EPF: Numbers we should know and start to prepare

I became an EPF member aka as contributor when I started working as a sales assistant right after SPM. It was for just for a few months while waiting for SPM results. That was way back in 1994. Haha. Yeah, I am 45 this year. My basic salary at the time was RM300 + RM50 for good attendance incentive and I also have overtime payments as and when my supervisor asked me to work longer hours. Then, I left the role to continue with my studies. Thus, I have been an EPF member since 1994. That’s 28 years already.

Below are some numbers about EPF that I have read and will write down so that I also have a place I could refer to in the future.

Reference articles:

Article in theedgemarkets.com

Article in freemalaysiatoday.com

Article in thesundaily.my

#1 – Due to the withdrawals allowed for members who faced financial difficulties due to Covid-19 in 2021, withdrawal amount exceeded the contribution amount. (This is NOT good for the future of the affected EPF members)

#2 – EPF members have had access to their retirement funds of up to RM71,000 via i-Lestari, i-Sinar and i-Citra

#3 – Total withdrawals for these three programmes; i-Lestari, i-Sinar and i-Citra was RM101 billion.

#4 – EPF has a total of around 15 million members

#5 – 48% of EPF members (6.1 million) have less than RM10,000 in their EPF account (Many are still working… our median age is 29 by the way)

#6 –  10% of EPF members own 40% of the funds totalling some RM890 billion. (Means each of these top 10% EPF members have close to RM600,000 on average in their EPF accounts currently)

#7 – EPF dividends for 2021 could have been 6.7% if no withdrawals were allowed due to the Covid-19 effects

#8 – There is now a EPF Voluntary Contribution scheme where contributors must contribute at least RM5 a month or RM60 a year and maximum amount is up to RM60,000 a year.

#9  Only 3% of EPF contributors could afford retirement after the withdrawals over the past two years impacting contributors’

Reference articles:

Article in theedgemarkets.com

Article in freemalaysiatoday.com

Article in thesundaily.my

Conclusion

EPF is really the last resort because most people do not have enough money in their EPF account to rely on when they stop working. If we take EPF as an extra, then we will know that we also need other investments too. If EPF is the only one we have, then get ready to struggle in the future. There are better investments but as usual, higher returns meant higher risks too. Some say they want to withdraw RM10k to invest into other places since the
government allows withdrawal of up to RM10k now. Read here for the news.

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

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

Next suggested article:
Property investment is for older folks and not millennials?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF payout totalled RM51.14 billion for 2022

EPF’s payout totalled RM51.14 billion for 2022

EPF’s dividend for 2022.

This was a super big news before it was announced; so many media outlets were predicting the potential number. It was also hotly discussed after it was announced. Some say it’s low, some say it’s respectable. Some say it could have been better IF… Regardless, here’s that article on the details of the announcement by the EPF just a few days ago.

Article in freemalaysiatoday.com
   EPF chairman Ahmad Badri Zahir said the payout will benefit more than 15 million EPF members, including members from the informal sector who are registered under i-Saraan, an incentive-based voluntary contribution programme. He said in a statement, “Despite the persistent global market downturn in 2022, the EPF’s investment portfolio maintained its resilience and maintained minimal impact.”

Additionally, “EPF’s well-diversified portfolio and healthy liquidity helped to reduce risk and enabled the fund to maintain investment assets at above RM1 trillion and deliver respectable dividend rates for 2022.”

EPF has declared a dividend rate of 5.35% for conventional savings and 4.75% for shariah savings for 2022. this is reasonable since Malaysia is still in the recovery period after the Covid-19 pandemic.
Article in freemalaysiatoday.com

EPF’s return of 5.35pct is low?

A friend (who’s very good with stock trading) said that EPF’s payout is low. It’s just 5.35% for the conventional savings and 4.75% for shariah savings for 2022. Well, I guess it’s a matter of perspective because unfortunately for majority of EPF contributors, they do not know how to trade in stocks and earn exceptional returns. In fact, almost all my friends said that they are wary of the stock market and some would tell of how much they have lost when they bought the wrong counter too.

Why EPF is known as retirement savings?

Once we stop working, our income stops coming. Some times, even if we want to work, when we reach 60, chances are job offers will be harder to come by. Chances are we would need to start dipping into our savings at the time. Chances are EPF savings would be one valuable post of money at the time on top of all other savings we have. This is why EPF should be treated as a retirement savings and NOT taken out for any other purpose except for emergency.

I am grateful and at the same time I know I need to prepare too

Frankly, the reason I diversify my investments is because I do not wish to rely on just my EPF savings. Investments are to ensure my accumulated wealth is not eaten up by inflation over the passing years. Inflation cannot be stopped, so we need to let it be. Investments would be up to us. Not drinking a latte in a cafe daily would allow us to have the following for investment every year. Imagine if the return to that investment is also 5.35%…

RM15 (one latte in a cafe) x 365 (days) = RM5,475       10 years and this would be RM54,750.     Based on 5.35% returns, the amount we have would double every 13 years.  Yea, this is really a lot of money which we did not realise as we sip that latte in a cafe yesterday.

I am however grateful that despite so many challenges, EPF declared a return which was higher than the rate of Fixed Deposits and indeed I do not mind if the return of 5.35% continue to be the same for the next few years. Of course if it could higher, then it is even better.

Happy understanding.

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

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

Next suggested article:
It’s not an investment if we know nothing about it

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF, market volatility, rebalancing and long term returns

Someone sent me an article about Employee Provident Fund (EPF) in an English local daily. I happened to miss this article. Anyway, I have not been buying newspaper for at least 8 years. It has nothing to do with politics. He was sending me because I wrote an article about EPF vs Unit Trust some time back. Read here:

I am not using EPF for Unit Trust. My views.

 Anyway, it’s a good news for those with funds inside their EPF accounts. EPF’s return is up thanks to higher returns from its portfolio of assets. Investment income grew 9.73 percent to RM11.41 billion for Q2 2015, from RM10.4 billion in the same period in 2014. In brief, EPF should be declaring healthy returns for the year ending 2015, unless some untoward ‘accident’ happens between now to year end.

Now for something more realistic. This good performance is tough to maintain. To anyone who is now shouting, WHY? Please do take a look at the typical returns for majority of all listed companies plus an average return for majority of all the typical unit trust funds that is in the market, then only continue reading on. Alternatively, stop reading now. EPF’s Chief Executive officer Datuk Shahril Ridza Ridzuan said that markets are now becoming more volatile due to the anticipated US interest rate hike, a slowdown in China as well as other concerns from emerging markets. Yes, Malaysia is still considered an emerging market today.

On a positive note, Datuk Shahril said, “The current market conditions allow the fund to rebalance its portfolio for continuous return and risk diversification over the long run.” Okay, perhaps only positive for some like me. This is because if you followed by articles, you would know that I continue to be active in the share market, buying stocks which I feel is undervalued. Especially those which has fallen so much that the dividends would be above the usual Fixed Deposit rate and yet provided me a potential for capital appreciation when market gets better.  Yeah, I know I may have to wait for a long time, right? Haha. It’s ok, let’s try best to follow Warren Buffet. Buy undervalued and soon the business would be reflected in its share price.

Last but not least, take appropriate actions whether or not you believe EPF’s fund managers or even the current CEO. Buy your own shares or properties. If you do not believe your own judgement, then buy unit trusts or REITS. I think the equity ones may have dropped a lot. No idea how much more it can drop but if you start buying today, perhaps in the near future you may get good returns. I have zero idea about this. Please make your own decision based on what you believe in. Please do not use that extra fund for extra unnecessary stuffs like smartphones. Happy investing and anticipating.

written on 30 Aug 2015

Next suggested article:
EPF ‘punts’ to profits vs other investment options?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Hoping for higher EPF returns. Possible?

Employees Provident Fund (EPF) gave an average dividend of
6.02% for the periods of 2008 – 2017.
These rates are definitely very healthy but this cannot be expected to last forever. In fact, it has always been highlighted that EPF statistics show that 70 percent of its contributos who withdraw funds at 55 often use up their savings within less than 10 years after retiring. 14.5 million Malaysians are working out of about 32 million total population. 48 percent of these working Malaysians have an EPF account while 10 percent who work for the government is eligible for pension.

A year ago, for the full year of 2018, EPF announced a dividend of 6.15% for its conventional portfolio. This is a very good number even if it’s now lower than some years back. It’s actually 50% higher than even fixed deposit rates which is considered the safest investment of all. For the full year of 2019, EPF is expected to announce a lower divided. Some experts say that it will be between 5.5% to 6.15% and this is mainly due to the poor performance of the local stock market.

Article in themalaysianreserve.com
    For the whole of 2019, the benchmark FTSE Bursa Malaysia KLCI dropped more than 6 percent.  Many foreign funds sold their holdings and the total dumped was over RM10 billion. EPF derives about 55% of its income from investment in equities.

Rakuten Trade Sdn Bhd VP of research Vincent Lau said the estimated dividend rate ranges between 5.5% and 5.9%.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid is more optimistic with a forecast matching last year’s rate.

The Institute for Democracy and Economic Affairs research manager in economics and business, Lau Zheng Zhou, described a 6% dividend distribution as “healthy”, taking into consideration the challenges last year.  Please do read the full
Article in themalaysianreserve.com

My thoughts about all the predictions? EPF is still going to declare a dividend which is way about what the fixed deposit will be giving us. The lowest percentage as per forecasted above is 5.5 percent. Current fixed deposit rates? Alarmingly low versus the past few years yeah.
Article in loanstreet.com.my shows latest FD rates.
Except for some promotional ones, the typical rates ranged from 3.55 percent onwards to below 4 percent. So,
be happy yeah. Plus EPF is still the owner of PLUS too.
All the drivers using the PLUS experessways are going to pay toll and that toll will be coming to indirectly via the EPF too.

Just be prepared that our EPF savings may not be enough when we retire to maintain our lifestyle yeah. This is why it’s important to have a ‘cheaper’ lifestyle and to start investing instead of relying on just the EPF. We are living longer and that’s going to stretch what we have longer too. Happy anticipating and keep working hard yeah.

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

Next suggested article:
70% has less than RM50k in their EPF account

Header Photo by
Oleg Magni
 from
Pexels

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF savings is not going to be enough. Be savvy and be ready please.

Did you know that “Close to 50% of EPF contributors have less than RM10,000 in their account.” Read the article here:
50% of EPF constributors have less than RM10,000 in their account
 So, the situation is real and the fear should start sooner rather than later if someone is within this group of EPF contributors who has less than RM10,000 currently. Even assuming the money doubles by the time they retire, it’s still only RM20,000.

EPF’s savings are supposed to last the members for 20 years. RM20,000 for 20 years is only RM1,000 per year or RM83 per month.  Daily basis, that’s RM2.75. Yes, the number if real if we do not do something about it earlier, versus later when it’s too late.

What is EPF Basic Savings quantum?

The EPF Basic Savings quantum is revised periodically according to the minimum pension for public sector employees, or every three years, whichever earlier. The last revision took effect in 2017.

The latest EPF basic savings will take effect on Jan 1, 2019. The quantum for the Basic Savings will be revised from the current RM228,000 to RM240,000, the minimum target EPF basic savings members should have upon reaching age 55. Please refer to the image below showing how the EPF sees how one grows their EPF Basic Savings over the years until they stop working at 55. I know, most people would work to 60 these days.

Source: mypf.my

Why is the amount for EPF basic savings revised upwards?

Well, basic Savings refers to the amount considered sufficient to support members’ basic needs for 20 years upon retirement. Means we retire at 55 and the amount of money in the EPF is enough to sustain us for 20 years. In other words, RM240,000 at the end will be enough to cover the cost of living when one’s income has stopped or reduced tremendously.

RM240,000 divided by 20 years = RM12,000 per year or RM1,000 per month or RM33 per day. That’s around RM11 per meal. If one eats simple meals, it should be enough even if we have to consider inflation as well. However, the reason it is revised upwards is also because the cost of living is also getting higher too. Remember also that Malaysians are living longer too.

It’s not just EPF savings yeah. One needs more.

Article in nst.com.my
  In Scandinavian countries, where standards of care for the elderly rank among the finest in the world, the approach is holistic and includes housing, healthcare and where necessary, companions and also financial allowance.

In short, senior citizens who are without family support get social welfare care from the government. Japan, for instance, earns much praise for its protection of people’s dignity. Thus, EPF cannot be the only guarantor for the wellbeing of the elderly. Needs of the senior citizens encompass more than mere money. Do read the full article here:
Article in nst.com.my

Before we think we are alone with EPF savings…

By the way, worrying after retiring is a real issue and it is in all countries and not just Malaysia. Yes, I know you think the government can do way better. I agree totally. Just need to remember that the government is not going to be able to care for everyone no matter how awesome they may be. We can look at some happenings in other countries too.

1 in 6 of all Britons who are retiring soon does not have private
pensions savings… yet.  Read here.

25% of all adult Americans have no
retirement savings… Read here.

2 in 3 of working Singaporeans do not have savings to
 last them more than 6 months.  Read here.

Okay, I know the EPF savings problem is real, what do I do about it?

It’s a super long answer but at least these few Personal Finance things.
It is in this order: salary – savings – invest. Which stage are you at today?
  A good friend who’s earning very good money and staying in a RM1.6 million semi-detached home in a gated and guarded place told me that she does not think she can retire. The reason? Her personal cost of living is just too high…  Please learn from this as well. Many times, it’s also our personal cost of living yeah.

No paying rental please, it will be disastrous

Beyond these, remember one important point too. No one should sleep on the streets or under the bridge. That’s why it’s important to own at least one small place and stop worrying about rental when our income is no longer growing. Please never try to think of paying rental after 55 okay. Even RM500 per month for a tiny little room will ‘kill’ the savings super fast. Just look at the above calculations yeah.

Nope, there are no home owners who will allow the tenant (no matter how friendly the tenant is) to stay forever just because the tenant has paid 30 years of rental. It does not work that way okay…  Please do feel free to google about why property and poverty is usually on the same page, especially when salary increase will always be behind property price increase. Hope everyone understands yeah. Blaming the EPF (low EPF savings), the government (should have been whoever your favourite government may be) or anyone for that matter does not help the matter much. Take care.

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

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

Next suggested article:
Renting is better than buying? Whoa…

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Is RM200,000 a safe amount for retirement? How sure are you?

I know the answer to the title. Most kopiandproperty.com readers will say ‘NO!’  Okay, let’s take a step back. How about we ask what’s the retirement age then? Malaysians should generally live to 75 years old and older in years to come. Earlier article here:
When we live longer, better prepare more
Thus, if we assume we retire at 65 (already working past typical retirement age), then our savings should need to last us just 10 years.  RM200,000 divided into 10 years is equal to RM20,000 per year.

Hopefully when we are 65 years old, we would have fully paid for at least ONE property? In other words, no more rental, no more mortgages. What’s needed now is just food, food and well, occasionally cuti-cuti Malaysia? RM20,000 divided by 12 months is only RM1,667 or RM55 per day. Is this enough today? Actually, without the need to pay for a car or a home, I think RM55 is definitely enough for three meals. For my parents, RM55 is enough for both of them for more than 1 day. Both are retired.
They have done enough for their children, have we?
Okay, does this then mean RM200,000 is enough for retirement? Let’s look at some numbers.

Article in nst.com.my
  Statistics say that by 2035, 15 percent of our population will be people of 65 years old or higher. That’s just 15 years away.  Ringgitplus Malaysia’s survey last year showed that where savings are concerned, only 25 percent of people save some money every month. From this number, 35% saved less than RM500 per month, 23% saved between RM501 – RM1,000 while 13 percent says they could save between RM1,001 to RM2,000.  There are also 9% who said they could save more than RM2,000 every month!

EPF was introduced in 1951 and EPF scheme made it compulsory for employees to contribute 11%of their salaries to the EPF accounts while employers contribute equivalent of 12- 13% depending on the employees’ salary. EPF statistics show that 70 percent of contributors who withdraw funds at 55 often use up their savings within less than 10 years after retiring. EPF’s suggestion is that the minimum savings an EPF contributor should have at age 55 is RM228,000. Main issue is that ONLY 18% of all contributors have that amount by 55. The article is a very comprehensive one.  Please do read the
Article in nst.com.my

Now let’s look at some potential calculations. My parents spend less than this. Starting with breakfast, roti canai + teh tarik is RM3.50 today. Rice with a vege and a meat plus chinese tea should be RM9 today. Dinner should be a healthy one, perhaps spaghetti (buy a pack, take out some and just boil it for 4 minutes) and a can of curry tuna?  Perhaps RM9 today. So, in total RM21.50 today. Assuming this doubles by then (conservatively), then it will be RM43 per day. This is WITHIN the RM55 limit per day when we have RM200,000 divided by 10 years divided by 12 months and divided by 30 days.

It’s thus important to have MORE than just EPF savings. Earlier article here:
Low income equals to low savings?

Even if we could save RM500 on average for the 30 years that we work and this money just doubled because of returns, it will be as follows: RM500 x 12 (months) x 30 (working years) x 2 (doubled due to interest) = RM360,000. This will be extra money on top of the fully paid property as well as the estimated RM228,000 inside our EPF account. Now at least we are safer… for retirement. Happy working towards this minimum goal.

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

Next suggested article:
Saving enough to invest? Perhaps better to safe enough for investing

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


3 other ‘forced’ savings beyond EPF savings

Withdraw EPF savings before 55?

If this is a question for me, “Should I withdraw my EPF before 55?” My answer is a simple one, no. I know many would have many reasons especially with the current crisis and the hardship caused by loss of income etc. My main reason is because EPF savings is really for post-retirement, when income has stopped or has gone down significantly versus the time when one was still working full  time and has monthly income.

Why RM240,000 should be the minimum?

If we assume we retire at 55, then we need to be ready with funds to live by for the next 20 years. I assume life expectancy to be 75. This was why the minimum EPF savings which EPF is recommending is RM240,000. Thus, it’s RM12,000 per year or RM1,000 per month. Some would say that this is barely enough today, how could it be enough in the future? This is why EPF savings must not be the only savings. let’s look at what MIER has to say first.

Article in freemalaysiatoday.com
  Malaysian Institute of Economic Research (MIER) said many things. Here are three of them from their statement.

“EPF is not designed to deal with calamities and pandemics. Rather, it is intended to ensure that its contributors enjoy a decent life after retirement.”

“The mass withdrawals have resulted in 6.1 million members now having less than RM10,000 in their accounts, with 3.6 million members having under RM1,000.”

“This is undoubtedly a far cry from the threshold of RM240,000 essential savings by the age of 55 for members to enjoy a dignified retirement.”  Please do read the full article here:
Article in freemalaysiatoday.com

What other savings then?

Here are three other savings beyond just our EPF and they needed to be ‘forced.’ Another ‘forced’ savings we must have is for a property when we are younger. This is so that by the time we stop working, we actually have a place which we do not need to pay to stay every month. As a landlord, I would like to remind everyone who’s renting a place today that I do not know of any landlord who will ask their tenant to stop paying rental just because the tenant has paid monthly rental for 30 years.

Another ‘forced’ savings would be to forego trying to outdo the peers. I just remembered that my Persona is in the 12th year now. I finished paying for it 7 years ago. In other words, I have saved RM600 per month x 7 years and that’s a substantial RM50,400. That’s also a ‘forced’ saving because for the past 12 years, many people would have seen my Persona and thought, ‘oh dear he’s poor and could not afford a Japanese branded car.’ It’s okay. I prefer RM50,400 versus having my peers thinking positive of me just because I drive a car they think is the minimum standard for a working professional.

There’s also the ‘forced’ saving from not buying unnecessary stuffs during 1.1, 2.2, 3.3 until 12.12 sale. My good friend whom I always learn a lot when we meet, Suraya of the famous
 ringgitohringgit.com
 shared with me before that when she wanted to buy something, she will delay the decision for a while. If she could survive without it, then the item is actually not necessary.

Yes, I think everyone should read her personal finance blog yeah.
RinggitohRinggit.com
. I have also done something similar. I just delay that purchase for one month. If I could not, then it’s really needed. Else, it’s okay not to get it.

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

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

Next suggested article:
Outlook for the property market 2022

Header Image by
mohamed Hassan
 from
Pixabay

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF savings as collaterals for loans, no withdrawals

My personal thought on EPF Savings

EPF is a form of retirement savings. In other words, it should just be used after retirement. Okay, I also agree that if should also be called upon in times of emergency. That’s why I am on the side of no blanket EPF withdrawal. Please be reminded that when people withdraw their funds suddenly, EPF would have to liquidate some of their investments quickly, whether or not they have profit or loss.

Imagine our very own investments, what happens when we suddenly need to withdraw the investment? Yea, we will lost all the interest or worse still, we needed to liquidate our investments at a loss. Just need to remember that the government is also bound to do something to help the ones who are really in need; in an emergency. Here’s that latest news about EPF withdrawal. Nope, the government did not allow any withdrawal but they are still doing something about it.

Article in
www.malaymail.com
   Prime Minister Datuk Seri Anwar Ibrahim today clarified that the plan to allow Employees’ Provident Fund (KWSP) contributors to use their savings as collateral for loans would not involve any withdrawals from their savings. He said, “We won’t allow (withdrawals). This is no longer Covid-19 (pandemic). People are back to work.

“But there are one or two desperate cases, where they have savings in their EPF accounts but can’t pay for their children’s education abroad.”

“So this is for such cases, but we don’t allow them to withdraw from their EPF savings and there are fixed regulations.” Full article in
malaymail.com

Hopefully, only those who really need it would get it

I have not yet read the mechanisms for this latest announcement. Usually these take time and is not easy to do. However, it’s way better than a blanket withdrawal for everyone. By the way, this is not during Covid-19 lockdown anymore. We are back to a growing economy even if many still like to claim the growth is not impressive at all. It’s the time to help people get back on their feet. This is not the time for wastages or expenses just because someone has access to additional funds which happened to be their retirement fund.

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

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

Next suggested article:
It’s not an investment if we know nothing about it

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Did you know that our EPF has a guaranteed return of 2.5% for us? Happy?

Yes, EPF returns will definitely be higher than most FDs in 2020 because EPF has a guaranteed return of 2.5%. The reason is because the interest
rate is at its lowest as long as I could remember… Read here for that earlier article.

I realised that the Fixed Deposit rates these days are no longer anywhere near 4%. (okay… it’s not even near 3%) It’s low, right? Then again, it’s just following this:
Lower mortgage rates and even lower fixed deposit rates
  By the way, do we know that some provident funds have a guaranteed return rate? What is the guaranteed return rate of our Employees Provident Fund (EPF). Our EPF has a
GUARANTEED return rate of 2.5%?

Photo by Lukas on
Pexels.com

Yeap, this is so that the money we have in EPF will continue to grow. It also meant that EPF will have a super huge portion of their funds in stable return investments with higher than 2.5% returns so that they could continue to ensure the returns are higher than 2.5%. Perhaps a small portion will be in high risk but high return type of investments and this is where the potential upsides in annual returns would come from. What’s the latest?

Article in thestar.com.my
   The Employees Provident Fund (EPF) has declared a dividend of 5.45% for Conventional Savings in 2019 and 5% for Syariah Savings 2019.  This is the lowest dividend rate for the Conventional Savings declared by the pension fund since 2008. The dividends last year was 6.15% for Conventional Savings 2018, and 5.9% for Syariah Savings 2018.

EPF said that its overall investment assets grew to RM924.75 billion and it has a 2.8% increase in membership. Registered employers totalled 522,300. Chief executive officer Alizakri Alias shared some of the current unresolved issues which has affected EPF’s returns such as the three rate cuts made by the US Federal Reserve, the US-China trade spat escalated and continues to be unresolved, and there were surrounding the Brexit negotiations.  He said, “In addition, the domestic markets did not support the income-generating capabilities of the EPF as 70% of the fund’s assets are in Malaysia, with a major part of our assets in domestic equities.”  Please do read the full
Article in thestar.com.my

Now that we know that EPF has a guaranteed return of 2.5%, do we feel safer? Actually it’s not a lot but below would be a calculation of what happened in 2019.

If we have RM100,000 in the conventional EPF account, it will now grow to RM105,450. Last year, it would have been RM106,150 which is an extra RM700 per year. I think there’s already a long debate about whether this 5.45% is low or sufficient or even everyone must look at the prevailing situation. Truth is, the same was said the year before and even years before. So, when will it ever be high enough then? How about also looking at ourselves too?

What is our salary increment this year?
Salary increments. Higher or lower than everyone else?
  Was it higher than the year before? What has also happened to our secondary income stream, if we feel that money is not enough from our main stream? Or we forgotten to do something about it? Truth is, EPF savings will ONLY be for our retirement. What about today? What about next year? We need to ensure we have enough funds too, right? Happy doing something about it yeah. Oh yeah, blogging could help too!
Blogging can earn you millions, really

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

Next suggested article:
Looking at the property market by looking at developers’ results too

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Financial News: When EPF savings are ‘finished’ 19 years too early

[Thank you. Subscribe for FREE here.
#subscribeblog
]

I usually use 15 years post-retirement as the benchmark

If you have been reading kopiandproperty.com for some time, you may notice that I usually use 15 years as a benchmark for the years we will need money for post-retirement. I always assume we would work until 60 and then live to 75 years old. That’s 15 years post-retirement where our funds, whether inside the EPF or in our bank accounts or even in the form of properties should be enough to cover our expenses when our income has stopped. Now, let’s look at some numbers. Real ones as at currently. One major cause is definitely Covid-19. Fortunately it has passed the most dangerous stage, I hope.

This article really have lots of important facts

I will extract many of the important numbers but if you like, this is the full article in the
malaysianreserve.com
. Bank Negara Malaysia says that Malaysians could run out of savings by the age of 58 due to low wages, high debt and premature withdrawals from their retirement funds during the pandemic.

Before the pandemic, BNM said that the the median savings for the cohort in the 51-55 age group would have only lasted five years upon withdrawal at 55. After the Covid-era withdrawals, that’s dropped to around three years,

With global life expectancies seen rising to above 77 by 2050, “an average Malaysian would be at risk of having depleted his or her retirement savings 19 years before death.”

PM Anwar has included a RM500 contribution to EPF members with less than RM10,000 in their accounts. He also proposed that Malaysians be allowed to use their EPF as collateral for loans. Please do read the article in full here: Article in the
malaysianreserve.com
.

Perhaps we have to extend our working years

Working an additional 5 years meant that we may not start to use our retirement savings until after an additional 5 years from the typical 60 years old retirement age. During these 5 additional years, perhaps it is also wise to spend less and save more too. If we could do this, then the 19 years being mentioned above would become just 12 years.

58 years moved to 65 years old which is an additional 7 years before we need to start using the EPF savings. If we assume the life expectancy to be 77 as per the report, then 77 minus 65 is 12 years.  Now, we have to worry about 12 years versus 19 years as per the article. Happy learning and really starting to do something about it seriously.

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

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

Next suggested article:
When rates rise, buying falls, financial logic right?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF new Shariah-compliant savings scheme

It’s important to note another new choice for all Employee Provident Fund (EPF) members. They can choose to switch their account to Simpanan Shariah beginning 8th August 2016. The only catch is that this is subject to first come first serve basis. The initial fund size is RM100 billion. As soon as it is over, members who opted would have to wait their turn in the next yearly allocation for the shariah-compliant fund. Effective date is 1st January 2017. Once the EPF members have registered for this change, they will be notified via notice and short message service (SMS) to inform them that their application to choose Simpanan Shariah has been received and the effective date of their new account.

If there were no notification received, the members would either be in the waiting list or their contact details in the EPF system have not been updated. EPFmembers can choose just one, either EPF’s conventional fund or the Simpanan Shariah. Members must visit any EPF counter to apply and provide verification via their thumbprint for identification. For this new Shariah-compliant savings scheme, it will be advised by the Shariah Advisory Committee (SAC). The current members include Prof Dr Mohamad Akram Laidin, who is also executive director of the International Shariah Research Academy for Islamic Finance (ISRA). Other members include International Islamic University Malaysia (IIUM) Institute of Islamic Banking and Finance (IIiBF) lecturer, Assoc Prof Dr Aznan Hasan; IIUM Kulliyyah of Economics and Management Sciences Assistant Professor Dr Zaharuddin Abdul Rahman; IIUM IIiBF professor, Dr Engku Rabiah Adawiah Engku Ali and senior lecture at the Department of Shariah and Management, University of Malaya.

While the access and withdrawal procedures remain unchanged, do note that for all members of this Shariah-Compliant savings, they can only apply for a portion of their savings to be transferred to fund management institutions under the EPF-MIS which are shariah-compliant funds approved by the EPF. Members could also use it to fund conventional housing loans and Islamic housing financing, subject to the housing, withdrawal terms and conditions. For members who wishes to make payments for a nursing home that is managed by a non-Muslim is also shariah compliant as the withdrawal is for paying bills and is not against shariah principles.

Even the nomination policy for Simpanan Shariah will remain the same, including nominee(s) for Muslim members who will act as administrator (wasi) responsible for distributing the savings in accordance with the Islamic Law of Inheritance (Faraid) in line with the decisions made by the Fatwa Committee, National Council of Islamic Religious Affairs Malaysia at the 49th Muzakarah on Sept 10, 2000. Happy reading and deciding.

written on 28 June 2016

next suggested article:
EPF’s CEO on the same side as me on forex

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Tax submission done? First-timer, you better… for your property’s sake.

A 23-year old was telling me his problem a few days ago. He could not get his housing loan approved. He was earning an average of around RM3,500 for the past 6 months. Not too shabby for a 23-year old. He’s a real estate negotiator.
How much do they earn when they are awesome?

The price of the home he was buying was only RM125,000.  He has even some Fixed Deposits to show the bank. Everything seems okay except that he started working in 2016 but because he was only earning RM1,000 plus, he did not summit his tax returns. He also does not own a credit card. To cut the story short, he applied to just ONE bank because his friend, the banker told him that his earnings would qualify him for the loan. Then, a few days later, he learnt that his loan was rejected. Reason? The bank does not know enough about him. Here are some other things we should take note of before we apply for any housing loans in the future.

Blacklisted property developer –
 Not every developer is loved by all banks. It is good to ask your banker this question before submitting your loan application.

Blacklisted / Not preferred property –
 Every bank have their own risk assessment. They do not usually lend to 100% of all the buyers of the same property. The risk might just be too high. Understanding this usually helps tremendously. Many times, the bank offering the lowest rates may hit their quota soonest and they may reject your application.

No income proof –
The exact reason why my 23-year old friend was rejected. Remember, whether we get taxed or not, it is up to the tax department and not us. Plus, the banks need this official submission as actual proof.

Loan repayment delays –
 If you occasionally delay your payments of other loans, this will also affect your application. Stay prompt. Do direct debit so that you are ‘forced’ to pay first before you spend it on other things. Proceed to check your credit score by dropping by the AKPK offices. They have the CCRIS machines.

Income criteria unmet –
 This is Malaysia and not some advanced country which the banks are far more lenient. Here, if you earn RM3,000 you may not even get a RM1,500 loan approved. Well, banks look at your Debt Service Ratio for your ability to pay. They look at ALL your borrowings, not just the one you are currently applying. It differs from bank to bank but suffice to say, 70% is usually already the edge. Some banks may use a lower number…

Don’t try to falsify your documents  –
 This is a serious offence. It will not lead to just rejection but also prosecution too.

Leasehold properties –
Some banks stop lending when the property has just 30 years lease left. Some would lend you much lower than what you apply for when the lease is less than 60 years.

Tougher and Easier Banks –
 Please do ask your banker friends. They would be able to tell you. There are definitely banks which much more stringent than others. Some banks may have quota for commercial loans but for residential, they may be ‘full’…

You may even engage a mortgage broker for assistance. They could usually help with the loan application because they are very experienced with loan applications. Perhaps try
miichaelyeoh.com
 for more information. Actually, one more way is to buy below what you could actually afford. For example, if your salary allows you to borrow up to RM500,000 but you are only applying for a RM400,000 loan, the
chances of it being approved is much higher.

Another thing to take note of is that credit cards are not necessarily bad! If you applied for one, the banks now have a record of your credit habits. As long as you pay promptly, that is usually a good sign for the banks. I sincerely believe a home is a need and everyone should strive to own their own roof. There’s
nothing wrong to aim for government sponsored schemes too.
All the best.

written on 5 Dec 2017

Next suggested article:
Difficulties in getting a loan will continue…. 2019

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF, UK property link and my thoughts

In my personal opinion based on the little knowledge I have as well as the many articles and analysts reports, I seriously think London properties are already at a very high level. It may just have to correct or even stay stagnant for some time before going up further. Just look at the average property price today, it’s already over £500,000 (Source: Guardian) on average while the typical median income is highest within the London city at  £51,952 (Source: ONS). As for the rest of London, it is lower, thus you can imagine that its even harder to buy a property. In brief, affordability is a huge issue in London. Nevertheless, the interest in London properties remain very strong today. Just look at the many projects that the Malaysian developers are involved in within London today.

It is thus a good news to me when I read that our Employees Provident Fund (EPF) is looking to sell one or two of its properties which it has profits. The proceeds from this would then be used for new investments elsewhere. No analyst can predict how high can property prices go up to or when would the property prices suddenly fall. As long as the profit is pretty substantial and the signs are already showing ‘unaffordability,’ the better decision would be initiate selling because even selling would take some time. Furthermore, this is not one little cottage but part of a total property investment value of £2bil (RM10.7bil). CEO of EPF said, “Investing overseas is not inherently riskier than investing in Malaysia. What we have to look at is the actual assets that you invest in and the risk returns that one expects from it.”

Due to strong returns from the investments in the US and Europe, EPF declared the highest ever dividend payout since 2000.  In line with this an all time high profit totalling RM36.66 billion was credited into EPF members’ accounts last year.

Personally, I have not transferred any EPF money into unit trusts no matter how awesome the returns promised to me. I think I wanted to ensure I am more diversified and if I would like to invest in equity, I would prefer to do it by myself instead of relying on the fund managers who may or may not be better qualified than me because they are also just an employee of the company that employs them. Thus, my exposure in unit trusts would continue on a monthly basis but it it not a major percentage and would never will. Yes, some would say they can do better than EPF. I actually think that I can also do better too. Haha. I just do not believe these unit trust fund managers can be better than EPF every year, that’s all. Happy investing and believing in ourselves.

written on 12 Apr 2015

next suggested article:
Is stock market scary for many? It does seem so.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF’s 6.15% return? I think it’s great (for 2018).

I like the previous
CEO of EPF. (Earlier article here). I think a good CEO can do a lot, regardless of company.
  For current one, we will only know in a year or two later on the results. EPF has just announced the payout for 2018. I know, everyone has their own version of what happened. It’s high! Some will be happy because this is 50% higher than the Fixed Deposit rate. It’s low! Some may say it’s too low because their returns from some other investments are higher. Reported in all media outlets: The Employees Provident Fund (EPF) has declared a dividend rate of 6.15% for conventional savings, with a payout amounting to RM43bil. It has also declared a 5.9% dividend rate for syariah savings, with a payout amounting to RM4.32bil. In total, the payout for 2018 totalled RM47.31bil – a marginal decrease of 1.7% from 2017. An article here in
star.com.my for reference.

In a statement, it said, “With a real dividend of 3.93% for conventional savings and 3.68% for syariah savings on a rolling three-year basis respectively, the EPF has exceeded its mandate of delivering a dividend of at least 2.5% on a yearly basis and at least 2% real dividend on a rolling three-year basis.”   EPF chairman Tan Sri Samsudin Osman added, “More importantly, we consistently deliver above-inflation returns to preserve and increase the value of our members’ savings over the long term and help them to achieve a better retirement future.”  2018 was a difficult year due to downtrend in global markets from the US-China trade war and four rounds of US interest rate hikes in the year alone. Equities continued to be the main contributor of income last year with 57.55%, amounting to RM29.28bil.  In 2017, EPF declared a dividend rate of 6.9% for conventional savings and 6.4% for syariah savings. For reference, article in
star.com.my here

An old friend who just came back from overseas after working there for many years asked me this question. “The 6.15% declared by the EPF is based on the amount in the account for 2018 or for the WHOLE account?. Sorry for asking this silly question.” Seriously, there’s no such thing as a silly question. I calculated the same many years ago! Anyway, the 6.15% is based on TOTAL amount. So, if we have RM100,000 in the account now, we will have a dividend of RM6,150 for the whole of RM100,000. As for comments, let’s just understand that our EPF works hard too. They are definitely more qualified than majority of us, so if they have done well, we get higher dividends. Period. Yes, I am happy with 6.15%. Happy following and wishing ALMOST the same for a tough 2019.

written on 17 Feb 2019

Next suggested article:
An assessment on EPF not too long ago. (even when compared to the European and the US funds)

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Financial news: EPF’s Account 2 Support Facility is super popular

No withdrawal and it’s final. However, EPF Account 2 can be used as collateral

This was the news about the request for another round of EPF withdrawal due to effects from Covid-19.
EPF savings as collaterals but no withdrawals
 The government was very firm and Prime Minister Datuk Seri Anwar Ibrahim later said that eventhough further withdrawal is not allowed, it is possible for the EPF members who needs the funds for emergency purpose to use the EPF account 2 as collateral for loans. This was the news:
EPF Account 2 can be used as loan collateral
  Yes, topics concerning EPF is always followed very closely by kopiandproperty.com  If you like to continue receiveing this news as and
when it happens, sign up for free here
.

Article in nst.com.my
   A total of 59,230 contributors have applied for the Employees Provident Fund’s (EPF) Account 2 Support Facility (FSA2) as of yesterday since it opened on April 7, with only 27,705 eligible. This was shared by Deputy Finance Minister Datuk Seri Ahmad Maslan.

He said, “Those who are not eligible are because they are under 40 years old. Only those aged 40 and above are eligible for this facility.”

So far, two banks are participating in it — MBSB Bank Bhd and Bank Simpanan Nasional. FSA2 involves a maximum financing of RM50,000 (subject to an EPF contributor’s Account 2 balance) and a repayment period of up to 10 years. Among the stipulated conditions is that the applicant must have a minimum amount of RM3,000 in his Account 2. Please do read here for the full article eith more details:
Article in nst.com.my

Apply wisely. Apply only for emergency.

There are many reasons for the application as we could see from the article above. There are many reasons which are NOT categorised as emergency. If not doing it (the expense) will not cause adverse harm (really emergency kind of harm), it’s best not to apply for this and having to pay for it later. Debts, just like interest rate may grow bigger. Our income meanwhile would not be forever and may become nothing once we stop working. Do we believe we could have saved more than enough by then? If not, then why are we trying to spend future money today?

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

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

Next suggested article:
When money is not enough, just keep working till 70.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF’s CEO on the same side as me on forex.

I personally dislike buying and selling currencies for profits. Read here:
Hedging? Do it now, for future. property in Australia?

Coming back to forex, just look at those small countries where its currency could be easily manipulated. Seriously, do these countries benefit when the “investors” gain or lose money from the speculative activities? Let’s also not kid ourselves that only the small nations could be at the losing end. Do google for ‘Black Wednesday.’ Read and understand that even a currency which is considered strong could also be vulnerable.

Reported in The Star today, the Employee Provident Fund (EPF) chief executive officer
Datuk Shahril Ridza Ridzuan
 said the following during the Q&A session for Star Media Group’s PowerTalk: Business Series.

“The EPF does not view forex or currencies as a viable investment class because it is a very high risk activity. Forex or currencies by their nature are dependent purely on trading. They are not an
investment per se
 – like keeping cash in a capital market and hoping to get interests on it. We do not view the forex component as the driver of returns. The reason for this is simple. Based on our 30 years of investing experience, forex is very volatile, so we cannot rely on it to give us returns. Rather, we rely on the underlying assets of our investments to give us the returns.”

Just a few weeks ago, a good friend who has not bought stocks asked me for a few stocks to buy. I politely declined but he insisted. I told him the shares that I was buying and he asked me, ‘these shares are not so famous hoh?’ I laughed and that was the end of our conversation. I really do not believe investing in a good company meant
buying it TODAY because it’s good and selling it TOMORROW because it’s no longer good?

We can determine whether a company is good not within one day? Well, everyone knows how fast you may need to react when it comes to forex. Would the economy of any country be changing within every few seconds or minutes? Please do not ask me for an answer. Regardless of investment type, I wish everyone the best. Just stay objective.

written on 29 May 2016

next suggested article:
Gen-X: Stability, strategy and investing in property

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF’s i-Citra. What, Where, When and How?

PF’s i-Citra. What, Where, When and How? As for the WHY, EPF’s banner below states it very clearly. This is a facility to members who were affected by the current Covid-19 lockdown.

What is it?

It is a payment of RM1,000 monthly for up to 5 months. Minimum amount payable is RM50. This means if one has RM10,000 then one can apply for this. If you have just RM4,000 then you may have up to RM1,000 x 3 times since the minimum amount remaining in the account has to be RM100.  If one has just RM1,000 in the account, then the payment will be less than RM1,000 and subjected to a mininum remaining amount of RM100 in Account 1.

Other FAQs from EPF’s website as below. (Translated into English wherever I feel necessary)

1. Mengapakah Pengeluaran i-Citra diperkenalkan?

Pengeluaran i-Citra diperkenalkan untuk memberi kemudahan kewangan tambahan kepada ahli yang terkesan akibat PKP bagi memenuhi keperluan asas untuk kelangsungan hidup mereka.

2. Siapakah yang layak memohon?

Ahli KWSP yang berumur 55 tahun ke bawah, termasuk bukan warganegara dan pemastautin tetap; dan;
(As long as you are EPF member, does not need to be citizen or PR)
Mempunyai jumlah simpanan sekurang-kurangnya
RM150
 dalam Akaun KWSP pada tarikh permohonan.
(MINIMUM of RM150 in the account meant that the member could only withdraw RM50 because a minimum amount of RM100 must be maintained in Account 1)

3. Bolehkah ahli yang merupakan anggota perkhidmatan awam dan berada dalam skim perkhidmatan berpencen memohon i-Citra?

Anggota perkhidmatan awam boleh memohon i-Citra. Walau bagaimanapun, mereka berkemungkinan akan berdepan dengan risiko menggunakan syer kerajaan yang perlu dikembalikan kepada kerajaan kelak.

4. Berapakah amaun pengeluaran yang layak dikeluarkan?

Amaun kelayakan pengeluaran adalah sehingga
maksimum RM5,000
.
Bayaran bulanan akan dibuat sehingga lima (5) bulan.
Bayaran yang ditetapkan adalah RM1,000 sebulan atau tertakluk kepada jumlah baki simpanan.
Bayaran minimum adalah RM50
Meninggalkan baki sekurang-kurangnya RM100 dalam Akaun 1
Amaun kelayakan pengeluaran adalah berdasarkan jumlah simpanan ahli pada tarikh permohonan diproses setelah ditolak bayaran i-Sinar yang akan datang (jika ada)

5. Mengapakah amaun maksimum i-Citra dihadkan kepada RM5,000 sahaja?

Amaun maksimum RM5,000 bertujuan membantu ahli untuk menampung kelangsungan hidup dengan mengimbangi keperluan simpanan persaraan.
(Maximum amount is RM5,000 because this is to give members the money for cost of living currently and yet to balance the need of funds for retirement in the future)

6. Mengapakah ahli perlu mengekalkan simpanan minimum di dalam Akaun 1 sebanyak RM100?

Simpanan minimum RM100 perlu dikekalkan dalam Akaun 1 agar dapat mengekalkan status sebagai ahli KWSP serta layak untuk mendapat manfaat yang berkenaan.
(Manfaat Bantuan Kematian & Bantuan Hilang Upaya)

7. Bilakah permohonan i-Citra boleh dibuat?

Permohonan boleh dibuat
mulai 15 Julai 2021 hingga 30 September 2021
.
(Application starts from 15th July to 30th September)

8. Bagaimanakah cara untuk memohon Pengeluaran i-Citra?

Permohonan hanya secara dalam talian melalui portal
icitra.kwsp.gov.my
. Bagaimanapun, portal ini hanya boleh diakses bermula
15 Julai 2021
. Maklumat lanjut mengenainya akan dimaklumkan dalam masa terdekat.
(Applications can ONLY be done in
icitra.kwsp.gov.my
. This portal will be available starting from 15th July 2021. PLEASE DO NOT BELIEVE ANYONE ELSE WHO TELLS YOU THEY CAN APPLY FOR YOU.)

9. Bolehkah ahli memohon i-Citra sekiranya telah memohon i-Lestari dan i-Sinar?

Boleh, tertakluk kepada kelayakan seperti yang dinyatakan dalam Soalan 2.

10. Bilakah bayaran i-Citra mula dibuat?

Bayaran bagi permohonan yang dibuat pada bulan Julai dijangka dibayar bermula bulan Ogos 2021.
(Payment will start from August for those who applied in July)

11. Bolehkah simpanan dalam Akaun Emas digunakan untuk Pengeluaran i-Citra?

Simpanan Akaun Emas tidak boleh digunakan untuk i-Citra. Rujuk kelayakan memohon di soalan 2.

12. Bagaimanakah ahli boleh menyemak jumlah simpanan KWSP mereka?

Ahli boleh menyemak jumlah simpanan mereka melalui:

i-Akaun (Ahli)
Aplikasi mudah alih i-Akaun
Kios KWSP (termasuk kios KWSP di premis pihak ketiga)

13. Rujuk saluran berikut untuk sebarang pertanyaan dan maklumat lanjut berkenaan Pengeluaran i-Citra:

Laman web rasmi KWSP di pautan
www.kwsp.gov.my
Ask ELYA
di laman web rasmi KWSP
Media sosial rasmi KWSP
Hotline i-Citra di talian 03-8922 4848

— end of FAQ from EPF’s website —

It’s not an easy time but EPF savings is really for the future

Taking the money out will mean losing double or triple the amount in the future. The reason is because EPF pays dividends on the amount which we have in the EPF savings. Taking them out means losing the potential dividends which will easily double or triple the amount in the future when we retire. Thus, RM5,000 which we withdraw today could actually be worth RM10,000, RM15,000 or more depending on when we retire. If we understand this implication, please do proceed to apply.

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

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

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

Next suggested article:
EPF has a guaranteed dividend rate for members. Did you know how much?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF’s returns? 6.02 pct over past 10 years. 6.37 pct over past 5 years.

Source:
http://www.kwsp.gov.my

I received two Whatsapp messages just yesterday. I really do wonder why people would want to create them and why there are people who love to forward these kind of messages. One came with a photo of the EPF’s building on fire and said something along the lines of “6.9 percent announced yesterday. With this fire, it will be reduced by 2 percent.”  Just to share, EPF’s payout for 2017 is RM48 billion. If we assume the EPF building is RM500 million, then this payout is enough to buy nearly 100 of them. Oh yeah, this is the actual yearly
performance of EPF from before Merdeka days.
 I think its performance is respectable even when compared to ANY neighbouring countries or some advanced countries. Please keep improving but here’s a pat on the

shoulder for the latest 2017 payout announcement.

Second Whatsapp was also with a photo of a burning EPF building and it says something along the lines of “Official news. Due to destruction of files, no EPF members are allowed to withdraw any funds for 6 months.”  I am not sure how online some other provident funds are, including those from the advanced countries but our EPF certainly do not rely on tons and tons of hardcopy records these days. Plus, do you really know what is happening should there be no withdrawals for 6 months? Even during the 1998 financial crisis that we could still withdraw money from the EPF. Now, a fire in ONE (1) building and withdrawals are stopped for 6 months? And you BELIEVE it as Official News?

Oh yeah, there were also some sinister comments in Facebook saying that the fire was started by some insider to destroy information. To destroy any information nowadays, it’s best to get a hacker.  Just refer to all the technology being used during the US President’s election. None of them involved using fire or starting a fire in some buildings.   This is the cause for the fire:  “The cladding panels used on the exterior of the Employees Provident Fund (EPF) building in Jalan Gasing did not meet fire safety requirements, said Fire and Rescue Department deputy director-general Datuk Soiman Jahid. He also said “A spark ignited the cladding panels. Hot weather and strong wind were also factors in the spread of the fire to other parts of the building’s exterior. The Uniform Building Bylaws require buildings to be fitted with less flammable cladding panels. Using more flammable ones is a clear infringement,” he told reporters at the scene of the fire yesterday.
Full news in TheStar here.
 So, would 2018 be an even better year for all of us with savings in EPF? For our sake, I certainly hope so.

written on 14 Feb 2018

Next suggested article:
Becoming a millionaire just by working 9 to 5?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EPF’s RM10,000 special withdrawal details

This was one recent article about withdrawing money from the EPF. Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the government has agreed to allow EPF members to withdraw up to RM10,000 due to the hardship caused by Covid-19 pandemic. Here’s that article with more details:
EPF? Withdraw RM10,000 today is equal to RM100,000 or more when we retire
.

There are now more details from the EPF.

Article in themalaysianreserve.com
  The Employees Provident Fund (EPF) announces that the application for the special withdrawal facility of RM10,000 will be opened to members below age 55 starting 1 April 2022 and ending on 30 April 2022, while payment will start on 20 April 2022.

It said, “Members are allowed to withdraw a maximum amount of RM10,000 and minimum RM50, and must fully utilise their savings balance in Account 2 first before accessing their Account 1.”

EPF has also said that the latest special withdrawal should be the last and this is already the 4th withdrawal after i-Lestari and i-Sinar in 2020 and i-Citra in July 2021. Due to these withdrawals, a total of RM101 billion has been withdrawn by EPF members. Here’s the full article:
Article in themalaysianreserve.com

Would this really be the last?

There are no guarantees when it comes to government policies. Malaysians should know very well that everything could be changed, suspended or cancelled when the government changes. However, for this particular statement that this withdrawal should be the last, I seriously hope that EPF will keep to its promise. Too many members have withdrawn too much and unfortunately not all the withdrawals were because it’s truly needed.

Just need to read some facebook comments to get what I mean yeah. Some believe that they could reinvest those money way better than EPF. They may be right actually but majority does NOT know how to invest and MOST of them will just suffer losses from the many speculative investments they may make for higher returns. This is why EPF savings must just be extra money at the end of the working life and must not be used for any high risk investments.

Just my view. Happy withdrawing if that’s what you are thinking. I wish you all the best.

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

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

Next suggested article:
3 other forced savings beyond EPF

Header Image by
Peggy und Marco Lachmann-Anke
 from
Pixabay

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Male loses in final decision making for property investment?

If you are a couple, who makes the ultimate decision of whether or not to buy that property? I have always thought that I would make the final decision. However, I realised that from all the condos that I purchased for own stay, my wife ultimately makes the final decision. I may offer her many choices and we would view all those choices but seriously, if she dislikes it, then that choice is out! Just like my current home, I actually prefer another property but she gave me a lot of good reasons which include my two kids. So yeah, for my family, when it comes to purchasing a property for own-stay, my wife makes the final decision even though it seems that I do. Haha. This was the earlier article:
kopiandproperty.com – Female vs Male lopsided, do you know why?
I just realised that around 70 percent of all readers for kopiandproperty.com are guys. (As per google analytics).

Then, I did a survey on kopiandproperty.com entitled, “Home Buying: Men decides WHEN to buy, Women decides WHY and WHAT to buy.” Results are as per the image. Around 40 percent said it is a joint decision. 22 percent agreed to my survey statement which proves that many are families like mine. There are 15 percent who says that it is not easy to ascertain but as usual, the final decision is with the female. This reveal a very important finding. Perhaps the marketing materials should be on satisfying what the female wants. Of course there are 12 percent who said that the statement is not true. These are the neutrals because they do not know what to choose. Haha. Last but not least, MALE winning is on the losing end. Seriously, ONLY 10 percent of the time that MALE wins. I thought we are now talking about a society where both the genders are equal? 😛

Bearing in mind that most of kopiandproperty.com readers are male and we still have such survey results meant one thing. We, the guys respect our partner’s opinion a lot. So yes, I think the society is now more equal when it comes to property investment decisions, at least for buying the first home anyway. After a
few times of buying a property,
 I think the decision would become a joint one because the opinions may now be almost the same. My wife and I both agree that the kitchen must be good enough for both of us. Between the living room and the bedrooms, we prefer the living room to be bigger. That’s where she spends most of her time anyway. Besides when guests come visiting, we would entertain them in the living room and not our rooms. Next would be the balcony. It should be big enough for me to sit down a enjoy a cup of coffee in the morning. That to me, is a good start. Cheers.

written on 28 Sept 2017

Next suggested article:
Beggars save too, else earnings are useless

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Equity is a very attractive proposition. HSR bid by Japan.

Source:
https://www.nextbigfuture.com/2016/07/singapore-malaysia-high-speed-rail-and.html

High Speed Rail (HSR) between Malaysia – Singapore has attracted many potential bidders. The ultimate winner is still pretty far away but one such potential bidder has announced to the world that it will offer a substantial equity participation to local partners if it is the successful bidder. This potential bidder is from Japan. Its Japanese Ambassador to Malaysia, Makio Miyagawa said, “The Japanese foreign direct investment accumulation into Malaysia has continuously been the largest. Our industries stayed on in Southeast Asia even during the Asian Financial Crisis in 1997, and worked together with local industries to find a way out. Likewise, our industries will continue their presence in the Malaysian market and continue collaboration with Malaysian industries.”  He added, “The setting up of a railway such as the HSR will open a window for massive local participation, especially in the construction of large-scale infrastructure buildings. In this regard, we welcome the participation and cooperation, with local companies in Malaysia and Singapore. The railway alignment will need technological know-how already accumulated in Japanese infrastructure companies.”

Miyagawa also said that Japanese companies have received “very positive response” from a number of potential local partners and that the door is still open to other local companies as partners for the HSR bid. He added that Japan invented the first high-speed train system in the world over 50 years ago and has managed it without fatal casualties since. It is currently showcasing the world-renowned Shinkansen system which includes the creation of new townships along the HSR line.  In Japan, Shinkansen stations have seen the growth of retail outlets, residences and manufacturing surrounding it. He added, “We want to see the same success replicated in Malaysia and Singapore. As we have been doing in Malaysia for the past 60 years via our bilateral ties, all these developments are expected, should the Shinkansen system be chosen.”

WOW, powerful sentence. In brief, he meant, “We have been together for a long time and we should continue to partner one another for long time to come.” Frankly, I love the Japanese bullet trains, having taken them extensively during my last trip to Japan which was at the same time when the tsunami hit. The bullet train operations was stopped only for slightly lesser than 1 day. I was then able to travel back to Tokyo to catch my flight home to Malaysia. If I am the one selecting, I would prefer for an Asian based company to win instead of those from outside the region. As for whether a Japanese company may win the bid, I think everyone knows that Chinese high speed rail companies are very strong overall. Financing options and even construction expertise. We will just have to wait then. kopiandproperty.com will organise a Breakfast in KL, Lunch in SG, Dinner in KL session when the High Speed Rail is ready.  Please sign up yeah. I know,it would not be cheap. Haha.

written on 20 Jan 2018

Next suggested article:
Travel to SG whether flights or HSR

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


ERA Johor and Charles Tan. Come say hi and ask some questions yeah.

Chit Chat session. Come say hi and ask some questions yeah.

This session should be property related, I believe. They did not send me any questions in advance. 🙂

Ryan said, ‘Come and join us for a chat.’ My answer is positive lah. I have spoken on the same stage as Ryan in JB in 2019 I think. That was before Covid-19 arrived. He’s someone who shares a lot of facts and figures, so I always love to sit down and listen to his talk. Well, he may share more numbers in this chit-chat session.

Ee Fan is meanwhile that person who’s always on the ground in the real estate world as he leads many RENs in serving potential customers. I have even spoken in Mandarin in one of the sessions he invited too. I am very sure he will have lots of stories to share too, especially these days when everyone kept saying that the property market must be doing very badly…

Do drop by yeah. It’s here:
https://web.facebook.com/erajohorbahru
  Once it goes live,
 I will also share to my FB page too.

Date: 23 November 2021

Time: 8pm

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

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

Next suggested article:
Signs of Market Recovery

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


ERL, Melaka, Nyonya food

Every 2 years, I drop by Melaka. For it’s second to none Nyonya food choices. For its only authentic Portuguese food. For its Gula Melaka Cendol and many more. There’s always a headache. I normally go during holidays and during this time, the jam is terrible. The worst I have ever experienced was 4 hours! What if there’s now a feasibility study for ERL to be extended from KLIA to Malacca? Ok, what has it got to do with me since it is unlikely that I would drive to KLIA, park my car there and take the ERL. Let’s not forget that every time I go Melaka I always have the urge to buy a property there. Perhaps this ERL may just fasten my decision. We shall see.

In the The New Straits Times report, the rumoured ERL extension will cost RM8 billion andsome government sources quoted as saying that there could be two to four stations including a stop in Seremban. Total distance from KLIA to Malacca? 90-100km. At a speed of 160km / hour and a stop of 10 minutes, the total journey would still take less than 1 hour. This is indeed a huge plus point for Malacca and the attractiveness of Malacca has suddenly upped a few notches. The decision maker? Feasibility study by SPAD. (Public Transport Commission)

This ERL would not just fasten the journey but it will also help lessen some of the congestion. The reason being people in Seremban can now choose to take the ERL and not drive. Yes, now you know why this is relevant to me. I can now drive since the number of cars on the road to Melaka would reduce when some of them take the ERL instead from Seremban. From once every two years, it may be once per year and if I really do get a place there, it may even be few times every year. Ok, my next trip would include property viewing. No rush, the feasibility study may take some time.

written on 30 May 2014

Next suggested article:
Melaka Gateway, stay away or buy?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Ervina – An Unrivalled Residence Above it All

[Branded] Bandar Sri Sendayan is a 6,000 acre freehold township development in Seremban, Negeri Sembilan. It is envisioned as a self-sustaining township where the residents could actually have all the conveniences, they want within minutes away.

This is a development undertaken by Matrix Concepts Holdings Berhad (Matrix) which was a company which was established in 1996. That’s 24 years ago. Fast forward to present times we could see a growing in Bandar Sri Sendayan and forecasted population will be around 120,000 upon completion of this township. Total completed homes thus far are close to 10,000 units.

Within Bandar Sri Sendayan, we have the 194-acre Ara Sendayan hilltop enclave which is freehold and on a higher ground within Bandar Sri Sendayan. Beyond just homes, residents will also enjoy lots of facilities for a comfortable modern lifestyle. These include:

Amphitheatre
Community Garden
Outdoor Gyms
Treehouse
Lakepark
Jogging Track
Gazebo
BBQ Pits
Reflexology Path
Clubhouse Facilities

A home within Ara Sendayan also comes with these 4 important factors to consider especially for a family home.

24-hour security
Perimeter Fencing
Guarded Community
Single entry point

Please do refer here for the other advantages of Ara Sendayan including connectivity, schools and many of its other exquisite launches too.
Home Ownership at Ara Sendayan.
(Home Ownership 8 facts at Ara Sendayan)

Today, we will look at Ervina in Ara Sendayan which is a super low-density landed development with just 46 units. It’s also built on a hill-top which really gives that exclusivity to its potential owners. However, before we start, let’s look at Bandar Sri Sendayan as well as the developer which is responsible to build it to what it is today and how it will continue to be developed into the future.

How do we choose a potential unit? I personally use the P.D.F concept when it comes to choosing a development. P stands for Price. Price here does not stand for how much per se (sq.ft) but the comparison of an equivalent unit with similar size, amenities, facilities and even that final touch of exclusivity. By the way, this is not the home sweet home for a young working professional who wants to be close to his working place in the city centre. This is a great package for a small or growing or even a close-knit multi-generational family.

Second consideration is D and this is the Developer. As a property buyer, we always worry if the development would be completed on time within the specifications promised by the developer. Since a property is usually the most expensive asset we will ever buy, let’s make sure the risks are managed very well. While no one could guarantee what the future holds but it’s still way better to buy from an established developer versus a new developer who may not have the financial strength to complete the project if suddenly faced with unforeseen circumstances such as COVID-19.

Let’s go to the last alphabet; F. F here stands for Features. When it comes to a low density project, we need to know whether the development is part of a master-plan or just one development by itself. In this case Ervina is only 46 units. When there are just 46 units, then there is no way for the development to have a club house which has even a bowling alley for its members; the homeowners within Bandar Sri Sendayan. However, when the 46 units are within a master-planned township, then they get both the exclusivity of a low density development and the exclusivity of many grand facilities and amenities which will never be built if there were just 46 units.

Now, let’s take a closer look at Ervina. This new home sweet home is perched on verdant hill slopes and the owners will get a breath-taking view of a scenic lake park below. I believe the owners could also feel the cool breeze on windy days too.

Ervina is situated within the Ara Sendayan and this is a freehold residential project with just a total of 1,272 units within an area of 194 acres! (By the way, 194 acres is 8,450,600 sq ft yeah..) As you drive home you will have a grand welcome as well as tree-lined boulevards too.

Ervina features north-south orientation which meant that you get the light but not less of the sun during the day. The sun does not shine directly into your home. It has elegant facades and exquisite interior layouts comprising ensuite bathrooms for bedrooms and high floor-to-floor height.

You will also feel safe within this guarded enclave too. Owners will get 24-hour security with a perimeter fencing giving peace of mind to families with kids and old folks. Let the kids run around and be healthy and have sweet memories! Let the seniors enjoy some light walking daily too.

This is a home for multi-generations if you like it to be one. The home, the environment and even the amenities within minutes away meant that should we want to work from home, Ervina within Ara Sendayan presents a good proposition too. Owners will get a free one-year broadband subscription for free as well.

FACT SHEET

Other highlights

Surrounded by Matured Neighborhood
Easy Accessible & Near to Conveniences
Complimentary 8 Terms d’Tempat Country Club Membership
Premium Finishing laminated floorboard on 1
st
 floor, air-cond points with piping, 3 phase wiring and so on
Complimentary 1 Year Security Fees
Solar Water Heater System
Rain Water Harvest Tank
External CCTV Sets

MASTERPLAN

ERVINA FACILITIES

Barbeque Pit
Sunken Seating
Amphitheater
Podium
Children Playground
Parcourse
Reflexology Path

Owners and their family members would also get to enjoy
d’TEMPAT COUNTRY CLUB FACILITIES.
 Compared to the usual club houses of gated communities, the below would surprise many potential home owners. d’TEMPAT Country Club is sprawled across a 6.33 acres and has the following facilities and amenities. Your loved ones who are home? Weekends where family time matters? Visits from the grandparents who wants to play with their grandchildren? Enjoy these:

• Olympic Size Swimming Pool
• Children Wading Pool with Play Station & Water Slides
• 4 Indoor Badminton Courts
• 2 Indoor Tennis Courts
• 2 Squash Courts
• 10 Lane Bowling Alley
• Indoor Table Tennis Facilities
• Fully Equipped Gymnasium
• Aqua Gym
• Jacuzzi

• Banquet Hall (Accommodate 800 pax)
• VIP Holding Room
• 3 Meeting Rooms
• TV Room
• Children TV Room
• Reading Room
• Aerobic Room
• Snooker Room
• Sauna & Steam Room
• SPA

CONNECTIVITY / ACCESSBILITY

From the north via Bandar Ainsdale toll from North-South Expressway which connect Seremban to Kuala Lumpur City Centre
From the north via Jalan Sungai Ujong from North-South Expressway which connect Seremban to Kuala Lumpur City Centre
From the south via Federal Route 1265 which connect Nilai and Labu in the north to Port Dickson in the south and Mambau in the east
Air – KLIA and the LCCT which are located to the Northwest about 15 km from BSS

For more info about Ara Sendayan, kindly visit
http://arasendayan.com.my

Contact them and secure an appointment so that they could tell you more:

Matrix Concepts Holdings Berhad (414615-U)
(Company No. 414615-U)
Wisma Matrix,
No. 57, Jalan Tun Dr. Ismail
70200 Seremban
Negeri Sembilan D.K.
Tel
+606-760 9078

Fax   +606-7646288 / +606-7646288

Attached here is

Ervina’s eBrochure and perspectives

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

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

Next suggested article:
When should we buy into townships? Beginning or towards the end? Both have advantages

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Escape Cameron Highlands theme park. Definitely a wow.

On a yearly basis, I go up to Cameron Highlands maybe 3 times? Somehow when I arrive, I feel so relaxed. There’s no huge shopping, merely move from one stall to the next, admiring all the fresh vegetables. Then, drop by the Palas centre for a cup of hot Boh tea. The cafe is very nice too fyi.

At night, probably a steamboat and the next day, just wake up early and feel the cool temperature. Ah, nice right? Plus the accommodations there remains affordable too. Okay, cannot really do this at the moment due to Covid-19 but I still have hopes that I can do it before end of 2021. Let’s see if I am right.

Now for another additional thing one could do in 2023 in Cameron Highlands.

Article in nst.com.my
 Phase One of Sim Leisure Group’s new theme park called Escape Cameron Highlands will cost about RM15 million, with the targeted opening in the first quarter of 2023. Sim Leisure group founder and chief executive officer Sim Choo Kheng said that the development of subsequent phases will take up to 10 years and will cost above RM100 million.

Image from NST

He shared, “Some of you may be wondering why the amount is smaller compared to other mega theme park’s projects that cost billions, but bear in mind that Escape is a low-tech, high fun genre theme park. We have minimalist approaches, we used a lot of creativity, thus know how to build it with a very minimal budget.” Do read the full article here:
Article in nst.com.my

Perhaps need to also think about the driving part

It’s quite jammed in Cameron Highlands during peak periods such as school holidays or long weekends. I am not sure what could be done to change this but something has to be done. Else, if I am looking for a break and then I realise I need to face a few hours jam in Cameron Highlands, I may change my decision to go elsewhere. In the mean time stay home, stay safe and see you in Cameron Highlands yeah. Yes, I have a small unit in Cameron Highlands which I hope to visit soon.

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

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

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

Next suggested article:

My favourite Cameron Highlands is getting higher visits again

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Espresso lab, Ipoh.

I was first introduced to this cafe by my two close friends in KL. The experience was very good. The latte, I must say, unless I forget about some experiences is my top choice thus far. Right in all departments, even in the red cup that it comes with. As for the environment, ok just that it’s like more public since the one I went to was in The Garden’s KL. So, when I learnt that Espresso Lab is in Ipoh, I quickly gave it a test. 🙂

It does not disappoint. In fact, my personal opinion is, because of the environment, I feel this is much better than the one I went to in The Gardens. A typical shophouse was converted into a modern looking cafe you could have mistaken for a cafe in Europe. Of course, ahem, when you see the baristas, you know you are still in Malaysia. I recommend everyone who loves coffee to try them out. I tried their cakes too and it’s ok. In terms of cakes, let’s just say I prefer Plan B. But their latte is very tiny slightly better than Plan B. Note- personal opinion. Don’t kill me for this.

written on 16th dec.

Next suggested article:
Plan B, Ipoh

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


In essence, this is also happening here; Malaysia

Malaysia’s property market is a small one. Mostly local buyers. In fact the secondary cities are not even considered by most of the property investors. Well, in China, even Tier-3cities are undergoing rapid changes. Some have prices which are increasing faster than other more established cities. Sometimes, we would ask why are the prices still going up if these Tier-3 cities are nothing more than just hometowns of young people who has gone to bigger cities for work. Aha, that’s the reason, actually. Young people who has gone to work in bigger cities! They will earn more than what they would if they had stayed behind. Yet, what they earn may not be that sufficient when it comes to buying or enjoying what the big city has to offer. They may then think about working and earning and then in the future perhaps retiring in their hometowns.
Why not? Even I think like that.

There’s one article in TheStar saying just that. Full article here:
Real estate booms in China’s small cities, but construction outpaces demand
 In brief, it was saying that there are demand for housing in these third-tier or fourth-tier cities but the number of new homes being built is still much faster than demand which is the reason why despite surge in demand, the inventory has only dropped slightly. Some numbers were quoted. It says that about 550,000 homes were sold in 27 Tier-3 cities from January to May 2017 and such numbers should have reduced the inventories by 45 percent. It did not and the inventory has dropped just 7.1 percent. Despite this small drop however, the property prices were still rising. The property prices in a Tier-3 city like Bengbu would only be 10% that in Beijing or Shanghai. A two-bedroom apartment of 90 sq m (970 sq ft) would cost about 675,000 yuan (RM429k) before tax and this is around 12 years of average pay in the city. Lots of other interesting facts too.
 Just read the article in full here.

Some time back I wrote about the

reason why property prices in Ipoh
 could grow despite that fact that it is an ‘ageing’ city. It’s my favourite place to be but I couldn’t move back currently if I am talking about having more career opportunities. My aunty had just bought a condo for over half a million. This is considered a crazy price even today because many Ipohans would tell you that their landed property which they bought some time back was nowhere near half a million. They would also tell you that condo is not the lifestyle of Ipohans who prefer to talk to neighbours or walk around their neighbourhood. Seriously, I stay in a condo and my wife knows so many housewives here. My kids run around the playground and park within the condo everyday, if it does not rain. As for my aunty, staying alone meant safety is key plus the fact that she has worked in KL meant that she is already exposed to far higher prices than just half a million ringgit. So yes, I seriously think the more people move out of their hometowns, the higher likelihood that their hometowns would have more home choices versus if no one moves out. Happy loving your hometown.

written on 30 July 2017

Next suggested article:
Spotting signs of a property bubble, 3 points (updated)

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EUPE’s Novum@ South Bangsar and Parc 3. Visit them in Jom Cari Rumah 2018

[Sponsored] EUPE will be participating in upcoming weekend’s Jom Cari Rumah 2018 in Nu Sentral mall. It starts from 26 – 28th October 2018. They will showcase two projects;
Novum @ South Bangsar
 and
Parc 3 @ South Kuala Lumpur.

Novum @ South Bangsar is at one of Kuala Lumpur’s most sought-after hot spots. It has an iconic design and features the latest in contemporary facilities and conveniences. With this, Novum will continue to standout among the other nearby developments for years to come. Latest update is that the construction of Novum @ South Bangsar is now at ‘topping out’ stage.

Eupe’s Group Managing Director Dato Beh Huck Lee said reaching the milestone was an achievement worth sharing with the tens of thousands of commuters who travel past the project each day. He shared that Eupe’s philosophy with every project is to redefine the precinct with innovative architecture in a way that helps give the area we develop its own distinctive identity. It reflects our strong belief that property developers have a major role to build for the long-term, not just chase short-term profits. He said going the extra mile to stand out and give something to buyers and community they can be proud of. Novum is expected to be completed by second half of 2019. Drop by their booth
to know more.
 Else
click here for their site.

Another Iconic Design Development by Eupe – Parc 3 which will became a new landmark in South KL which blends luxury and natural living. The name Parc 3 itself refers to the residence housing 3 concept parks within its masterplan namely the Central Park, Sky Park and Moonlight Deck.

South KL, one of the mature neighborhood which surrounded by lifestyle shopping mall, education hub, as well as hospital houses managed by one of the largest healthcare group in the world. Parc 3 which located at such as great location which is only 6KM from KLCC and will be only 2 stations away to Tun Razak Exchange (TRX) MRT Station. It will be a breeze to get connected into the public transportation lines into the city centre and along Klang Valley.

Parc 3 embed Eupe’s Sustainability Plus principles and frameworks into the design which Parc 3 residence enjoy the best in sustainable living and lifestyles. This development is designed by one of Malaysia’s top landscape designers so that all owners could enjoy beautiful, verdant gardens that offer a seamless blend of nature and community.. What’s more, the Taman Pudu Ulu Recreational Park is located right across Parc 3, further providing residents with natural open spaces for recreation. Taman Pudu Ulu Recreational Park alone is beautifully-maintained and covers 64 acres of green expanse.

Discover premier residences with refined touches and extensive list of facilities including Badminton Court, Viewing Pavilion, Playground Slide Area, Playground Swing /See-saw Area, Walkway, Sunken Patio Seat, Barbecue & Picnic Area and Linear Seats, Pool, Timber Boardwalk, Wading Pool, Pavillion , Shelter, Jacuzzi, Sculpture Plaza, Water Garden, Seating Decks @ Water Garden and Viewing Deck Plaza on Level 5 &6. Please drop by their booth to know more. Parc 3 promote harmony from its façade design to its interior core. The SKYPARK on level 23 and 27 is dedicated to satisfy every individual’s desire to relax and entertain guest or simple get away from all. One also can enjoy sweeping views of the KL city on the Level 45 Moonlight Deck.

Please do visit their booth during the property show. Else,
click here for their site.

Happy visiting.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


EV will be popular but it’s not about high-rise vs landed. 4 reasons why.

Many weeks ago, someone in the real estate industry mentioned casually that with all the car companies moving into Electric Vehicle (EV), this means that the landed homes will continue to be popular. It may be even more popular because of this EV trend. Well, I personally think EV will become more and more popular, especially if all the car companies are also producing them. I mean if we as consumers do not have a choice of non-EV, of course we will have to buy the EV.

As for the assertion that landed homes becoming more and more popular because of EV, well, it will always be popular, with or without the EV. Let me tell give you 4 reasons why.

#1 Better NOT just have the charger at home
   I am not sure about you but I drive interstate quite frequently (pre-COVID). Some of the places I go to are landed and some of the places I go to are not. They may be malls, hotels, they may be some tourist spot and they may just be plain outdoor hiking spots. It means EV owners MUST have access to charging facility WHEN they need it and NOT just when they are home, safely. Or having to queue up hours for a charging facility because everyone drives an EV and the hotel have just 3 charging car parks? Or, we could limit all these EV owners to just the range since by then, the range could easily be 500, 600 or 700km?

#2 Those petrol stations need to survive, too.
  Assuming every car sold is now EV. Well, the owners of petrol cars would still be around for at least 10-15 years after the last petrol car was sold.  it means that they will continue to pump petrol BUT the petrol stations also realise that instead of having their whole station catering to 20 cars for fuel, half of the station could be converted to quick charging facilities. Any EV owner could now just drive to any station, have a quick recharge of 15-20 minutes for their EV and at the same time maybe a cup of coffee too from the store in the station?  This meant there is NO NEED to always be so reliant on home charger…

#3 Charging will soon be needed by the 600,000 EV owners (just in Malaysia, just for 1 year)
  On a yearly basis, Malaysians buy around 600,000 cars, mostly petrol ones currently. In the future, perhaps every single car sold would be and EV. So, we are talking about 600,000 EVs every year. I am not sure about you but I seriously do not think Malaysia builds enough landed properties for all these new EV owners. I mean, this is just for one year. What about year 2, 3, 4 and beyond? Or do we want to limit the sale of EVs to only landed home owners?  😛

#4 The business model may be swapping and not a quick charge at the station
   One day, the batteries for these EVs are not going to be as expensive as today.  Just look at the smartphone batteries for a clue. The prices continue to become lower.  When the batteries become cheap enough, some businesses may be able to buy enough them, charge all of them at the same time and charge EV owners a monthly rental instead. For example, when the battery is down to the last 20% power, the EV owner could drive in to a centre (maybe that petrol station), the operator brings out a fully charged battery, swaps it with ours and we could drive out in minutes.

Anyway, the earliest some car manufacturers are going to shift fully to producing EVs would probably be 2030 or later. Everything will continue to evolve. Just remember that not many countries would tell their people to stop using their current car and switch over to EV immediately. Any government doing that will soon be out of the government. It will be a phase, a gradual one. the whole industry will continue to change to cater to the huge number of new EVs. Switching from building high-rise to building just landed homes is not one of the main options even if landed homes would still be popular whether with or without EV. Happy buying one.

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

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

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

Next suggested article:
Here are my thoughts about saving money with EV

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Evaluating what to buy is better than guessing when to buy

I read an article in Public Mutual’s Calibre magazine. There’s this one liner.
“Investors who opt to stay out of the market during the consolidation periods are not able to profit from capitalising on low market prices.”

What it says in brief is that when we chose to follow the majority and skip the market when it’s bad, we would not be like the few who stayed in the market and they
may earn exceptional returns
 when the market boom returns. Just look at what Warren Buffet do. It’s a tough act to follow. Buy when others are selling and holding on even when others are terrified. Then again, look around us, are there more millionaires or are there more middle class income earners?

As usual, every now and then, people would ask me. KL property still can buy ah? Another question especially during the slow market of today.Are the property prices low enough to enter? Can you ask someone else? I really have no idea. However I can safely assure you that I continue to invest even from for the periods of
2014, 2015 and 2016.
 I remain committed on ensuring I do something and well property investments are continuing. I am still staying in the one I bought in 2014 and appreciation has been slow but then again, any appreciation during this period is definitely still a plus.

Oh yeah, just to simply answer the question. Property prices would never be low enough, for hotspots. Property prices would be always very low for the wrong spots.

Property prices would be slow movers for secondary spots
.
 Hope this answers the question of whether property prices are low enough to enter. Where are the hotspots? The easiest answer? It would be the places where condos are seven figures and landed homes are only for sight-seeing. Where are the wrong spots? This is where prices are so low you wonder what was wrong with it. As for secondary spots, come on, lots of property portals to do our own research. It is usually over 15km away from the KL city centre lah. Anything nearer is harder to get these days. Maybe in a few years’ time, it would be 25km away from KL city centre instead. Gentle reminder. Evaluating what to buy is still better than guessing when to buy.

written on 5 Aug 2016

Next suggested article:
Buying a new home? Ask why, not just where

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...