Uncertainties really do mean opportunities?  Are you sure?

IF ONLY.
  “If only I listened to you and bought that unit a few years back.”  Actual sentence from a primary school mate a few years after he failed to buy a condo unit at RM295,000. I told him RM295,000 is a very good price and it is unlikely that he could find such a unit at such a price because most listings were RM350,000. He disagreed. He said he wants to view a few more units because he could see many agents listing at similar prices.

OH NO…
  Alas… all the listings were the SAME unit.  The owner who owns just 1 unit were getting many real estate negotiators to sell for him. The unit was actually sold a few days after my conversation with him. It does not end yet. When I wanted to move to Kuala Lumpur, I asked if he was still interested to buy my unit and move over. He replied, “Yes.” So I told him to offer me first before I engage anyone to sell. For 2 weeks, there were no reply. I sold my unit at RM640,000 to a cash buyer.  Many months later, he asked, “Oh you sold already? I thought I wanted to do some research before I offer.”

EVERYONE KNOWS, NO ACTION though.
 Many times, we could wait forever for that so-called opportunity. In fact, if we were to ask anyone at all, they will be able to say things like, ‘downturn is a great time to buy.’ ‘Now is buyer’s market.’ Or “uncertainty means more motivated sellers.’ However, one more question further and we realise that many people are N.A.T.O (No Action, Talk Only).  They did not know what to invest and has no knowledge about it at all…

Uncertainties not stopping.
Covid-19 still does not have a vaccine… savvy?  There may be some nations finding excuses to start another round of a terrible trade war.  The oil price continue to be ever so volatile.  One supreme leader is under lots of speculation currently. Some say that he is facing a serious health issue. Some say all those are rumours and that their side of the rumour says everything is just fine. Oh yeah, let’s not forget that elephant in the room. The world is entering a recession because every country has stopped their economies and only now that we start to see some nations relaxing some of these measures because they realise it’s such a tough thing to balance between economic growth and a potential new phase of COVID-19 resurgence.

Better question to ask?
  Are there certainties in these uncertainties? For example, good properties do exist whether in good or bad market situation.  Use rental yield as a benchmark. There are certainly companies still doing well currently yeah. Think medical related for example. Of course, this is not the time to think about tourism. So, the question to be asked is NOT how long will the uncertainty be. It may be forever. It is to IDENTIFY the potential investments instead during this period. It is to know whether that property is a Below Market Value (BMV) or not.

Uncertainties really do mean opportunities, right? You decide yeah. No one could tell you anything that you do not believe. Happy deciding.

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Uncertainty is never good for the market (any country…)

Brexit is a decision by Britain to leave European Union (EU). The main reason was related to immigration matters. I personally think this is not the right decision but the majority have decided. Britain’s current Prime Minister Theresa May is having huge obstacles to carry out what has been negotiated with the EU and the deal is supposed to be finalised by March 2018. She has many oppositions from even her own party members and just survived a no-confidence vote just last month. Imagine what does this do to the world’s top 6 largest economy…

Well, Brexit is affecting Britain’s property market negatively. That one word is ‘uncertainty.’  Many articles have been written and
this is one of them. (click to read)
According to an
Article in Dailymail.co.uk
, house prices in some of the most expensive areas in the capital have fallen by up to a quarter over
Brexit
 uncertainty.It says that the demand for London homes in Kensington and Chelsea and the city of Westminster has reduced dramatically over the past year due to higher taxes and Brexit. The average house value in the exclusive postcodes have fallen by up to £500,000 in the year to November, according to Your Move. When we look at the average basis, London’s ten most expensive boroughs are down by 9 per cent. In some upmarket areas such as Hammersmith & Fulham and Camden, the falls have been more than 10 per cent. The article also quoted a recent case of a prime property. A five-storey mansion in Belgrave Square was sold for £60 million in December even though it was listed at £100 million initially.
Article in Dailymail.co.uk here.

Are there uncertainties in the Malaysian market which is affecting the sentiment? 🙂 If I answer No, then I am not objective. However, I think the government is doing what it could to ensure our economy continue to move upwards. When times are uncertain, people are unwilling to invest. When this continues, the number of job created reduces and the vicious cycle continues. As of now, Malaysia continues to be rated as ‘Investment grade’ by all international rating agencies. As per our Finance Minister Lim Guan Eng’s latest statement, even the deficit numbers are in check for 2018 because SST has enabled the government to collect more than what it budgeted. As for the GDP growth, the predictions are all within a range of 4.5 percent all the way to 4.9 percent. Happy following and understanding.

written on 24 Jan 2019

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Uncertainty is not a good sign, that’s why we need to do something about it.

I shop online every other day. I have also started to visit malls again here in Selangor / KL. However, when the question arises as to whether I would stop visiting retail stores or only order food deliveries, the answer is an easy one, NO. Then again, not everyone is like me I guess. There were news that more than 200,000 small businesses which had to close during the Movement Control Order (MCO) are now facing an uncertain future because consumers are not buying non-essential goods.

Article in themalaysianreserve.com
 Retail Group Malaysia (RGM) MD Tan Hai Hsin says that ninety percent of the closures during the MCO were stall-based businesses. He said, “There are many (that were closed permanently), but we can’t establish a number. (It is) difficult to establish the figure at the moment.”

“Malaysian consumers did not rush to buy non-essential goods when shops reopened. We did not get a V-shape recovery. We are now going through a U-shape recovery.” Tan also shared that the very last time Malaysia’s retail industry had a negative growth was in 1998. In  that year, retail industry contracted by 20 percent. Please do read the full comprehensive views from Tan here:
Article in themalaysianreserve.com

I think the question we should also be able to ask would be if all these stall-based retail businesses have also started to sell what they sold via online. Frankly, if I am selling non-essential goods and the mall is closed, I could not only be crying at home, better do something about it. Whether it’s Shopee or Lazada or a host of many other online shopping sites, just start to sell to the whole world instead of just the retail stall.

Second question we should also ask would be whether this trend of not buying non-essential goods will be here to stay. If it will be, then perhaps the things which the stalls are selling could also mirror the more popular items versus what they are currently selling today. Actually, it’s not these stalls which will have to keep changing. Most businesses will also keep changing because the consumers are changing. Even working professionals have to keep improving because they are no longer competing with their peers in Malaysia. They are competing with anyone who could do their job better for less money everywhere in the world. As for now, I will definitely continue my shopping at physical stores too. Count on me for that little support.

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Uncertainty is never good for the economy. Reminder to all.

I am against Brexit. I do not think going it alone is going to be beneficial to any country in the European Union. I know there are lots of reasons for and lots of reasons against and that it’s the decision of the majority (of those who voted). By the way, there were enough NON-voters to have swayed the decision either way yeah. So, ‘technically’ it’s not a majority of the majority’s decision. While this may not have a significant impact to Malaysia but the lessons learnt it this; uncertainty is never good for the economy.

Article in Bloomberg.com here.
 CME Group Inc. is moving out of London into Amsterdam.  It has been managing Europe’s largest short-term financing from London. The reason to move is because the exchange operator wants to guarantee continental firms can continue to use it if there is a no-deal Brexit. (This meant that the European Union (EU) does not give any special concession to Britain and treats it like the same way it treats non EU members.)  What it wants to do is to eliminate the risk that its EU-based clients could lose access to the European repo market. There has been some warnings about the danger of “split liquidity pools,” where trading becomes more difficult and costly because investors on different sides of the North Sea can no longer trade with each other. John Edwards, managing director of BrokerTec Europe said, “Nobody knows what the European landscape is going to look like in five months’ time, let alone three years’ time.”
Full article in Bloomberg here for reading.

There are no Brexit kind of decisions here in Malaysia. However, let’s all understand that no investors love uncertainty. Policies needed to be formulated for the longer term and be followed through with good implementation. Just like property investments, it should be for the long term. However, if things are uncertain, there will be limited action in the real estate world. A very important focus is on the affordable home for Malaysians needing one. If there is a need for a centralised agency, then quickly put in place action place for one and start communicating what will be delivered to people who are waiting for one. The recent allocation under Budget 2019 for affordable homes for example, could we have more details how this amount will be used? Some people are not doing anything because they are waiting for the details. Happy implementing.

written on 9 Nov 2018

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Uncle Charles Bakes Coffee Cheesecake. Easy recipe here.
It does not even need water bath. (if you know what this is)

Updated article on 14th June 2021.

A close friend asked for the recipe for a baked cheesecake many years ago. That was when she was still single. She told me she wanted to bake one for her husband to be. It must be something delicious and looks classy. Baked Cheesecake does have a higher perceived value than a butter cake I have to admit.

By the way, I bake very good buttercakes too. Today that man is her husband and they already have two adorable kids; a daughter and a son.

What was my reply to her at first? “I ‘small small sound’ (cantonese / hokkien) tell her, buy onelah, easier.” She laughed it off and said, no, I want to make one for him. Here’s the response to her request; a recipe to Coffee Cheesecake.

Actually, baking a cheesecake is pretty easy and straightforward and it tastes exceptionally great too. Here’s the simple recipe and simplified steps to make it. Try it and share your results please.

Equipments needed.

Stand Mixer. I am using SHARP brand currently. Simple and Strong. Go buy in Shopee / Lazada.
Cheesecake Pan. Get an 9 inch one.
Can buy in House of Ingredients too.
A strong spoon to press the biscuits into the cheesecake pan
Electric Oven. I think 42 litre one should be good enough. Buy one with a fan function yeah.

Ingredients:

Cream Cheese – 500gm. This is where you can get many
cream cheese brand choices. House of Ingredients (click here).
Everytime I go there, I go crazy with buying, buying and buying. Haha.

Castor Sugar – 150gm. (add 50gm more if you prefer to be typical cafe sweetness)

Corn Flour – 2.5 table spoons

Vanilla Essence – 2 teaspoons

Whipping Cream (unsweetened) – 150 gm

Lemon juice – 1 tablespoon

Instant coffee – 4 teaspoons (extra 1 teaspoon if you prefer stronger coffee taste)

Eggs (A-size) – 4

Hot Water – 80ml

For Base of the Cheesecake

Butter – 100gm

Tiger Biscuits + Oreo – 200gm and 130gm

How to start – Base First

Just crush all the biscuits into ‘sand’. I put all the biscuits into a plastic bag, then use the wine bottle to roll on it. Once it turn into ‘sand,’ then add in the butter and mix. Next press the mixture into the base of the cheesecake pan. Grease the inside of the pan with butter / margarine. This will prevent potential cracking of the cake.  Using your finger is perfectly fine. Leave the whole pan in the fridge (normal section) while you do the below.

Blend, Blend and Blend

Beat cream cheese for 2 minutes. Add in castor sugar. Beat another 2 minutes.

Once everything is fully blended, add in corn flour and beat another 1 minute.

Once it looks fully blended add in one after the other of the following, corn flour, vanilla essence, lemon juice and beat 1 minute for each ingredient.

Mix the instant coffee with 80ml of hot water and pour it into the mixture. Beat this for 1 minute.

Add in the whipping cream and beat for another 1 minute.

DONT ADD EGGS YET.

Now switch on the Oven and preheat it for 10 minutes at 220 degrees.

After switching it on, you may now crack all the 4 eggs into a cup/glass.

Start beating the mixture again and pour in first egg. Beat it for 10 seconds. This is then followed by 2nd, 3rd and 4th egg and all of them, beat it for 10 seconds. Stop as soon as you hit 10 seconds. If we beat too long, we may have a cracked middle when we bake the cheesecake. Still delicious but does not less nice.

Take out the cake base from the fridge, pour in the mixture and put it into the oven. Turn the temperature to 200 degrees for 15 minutes. After 15 minutes, reduce it to 120 degrees and continue baking for the next 2 hours.

After two hours, insert in a toothpick in the middle of the cake. If it comes out WET, continue baking for another 20 minutes and that’s it. No need to test again. Off the oven and leave the cake in the oven for another 30 minutes before allowing to cool by opening the oven door.

Once the cheesecake is at room temperature, put into the fridge overnight. It will taste amazing the next day. Welcome to the gang, Coffee Cheesecake CHEF.

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Uncle Lim’s @ MYDIN and Subang Parade

For the past 2 years, I have been looking for a good franchise business. My sister said she wanted to the branch manager for it. We have evaluated and discarded many and until today has yet to short list any. So, when I saw Uncle Lim’s cafe, I feel that I must try.

Their famous drink is their Uncle Lim’s coffee. Of course I ordered one. It came in a traditional coffee cup with saucer. The outlook has won many points. Then I took a good first sip and I told my wife, really not bad. It does not have typical white coffee aroma and intense flavour nor does it comes with the hainanese style that I have come across many times. It is just a simply good cup of typical robusta beans that is abundant here. Unless Malaysian farmers grow arabica beans in the highlands which I have also tried before. (that’s another story).

Hey, in terms of food, they do have very good Uncle Lim’s Special Laksa. Very fishy with lots of lemak and everything else. Every ingredient was purposeful. The nasi lemak is also very nice and definitely worth the RM11.90 that you have to pay. I have tried to email them on the franchise opportunity. Thus far, zero response. Sigh… why set up a website if you have no one to look after.

Revised and updated on 9th Dec 2013.

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Underground bus interchange, air-conditioned and to complete by 2019

I have been to Singapore 6 times within the past 3 months. One thing that has never failed to amaze me is the maximisation of every piece of land and yet managed very well. Construction sites are always well covered and you do not see or feel the dust even when you walk past some of them. I took the MRT around Singapore and found it to be convenient enough for anyone who wants to get to anywhere they want even if one end to the other would still take considerable time. Today, I read in PropertyGuru about a future plan which will maximise a vast former cemetery grounds in Bidadari. Singapore will be bulding an underground bus interchange and it will be ready in 2019.

This interchange will be located next to the Woodleight MRT station, flanked by blocks of flats and will be hidden from street view. For the dwellers there this is a very good convenience because the bus interchange is right at their door step. Majority of Singaporeans do not drive. Of course, everything would have its advantages as well as the disadvantages. According to property expert Ku Swee Yong, the underground facility would create more noise and air pollution and the maintenance and construction cost would certainly be higher. Added to this would be the higher electricity bill for air-conditioning. Besides this, the HDB blocks would also be fitted with eco-friendly features such as staircases with LED lights and even elevators powered partially by the lifts’ own movement, much like the hybrid cars of today.

Personally, the most amazing thing about this is that this new site would house 10,000 HDB flats and also 1,000 private houses. While I would not say that HDB flats are comparable to my current condo but I have stayed in my friend’s HDB flats and I can say that the maintenance is good and the important thing is that there are lots of convenience nearby like food courts, small shops or even neighbourhood malls. I seriously feel that perhaps one plot of land in Malaysia which is connected to MRT can be built using the same model. There is no need to reinvent, just innovate from whatever other countries are already doing better. Of course, perhaps not flats because majority of Malaysians of today shy away from flats. Perhaps a medium cost apartments with facilities would be great.

written on 3rd Sept 2014

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Underpaid? Get a new job. Else, work your money harder.

Source: JobStreet.com Salary Report 2016

I am quite serious when I tell my friends that anytime we feel we are underpaid, we should get a higher paying job. Why must we keep suffering from being underpaid? However, are we ready for a higher paying job? Do we have what it takes? Are we able to get a better paying new career with our current experience? That demand vs supply equation, are there only a few of ‘us’ in the market? Unless the answers to all are a YES, then it’s likely to be hard to change and hope to get much higher pay. When we change for pay and not for a higher role, do remember that no company likes to pay a staff MORE just to do the SAME thing. Not even a not-for-profit organisation which are these days also KPI centric. Else, how are they going to get more funds from donors versus all the other not-for-profit organisations? As for me, I think I may already be quite near the ceiling of my career life unless I accept one more job offer for another ‘adventure.’ Image shows salary range for senior managers in Central region.

Source: JobStreet.com Salary Report 2016

When I reach 45, I think I will have to just stay in whichever organisation I am in at that time until I retire. Haha. Okay, perhaps I can also take up some lecturing offers in an university here in Malaysia. Sharing is caring and I believe some Malaysians just lack the right guidance from those more experienced people. Once we have that, the world is our oyster. Yes, I have been very lucky because in my first company, my Japanese GM gave me lots of guidance and opportunity. In my second organisation I came to know many awesome Malaysians who again gave me lots of guidance and opportunities. In my third organisation, my Group CEO who’s a British is quite open and thus I achieved a lot during my time there. I am currently in my 4th organisation for nearly 4 years. My HOD is still guiding me and I thank him for that. In my first organisation, I worked until 630pm, most of the time. In my second organisation, I worked until 730pm, most of the time. In my third organisation, on average it should be 8pm since I occasionally work during weekends too. In my current role, I usually leave the office by 545pm. Haha. Yes, family time is very important to me these days. If you like to know more salary information, download the
full report from JobStreet.com
 here.

By the way, do not work until we have to retire. Work only until we can choose to retire. Make it a choice instead of a need. Whatever we earn, invest it.
To invest out money,
 then invest enough time to read and learn from the many people who has done it before. Nope, I am not talking about those with 50 properties. I think those would be hard to follow. Get to know some of our working friends who already own a few properties. Following their examples would mean a safer option. Keep the job and invest at the same time. There is really no need to choose either one. Of course, continue reading kopiandproperty.com because the editor (that’s me) believe every professional can continue working and investing at the same time, slowly. Happy finding a job that pays us for our worth. Staying underpaid is our fault.  Else, work harder and invest at the same time.

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written on 7 April 2017

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Talk: Understand the difference between new and sub-sale

[sponsored] kopiandproperty.com readers in Melaka, here’s one talk which you should not miss. My knowledgeable friend, Eza will share with everyone on “Understand the difference between new vs sub-sale.” He is also the COO and co-founder of Malaysia’s premier financial portal in Bahasa Malaysia that talks about what we Malaysians love most – Money (or lack of it). Starting off as a blogger and being IT-savvy, he has since transformed himself into helping those with financial problems; with his experience andknowledge in stock market, property and takaful. You may
also follow his FB page here.
 Information as per below image.

Please do register here so that sufficient refreshments
 could be prepared for you. I will also be around for a cup of coffee with all my Melaka friends yeah. Cheers.

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Understand why we buy, not why others say must buy

I personally dislike articles with titles such as ‘top 10 hotspots to look for.’ Come on, if I am the writer for that article and I am an investor and I really know these hotspots, why would I share with the world? It’s tough to argue that the writer wants the world to benefit. Or perhaps the writer has some other motives instead? Haha, we should give these writers the benefit of doubt. Anyway, even if we read such articles, does it mean that we can now simply buy anything within those hotspots? Be real, hotspots are already expensive by the time you wanted to buy, else it’s called “undiscovered warmspots”. (my personal term)

My friend, a Penangite naturally argued with me about areas which he loves versus areas which is not loved by Penangites. Well, he has profited from his property purchases in those areas he loves and so did I, from the areas he dislikes. So, who’s right? Well, it boils down to what did we buy and the many valid reasons why we buy in the first place. If it’s for rental, then it’s foolish to buy in places where not many people want to rent, no matter how cheap the property price is. The never ending argument about the best areas? Read here:
Tanjung Tokong vs Sungai Ara by a non-Penangite

If it’s rental, then it should be in developments favoured by many, especially the working people. Just days ago, a colleague placed deposit to buy a nice secondary condo for RM730,000 (560 per sq ft). It has good rental and it’s within walking distance to the LRT station. If it’s for his own stay, he said he would prefer landed, even if it’s slightly further away. See the huge difference between deciding only for investment purpose versus for own stay? Always remember, as long as people want to rent, let them rent. Haha. Read here:
It’s renter’s market, that’s why best to buy

Another colleague’s brother is doing very well with property investments because he focussed on only the student accommodation type of property developments. As they say, education is a recession proof business. In fact after some people got retrenched, they may choose to further their studies instead. Yes, I am talking about those who used to earn huge money in the oil and gas industry. Read here:
Oil and Gas, hard times continuing

Everyone of these property investors above are buying based on what they intend to do. Their intention matters the most. None are buying simply because they read an article about the hotspots to buy. Always note that even during boom periods, there are still people who got cheated by buying the wrong project or paid too high because everyone was ‘crazy’ during those times. During downturns, it’s the best time because sellers become slightly more sane. Read here:

In a slowing market, sanity returns. How true.

Besides, the buyers are always more cautious and would then be able to evaluate objectively. Remember, understand why we buy and not buy because others shout, ‘Buy!’

written on 26 Feb 2016

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Undervalued is slow. Speculating is fast.

If we buy undervalued stocks (shares), its prices would soon reflect its business. This is a famous quote from Warren Buffet. I think he is a minority because majority of the
investors cum speculators
 today are thinking of ‘quick money’, ‘fast money’ and when someone buys today, the thinking would be that it will go up tomorrow. This is the main reason why I dislike it when my friends told me how much they earn from the FOREX market. When asked what do they understand about the currency they are buying, none knew and said that as long as they are careful they can earn a lot every night. That’s no longer investing. That’s called
 gambling
. Apologies but when we know nothing about what we are investing, it’s called speculating too.

These days, there are a lot of things which are happening in the world which can affect us within hours and even minutes. Imagine the stock market in USA crashing and within hours, the markets in Asia opens. The frantic selling may start and does it mean that the fundamentals of all these companies changed overnight?  Do you know that you can even ‘short’ or ‘long’ a pair of currencies and somehow ‘control’ some of its direction through your actions? The financial players in the market are not just getting bigger, they are getting
more speculative too because money can be made in seconds
 while the retail and small investors never even knew what happened. That’s the reason why all the uncles and aunties and even the first time investors trying to ‘catch’ the market would always be the last to know and the first to fall.

It is thus so important that we remind ourselves again of Warren buffet’s wise words. In brief, think fundamental. Just days ago, some friends shared about a project which is said to be going for RM1,800 psf next year. I have zero comments on such awesome predictions. Is RM1,800 psf high? Well, in comparison to
Singapore or even Hong Kong
, it is considered low. I wish everyone would gain from property investments. However, when the crunching time comes, just be reminded that property investment is very sticky and most of the time, the first to fall would be the higher ones first. The only consolation may be that the buyers of such properties probably have a deeper pocket than many and thus may be able to hold longer until the storm goes away. When we buy undervalued, the price would soon reflect its actual value. It’s normally much slower than predictions and fast money. I think this is true always no matter what we invest in. Happy investing.

written on 4 Feb 2015

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Why are there over 200,000 unemployed graduates? Will this crash the job market?

202,000 graduates are unemployed BUT we have 801,000 OUTSIDE labour force.

When I saw the stats, I smiled. The reason was because I suddenly remembered one conversation I had with a fellow colleague many years ago about one particular fresh graduate. She said that she has just encountered one amazing fresh graduate during an interview. I asked what was so amazing? This was the conversation, roughly.

My friend:  You put here the base pay as RM4,000. You do know that this is a VERY high pay for a fresh graduate?

Graduate: Oh, I do not know. However, if I put anything lower than RM4,000 my father would laugh at my capability. You see, my monthly allowance is RM4,000 so I should not be working for a job which pays me lower, right?

I think that fresh graduate is not the only one in the market because as the title says, we have over 200,000 fresh graduates who is unemployed and at the same time, we have 800,000 fresh graduates who are just NOT looking for a job at the moment. Now, let’s look at the chart.

All charts in this article are from
Department of Statistics Malaysia. (DOSM). Click here to view.

230,000 graduates every year

Refer to image below. We have a total of 5.36 million graduates in 2020 and 5.13 million graduates in 2019. This meant that in a year, a total of 230,000 graduates graduated. Think yeah, where do all these 230,000 graduates would move to to start their career or entrepreneurship journey.

Meanwhile out of this total, somehow we have over 801,000 who is out of the labour force by choice. This meant that they chose not to have a job at the moment. Many reasons were stated and if you like to read, do click the article to read yeah.
Department of Statistics Malaysia. (DOSM). Click here to view.

Both genders show an increase in labour force participation. Image below. We could see that the participation on an overall basis increased 83.5% to 85%.  Male participation is higher than female. I think this makes sense because many of my female friends are no longer working. Many reasons but I do not find that many male friends who are no longer working. Perhaps men just love to work? 😛

Unemployment has indeed increased on an overall basis. We can see that the percentage of graduates who were employed dropped from 96.1% in 2019 to just 95.6% in 2020. Image below. However, there are now more graduates finding work versus being outside the labour force. This is 2020 yeah, when times were harder. Perhaps this was also the reason why they entered the workforce? To help the household?

Graduates unemployed has increased by 37,000 persons when compared between 2019 and 2020. Image below. So, it’s NOT 200,000 increase just within 2020 yeah. In 2019, there were already 165,000 unemployed graduates. In 2020, this number increased by another 37,000. Well, 2021 has not been that awesome year at the moment, perhaps we will see a worsening number in 2021. Let’s keep ourselves updated yeah.

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Unemployment Malaysia is dropping. Now at 680,400 persons. Oh, this is low?

Unemployment Malaysia is dropping. Now at 680,400 persons.

For those who are looking at this number for the first time and thinks why so high?! Well, this is lower than the time when it was much higher. The unemployment number is now at 4.2% versus higher than 5% just less than a year ago! Take a look at all the changes. Generally, it’s on a downtrend yeah. Latest number is 4.2% for January 2022.

Source: The Edge

Article in themalaysianreserve.com
   Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said, “The labour force situation continued to improve in January 2022 led by the continuous rise in employment while unemployed persons trended down.”

Mohd Uzir continued, “The employment-to-population ratio which indicates the ability of an economy to create employment also rose by 0.1 percentage point to 66.2% in January 2022 compared to 66.1% in the previous month.”

He added, “The situation reflects the encouraging economic activities observed in January 2022 since all states being in Phase 4 of the National Recovery Plan which allowed businesses to continue operating at full capacity with longer business hours.” Do refer to the article for all the other numbers.
Article in themalaysianreserve.com

Just need to remember that the economy is driven by the employed yeah

Every time people see the unemployment numbers, they will start giving negative comments. Erm, I need to remind everyone that the economic growth is usually driven by the ones with a job who could afford to spend on goods and services. When these employed spend more, the businesses may have to expand and would have to hire more people. This is why when the economy is growing, the number of jobs available would also increase in-tandem too. Else, that economic growth may be unsustainable.

My wish is that within 2022, we will go back to an unemployment rate of below 4% like the times before arrival of Covid-19. This time, it’s below 4% even with Covid-19 still around. I think this shows the resilience of human and also the acceptance that living with Covid-19 will be norm versus fully eradicating it altogether. Just remember to stay safe as well as the virus is always lurking and waiting.

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Unemployment Malaysia and the effect on property market. Anyway, this has been asked a few times. If people are unemployed, surely it will affect the property market, right? Well, I cannot say totally no but well, if we look at the actual happening, perhaps the below is more likely to happen.

What happens when people do not have a stable job

When people do not have a stable job, they do not have a stable salary. When they do not have a stable salary, they would not be able to buy a property. If they do not have a stable job and they try to apply for a home loan, their application will not be approved.

Hope everyone see one important point. The unemployed are not the ones driving the property transactions in Malaysia. This is why when people say unemployment numbers are up, so property market will suffer very soon, I hope we could be objective enough as well.

This is Malaysia. It’s hard to get home loan approval if we do not qualify (I know, some will say can be done one… I meant MAJORITY)

This is Malaysia yeah. Our Bank Negara Malaysia (BNM) is by far MORE stringent than the central bank in some advanced economy which caused the 2008 mortgage crisis. All our banks are also by far more conservative and only lend if the person actually qualifies for the loan and not take up risky lending like some banks in some advanced economy.

Okay, what’s the actual unemployment number then?

Do refer below chart. As real as it gets and typically, our unemployment is probably around 3.5% on average. It went to as high as 5.3% if I remember correctly. Now it’s 4.4% I think if I remember correctly. I meant as at November 2021.

Source: tradingeconomics.com

What’s the actual property transaction number then?

Latest chart from NAPIC for 1H 2021. Yes, the numbers are still happening yeah.

Unemployment and Property Market are not that related after all

I know, if the media could sensationalize a bit, they can get more views and clicks. Think about it really hard.

“Unemployment will cause the property price to drop.”  versus “Unemployment is not likely to affect the property market.”

Which one will get more clicks? Well, the one which makes people get worried yeah. Look at the title of this article.  “Unemployment Malaysia and the effect on property market.” Unfortunately for kopiandproperty.com this kind of title will not get a lot of clicks… It’s okay.

Thanks for reading until here and happy viewing properties. Buying one should happen only after 20 viewings and understanding. Cheers.

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Unemployment Malaysia: So many people out of job, would this crash the economy?

Unemployment Malaysia numbers, after 4 months of downtrend has gone up slightly. This is a good indicator of whether it’s easy to find jobs or not. Truth is jobs are still aplenty but the requirements may not be easy for everybody. For a list of all jobs, here’s
JobStreet.com Malaysia.
Just need to start searching and applying.

Meanwhile, Department of Statistics Malaysia’s latest available number for unemployment Malaysia as per image below.

Would this unemployment Malaysia number crash the economy

As for that question of whether this number would collapse the economy, the answer is no. The economy of Malaysia would have to depend on the ones who have a job and could spend money. This would be the slightly over 95% of all the employed Malaysians. The ones who earn more could spend more and the ones who earn less could spend less. There’s also that group who earns whatever and spends
more than what they earn. Earlier article here.

How could we help?

Smaller shops may need more help. They may be overlooked. Stalls may need more help versus franchise chains. These stalls do not get enough visibility. Products made in Malaysia would need more help. Exporting to other countries are tougher these days. Sustaining them would do wonders for the people they employ who could then also contribute back to the economy. Multiplier effects to the economy actually starts from us. Let’s do something about it.

Happy understanding.

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Unemployment rising? Financial crisis probability? Here’s the update. Please always remember NOT to believe any property guru who tells you how bad the economy is and then tells you to buy a property yeah. If economy is doing badly, please be aware that the property market should also not be doing well.

We do have a good news. April’s unemployment rate is 4.6% and this lowest since October 2020. That’s like not bad. The number of unemployed is at 742.7 thousand persons. HOWEVER, our COVID-19 numbers look terrible in May and our FMCO started in June as well. In other words, this April unemployment number may be the lowest we would reach for the next few months. Surely the unemployment will go up because of all the lockdowns. Many may have lost their day job and is now struggling to make ends meet.

Image below from dosm.gov.my

Article in themalaysianreserve.com
  Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the Malaysia’s labour force continued to be on a recovery path in April 2021 as Recovery Movement Control Order (MCO) in most states and Conditional MCO gave more opportunities for businesses to continue their activities in full capacity while adhering to strict standard operating procedures.

He said, “Hence, the number of labour force in April 2021 recorded MoM increase of 0.1% or an addition of 12,200 persons to record 16.09 million persons (March 2021: 16.08 million persons).” Do read the full article here:
Article in themalaysianreserve.com

Unemployment should rise but financial crisis unlikely unless…

If we look at the countries where they have lots and lots of Covid-19 vaccines (yeah, those countries they have more than enough vaccines and now one is telling the world that they will donate some of these…) and have already vaccinated enough of their populations to reach 50% with at least one dose, we would realize that they have continuously relaxed their rules and in fact even football games could have a certain number of attendance already.

For Malaysia, well we are still in a lockdown and this is why I also believe that our unemployment may rise slightly. However, as soon as our vaccinations reach 70% for Selangor, Kuala Lumpur, then the economic activities will become stronger again. We need to remember yeah, a holiday at some beach resort even within Selangor is likely to be very welcomed after such a long time stuck at home. If we look at the malls just before our current lockdown, it was very close to normalising.

In other words, people are still people. We still need to socialise and when we socialise, we would spend more money… We need to also remember that Malaysia is a trading nation. As long as most of our biggest trading partners are recovering, we will be able to export more. To export more, we need to manufacture more, to manufacture more, we need more people… The cycle continues. Our top 5 trading partners are as below.
Info from World Bank. Click here for it if you like.

If look at these 5, we should realise, we are going to do quite well.  All the 5 are not within the worst affected countries. One has recovered fully (China), three has Covid-19 under control and one more, United States have already vaccinated slightly over 50% of its population and has seen economic activities increase again. Happy spending more when we could drop by malls again.

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Highest unemployment % in Malaysia since 1990! Will June see a lower number?

The number is the highest since 1990. Not something to be happy about because this is our unemployment rate. It has reached 5% for month of April 2020. The reason is easy to see. Businesses are closed because of the Movement Control Order (MCO) and the reopening is only expected to provide some relief beginning June. In other words, May unemployment numbers may be even higher if not the same as April. Are you working from home and still receiving your full pay? Be grateful. Let’s look at some details from Department of Statistics Malaysia (DOSM).

Article in edgeprop.my
   Unemployed persons increased by 48.8% year-on-year and this caused the unemployment rate to spike to 5% in April. In a statement, Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the closure of operations for most businesses during the Movement Control Order (MCO) has impacted employment and job seekers could hardly find jobs.

Those most affected include those in the manufacturing and services sectors, namely accommodation and food & beverage; arts, entertainment & recreation and other services such as beauty centres and salons. For recovery, he said, “Recovery MCO (RMCO) kicked off on June 10, 2020, where reactivation of businesses for more sectors and inter-state travels are allowed. These are predicted to spur businesses and steer the improvement of the job market, especially in the travel and tourism related industries.” Please do read the full article here:
Article in edgeprop.my

Perhaps it is good to put this into context. This number is for April 2020. I think we even may hit a higher number for May 2020 but let’s hope that numbers for June will be healthier. If we compare ourselves to the usual few countries,
Singapore’s unemployment is now at 3.5% and this is the highest in a decade.
Meanwhile, in Australia, the unemployment has hit
6.2% even though this expected to slowly go down with reopening of more businesses.

In U.S.A (the world’s largest economy), the unemployment rate has dropped from an earlier 14.7% in April to 13.3% in May 2020. Remember, it may too late to do anything for this round but for some of us who were less affected this time, then it’s time to start saving and investing for our future yeah. Happy understanding and following. Will report when we have the next number from our Statistics Department.

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Unemployment rate rises, a worry for property?

Okay, let’s cut the suspense. As per the Statistics department of Malaysia, it has risen by 0.1% from 3.1% in January to 3.2% for the month of February 2015. In fact this rate is similar to one year ago. The number of employed rose 0.5% to 13.664 million in February, a 0.5% increase from 13.601 million in January. The unemployed stands at 454,900. In January, it was 442,000. Thus, 12,900 got unemployed within one month. Unemployed here means those who do not have a job but are interested to work. In Malaysia, the labour force participation is defined as the ratio of the labour force to the working population. (15 – 64 years) and expressed in percentage.

To those who are now thinking about the huge number of 12,900 who got unemployed, well, the unemployment rate of 3.2% remains very low. We can worry a little if it hits 4% or higher but for now, this 3.2% remains a low number. Compared to our two neighbours, Thailand is at below 1% while Singapore is at 1.9%. Both are based on Q4 2014 data. These numbers are known as extremely low unemployment. Do note that even IF you are only working at your own little orchard or farm and you have some income, you are still considered as employed in Thailand.

Will this affect the property market then? I think the property market currently is active because of the middle income Malaysians and above. The percentage of unemployment has also not varied much for many years. Thus, the current numbers should have very little impact on the property market. Nevertheless, if you happen to rent to anyone who become unemployed, then perhaps the rental this month may be late. Besides, when we look at the actual demand vs the actual supply and stripping out those which are priced way above what people can afford, the demand far outstrips supply even today. Read here:
100,000 new units vs 140,000 new household formation. Prices up? Do not agree.

In fact, even when we calculate just the typical marriage numbers versus the new supply of units, the demand is still higher than the supply. Read here:
200,000 new marriages, 80,000 new properties

It’s always good to note all these economy indicators because these indicators would provide an early indication of what to expect when it comes to property market. After all, the default in loans would happen ONLY after the worker is unemployed and not before. Happy knowing.

written on 24 Apr 2015

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Unit trust is not just buy and forget

Is unit trust a better form of investment than
fixed deposit?
 It does give better returns, right? Actually, when we ask ten different unit trust buyers, each would give us a different response. Some may not know what’s their actual returns, they only know they are buying it on a monthly basis. Some may tell you the returns are actually bad and they lost money in the first few years. Some, like me would tell you that the returns are not superb but is still way above what fixed deposits are giving. Perhaps a better question to ask would be, did you buy your unit trust from a professional (who’s been doing this for years) or just someone you happened to know? (who quit after a while…)

Unit trusts, especially the aggressive ones are always equity based; stocks. This meant that fluctuations in the stock market would also be affecting the unit trust. Buying at the wrong timing may even make the investment turn into red! However, if you bought from someone who is actively managing your accounts, then you may skip the losses instead. He may have switched your funds into something more stable when the stock market has gone way up too high. Yes, of course you would need to sign the switching forms to allow him to do that in the first place. From my first unit trust purchase over 12 years ago till end of last year, my returns per annum is around 7 percent. Perhaps not that awesome to some but I think it is still a very good form of diversification. Never put all eggs into the same basket, remember?

Oh yeah, should we withdraw
EPF and put into unit trust instead?
 That same question applies, are you withdrawing it to allow a professional to help you? Or are you withdrawing because your friend told you he has done the same? My personal choice would be to buy unit trusts. I would let EPF continue to manage my funds instead. Else, we may have just one stream.
EPF returns are really not that bad lah.
 By the way, unit trust should be a continuous journey yeah. Perhaps 20 years? Until we retire? Keep putting aside money for them, get a good agent and after perhaps 10 years you may see that pile starting to grow visible. Remember, earning 7 percent from RM5,000 is really nothing much but even if we have just RM100,000 earning just 5 percent per annum, that’s already RM5,000 per year, compounded continuously.

One tiny little tip? Learn about all those actual companies that your unit trust is buying. Understand why they bought these companies. You can then also start your own stream of stock investment too. Remember, low risks means low returns and high risks meant potentially higher returns. The thing we need to do is to manage the risks accordingly. Happy thinking long term.

written on 3 Jan 2017

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Press Release: Uniting Seremban 2: Strengthening Community Ties And Championing Inclusivity

Experience the Fun and Community Spirit of IJM Land’s Open House and Giveback Event at Seremban 2

The self-contained and sustainable township of Seremban 2 (S2) by IJM Land has been lauded for being the most progressive and successful development in Negeri Sembilan. Currently at 70% completion and still expanding rapidly, IJM’s flagship development in the state offers the modern amenities and convenience of the city while maintaining the serenity of a countryside atmosphere over 2,300 acres of freehold land.

S2 is now home to over 62,000 residents and counting. And a primary reason why the township has been a resounding success can be attributed to the cohesiveness of its residents. This is particularly evident when it comes to the capacity and inherent propensity of homeowners to live in harmony with one another as a growing community that will likely number more than 100,000 strong upon maturity.

The commitment of IJM towards community-building is truly commendable and deserving of recognition. The month of Ramadan and the
 Raya
 festivities present an excellent opportunity to foster a sense of togetherness and further enrich the value proposition of S2 through various interactive activities and events.

By undertaking these initiatives, IJM aims to reinforce the unity among the S2 residents and establish a strong foundation for future generations. The company’s dedication to promoting inclusivity and diversity is evident in its endeavours to create a sustainable and thriving township for all.

CELEBRATING TOGETHERNESS

To further foster this sense of inclusivity, IJM hosted an open house with Astro radio station, Era, at S2. This event took place on 21 May, and it was open to all S2 residents and also the public.

The Era crew, featuring presenters Radin, Haniff, and Isha, were exceptional hosts, regaling the audience with their humorous banter, quirky antics, and infectious festive spirit. The event was further enlivened by the presence of celebrity guests, including Aina Abdul, De Fam, and Haell Husaini, who added to the excitement of the proceedings to go along with
jamuan raya
(festive food and snacks) galore. The attendees were thoroughly entertained and had a great time, as evidenced by their enthusiastic posts on social media, sharing their enjoyable experiences with friends and followers.

“Through this event, we hope to reinforce the Raya spirit of togetherness and strengthen the bond among the S2 community, transcending the boundaries of race and culture,” said Mr Chai, the Senior General Manager of IJM Land. “As a self-sustaining township that’s expanding rapidly, we want to emphasise the importance of inclusivity and diversity, and that everything we endeavour to do at IJM for S2 reflects these values.”

For visitors, there was also a special preview of upcoming IJM projects that were only unveiled during the open house and a special
Raya
 promotion of an RM5,000 rebate for any bookings of S2 properties during the open house.

OPEN ARMS

Prior to the joyous festive month, it was also imperative that IJM contributed to assisting the underprivileged and those in need to alleviate their plight.

IJM Land is committed to embodying the essence of Eid Mubarak beyond just hosting a festive open house. The company aims to uphold the tradition of
Zakat al-Fitr
 to support those who are less fortunate, ensuring that no one in the Seremban community  is left behind or marginalised.

During the fasting month, IJM shared the blessings of Ramadan with its annual
Program

Mesra Ramadan.
This initiative provided relief to six underprivileged households with hopes that they too can partake in meaningful
Raya
 celebrations despite their current trying circumstances.

Among the beneficiaries were Hazizi bin Hussain, a storekeeper diagnosed with diabetes, Harith Iskandar Raj bin Abdullah, a currently unemployed heart disease patient, and single mothers Siti Marina binti Soroh, Maszura binti Amir Sharuddin, Rosita binti Latiri, and Jamilah binti Bohari.

The developer contributed a box of kindness that includes necessities such as rice, cooking oil, noodles,
Raya
cookies, and RM1,000 in
duit raya
 (or celebration money) as a simple festive gesture.

“We are grateful for the opportunity to give back,” said Mr Chai Kian Soon, Senior General Manager of IJM Land. “Our initiatives are aimed at making a positive impact and a difference in their lives. We hope that our small token of support brought some cheer during the festive season. As we move forward, we remain committed to supporting our homeowners in meaningful ways and look forward to future opportunities to give back.”

At its core, Hari Raya Aidilfitri is a celebration known as ‘the feast of the breaking of the fast.’ It signifies the end of the holy month of Ramadan, reminding us to cherish our blessings and strengthen familial bonds. At S2, the spirit of giving during
Eid al-Fitri
extends beyond just family and friends to encompass the broader community for years to come.

“Community living has always been a defining feature of S2, and we take great pride in what we have accomplished as a township that brings together people from diverse backgrounds to live, work, and engage in fulfilling social activities,” stated Mr. Chai, underscoring their commitment to fostering a vibrant and inclusive vibe at S2.”

-End-

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Unlicensed agent, Unprotected owner, RM300,000 fine to media.

Unlicensed agents, especially the illegal brokers operating everywhere in Malaysia today should be aware that a fine of up to RM300,000 awaits them if they are caught. This is a warning from the past Malaysian Institute of Estate Agents (MIEA) national president Nixon Paul. According to him, the problems of illegal agents are not happening all over the country due to the lack of enforcement and public awareness. I think the public is aware but majority chose to close one eye since they are paying the illegal ones much lower or in some cases, even none. 🙂  The illegal agents are operating against Valuers, Appraisers, Estate Agents Act 1981.

There has been many cases of owners being cheated of their money and deposits. This is the norm because without any black and white documentation and the cheque being issued to the agency instead of the person himself/herself, no one is assured of whether the money would eventually go to the seller or given back to the buyer should the transaction not go through. At this moment there are 2,000 registered real estate agents in Malaysia. These illegals are also affecting the reputation of legal agents and the industry overall as most of the time, these illegal agents under-delivered or presented inaccurate information. Nixon also related a case about an illegal agent who attempted to sell a shoplot to a buyer. The illegal agent promised to return the deposit if the buyer fails in his loan application. The buyer’s loan was rejected and the agent disappeared with the money even though the case was brought to court.

What about the media which these agents use? Nixon said that, as an example, if I portray myself as a legal agent when I am not, even the newspaper is wrong! Thus, it is a responsibility of the media to ensure that the advertisements that they are printing are real and not just print when they are paid by these illegal agents. I have not seen any newspapers being punished over such cases before. Perhaps Nixon should catch and punish the first case and all these would straighten out itself.

Last but not least his advise to house buyers would be that even if the transaction goes through, there is nothing in the law which says that the illegal agent has to be paid. Thus, perhaps this is the best way for buyers to save some money and for the illegal ones to be taught a lesson? I still think, owners should just allow the agents to carry out the transaction professionally. Why the hassle should something bad really happen? It’s not just the money, it may also be the time if you have to go to the court to try to recover your money. Worth the risk? You decide, sellers.

New Update: As at 29th May 2014, it is now 1 licensed agent to 30 REAs. Thanks to a reader Wong for the update. Deeply appreciated. Latest info can be read here:  http://miea.com.my/site/index.php?cat=23

written on 23 May 2014

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Talk Series: How to Unlock Your Property Investment Potential: The Future Hybrid Rental

Renting is better than monthly repayment?

If you have also heard this before, then perhaps it’s best to listen and learn from how some people has been able to have rental returns which are above the monthly repayment. I have also recently just written this article (click here to read:
(When space becomes premium and money becomes smaller)
 highlighting the reasons why some people would be willing to pay rental and accepting a small space instead of paying lower, staying further and having to negotiate traffic jams daily.

Register here.
 All registrants will get a chance to win TWO FREE Property Investment Books written by Dr. Peter Yee. This is the book we are talking about and it is a great book. Two books is because one is for you and another one you can gift to your best friend so that both could benefit from the book. This is the book review:
JProperty Investment Wisdom by Dr . Peter Yee
 I will conduct the draw on the event day yeah.

Property Outlook for 2022 and beyond?

I will be sharing about the property outlook for 2022 and beyond. You will get to see what’s happening in Malaysia and also in many advanced markets. There would also be sharing on the differences between different types of investment and why property investment is categorised as compulsory unless of course your investment returns are under the expert category or you own a super successful business venture yeah. For the rest of working people, this is one talk you need to listen to. See you!

Register here.
 All registrants will get a chance to win TWO FREE Property Investment Books written by Dr. Peter Yee. This is the book we are talking about and it is a great book. Two books is because one is for you and another one you can gift to your best friend so that both could benefit from the book. This is the book review:
JProperty Investment Wisdom by Dr . Peter Yee
 I will conduct the draw on the event day yeah.

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Not official yet. Undecided. Assess first. Please write in to me.

This article received a lot of clicks yesterday:
Country Garden’s CEO’s earlier confidence and our PM’s latest remarks ‘not for foreigners’

Anyway, the main person for real estate industry has spoken. Our Housing and Local Government Minister Zuraida Kamaruddin said that the decision to ban foreign buyers for units in Country Garden Holdings’ Forest City development in Johor is not official yet.  She said, “For the time being, it is still undecided if they can sell property to foreigners. We must assess [the situation] and then provide the prime minister with a report.” She urged Country Garden Pacificview Sdn Bhd to write to her ministry to discuss the conditions for selling the units in Forest City to non-Malaysians. About our PM’s statement yesterday “One thing is certain, that city that is going to be built cannot be sold to foreigners,” this is her comment. She said the prime minister’s remark was plain. Besides, there has been no official statement on the matter from the Prime Minister’s Office besides his verbal response to reporters.
Full article in Edgeprop here.

According to the state’s Housing and Rural Development Committee chairman Dzulkefly Ahmad, the federal and state governments had not discussed the matter and had urged all parties to not jump to conclusions over the prime minister’s statement, reported
The Star
. He also pointed out that the previous state government had set up international investment zones for foreign investors. These include Medini which has special exemptions so that it could attract talent from overseas. There has also been many quotes from property consultants who warned that it will be bad for the the state’s property market because it will not just hurt sales of existing launches by Country Garden but also that of developers – both foreign and local – in the state, and deter individual and institutional investments from abroad.

Latest remarks from KGV International Property Consultants (M) Sdn Bhd director Samuel Tan Wee Cheng. He hopes that the project will be completed as planned. He said, “Do not turn the project into a white elephant as it is not good for Iskandar Malaysia and the country.”
Here’s the full article in TheStar.
  He also shared, “Johor’s economic prospects, especially tourism and services sectors, will benefit directly and indirectly from the project in terms of tourist dollars.” The authorities could take the initiative to promote Johor as a new new tourist attraction.

Personally, I think uncertainties are bad. The more transparent we are, the more level would be the playing field. I would dislike any insider news for example. Remember the times of 1997 / 1998 when the ringgit was up and down all the time? It hurt businesses badly until the ringgit was pegged. There were lots of complaints but it gave everyone a sense of certainty. Businesses could now trade without fear of currency volatility. I think this is the same for the property market. We just need to spell out all the policies clearly. Malaysia remains a very attractive country to invest in and especially Johor because Singapore is right next door. Let’s wait for even more clearer announcements, hopefully from the Prime Minister’s office instead of everyone else. We also should note that Country Garden is not a fully Chinese owned investment. Happy following.

written on 29 Aug 2018

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Unpredictable life, why plan?!

I was having a conversation with a group of friends and one of them said that because the parking in mall A is expensive, he is resorting to park in Mall B which is a little further away and walking to Mall A. Actually, this is even better because we get to exercise a bit at the same time. Perhaps not so suitable for me when I have a toddler, my wife is pregnant and there’s the huge bag plus trolley and not to mention after that the shopping bags. He then added, ‘I am doing this to save money for my future’. I said, don’t just save,
think of making more money
.
 He asked, more money means change jobs? I said, how about investment? He said it is so unpredictable, how to risk?

What is risk, really? Risk is a word associated with something we do not know. For example, changing job is a risk unless we are joining our parents’ company. Being asked to take up a certain higher study for a degree by our family even though we do not like the subject is a risk. In fact, everything we do not have knowledge of is a risk. Therefore, we can never escape from risk but what we do to manage it would at least help us to lower the potential risk. From risk, another quote came to my mind suddenly, a quote many people love to use.
‘I don’t need so much money, I have my family’
 Familiar? Or another classic, ‘you must love your family more, not money.’ First of all, I love my family. I may love my family more than many people. In fact Bill Gates loves his family. Even the late Steve Jobs love his family. The difference between them and me? Well, just the money part.

Always be very clear, if you truly love your family, then plan for them. The best form of savings would always be how much you are able to save, not just on whether you save or not. Have you ever thought of the
possibility that unforeseen circumstances

may occur or that perhaps you are no longer around? During one of my business trips recently, I was hospitalised and the total bill came to RM22,000. If I was not covered by my company’s medical plan, I would have lost this RM22,000 just like that. As for investment risks, the best way is always to manage and not to hide from something we do not know. Of course, in our lives, if nothing bad happens and we live till the day we say goodbye peacefully, I think that’s the best. For everyone else, do you love your family?

written on 26 Dec 2014

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10 Most Dangerous Cities, the end of property market Malaysia?

I think I will start by asking a question. Do we buy foreign properties in cities which the world acknowledge as being extremely unsafe? If the answer is no, then do we expect foreigners to buy Malaysian properties if we are categorised as very dangerous? I think some of us may have seen a list of so-called 10 Most Dangerous Cities in Asia in which 4 Malaysian cities made the list. The list was compiled by Worldatlas.com and in the full article for this list, it says that the list was compiled based on, “a set of crime indices to compare global cities based on relative levels of crime, safety, law, and order” If you intend to read the whole article, it’s here:
dangerous cities
.

Let’s read some of the actual comments in brief:

10. Johor Bahru:
“A hub of criminal activity”

5. Klang:
“There are a large number of criminal gangs reported to be operating in Klang today, with violent clashes among these gangs being quite frequent. Many of these gangs are operated by the Chinese and Indian peoples in Malaysia.”

3. Petaling Jaya:
“Besides cases of robberies, thefts, and murders, violent gang wars are also common in Petaling Jaya.”

2. Kuala Lumpur:
“Besides these petty crimes, serious crimes involving physical violence, murder, rapes, and robberies are also commonly reported in the city.”

Oh yeah, as a consolation, the article said this, “There is not a single Asian city that is in the list of the most dangerous cities in the world.” In case you are interested with the REALLY dangerous ones. Read here:
World’s Most Dangerous Cities

Let’s talk about just these 4 and ignore all the thousands of cities here in Asia. I also do not want to debate the increasing crime rates in Malaysia but seriously my fellow property investors in Malaysia, should we forward and just agree with it? I state my opinion. I disagree totally with this list even if I agree the crime rates do seem to be increasing. If you agree with this list, I think it’s time we start buying elsewhere, say in neighbouring countries instead. Secondly, it’s time to move to those CHEAPER cities not listed here. Ringgit may have depreciated a lot versus USD but actually within Asia, we are not doing too badly as at today. Ready to do it? Happy forwarding and believing then.
I don’t.

(By the way, I have visited many cities within ASIA for business or pleasure and I can safely tell you that safety in KL which was ranked No.2 most dangerous is definitely a crazy ranking to say the least.)

written on 8 Apr 2016

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Unsold and completed rises by 10,000 units. Worry now?

Is this the time to worry about the property market? Honestly, if you were that someone who bought 4 properties at one go in 2012 and just got the keys to all the 4 properties this year, you should be worried. It’s likely that the prices are going to be weak because there are suddenly so many new units coming into the market. However, if you bought one unit for own stay and you are currently staying or renovating to stay, then the number of unsold and completed residential properties should not bother you too much. If you have a home and intend to buy another good property for rental income, this may work well if you get the right one. By the way, the number of unsold and completed residential units are really on the way up.
Article in TheStar here

According to the Valuation and Property Services Department’s (JPPH) latest figures released on Saturday, the total value was RM19.54bil, a 56.44% rise from RM12.49bil a year ago. Should serviced apartments and small offices home offices (SoHos) be included, the overhang value rose to 40,916 units, valued at RM27.38bil. JPPH defines an overhang as completed unsold units nine months after issuance of certificates of fitness, signifying from the authorities that a dwelling is fit for occupation. Most of the overhang were priced from RM500,000 and above and this group alone constitutes 12,000 units.  States wise, those with serious overhang are Johor, Selangor, Penang and Kedah. According to JPPH’s latest report, Kuala Lumpur has no unsold completed serviced apartments/SoHos.
Article in TheStar here?

Three important key points to note.

Prices will determine affordability and affordability will determine demand. When prices are high, affordability goes down and the demand will have to go down too. This is why huge overhang comes from RM500,000 units or higher.
Demand is super important. When we look at the major property markets; Selangor, KL, Penang and Johor, we need to realise that as long as urbanisation continues to happen and the states continue to attract “People”, then the unsold units could be cleared with time. The issue usually starts IF we bought an overpriced property…
Unsold units do not determine the price. The price is determined by attractiveness of the area, the amenities, the design of the home and even the timing. 12-18 months from the keys handover would usually mean lots of supply. Price tend to be lower during this time.
Thus, property prices do not drop simply because of unsold units.

In fact, it may be a good time to scout for some good deals if your salary has gone up over the years since 2012 when you bought your first property. Reminder, the mortgage payments may be the same but your monthly salary since 2012 till today would have gone up healthily. With the many choices further ‘pressured’ by newly completed and unsold units, the best deals may just be today. Happy evaluating.

written on 24 Dec 2018

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Unsold homes highest ever in history. 50pct due to Johor, Penang and Kedah.

There are a total of RM15.6 billion worth of RESIDENTIAL properties unsold as at end 2017.
One of the many articles here.

In terms of units, that’s a total of
24,738.  Please note that these units do not include
service apartments and SOHO (small office/home office) units.  In the latest report by
Bank Negara Malaysia (BNM), the central bank said there were 129,052 unsold housing units at the end of the third quarter of 2017 compared to 146,497 units at the end of the first half of 2017. (Well, at least this is sort of good news since the number is actually lower in Q32017 versus H1 2017)  The report says that more than
80 percent of the unsold units were priced at RM250,000 and above. (Frankly, even the affordable homes being built today are mostly targeted at prices between RM250,000 – RM350,000 anyway, thus the 80 percent is hardly surprising)

The Valuation and Property Services Department (JPPH) in its Property Market Report 2017 said there is a rising concern on the overhang for residential units. In fact JPPH shared that,
“These overhang numbers which only accounted for those in the residential sector — excluding serviced apartments, SOHO, etc — were the highest to be ever recorded.” These unsold homes are units which were unsold AFTER nine months having received its
Certificate of Completion and Compliance. For the whole of
2017, a total of 194,684 transactions in the residential sector were recorded and valued at RM68.47 billion. When we include the
whole property sector there were a total of 311,824 transactions valued at RM139.84 billion. Volume wise, it’s down by 2.7 percent and 3.8% in value when compared to 2016. (Hey, this meant that on an overall basis, the average transacted price is down.)

Just three states would contribute 50 percent to the total residential overhang and they are Johor with
4,378 units, or 17.7 percent, followed by Penang with 15.8 percent and Kedah with 15.3 percent. (Personally, I worry for Penang and Kedah because if we look at the size of property market on an overall basis, then these two would really have a very high number of unsold units.)  According to JPPH
DG Nordin Daharom, there are new strategic initiatives involving JPPH, Napic and the National Housing Department through knowledge-sharing sessions. He said,
“This knowledge-sharing process can help the government implement policies for new property developments and help reduce the rising number of unsold units across all sectors with reasonable pricing points.”
Another relevant article in freemalaysiatoday here.

UNSOLD UNITS meant a few key things. Some developers simply built without knowing if there is demand for the units.  Some properties may have been priced too high to begin with simply because the prices in the area is already within that range. Remember,
when the market is slow,

even a 5 percent difference would stop purchasers from buying. They would usually have many more choices than usual. Of course, some developers may not have been marketing the properties enough, preferring to believe that since they were able to sell previously, there is little need to push
for sales right from the beginning.

Some would say that this is because the market is slow, so the properties were unsold. Well… do take a look at a few launches
recently which were sold out in hours.

The right price and a pretty good property will still be sold, fast. This is the market we are in today. Happy viewing and buying.

written on 18 April 2018

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Unsold homes still growing… (Bad news right?)

It’s hard to shake off the perception that unsold homes means a property bubble is about to burst. It really depends on whether there are still units which are priced under the affordable category. Some friends continue to tell me that they will be rich when the market crashes because they did not buy a property currently and will buy one as soon as they see super-duper opportunity. As per Bank Negara Malaysia (BNM), the number of unsold homes continues to grow.
Full report in TheMalaysianReserve here.
 In brief, 80 percent of the unsold housing units are priced above RM250,000.  In earlier reports, BNM says that affordable properties based on median household income should be priced not more than RM282,000. Current number of unsold units increased to 146,196 units as at end of Q1 2018. It was 129,052 at end-September 2017.  Central bank says, “Imbalances observed in the property market continue to persist.”

Before everyone now thinks of the property market as negative, this is what BNM says about the current market situation. “Nevertheless, sustained demand for affordable housing, particularly from first-time home buyers, and prudent underwriting practice in lending to the property market and related sectors are expected to mitigate risks of a broad-based price correction.”  In fact, quality of borrowers are pretty high (even if compared to advanced countries), about three-quarters of new loans approved were to borrowers with debt service ratios (DSR) of less than 60%. Ratio of household debt-to-GDP moderated to 83.8% in 2Q18 versus 84.2% in 2017. Overall total impaired loans (net of individual impairment provisions) fell 10% to RM16 billion from RM17.8 billion in 2017, comprising 1% of total net loans compared to 1.1% last year.
Full article for reference here.

A few conclusions yeah. On an overall basis, the property market is doing fine. There are no indicators on an impending property bubble bursting. Looking at the non-performing loan numbers, it shows that people are paying their loans on time yeah. No signs of a huge number of desperate owners based on these numbers. It meant that jobs continue to be available and people losing jobs should be able to find jobs quickly. This is why they could still pay their loans yeah. If anyone’s waiting for good deal, better start looking because the number of marketing campaigns by all developers are rising. I think this shows something yeah. 😛  Just look at property investment on a longer term rather than 2-3 years. Huge rebates are not healthy if the property price you paid for after rebate is still way higher than all the properties nearby yeah. Stay savvy even if there’s opportunity.

written on 28 Sept 2018

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Unsold property news? Answers from a working professional to all.

“With so many unsold units, it’s just time that property prices will fall.” A statement which is potentially true as long as that particular property that you are looking for is inside the unsold category today and that particular property developer holding the property is aiming at just selling and not about the margins anymore. However, if we are hoping that unsold units will force the existing owners to sell their properties VOLUNTARILY and HAPPILY at lower prices (and they are not financially distressed), then the answer is No. The answer is also no if the developer has sold enough units to cover the construction costs and needs to sell remaining units at prices high enough to give it margins because developments are over a 3-4 year period and not one.

Looking a little more deeper would reveal to us that after all the ‘excitement’ actually, the main reason for the unsold unit is down to price and affordability. 40% of the unsold residential properties are RM500k or higher. This means the potential buyer must have saved RM50,000 as downpayment or is ready to pay a mortgage of around RM2,300 per month (30 year loan, 4.5% interest and 10% downpayment). For banks to approve this buyer(s), the household gross income should be at least RM4,500 with NO other outstanding credit card debts or instalments or whatever payments which zaps away the salary. Oh yeah, better no overseas trips too.

So, for any household to afford this minimum RM500,000 property, it’s best that they are earning a gross income of RM5,000 – RM6,000 instead. I am very sure there are many BUT after deducting those who are affected by negative sentiments (environment / politics / relatives / friends / whatever), the number is reduced tremendously. Let’s not forget that if the household had RM6,000 income per month, they would have already bought a cheaper property a few years earlier. So, they already have a place to stay and does not need to force themselves to upgrade or buy a new one today.

In conclusion, we should definitely watch the unsold property numbers but depending on the income we are earning monthly and the targeted homes, the unsold numbers should not be the main obstacle. It should just be whether the property we want fulfills all of what we want at a price we could afford instead. Seriously, they should teach this to the working professionals instead because for all the first-timers there are just too many questions which they do not find objective answers to. Happy reading.

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written on 3 Jan 2019

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Unsold units? Rent them out perhaps?

I am a believer of renting first and buy later if one does not have enough ‘financial power’ yet. Well, perhaps not at the current property prices vs median household income anyway. I agree prices have ran too fast but I also disagree that developers are fully at fault for property prices. Seriously, it’s a demand and supply situation and it was also due to the ‘booming’ years of 2008 – 2012 when the prices were running up like horses. Every launch was for ever ‘better’ specs and higher prices. Guess what, when prices did go up, it will only come down if those buyers could not support the prices they bought and sold it lower. The question is always, could these
buyers hold on or will they be forced to sell at a lower prices in the future.

Article in TheEdgeMarkets.com here
The National House Buyers’ Association (HBA) secretary-general Datuk Chang Kim Loong has come up with a suggestion to fix the overhang problem of residential properties in the affordable pricing range: rent them out. He said that property developers and the authorities should consider renting out some of these affordably priced units to low income earners who need a roof over their heads. He said that there is insufficient information on houses priced below RM150,000 for the low income homebuyers with Bank Negara Malaysia offering special interest rate for them. Perhaps a website where the public could access information on the location, types of property and selling prices. (I agree! Call a tender for a third party to do it if necessary.)

In terms of the newly launched National Housing Policy (DRN), Chang said it provides some direction on resolving current problems, but implementation and enforcement will be key to its success. He said, “For instance, the implementation of the build-then-sell (BTS) concept, which HBA has advocated for since 2006, is not in the priority list. The ministry promises to start the research on the concept this year but many studies and discussions have already been done over the years.”
Article in TheEdgeMarkets.com here

Since it’s now 2019, we will just have to watch how the DRN unfolds. There’s that 100,000 affordable homes being promised by the end of 2019 as well. Will it affect the home prices with so many affordable units flooding the market? Briefly, I do not think so. Prices depend on many things and not going down simply because there are now by far more units. Else, we should have seen prices in Desa Parkcity falling because there are now many more high-rise units within the same development.  Perhaps when the affordable units flood the market, the prices will not move too much for a few years. This will allow income to catch up. That would be good for many households such as those from B40 and M40. Happy following.

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written on 2 Feb 2019

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Unsold units up 40 pct. Strategy ahead?

Unsold units are up in Malaysia property market. Sorry, I failed to mention that it is up a lot. According to many news article yesterday, the number of unsold units as at H1 2017 is worth over RM12 billion. In units, it is about 20,000 units. (Fortunately this is not for affordable units, else, for affordable units of RM250,000 each, then the outstanding units would be closer to 50,000 units)  These numbers are actually showing an increase of 40 percent from the same period last year. Most of the unsold properties were above RM500k. These articles were all quoting numbers from the Finance Ministry which meant that the numbers should already be verified. Here is one of the many articles:
TheStar: Number of unsold completed residential units up 40% to 20,807 units
  Okay, does this mean the property market is about to crash? (I received this question from a good friend who is about to buy another property)

Property market crash could happen for a variety of reasons. Unsold units are not usually the main triggering point. One of the trigger point would be if current homes (owned by someone) are all becoming way too expensive for everyone to buy. Here’s an easy to
read article about the U.S. mortgage crisis in 2008.
Do note the sentence within,
“By June 2004, housing prices were skyrocketing.”
  So, always look at all the major property sites with property listings. (iproperty.com.my, propertyguru.com.my, propsocial.my, mudah.my etc. Oh yeah, kopiandproperty.com has no property listings YET. Haha) Do we see pages after pages of everything way too expensive for everyone? As soon as we notice majority of
all listings become too expensive
,

we better be worried.

Second trigger for a property crash would be when it gets too expensive for owners to service their mortgages. A recent article which is very
easy to read highlighting this fact is here.
Yeah, it is about interest rates. If central banks for any country in the world raises the interest rates too fast, many borrowers who are already on the edge with their payments may just fall over. Note,
 “already on the edge”
because this is the actual key and not the interest rate. I would be very alarmed if people start telling me this. “Charles, it is so easy for me to get my loans approved even though I am already sinking with my current debts.” This was a recent article.

No lending or buyers unable to buy

When the ‘quality’ of buyers are met, a mere 0.5% increase in interest rates will not sink the whole market. However, if the market is already full of borrowers who are on the edge……………………

Third trigger would be unemployment. I am very serious about this. As soon as we see mass retrenchments everywhere, across all industries, we should be worried. This is especially if the number of jobs available suddenly drops a lot. Take a look at
JobStreet as a barometer.
 Employers have to pay them to advertise. This is because between feeding my family versus paying for my mortgage, I would choose to feed my family first. So, if I am out of job and could not find a job, I will sell my home and rent a place instead. Imagine if thousands of people out of job suddenly trying to sell their homes at the same time? The sentiment would become very negative and well, the property market (where prices are concerned) may crash. I repeat, MAY.

There are many more triggers. Just ask our best friend, google. Else, go to any upcoming property fair and ask the speakers at those fairs this question, ‘Is the property market about to crash?’ Of course, they would tell you it is not about to crash but what you should be listening for would be the reasons they say so. Then, you use their answers to search more, read more and then make your conclusions. If the answers are not convincing, better take precautions. Including continuing to use our current smartphone and not buying the iPHONE X.

The right strategies I think is to manage our finances well.
Peril await without financial awareness.

Secondly, have
enough savings (usually 6 months)
 just in case we need a few months to look for a new job. Third, stop buying properties
which we could not afford yet.

Those that would stretch our mortgage payments to the maximum limit that we could. It is very dangerous. Fourth is to keep reading because if we have been reading a lot, we would not suddenly be very alarmed with some news. Look at the U.S. mortgage crisis, it did not suddenly happen. There were already warnings, signs but everyone chose to ignore it for greed… if you have not yet signed up to read an article or two per day from kopiandproperty.com, do sign up yeah. Cheers.

written on 13 Nov 2017

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I think it’s always good to look at things from the the basics.  A very real example, just because the market is slow does not mean people suddenly start hating some typical hotspots. This is why those few areas that
you love to buy are still too expensive to buy.

Second example? Oversupply numbers does not immediately mean the market for all properties would crash. Look a little deeper, it helps, usually. By the way, the oversupply may be

around for a few more years too.

Read on.

 This article was first published in iProperty Magazine December 2017 Issue.

— start —

Unsold units up by 40%. Should we be worried?

Charles Tan prods at the residential overhang issue and highlights key signs consumers should look out for.

So the overhang in stratified properties or apartments and condominiums has worsened Y-O-Y, according to JPPH’s latest property report, the number of unsold units rose by 40% to 20,876 units in H1 2017. Most of the units are priced above RM500k.

What do these figures mean? Is the market about to crash?

A housing market crash could be due to many factors, but unsold units worth over RM500k is usually not one of them. Instead, we should watch out for the following signs:

1) The prices of sub-sale homes skyrockets/rises rapidly and are no longer affordable to most people

A prime example is the sub-prime mortgage crisis which happened in the US over a decade ago – according to media reports, by 2014, housing prices in the US were skyrocketing.

To those who are anxious, just keep a lookout for changes in home prices by going through property listing posted on online real estate platforms including
iProperty.com Malaysia
. Do you see pages after pages of properties that are way too expensive for everyone? As soon as we notice the majority of home listings becoming too expensive, then we can start worrying.

2) Property owners are unable to service their mortgages

I would be alarmed if people start telling me this, “Charles, I could easily get my property loans approved even though I have significant debts already.” Should the central bank suddenly raise interest rates, many borrowers who are already on the edge with their repayments may just tip over into the default zone.

Instead, when the quality of purchasers is met, a mere say 0.5% increase in interest rates will not cause any detrimental effects to the market.

3) Unemployment

A major sign of concern is when mass retrenchment occurs across most industries and is further compounded by the sudden lack of new jobs in the market. You can use JobStreet.com as a barometer, employers will have to fork out money to advertise their job vacancies.

When it comes to choosing between feeding your family and paying my mortgage, the former will take precedence. Hence, those who suddenly find themselves unemployed will be forced to sell their home and rent one instead. Imagine if this scenario happens on a large scale – thousands of desperate Malaysians trying to unload their homes at the same time. Consumers’ sentiment will take a nosedive and the property market MAY crash.

Some advice

Consumers must be strategic when it comes to personal finance, more so when the economy is going through a rough patch. One must have a rainy day fund in case of emergencies; a minimum saving equalling one’s 6-month salary.

Besides that, do not purchase properties which are out of your affordability scale; it is very dangerous to stretch your mortgage repayments to the maximum.

Also, continuously keep yourself updated with current news and the market’s going ons. The US mortgage crisis was not an overnight incident, there were numerous warning signs leading up to it but the masses chose to ignore them. Let’s learn from this mistake and keep reading!

— end of article —

Dear kopiandproperty.com readers, a good question to ask ourselves with regards to the property market would always be this. Assuming we do not have any unforeseen financial crisis happening in some advanced countries outside Malaysia spilling into the Malaysian property market, would property prices fall?  Perhaps we ask this in another way. Who would want property prices to fall? The banks? If property prices fall, they would shiver because as soon as buyers were unable to service the monthly mortgage, even selling the properties through auction would still be a loss for them. The owners? Well, any owner with a sound mind would want to sell their properties higher and not lower. Okay, the potential buyers would love for property prices to fall BUT…. as soon as they bought one, they have just turned into an OWNER. 🙂  Happy following.

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