartment in Penang ISLAND after working for 5 years. It was RM123,000 then. Today, the same apartment, after 10 years is only RM250,000. Yes, it is 700sf but if we could stay there for 4 years, together with my brother and my sister, what makes the current generation so different from us? Yes, it is true, these 700sf apartments are nowhere near the high class luxury projects but that is just fact of life. Work harder, upgrade later. Keep on listening to these EXPERTS meant that everyone loses out on even the slow appreciation of these smaller secondary properties and in the end, do you think the experts would suffer? Of course not, they would still be okay.

Dear experts, if you truthfully want to help, help to spread the news about these cheaper secondary properties. Even these would still increase in price every year and if a RM200,000 property increases only 1% per year, that’s already RM2,000 per year. Even managers do not have such RM2,000 increment every year! Go online, surf for it, view and then decide. If you really must buy newspapers, then go buy newspaper, it’s just RM1.50, search, call, view, ACCEPT and buy. Besides that, kindly register for all the affordable housing schemes on offer from the federal and state governments.

written on 11 June 2014

Next suggested article:
RM250,001 – RM500,000 may be 40% in 2014, I think.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


How much do we need to pay to extend a leasehold property?

I have no special preference for freehold property versus leasehold property. Many years ago, my cousin sister asked me if she should proceed with a leasehold property. I told her this story.

When you first bought the new property with a leasehold status, it may start with 99 years. Give or take maybe 96 years. You are 30 years old. 30 years later, when you are 60 years old, the leasehold is left with 69 years.

At the time, your son / daughter may be 30 years old. When you reach 90 years old, your son / daughter is 60 years old and your grandson / granddaughter is now 30 years old. The leasehold is left with 39 years.

When the leasehold comes to the final few years, you have left the world. Your son is 90, your grandson is 60 and your great-grandson is 30. I would think by then you have enough savings to renew the lease? We assume NO ONE thought of selling the property…

By the way, if the intention is to rent the property out to potential tenants who will continue to pay you rental to cover your mortgage, then the rental is the same whether it’s leasehold or freehold…

Secondly, whether property price appreciates or not does not depend on leasehold versus freehold alone. It may also depend on the location, the potential growth, the quality, the concept and many more reasons too.

Anyway, coming back to the question of how much do we pay to extend a leasehold property? Here’s a good reference.

Very good and comprehensive article in iproperty.com

How much does it cost to extend the lease?

Land laws in Malaysia are subject to the jurisdiction of various State Authorities, hence they vary from state to state.

Selangor

In Selangor, the premium formula for the extension of leasehold land is found in the Selangor Land Rules 2003 & Selangor Quarry Rules 2003.

It should be noted that leasehold property owners in Selangor have some
rebates
 when it comes to renewing their lease.

Leasehold property owners of 60-year-old leases will be able to convert their leases to 99 years.
Under the Private Residential Ownership Scheme Pay,
owners only need to pay RM1000
 with the condition that the owner does not sell the property to others. Should the owner decide to sell off the property down the road, he will have to fork out the monies for the balance of the premium. However, owners are allowed to transfer the property to family members.

You might be wondering how can option no.2 be so affordable. Ass explained by the Selangor Menteri Besar in 2018 – With land prices escalating yearly, the Private Residential Ownership scheme offers a financial cushion and assurance that the homeowner or the next generation will not be kicked out of their homes due to a lack of funds for premium renewal. Land renewal premiums for key locations in the Klang Valley can easily cost upwards of RM150,00.

Sabah

Land held under Native Titles does not require renewal as these are held in perpetuity. Meanwhile, non-native leasehold land will hold a Country Land and these typically have a 99-year lease (implemented in the 1990s). In 2020, the
 Sabah state government announced that they will restore
5,878 country lease titles from a 99-year lease to the original 999-year lease
, to the unanimous approval of landowners and industry stakeholders.

Those looking to restore their 99-year lease tenure can register themselves as a user in the Land Development Portal
HERE
.

In the menu, select “
Apply to restore 999 tenure
” and fill in your land title number. This will generate a form that needs to be signed and submitted to Lands and Surveys Department Headquarters or any District Land Office.

Sarawak

A flat-rate premium is applied in Sarawak, as shown below:

Land Use
Category
Rates (RM)
Residential
Terrace Home
1,000 per unit
Semi-Detached Home
3,000 per unit
Detached Home
6,000 per unit

The owner will have to pay an additional 30% of the total premium if the lease extension is for a period of 99 years instead of 60 years. But, property owners in this state have an advantage – the value of present interest of land (the balance of the lease term) is not considered important. Hence,
owners can renew their lease only when nearing expiry
.

Sarawakians can now apply for their lease extension online via
eRLL Services
.  Please read here for the
 very good and comprehensive article in iproperty.com

My experience with leasehold property

My leasehold property in Kelana Jaya (my 3rd home) appreciated from RM183,000 which I bought to RM460,000 which I sold after 6 years. Buyers will also have to consider the location, developer reputation/building workmanship quality, property concept as well as the growth potential of that locality potential.

Thus far, I move every 4 years. First 2 home sweet homes were freehold properties. 3rd property as above is leasehold. 4th property which I am currently staying is also leasehold. When I move next year to my new home sweet home, that is also a leasehold property too. I do not think I will keep the property until such a long time.

By the time I sell, it should have appreciated enough and perhaps I can then move again. 🙂   If I do not move, I could not take advantage of the capital appreciation mah. Happy deciding and by the way, I buy both. So, this is not a recommendation to buy freehold or leasehold but just to tell you my experience and share how to calculate the amount to pay for leasehold extension.

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

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

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

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Extra RM2.4 billion for affordable home, good news? (Only if…)

I agree with Finance Minister Lim Guan Eng fully on this one.
Article in TheStar here.

American investment bank Goldman Sachs should return the US$588mil (RM2.4bil) in it was paid for 1MDB-related matters. This RM2.4 billion fee was for the raising of bonds totalling US$6.5 billion (RM23.29 billion) 1MDB back in 2012 and 2013. He said, “They must pay us back this money, not only the US$588mil but much more than that.”  The reason is simple, Goldman Sachs has admitted the role of its officers in the dealing. Tim Leissner, a former partner for Goldman Sachs in Asia, had pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act, and agreed to forfeit US$43.7mil (RM181.8mil).
Article for reference in TheStar here.

It was revealed that Goldman Sachs generated about US$588mil (RM2.4bil) in fees for raising three bonds worth US$6.5bil (RM23.29bil) in 2012 and 2013. Goldman Sachs chief executive officer David Solomon told an interview with Bloomberg TV in Singapore recently that it was “distressing” to find two former Goldman Sachs bankers went around the bank’s policies and broke the law in their dealings with 1MDB.
Here’s that article in TheStar for reference.
 His words, “It is obviously very distressing to see two former Goldman Sachs employees went so blatantly around our policies and so blatantly broke the law.” Solomon was interviewed by Bloomberg TV in Singapore.

Assuming we have this RM2.4 billion back, it could be used for more affordable homes. Some portion could be added into the RM1 billion fund for borrowers earning less than RM2,300 too. Could they afford to pay? Well, for 2017, Goldman Sach’s net profit was US$4.29 (RM17.81) billion. This is the lowest in the last 4 years because in 2014, it earned US$8.48 (RM35.21) billion. Technically, they could afford it. This will go a long way to tell the world that they are serious in NOT repeating and many governments will now think highly of them for taking responsibility. Cheers to this request by Lim Guan Eng and looking forward to the response from the Goldman Sachs CEO. Happy following.

written on 8 Nov 2018

Next suggested article:
Consolidation is good. Huge debts equal to high risks

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Extra 30 days before Penang’s new housing rules

Penang announced some measures to curb potential property speculation not too long ago and this was supposed to start on 1st February 2014. This is effective for any property bought on or after 1st February. They include the following:

Levy of 2% will be levied on any property sold within 3 years from the sale and purchase (SPA). While I do not personally think there’s a huge impact from this but I think I agree with this move. The levy collected can always be used on measures to provide more affordable housing to the needy in Penang.

Levy of 3% on foreigners buying properties in Penang. Again, compared to what was implemented in Singapore, this is very mild and is unlikely to be a deal-breaker. These few measures were introduced to slow rising home prices and discourage speculation.

There is also a moratorium on the re-sale of ‘affordable’ housing within five years from their acquisition and 10 years for low cost homes. Under the new rules, owners of low- and low-medium cost homes must apply for approval from the state if they have any intention to sell their properties within a 10-year period from their SPA. Second requirement is that the units can only be sold to ‘listed buyers’ who are registered with the state’s housing department and is certified under low income group. There has been some objections to this but please always remember that ‘low cost homes’ were never meant for people who can upgrade easily or buy a bigger property easily. For these people, it is only fair that the next qualified buyer is given the chance to buy the unit.

Classification for affordable housing is RM400,000 and below for those on the island and a maximum of RM250,000 for properties in the mainland. As for affordable housing, classified as houses worth no more than RM400,000 on the island and a maximum of RM250,000 on the mainland, owners who signed the SPA after March 1 will not be allowed to sell their property within a five-year period. Besides that, state approval is needed and these units can only be sold to the listed middle-income group.

For those interested to purchase an affordable property in Penang, a tiny small news. The implementation of Penang’s new housing rules to curb speculation has been deferred to March 1 2014. This was due to the need for professional bodies, NGOs and the public to get used to these new rules. This deferment is for new housing rules with regards to affordable housing and a two per cent levy on the sale of properties within a three-year period.

Next suggested article:
Affordable Penang properties, where are they?

Alternatively do read about:
Penang property – why I like Sungai Ara

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Facilities for disabled, come on just do it developers, whoever you are.

It was reported that Kuala Lumpur City Hall (DBKL) will be serious in ensuring contractors and developers meeting the latest guidelines on providing accessibility for disabled persons in new development projects in Kuala Lumpur. This is as per the standard by the Department of Standards Malaysia. Kuala Lumpur mayor Datuk Seri Ahmad Phesal Talib that all facilities built by contractors and developers must be following the MS 1184:2014 Universal Design in The Built Environment — Code of Practice (second revision). He then gave an example of a universal design in the 1Malaysia Development Berhad building in Jalan Sultan Ismail, which included a ramp instead of a staircase for the public.

Personally, I think ALL developers should already have this in their design instead of waiting to be informed or reminded. It’s a very small gesture of goodwill no matter how bit or small the developer may be. We always say that the public authorities should be more modern, should be more efficient in what they do but if you are a developer, do you know that the trend is for friendlier buildings? I am not a developer but I do know that if by building these disabled friendlier facilities I would suffer losses, I think one better not become a developer. There must be something wrong with my design. 🙂   Contact
DBKL
 here if needed.

Of course the public should also help too. Identify buildings which are totally not disabled friendly, write to DBKL who can then facilitate a discussion with the developer concerned. Please also do not misuse the facilities provided for the disabled. For example, the car parks for the disabled, unless you are really disabled, why would you want to park there? They said, first world facility, third class maintenance. I would say it’s more like third class mentality, yes that’s to the people who’s just plain ignorant. Everything always begin with you and me. Do you want to make this a better Malaysia?

written on 12 Aug 2014

Next suggested article:
Retirement homes in Penang, if I am 60 years old today.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...