If you are a millennial, you should own a home, perhaps?

There’s one country where 70 percent of all millennials own a home. Depending on which source you read from, millennials are categorised as those born between 1982 till 1998? That’s when I arrived home to Malaysia after my studies and started to work so that I can pay my own bills and give some to my parents. So yeah, I am Gen-X and not categorised as a millennial. Most of colleagues would be millennials. That’s because I am working in an IT-related organisation and boy, these millennials are not the same as me. Many  are fast learners as long as we acknowledge this fact and share with them as a mentor instead of a lecturer. In fact, many understood the reasons for getting a property and instead of asking, ‘should I buy,’ they would be asking me direct questions like, ‘is RM400,000 considered high,’ or ‘should I buy closer but it’s a high rise or should I buy further but it’s bigger / landed. All are valid questions. What about the millennials in the number 2 largest economy today? (That’s China by the way) Well, 70 percent of them ALREADY own a home.

I read a BBC article entitled,
“The country where 70% of millennials are homeowners”
 which quoted a study by HSBC showing over 70 percent of Chinese millennials already own or paying for a home today. This is by far higher than 35 percent in the US (I think I know why), Britain at 35 percent
(no wonder Londoners gate the foreigners for pushing up prices…)
,
Malaysia has only slightly over 30 percent (if the survey is done in a few more years, I think this % will rise a lot due to the many affordable homes being launched and built today) while in Australia, it’s slightly lower than 30 percent.
 (Median prices in some cities are really unbelievably high versus pay)

In UAE, only 28 percent of the millennials own a home. My old friend, same age just bought a place in Abu Dhabi. It’s over a million US$ by the way. Regardless of what currency, how many can actually afford such a home? This is not all. 83 percent of those surveyed who were not homeowners would like to buy within the next 5 years!
As for Malaysian millennials, 94 percent wants to get a home!
Some countries however have the perception that renting is the same as owning and it’s socially acceptable too. For example in the French cities of Paris and Lyon. Many of these millennials have not yet saved enough for a deposit. (Yes, that’s why there are many measures to help them here in Malaysia)  So, how do Chinese millennials buy that home? They ‘applied’ to Bank of MUM and DAD. 🙂  There are less women around (China’s one child policy) and men with a home is more appealing. The report also shared this, “Many love stories fail to turn to marriage if the men fail to provide a marital house.” The parents are also able to save 30 percent of their income.
(This is something not common these days. Some say it’s because of high cost of living…)
Oh yeah, the full article again. Here.

If you are a millennial and you are reading this, remember this. Not everyone will buy a home. In fact there’s nothing wrong with renting. Just remember to save enough,as if you are paying for a mortgage every month. Those having a home has one advantage; hedging against inflation. You see, assuming we earn RM100,000 a year and we somehow managed to save 10%, that’s RM10,000. Pretty impressive for a millennial. 🙂   However, a RM400,000 home appreciating at just 2 percent per year is already RM8,000. It’s effortless while we continue to
 save for some other investments.

I know, we have to deduct the mortgage interests etc but this is a reducing percentage. Renting wise, it’s the same percentage; 100%, every month, every year. Millennials are definitely the biggest group that can afford a home in the near future. The Gen-X meanwhile are too old to stretch the loan repayment period to the maximum and hopefully most would already own a home or decided to rent till they retire. Happy learning and applying my dear millennials.

written on 8 April 2017

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Millennials and money. Many may become millionaires.

Millennials and money. Lots of articles about them. Here’s another one and it’s written by someone from Generation-X. When we save, save and save, have we ever though about what would happen to the savings? Who will spend our money in future? Hopefully there’s enough for us and enough for whoever we intend to give the savings to so that they could have a good head start for their future.

So many millionaire millennials today!

I read an article saying that just within the United States alone, there are more than 600,000 millionaire millennials. 93% of millennial millionaires have a net wealth between approximately $1 million and $2.5 million. (That’s between RM4.14 million to RM10.34 million). The report says, “The difference between the millionaires of the early 1980s and the ones being created today is that many of them stand to inherit even more wealth from their baby boomer parents, who are considered the wealthiest generation in history.”
Do read the full article in cnbc.com here.

Photo by Ketut Subiyanto on
Pexels.com

How many of these rich millennials are there in Malaysia?

There are no such reports for Malaysian millennials that I have found yet. However, the baby boomers in Malaysia who saved a lot of their wealth will most probably be passing them on to their kids the Generation-Xers as well as the Millennials. The Gen-Xers, if they are like me will most probably not be spending most of the wealth but the millennials, I do think they will spend what the baby boomers did not spend. Even if we assume they will keep most of it, well, a large portion will now be spent. Things which it will be spent on? Endless stuffs yeah.

Millennials have their own definition of ‘success’ too

From their own definition of a ‘well-deserved vacation,’ to an ‘ego-boosting new car,’ or even a ‘my very own property’ in some good locations, the millennials will be spending their newly given wealth and this will definitely help the economy. Idle money in the bank have no multiplier effects to the economy yeah. Only when the money is spent that it will propel the economy forward. So, in my opinion, thanks to the millennials, the economic growth should be continuing with the continuous transfer of wealth from the baby boomers to the millennials.

Still far away from actual retirement

I am nowhere near retirement age but I think I will prefer to spend a lot of my wealth when I stop working and will not just pass on everything to my kids. I think it will mostly be used to travel the world. So, I will have to stop working when I am still healthy and not when I could no longer work. However looking ahead, I think we are going to have a continuous economic growth from the buying contribution of the millennials. Property developers may want to focus on what they need or want and build them accordingly.

After the millennials, what’s next?

Beyond the millennials? It will then depend on the population growth. Some have predicted a
population collapse. What’s that? Earlier article here.
Just remember yeah every generation will be very different from the next. Many baby boomers are used to saving. However this saving money trait is no longer common today. In fact, when we look at how even people with RM10,000 household income could not get a loan of RM400,000 approved, we should already see the differences. Stay positive and happy spending!  (Of course, they will still need our help)

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Millennials, congratulations! You are buying the most homes.

Nah, the title is not for the millennials here in Malaysia. They are definitely a very successful group but I did not read any report about them and whether they are going to be the largest group of home buyers here in Malaysia. However, I assume whatever may happen in some advanced property markets will usually happen in Malaysia too, slightly later perhaps. If you are a millennial, here is what’s happening with your peers over at the United States.

Article in cnbc.com
  According to
Realtor.com
’s
“2020 Housing Market Predictions.”
 2020 will be the year when the millennials will be buying the bulk of real estate in United States. In its forecast, Realtor.com predicts that millennials’ share of mortgage originations will surpass an unprecedented 50% in the spring, outnumbering the share of total homes purchased by members of Generation X and baby boomers, at a respective 32% and 17%.

Millennials are starting their families and thus their interest in “family-friendly lifestyles and affording housing” will supersede their prior affinities. Earlier studies have shown that millennials preferred to buy downtown cityscapes with shops and cafes at every turn.  Now, the millennials are also considering new options in housing and they look for modest, mid-size city apartments and suburban homes.   A lot more in the
Article in cnbc.com

Wow, what this tells us is that just one generation would have equalled two generations added up together! I always thought the Baby Boomers and Gen-X should have the most money saved since they are far older… no? Also, look at something which I have written many times. The BABY PRODUCTS in supermarkets should tell us that this is the generation of the millennials. These are the people who were born in 1981 – 1996. The oldest is thus 39 and the youngest at 24.

The ones in early 30s may have babies and just from the supermarkets alone we could already see millennials playing a huge part in consumption of goods and services. Of course, property too. With babies, comes the need for space and that small bachelor’s apartment is no longer sufficient even if it’s very near their office… I think the trend with the millennials in the U.S is not that far apart.

These millennials may not be earning unlimited salaries that would enable to buy anywhere they like. It will have to be a compromise between size, duration, location and price. With the current price being said to be high, thus locations slightly further away from the city centre may most probably be their choices. So, yea, developers should develop homes with millennials in mind. As for the millennials, congratulations. You are now the target of developers. Happy deciding.

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Millennials could not save. What’s the solution, really?

Millennials could not save. If we google this actual phrase, we get 13,200,000 results. it’s like WOW. Image as below. So, what’s the reason millennials could not save?

There were many reasons stated about why millennials could not save. It ranges from what they like to how they love to change jobs and also their financial awareness or in some cases, the lack of it. We have another
Article in themalaysianreserve.com
 where Sunway University Business School economist Prof Dr Yeah Kim Leng shared that millennials need to be quipped with sound financial planning skills and knowledge.

He said, “A high level of financial literacy will enhance the resilience of the millennials to the vagaries of the economy and better protect themselves from the various economic and financial shocks that have been occurring more frequently these days.”

He added, “While a high savings economy will elicit investor confidence, it is high productivity and competitive economy driven by strong technological capabilities and a skilled workforce that attract investments and catalyse high growth that will eventually translate into rising wages.” The article is a long one and has many more reasons why millennials are unable to save money. Read it here:
Article in themalaysianreserve.com

When I was still in my mid 20s

One major reason I managed to save was because I was ‘forced’ to save. That first property I bought forced me to have enough portion from my monthly salary without fail, else the banks may come after me for the home loan repayment! That was later because before I could buy that property, I was also forced to save the downpayment for it.

So, suddenly 5 years before buying that home, I saved RM15,000 and 5 years after buying that home, I have paid another RM33,000 for the home. (RM550 x 12 months x 5 years). The home price also slowly appreciated. This was what happened when i was in my mid 20s all the way to late 20s.

That UPGRADE happened after 5 years

The reason why I say a dream home will keep on changing is because of the salary we earn. After working for 8-9 years, I was earning higher than when I first started, my wife’s also working and well, we decided to upgrade our home. Again, we were forced to save 5 years before this upgrade and that was another RM30,000 saved. 5 years after purchasing the home, the home price had more than doubled. It seems that the area many said were backwater have suddenly become in-demand.

Forced to save and wealth buildup usually happens TOGETHER

If I was not forced to save for my first home, I would have spent the money. RM15,000 could have funded 2 overseas (ASIA) trips easily. If I did not save for my second home, it could have funded another 3-4 overseas (mostly ASIA) holidays. Yeah, we could see that I could have had vacations in overseas every year.

If I was not forced to save, I could have used those extra funds to afford a more expensive car. It would have made me feel superior versus my peers; that I was more successful than them because they were driving a Proton or a Perodua.

In fact, I could have bought more stuffs, change handphone every year, drink latte in cafes weekly and more. I do hope that we now realise that everything I just said was what all these surveys and studies have said. That millennials do NOT like to own a home… that they like to go for vacations to relax themselves… that millennials love tech gadgets and more. I think they could do all these because they were not forced to save. Period.

It’s important to have priorities because after all these forced savings in the first 10 years of my life, I could now afford to go overseas twice every year (not necessarily within ASIA anymore), if needed I could buy a much more expensive car that that B-segment Japanese car model and if necessary, I could buy that RM2,800 handphone without the need for any instalment plan too. That’s the solution from my personal experience, if the millennials needed one. Happy understanding and maybe do something about it.

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Millennials disrupting the property market? Everyone has a hand, definitely.

There are a couple of typical conclusions about the millennials when it comes to the property market. Some say they would
NOT be able to buy their own home. Here’s one article.
Some survey however shows that
94 percent of millennials buying a home within 5 years! click here for article
 I read interesting thoughts by AREA Management Sdn Bhd executive chairman Datuk Stewart Labrooy. His views were presented in an
Article in TheStar here.
 Let’s look at a few key points shared by him. These are those few points that I agree totally because many millennials I know are actually doing it today! 🙂  Nope, I am not a millennial. I am a Gen-X; proud one!

Datuk Stewart shared many good points. I am highlighting a few that I personally think will make a difference.

It’s about access and not ownership.
 Instead of purchasing big ticket items, the millennials may be delaying them. A car can be easily replaced by GRAB, for example. A home can always be a rented one and does not need to be one where they have to pay through their note every month for the mortgage.
(When we know the majority of millennials are doing this, we should do the opposite yeah. Take advantage of this so that when the demand for rental units go up, we actually have unit(s) to rent out to them. As for the developers, perhaps can start to focus even more on developments which can be used for Rent-To-Own. Without the need for huge downpayments and yet the flexibility to own a unit in future, this is attractive)

Extensive comparisons before they buy.
They would opt for development with a lifestyle component that appeals to what they like. This is why it’s really not easy to appeal to them. Every new development must be better than the one a few years before. In fact many may not like to get into debt at such an early stage in their lives.
(What this tells is would be the developers’ marketing better not be confined to the same old same old actitivies yeah. Doing more is likely to be the only way, not doing less or even cutting marketing budgets! Events can even be family run instead of just the usual free food and drinks for example. Yes, engaging good property blogs would be one of them too.)

Office spaces will look very different.
Frankly, I think millennials are evaluating their potential new office much more than the extra RM200 salary today. One told me this, ‘my friend’s office looks so cool. If they hire me, I will join them.’ Funny but true! Careers can be built anywhere but feeling comfortable every minute of the day at work is now a necessity. I have not known of any millennials who tell me that they still prefer an office without some creature comforts such as a fully equipped pantry (coffee machines!) or even a games room so that they can release some tension occasionally. Not many companies can be like Google but then again those traditional desk and chair cubicles of yesterday are not going to be popular again.

There are many other points shared by Datuk Stewart about millennials in
TheStar article. Please read it here.
 Millennials may get the best deals because they are the ones who will make a decision fast, as soon as they have done their comparisons. The notion of ‘analysis paralysis’ no longer resides with them. In fact if we are to ask them to do too much research, they will lose interest. Just look at the startups of today. The younger CEOs do not just learn faster but they apply what they learn quickly too. Disruptions happen as a result and new jobs are created even as older ones are lost along the way. I think developers who are able to understand things millennials like and build quickly will become far more successful in the future. The authorities better help the developers or else our unsold units may continue to rise… Millennials are not easy… to satisfy. Happy buying, millennials!

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written on 1 June 2018

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Millennials? Much harder to buy a property compared to baby boomers. (what about Gen-X?)

Do you find it harder to buy a property? I think from the title itself, it’s clear that it’s also something which many of my friends, the millennials are complaining.They are saying that their salaries have not been rising as fast as how property prices have been rising. Thus, there’s that thinking that perhaps there will soon be a generation without homes to their names. It’s also known as homeless generation. Just google for it and we will find never-ending articles about it too, thus making the millennials even more worried and may just choose to rent instead.

To understand what has been happening to the property market and the potential buyers’ income, perhaps we look for some clues from an advanced property market. London property market is way more advanced than ours. Of course, their economy is also an advanced economy though I think Brexit is causing them uncertainties too.

Article in finance.yahoo.com
    Analysis of official data by digital broker Mojo Mortgages and Yahoo Finance UK reveals the stark contrast between the generations in the property market.  A baby boomer born in the 1950s could buy the typical British home for about £16,800 (RM91,630 at today’s exchange) in 1979, if they were able to get on the ladder as buyers often did in their 20s. The average home only cost just under four times the average pay packet, with the typical worker taking home around £4,200 (RM22,908 at today’s exchange) a year.  (In other words, the home prices were just 4 times the annual salary!)

Millennials looking to buy a home face prices that are now at least 14 times higher than when baby boomers tried to get on the property ladder in the late 1970s. Meanwhile, the average wages have risen less than seven times over since 1979. According to data from the Land Registry, the average property sold for around £235,300 (RM1.28 million) last year, while typical annual salary is only at £29,000 (RM158,171) last year, according to the Office for National Statistics (ONS). Please do read the many more numbers at
Article in finance.yahoo.com

Unfortunately there’s no mention of the Gen-X people. Well, if we are the in-between of the Baby Boomers and the Millennials, that means the difficulty for us in buying a home should also be in-between the two generations too. Seriously though, I think the baby boomers had it much harder then. There are fewer options where choices are concerned and it’s also far harder to get a home loan then. I know because my parents also told me the hardship they endured just to buy their first property then.

The number of jobs during the 70s and the 80s were far fewer than today and everyone then would want to keep their jobs and anyone telling their friends that they have resigned and will be taking a break is totally unheard of then! Today, it’s considered common enough even if we cannot say this is the norm, yet. I think it’s better to find ways to buy a property instead of being too worried about all these averages which are being reported yeah. There are many countries where the people have a higher net-worth and one major reason is also because of their ownership of a property. Happy following.

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Young people will stop buying cars and houses? Noted…

First of all, I do not think young people will stop buying cars and homes in the near future. This article shares some reasons why it believes young people will stop buying cars and homes.
Why young people don’t buy cars and apartments anymore.
 In brief, it said that in the USA, the generation below 35 are known as the generation of renters. They have their own values which is different from the older generation. Yeah, that’s me. Well, it said that young people believe successful people don’t buy homes, they rent. To be considered successful, invest in experiences: travel, do extreme sports, build startups. Other things shared is that young people have no interest in material things. ‘why buy a car when you can take the cab, with a personal driver.’ or ‘why buy a home in a beautiful place to go for vacation when AirBnB lets you stay in beautiful places all over the world.’  Buying things make us worry. (Hahahaha..) and in conclusion, it said that whatever we purchase would depreciate over time. Even properties, especially during crisis. Let’s take a poll now, only open to young people BELOW 35 please.  [polldaddy poll=9691467]

The gap between the richest and the poorest are getting ever wider.
Wealth gap between the richest and poorest is ever wider

This tells me that what majority does are not always right even if minority would have to lose when it comes to democracy. Secondly, a question. Is there anything wrong to buy and get others to pay for it via rentals? Assuming they love to rent, they must still find a place to rent, let’s provide them the place / space.  This morning, a close friend sent me a WhatsApp message. The topic in a Toastmaster’s Table Topic Contest is “What something you know you do differently from most people.” I replied by telling her that she already know I am different from most of her other friends. She sent me a LOL. Do we follow what the majority does? I mean if our generation is stereotyped as such, do we comply?

One young colleague who uses UBER / GRAB everyday had bought her second condo nearby KLCC. She does NOT own a car. So, the study that shows young people may stop buying cars may be true. However, she understands that property would appreciate, especially those near hotspots, in her case, KLCC. One of my staff, a 35-year old just bought a new property last year. RM450,000 condo. She asked me, ‘should I buy when I would most probably not stay there?’ She already owns a place and stays with her husband. My answer is always a “YES unless you

have better ways to invest your salary.
” Assuming nothing happens these couple of years due to slowdown and assuming she has negative returns from renting the unit out, the negative returns will likely to be manageable while the potential capital appreciation within the next 10 years will likely be much larger than what most of us are able to save. RM450,000 x just 2% per year is still RM9,000. Divided into monthly basis, this is still RM750! 🙂  Frankly, how many people we know can afford to save RM750 per month? Happy believing what you think will happen in future and act on it. No carno property is perfectly fine for some, perhaps.

written on 12 March 2017

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Millennials are a very powerful group indeed. Please be aware yeah.

They say one picture tells a thousand words. This is why I always love to drop by
visualcapitalist.com
every now and then. This time, we look at the Millennials. These are the people born between 1984 and 1994.  So they are currently within the ages of 27 to 37.  If you are younger, then you are under Gen-Z. If you are older, you are in my category, Gen-X. So, how will Millennials impact the world we live in? Let’s look at some slides then.
All are from visualcapitalist.com

Sheer Number of millennials in the world?

They are 1.8 billion strong. This is a WOW. As they are at the age where they have the capability to invest, many services are targeted at them. Properties for example is one. Units are built closer to public transport as millennials are likely to be still single but may already be a manager and they are not likely to be someone who drives 40 minutes just to reach the office everyday…

Image source:
https://www.visualcapitalist.com/a-regional-breakdown-of-millennials-around-the-world/

Education Level of the Millennials?

It does seem that the ladies are doing better than the men yeah. They are 20% more likely to be higher educated than men in North America and this goes up to close to 30% in Europe. So, if you are a lady millennial, wow great job. if you are a man millennial, it’s really the time to study harder. 😛

Image Source:
https://www.visualcapitalist.com/a-regional-breakdown-of-millennials-around-the-world/

Higher Education means a better starting point and they have the numbers

If the question is, do they have higher purchasing powers than the Gen-X for example, it’s really debatable. Gen-Xers may have more money but Millennials are more willing to spend. However if the question is whether Millennials will continue to be the focus for many years to come, the answer is YES.

They have the numbers and they have are educated which meant that they will continue to rise in their careers too. Plus… this is the group which are the usual successful Start-Up entreprenuers too. They are also vocal and this helps companies to understand them better versus the more reserved Gen-Xers.

Happy marketing to the millennials.

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Becoming a millionaire just by working 9 to 5?

Can we become a millionaire by just working 9 to 5? I smiled when a friend told me that someone showed him a new book by a famous personality
Mark Chua.
I told him that any book by someone who is already doing it is worth buying, reading and learning. Aside to his question of someone becoming a millionaire only by working 9 to 5, it’s possible. This can happen as long as the person saved every month without fail. He saves more as his salary goes up over the years and he does not simply indulge in anything and everything just to ‘reward’ himself all the time. Based on
calculator.com.my
, it is possible to be a millionaire without trying to build our wealth further through investments. We need to just save. Assumptions: We start work at 24 and retires at 60. The interest rate on average remains at 4 percent. In the 35 years we work, as long as we are able to save an average of RM1,091 per month, we will retire a millionaire. Note, this is is JUST our savings. It does not include EPF savings.

Yes, I do note that these days the living costs are rising. Well, how about eating cheaper?
Eating cheaper is still possible, depends on us actually

As a fresh graduate, it’s not possible to save RM1,091per month. We can however work hard so that by 30 we are a manager and by 40, we are already a senior manager. By 50, hopefully we are in the management category.
Career is very important lah.

Well, when we really look at reality of a good career,

RM1,091 as an average is definitely considered conservative because if we are earning RM20,000 per month, how can we still save just RM1,091 per month? The question most of us should answer would be, how do I climb the corporate ladder faster? This is needed, if we intend to just save, save and save to become a millionaire by the time we retire.

It’s clear that we can save lesser per month and still become a millionaire because we still have EPF savings to fall back to. Have we ever wondered how much our EPF savings may be by the time we retire? Well,using the same assumptions of starting at the age of 24 and retiring at the age of 60. We also assume a dividend rate of 4 percent, similar to the rate of FD today. I assume we are able to start at RM2,500 pay. Increment of 5% per year. This is conservative because when we receive promotions, the
increments tend to be higher.
 I also assume the bonus as just 1 month. Seriously, if our company is not able to pay even one month bonus and yet we could not find another company which can give us one month bonus or higher, the fault is with us and not the company. Remember, we can complain to everyone about our company but if it’s really not worth staying, then we should be leaving and not staying around and continue complaining. Does not help our goal to become a millionaire. Look at the calculations in the EPF’s website. (image). As long as we do not do anything stupid, we already have RM648k on the day we retire. We can save even lesser than RM1,091per month. My recommendation is still to maintain the same amount of savings so that we have both.

Last but not least, we come to what if we bought our first property after working for 6 years. First property when we reach 30. Mortgage instalments are stretched to 30 years. (Can be more but let’s just use 30). Assuming our first property is only RM400,000 (affordable category). Assuming the typical property price increments per year is just 3 percent. Let’s use
www.timevalue.com

Referring to the image of the calculation would show us that actually by the time we retire at the age of 60 and having fully paid for the home, the property should be worth close to RM1,000,000. With just one property and having fully paid for it, we can sell it when we retire and become a millionaire too. By then, we may live to 85. So, that’s 25 years after we retire. When we sell the home by then, the calculation is as follows: RM970,000 / 25 years / 12 months = RM3,233 per month. Actual amount is higher because we can always put RM70,000 into our savings account for our daily use and the remaining RM900,000 into Fixed Deposit. RM900,000 would still yield us RM36,000 every year based on 4 percent interest rate.

Sometimes, we just fail to reach our potential because we did not bother to try.
20 years ago, there were hardly any Malaysian writing investment books
 for us to read, learn and practise. No one looks at property as a form of investment. In fact, the internet has barely started and there are definitely no property related sites to help give us more guidance. Today, we have everything. The only issue is also we have so many things that we could buy for our enjoyment. Haha. So, I guess the question of whether can we become a millionaire by working 9 to 5 should be answered by this. “Are we prepared to make some sacrifices.” Happy deciding and working 9 to 5.

written on 22 Jan 2017

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Oh dear, I missed the GST deadline to buy property.

A good friend dropped by my office to pick me out for lunch. He told me that he is viewing many different properties in many different places. He has yet to decide but he said he missed out on buying a cheaper property because if he had bought earlier, he could have beat the GST deadline. I laughed and asked whether after GST has the prices informed to him thus far been increased? Surely if it has increased, the agents would call him and tell him that due to GST, whatever price informed earlier has now been increased. He laughed and said no but he still felt bad that he missed the GST deadline.

Honestly, has any property you viewed before GST showed a different price after GST? Please share if any. Thus far I have not seen any property developer telling the world that due to GST, this is my new price. Seriously, I might have missed all these but I have yet to see any. I did however come to learn that those who bought lots of toilet papers before GST have been fooled because when I go to the supermarkets, I still see ‘best buy’ items which includes toilet papers of certain brands. I could also see many shops advertising that they were absorbing the GST. Of course, they can still try to fool people by increasing the price first before claiming they are absorbing but if they do that, they better be very sure the customer has never seen their pricing before.

Today is 20th, it’s been nearly 20 days after GST. Is the sentiment getting negative? I have not actually felt it because today I learnt that Apple is increasing the prices of its iPhone 6 and 6s. Is it because of GST or is it because they would like to maintain its margin due to the Ringgit’s drop? Have you ever googled and know how profitable is Apple as a company? Read a bit here:
Apple and it’s HUGE cash reserves

Yeah, of course they deserve it because they produced a product which their supporters enjoy so much. I had lunch at a local cafe today which is already including GST. The place was pretty full, still. I bought Starbucks a few days ago and there were still queues.

Perhaps statistically, everything has actually slowed down. We would have to wait for the actual numbers few months down the road. If you have time, try visiting those established property fairs and do a survey of all the prices. If it should increase, it should have increased. If it did not increase, the developers have chosen to absorb the tiny change. If it increases in the future, the reason stated is not likely to be GST, it would be something else. Higher material costs, higher construction costs, higher salaries and everything else included. By then, you would note that the property market is in a ‘concert’ again. Funny how when market is slow, prices become sensible and when market is fast moving, prices go up. Yes, do focus on saving more to counter the GST but better still, perhaps earn more….

written on 20 Apr 2015

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Missing ingredient is not just the product yeah. It’s the ‘last mile connection.’

This article was inspired by Ms. R who spoke to me about a company she may be joining. Proptech is now the buzzword of the real estate industry. Proptech is simply property technology. It is huge and there are way too many things inside currently. Remember those days when real estate marketing people used flyers to sell properties in the neighbourhood? Of course they still do so selectively but the listings are now usually online in some property listing sites. There are also property review sites where we could read more of the advantages and the disadvantages of the project. Beyond these, in some more advanced real estate markets, investors could now buy homes via bricks. So, instead of that whole 1,000 sq ft condo, one could just invest in 19 sq ft for example since 1,000 sq ft condo is too expensive in some markets.  Or it’s because of flexibility. Instead of just buying a 1,000 sq ft condo, how about buying 100 sq ft in 10 different condos? So proptech facilitates all these transactions and this is what makes it so interesting.

We used to buy only properties within our neighbourhood or even within the same state. Today we may buy in some other cities but viewing it is a hassle. Proptech enables potential buyers to view these units in some faraway city through the web. 360 degree view for example and we could even view the surrounding! This meant that we need to only fly to projects which we have viewed and liked while skipping the rest which did not have such 360 degree videos or even uninteresting ones. There are many companies with viable products. However, did these proptech companies sell just the idea or selling it as a potential buyer / investor? When approaching the developer, these proptech companies would tell how the trend is now for proptech. They will highlight how proptech is changing many real estate markets. In fact if they have a stronger competitor, they will highlight the fact that they were cheaper. Seriously, how about telling the developers that ‘convenience and accessibility will increase the potential exposure and thus the decision to buy?’ How about asking the developer about the process that they will go through if they (the developers) want to buy properties in some far away place, what would they need?  Without the right approach, the proptech company will remain stuck in an awesome turbo-charged car but running at 1st gear until the next company comes along with a similar product a few months down the road. Usually, the next company will use price as a selling point and the cycle continues.

In fact many developers have good products too even if not everyone would love everything about the project. A very good example, if the project is VERY FAR away from the city centre, the selling point is always that one can buy bigger but cheaper. The sales team would continue to use this point over and over and over. Frankly, IF the potential buyer has already arrived at your sales gallery in that far away place, they have already accepted this fact; bigger but cheaper. What you may want to know may include, are they buying for a family with young kids, are they buying for a family with grandparents. Another thing may be, were they buying for the children’s education, whether it’s primary, secondary or even international schools. It may even be due to the water elements in the project which they love. Knowing all these would help the potential buyer to make the decision to buy because the other 4 potential projects nearby they went to was only talking about ‘buying bigger and cheaper!’

Many believe that proptech is the future. I think we could not run away from this fact. Many developments, especially the integrated ones are now much further away from the city centre. Looking at the advanced real estate markets outside Malaysia, this will definitely be a trend for avery long time to come. However, that ‘last-mile’ connectivity where the company connected effectively to the needs of the potential customer is still mostly missing. Most of the time, companies believe their advanced technology or developer with better products could sell by itself. I hate to tell you this but the best product may not be the final winner. The product which meets the expectations of the buyer will be the winner. ‘MEETS the EXPECTATIONS’ would be the key. In the proptech world, all it takes is just hiring more programmers and a better product can be created. In the property world, every new launch 12 months down the road would usually come with even better features and design. Happy understanding and handling objections effectively.

written on 27 Aug 2018

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Mistakes to avoid when buying in crisis

Crisis brings opportunity as they say. Well, as long as we do not over-stretch or commit some mistakes, then I think it should be fine to invest even during the current Movement Control Order (MCO) which is due to COVID-19. By the way, investing here does not need to be just into properties yeah. Property is quite illiquid. Once we move in, it will take time to come out. Stocks could be an option but just remember that volatility is much higher too.

Want to listen to my views? I am honoured to be invited by Property Insight to share my thoughts on this topic: “Mistakes to avoid when buying in crisis.”  Dato’ KK Chua actually asked a lot of good questions. Since I have shared in FB Live, I think it’s good to share with all kopiandproperty.com readers too. Please do click below and happy listening yeah. If you think it’s beneficial to you, do share out to your friends.  Take care.

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Mistakes to Avoid When Buying in Crisis

During this Movement Control Order (MCO), are you still investing? Hopefully you are. It does not matter whether it’s into gold or into stocks or even property researching which is a veryt important due diligence we need to do. This is not just the time to sit back and keep eating. Not good for health too. 🙂  I personally think there are opportunities in every crisis and I think all investments must start with a due diligence.

It should also include lots of research and understanding what we are buying too. Mistakes could happen with what we buy when there’s no crisis. However, mistakes during a crisis would make it worse because it may be harder to get out of.

I am honoured to be invited by Dato’ KK Chua to join Nick Tan the COO of Sharefer for the upcoming PropertyInsight Strait Talk. The topic we will be discussing today is “Mistakes to avoid when buying in crisis.” So, do drop
by my FB page where
 I will share the
FB LIVE or go to Property Insight’s FB page.
  Date is today (13th April 2020) and the time is 830pm sharp. Hope to see as many of you as possible yeah. I am very sure Dato’ KK Chua will ask many interesting questions to both Nick and myself.

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Mitraland’s Upperville @ 16 Quartz: Contemporary, Tranquility and Desirability

[Branded] Some of us prefer to buy a development developed by an international property award winner. Then again the price tag may not be that affordable. As for the award winners where the price is very affordable, it may not offer many of the features, benefits and value which we are looking for. Making a decision on a property purchase is super tough because it is usually a decision involving hundreds of thousands of ringgit.

If you are looking for affordability (not low-cost yeah), tranquility (quiet but not super far away) and situated next to an international award winning development, then perhaps Mitraland’s Upperville @ 16 Quartz is worth a serious consideration. Never buy because some articles say so or some speakers say so yeah. Remember, it must meet all your needs. It has to meet your budget because over-stretching is not a clever thing to do. Last but not least, you also want to buy from an established developer because your money will be safer with those developers.

A swim or just lying around and enjoying your day?

Perhaps we start with the actual location of the said project. It is nestled within a proposed UNESCO heritage site, Klang Gates Quartz Ridge which is the longest natural quartz formation in the world. Upperville is Mitraland’s second venture in Melawati, the first being 16 Quartz development, a winner of the prestigious FIABCI World Gold award. It’s not easy to find many projects that ticks all the boxes, from exclusivity to being close to nature and an award winner too!. Just in case you wanted to see one picture about the majestic Klang Gates Quartz Ridge, below is one such photo
and this is one article about it in nst.com.my

Image source:
http://itskhaemedia.blogspot.com/2015/11/longest-quartz-ridge-in-world-must-go.html

Yes, if you love nature and you happen to stay nearby, you could climb the hill and have this spectacular view every other weekend. You will also enjoy breath-taking views and fresh air while relaxing in the resort style facilities offered by Upperville.

What’s the density like in Upperville?

Low… It’s low. It has only 176 units in layouts with sizes between 1,050sq ft and 1,176sq ft. This size ensures that the ones who are buying are mostly for own-stay. This gives exclusivity and privacy for all owners. If we really think about it, most of us have more than 176 friends in our Facebook account. This means that it’s really possible to know many of your potential neighbours too. If you love a sense of community, I think this is what you may be looking for.

Facilities in Upperville

This is a wow for the kids and the kids in us.

There are enough good facilities for the dad, mum, and kids to enjoy. It comes with a swimming pool, jacuzzi, a treehouse compound, gymnasium, pool deck, a BBQ party corner and a multipurpose hall where you could definitely host countless parties for your loved ones and friends. All owners will also be happy to note that Upperville has a multi-tiered security for that added comfort even when one has to travel for business trips.

Actual location

Upperville is not built inside the Klang Gates Quartz Ridge yeah. It’s situated within one of the highest points in Melawati and if one were to look around, we would see that Upperville is surrounded by mature landed developments and it shares the same neighbourhood as many million dollar developments too. Depending on traffic, it’s
less than 10 minutes drive away from the Melawati Mall too.
This offers convenience but minus the noise and traffic especially if the mall is right next to the development.

Priced affordably

I know some must now be asking, ‘so what’s the price,’ since this high-rise development looks very exclusive. Prices for a 3 bed + 2 bath starts from just only RM559,000!

Happy waking up in the morning

Drop by, get to know more. Ask more questions.

By the way, it’s great to read reviews before we drop by the sales gallery. Now, we have even more relevant questions to ask the sales person. This is our hard-earned money, of course we must ask a lot of relevant questions in order to decide whether this is really what we want. This is their sales gallery address:

Sales Gallery Google Map

Happy deciding.

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Mitsui Outlet Park to be biggest outlet mall within South East Asia

My sister-in-law bought 3 dresses in the
Mitsui Outlet Park KLIA
just 2 weeks ago. She said, ‘It’s so cheap…’ The brand was her favourite; MNG. How cheap is cheap? Well, RM89 for 3 dresses is definitely cheap right? My wife tried the sizes too but somehow none fit nicely, so she did not get any. If I happen to be at KLIA / KLIA 2 and has time to spare, I would love to drop by and this is what’s happening today. There are always sufficient shoppers there that during meal times, it’s always a queue.

What if Mitsui Outlet Park KLIA will become BIGGER? Yes, significantly bigger so that it will become South-East Asia’s biggest outlet mall by 2021 with the phase two expansion now underway. Once the second phase is completed in 2018, it will have 190 shops, up from 130 shops at present. According to Malaysia Airports Holdings Bhd (MAHB) chairman Tan Sri Wan Abdul Aziz Wan Abdullah, “Phase two will introduce more premium brands with increased offerings of luxury international and local brands in fashion, cosmetics, sports and accessories with the diversification into entertainment and amusement, as well as inclusion of service-based tenants.” Full article in Starbiz
here
.

While I think the current setup is already comfortable, the phase two would introduce the Sky Walk and River Walk themes. Sky Walk will have the ceiulings simulated with clouds while the River Walk resembles a creek. This will surely enhance the shopping experience. Another 500 car parks would be added to the existing 2,100 car parks to cater for this expansion. As per the current
KLIA Aeropolis Masterplan,
 the Mitsui Outlet Park KLIA is an important part to help transforming the KLIA into a diversified airport city providing significant business, tourism and employment opportunities with offerings that include cargo and logistics hub, shopping and theme park, as well as world-class venues for meetings, conventions and exhibitions.

I personally would rate the
Johor Premium Outlet higher
at this moment but I think their markets are totally different since they are many hours away from one another. In fact, many would welcome these new shopping outlets as it continues to help Malaysia become a shopping haven within this part of the world. Yes, ringgit’s value helped tremendously too. So, would you be thinking of buying a property nearby? Well, perhaps not due to this Mitsui KLIA outlet alone but if there are more ongoing developments for Aeropolis….? Let’s keep following.

written on 14 Nov 2016

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Mitsui Outlet Park, KLIA: Looking fine but…

Good crowd? Yes. Car park pretty full? Yes. Lots of people in the restaurants? Not all restaurants. Enough people walking around to categorise as healthy? Yes. This was on a Sunday evening, in Mitsui Outlet Park KLIA. I dropped by after picking up my in-laws from KLIA. It was their second trip and my third. There are today more shops opened than when I first visited. In fact I think it should be nearly fully occupied. I could see the few Zalora shoplots closed. Oh yeah, was it a good trip for a shopaholic like me? Yes, I bought a new pair of Polo jeans and a pair of new Camel Active leather shoe. Total discounts? Polo was at 70 percent (left 30, 34, 38 sizes) and Camel Active leather shoe? (One size left). Haha.

This brings us back to  my earlier comments. This Outlet park is just not “PREMIUM” Outlet enough. There were still brands which I consider as more common and is easily available in many of the malls in Kuala Lumpur. Perhaps this is why the premium word was not in its name? I have no idea but I hope that the second phase would include even more of those premium brand names. Oh yeah, some time back I wrote about this when I visited it for the very first time. Read here:
Mitsui Outlet Park vs Johor Premium Outlet

Less premium brands aside, I think with the continuous coaches between KLIA and Mitsui Outlet Park, I think it would continue to do well. Anyway it’s a good place to shop and dine especially for those whose flights arrived at 5-6pm and driving back into KL may be too late for dinner. In terms of driving there solely for shopping, let’s just say I am not recommending it at this point in time. However, I would definitely drop by again on 17th June when I am on my way to Sandakan. Hopefully there are even more things to grab. Haha. Happy shopping.

written on 6 June 2016

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Penang will host a new Mitsui Outlet in the near future (need a date!)

I am someone who loves to shop. My credentials include 36 pairs of shoes (nope they are just my shoes and does not include slippers and already deducted all those thrown away) and over 70 shirts (nope, they do not include T-shirts). Hope this qualifies me to write an article about Mitsui Outlet? Haha. I have been to Mitsui Outlet countless times. I have never driven there exclusively if it’s not because I need to catch a flight or picking up someone but suffice to say, when I have things to do nearby, I would drop by.

Mitsui Outlet may be opening in Penang soon yeah. Good news indeed for Penangites and me when I visit Penang again more frequently in the very near future. Yes, I still have properties there after selling off the first two homes of mine over there and moving to Kuala Lumpur for the last 8 years plus. read on to know more.

Article in edgeprop.my
   MFMA Development Sdn Bhd managing director TJ Cheah was reported saying in NST Online, “We’re planning to open in Penang. At the moment, we don’t have a date [of launching] because we’re still going through some processes with the local authorities.”

He added, “But we’re getting there. We’ll announce it soon, hopefully in the next month or two.”

The new Mitsui Outlet Mall will be a joint venture between Mitsui Fudosan Co Ltd and Malaysia Airport Holdings Bhd. Cheah also shared that Mitsui Outlet has started to gain traction among mid-income earners. He said, “At first, people didn’t seem to understand what the outlet offers, but when they realised that we offer discounts and products that are below the original prices, I think people find that as a really good deal.”

Cheah also said, “Our consumers in Southeast Asia prefer to touch and feel things. People drive all the way out here (Mitsui Outlet KLIA) to see the products themselves, feel it, test it, wear it, be comfortable with it, and be satisfied before they make that purchase.” Please do read more here:
Article in edgeprop.my

The more the merrier, of course

I am not a supporter of ‘too many malls’ view yeah. Which means that I am also against the idea that Penang should have just the current players and should not welcome new outlets. As a consumer, I just know that the mall must have the brands I like, must have the price I could afford and it must be in a comfortable setting and environment. Frankly, it’s hard to get people to buy if it’s hot and stuffy and well, parking is so hard to find. As for the market for this potential Mitsui Outlet in Penang, hey, Penang International Airport alone welcomes 10 million visitors per year before Covid-19. Happy nothing this fact and happy shopping.

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Header Image from Mitsuioutletparkklia.com.my

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Mitsui Outlet Park vs Johor Premium Outlet?

Yes, I have been to Mitsui Outlet Park (MOP)last weekend. Yes, I liked the trip. If you love good running shoes from PUMA (my favourite running shoe brand) at below RM200, if you love the ‘fast’ looking running shoes from Nike for RM229, if you love children denim jacket from MANGO for RM29 and last but not least RM179 Obermain shoes which was RM469 before, then you would love to visit Mitsui Outlet Park. My sister-in-law bought a Bonia ladies handbag at a huge discount as well and I think everyone in the family enjoyed the cooling mall. (strong air-con). We had lunch there and even the pizza is considered good. My Arabiatta spaghetti could have been hotter but tastes good too. So, environment wise, I think this is better than Johor Premium Outlet (JPO). I felt that JPO is a little too hot when you are visiting in the afternoon time.

Now, what about the actual purpose of MOP which is as an outlet for the many famous brands? For this purpose, based on the currently operating ones, I prefer JPO. I think there are many shops in MOP which are just heavy discounted stores for the usual brands and not the usual famous brands’ outlet. Yes, you can find many of the usual brands in the typical malls anywhere in Malaysia and despite these having huge discounts, it does not attract me as I could have gotten them during some of the clearance sales in KL city centre. In JPO, I have even bought 3 pairs of Charles & Keith’s shoes for just RM57. The sizes are very limited but I think outlet stores should be like this. All the goods which are one season behind or those with odd sizes should all be sent to the outlets so that the usual stores can sell newer designs instead. My Singaporean friend bought a PUMA running shoe for just RM129. Another friend bought an Ellesse watch which normally retails for RM800 for less than RM300. So, for now, my vote goes to JPO where the buying is concerned.

Note though that there are many more stores which have yet to open in MPO. The mall is also very comfortable and there are lots of resting chairs for the older folks to sit down and rest. The convenient location next to KLIA also meant that the next time I am taking a flight, I would definitely drop by again. Oh yeah, the parking was pretty full when I visited it on Monday afternoon. Perhaps it is still new but I think it is here to stay if more stores open and the outlet concept becomes more genuine in the future. JPO is a little far for majority of KLites anyway. So, if you like what I like, it’s time to drop by even if just for a stroll. Shopping is always relaxing to the mind. Happy shopping!

written on 12 June 2015

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Mixed development. Staying on top of a mall. Are you still very interested?

It was very a very attractive proposition; staying on top of a mall

I remember very clearly just 8 years ago or maybe 10 years ago, suddenly it was a very attractive idea to buy a unit on top of a mall. What happened next was that many mixed development project came into the market and well, then they discovered that some of these malls did not attract enough visitors and soon, the malls were a deserted except for the typical supermarket and some retail lots selling cheap stuffs. Then people start to be wary and will now ask what is the actual plan for the mall, who is going to manage it etc.

If we reverse the process; make the mall successful first?

Okay, what would happen if the mall was successful first, then only the developer build residential units to take advantage of the successful mall? Surely some of the frequent shoppers may want to buy a unit so that they can shop at the SAME MALL daily? Okay, it actually still looks like a better idea versus buying without knowing if the mall will be successful or not in the future.

Article in nst.com.my
  The owner of Canada’s most valuable shopping mall is planning to add apartment buildings to that property and two others around Toronto, creating mixed-use neighborhoods that invite renters to live where they shop.

Oxford Properties Group’s plans for rental apartment towers at Yorkdale Shopping Centre, Canada’s most productive mall by sales per square foot, are still in an early stage, chief executive officer Michael Turner said.

But construction has begun at the Square One Mall in nearby Mississauga, he said, and municipal authorities are evaluating a proposal for Scarborough Town Centre in Toronto’s east end.

“We’re starting to go vertical,” Turner said Tuesday in an interview at Bloomberg’s New York headquarters. “I can assure you that what you see today is not what they’re going to look like over the coming decade or two. Please do read the full article with a lot more information here:
Article in nst.com.my

Just remember, the PRICE comes first whether mall or no mall

If the mall is a successful one and we own a unit on top of the mall, we may love to stay there or many travellers would love to stay there. So it can be for own stay or it could be for homestay. As long as the mall is successful, renting it out should be very easy. So, the price of the unit will carry some premium versus another unit without a mall right below it.

Just remember that if we bought the unit with a very high premium versus other similar units nearby (walking distance to the mall), then this will not be a good decision. Think about it, walking a few minutes to the mall versus taking the elevator down, how much would the future buyer be willing to pay for it.

If one is renting a unit, one is on top of the mall and it is 20% higher rental per night. Another one is walking distance but is 20% lower rental every night. Whatever your answer is, that’s how much you should be willing to pay for that unit on top of the mall. Happy deciding yeah.

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Mixed-use development Alfa Bangsar will be completed in mid-2023

Alfa Bangsar officially launched by City Motors Group of Companies (CMG)

City Motors Group of Companies (CMG) has officially launched its RM450-million Alfa Bangsar mixed development project located in Jalan Maarof, Bangsar recently. This 42-storey project comprising upscale hotels, luxurious serviced apartments and commercial offices with wellness hubs is expected to be completed by middle of 2023. According to the developer, the construction is almost at 20th floor currently.

Senior Works Minister Yang Berhormat Dato’ Sri Haji Fadillah officiated the launching of Alfa Bangsar by CMG.

Alfa Bangsar and another development in Bukit Bintang by CMG

During his speech, Fadillah said,  “I am pleased to hear that your company has recently obtained a development order to commence the construction of yet another high-rise mixed-use development project in Bukit Bintang. The two projects (Alfa Bangsar and the Bukit Bintang project) have a combined gross development value of RM2 billion [and they are] expected to help revitalise the country’s economy while the [spillover] effects can benefit over 140 supporting industries.”

Only 178 units in Alfa Bangsar development

CEO of CMG, Terence Chia shared that Alfa Bangsar sits on the few remaining freehold land in Bangsar, with only 178 serviced apartments offered for sales.

He added, “Our business point of view, as we study the pandemic, is to seek out its positive flip side that people imprisoned within their homes for about two years are now yearning to travel. The hotel will elevate the hospitality services in this entertainment precinct.”

Alfa Bangsar Sky Garden

CMG has over 300 acres landbank

Chia also said that the company has plans to develop over 300 acres of landbank in Penang, Kuala Lumpur, Cheras, Perak and Pahang. The projects in Penang and Cheras, spanning over 60 acres, will be unveiled next year.

Director Foo Yit Tung, the grandson of the CMG chairman said, “[We] may be lesser known in the business circle, preferring to play a tactical low profile but our portfolio of over RM600 million of real estate in Taman Nirwana in Ampang speaks for itself.”

Alfa Bangsar’s location is a big advantage

Alfa Bangsar is located near amenities, namely Mid Valley City, Bangsar Village, Nu Sentral, Bangsar Shopping Centre, Bukit Bintang, KLCC, Pantai Medical Centre, Universiti Malaya Medical Centre and Assunta Hospital.

It is also accessible via the Mid Valley KTM Station, Bangsar LRT station and KL Sentral.

Alfa Bangsar swimming pool

Note: All photos in this article are artist impression only

— end of press release article —

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The stricter MM2H has received 111 new applications. MM2H stands for Malaysia My Second Home.

Briefly, MM2H applicants today and MM2H applicants a few years ago face different requirements yeah. Here are the latest requirements which are much higher when compared to MM2H requirements before October 2021.
Click here to read.
 One very distinct example of this difference? Previously, applicants need to have at least RM150,000 (above 50 years old) or RM300,000 (below 50 years old) in fixed savings account but today, applicants must have RM1,000,000 in fixed savings account.

In fact, many industry players said that with this new rule, Malaysia can forget about attracting any new applicants since if the applicant really does have so much to put into fixed deposit savings account, this applicant could apply elsewhere and not necessarily to Malaysia under MM2H. What has happened since then?

Here’s the latest news:
Article in theedgemarkets.com
   The Malaysia My Second Home (MM2H) programme, which was reactivated with stricter conditions from November 2021, has received 111 new applications according to Home Minister Datuk Seri Hamzah Zainudin.  Out of these, 15 has been approved and 3 of the applicants are already in Malaysia.

He said, “The remaining applications are being processed because this programme requires complete documents. There is a delay because some application are incomplete.” Hamzah said that since its introduction in 2002, there are 55,010 active MM2H pass holders, of whom 27,285 are principal pass holders. Here’s the article:
Article in theedgemarkets.com

There are applicants, just need to find and tell them WHY Malaysia

3 months ago, my good friend, Ms. W also told me that it will be much harder to attract new applicants with the new MM2H requirements. I told her that ‘harder to do’ is not impossible. Plus, the fact that everyone saying the same thing also meant that if she could do it successfully moving forward, she would be able to be more dominant since many others would be dropping out of the MM2H business.

Most Liveable and Best for Retirement are not the same yeah

Google for Most Liveable and I do not think Malaysia is featured within any top 10 lists. Most of the countries within this listing would be fully developed nations with first class facilities. It also meant that the cost of living at these places are far higher when compared to the ones under the Best for Retirement lists. Just google for it and one recent one put Malaysia at the 15th place worldwide. Not too bad but we were once at the top. There were also comments that this drop in raking was due to MM2H.

Guys ah… Best for Retirement does NOT change just because of new MM2H requirements yeah. That’s policy and has got nothing to do with lots of awesome beaches, forests, recreation places, islands, malls etc. Nothing of those changes just because of MM2H new policy yeah.

We are definitely still super duper place as a retirement place. However, there may be fewer applications today, that’s all. Happy participating in MM2H yeah. To all applicants, you are definitely choosing a good place.

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MM2H – All the latest requirements

Malaysia My Second Home (MM2H) – All the latest requirements starting October 2021, unless there are further changes.

MM2H provides a renewable multiple-entry visa for successful applicants from around the world.

Participant Eligibility for MM2H programme

Participants are divided into two age categories: 35 to 49 years and 50 years and above.  (So, anyone younger than 35 does not qualify)
Participants MUST be in the country for at least 90 days (cumulative) every year.
Participants need to have an offshore income of at least RM40,000 (US$9,617) per month.
Paricipants must maintain a fixed deposit account of RM1 million and a maximum withdrawal of 50% from a principal amount is allowed for purposes such as property purchase, healthcare and education
Additional RM50,000 in fixed deposit account is required per dependent
Proof of liquid assets worth a minimum of RM1.5 million
Subjected to a pass fee of RM500 every year
Subject to a processing fee of RM5,000 for the main applicant and an additional RM2,500 per dependent

What does an MM2H participant get in terms of travel visa?

Participant will be eligible for a maximum of five-year visa and it’s subjected to the option of renewal for another five and so on.

What are the documents needed to apply for the MM2H Visa?

Participants may apply here.

Cover letter by the applicant
Copy of resume (academic qualifications, work experience, skills etc)
3 copies of IM.12 Form
(Visit Pass Application Form)
4 passport sized photos, taken against a blue background.
Copy of passport / travel document
Letter of good conduct. e.g, letter from embassy
Self-declaration of medical condition
Certified copy of marriage certificate (if applicant is accompanied by spouse)
Certified copy of birth certificates (if accompanied by children or parents)
Certified copy of bank statements including salary slips and other financial documents to show proof of income as per requirement of MM2H

MM2H participants and the property purchase decision

It’s possible to buy a high-rise property in urban areas from RM600,000 to RM1 million.

Just need to note that requirements in every state would depend on the state government. So, so check with a registered property agent on the threshold for your state of choice.

Buyers of properties in Malaysia gets the SAME RIGHTS and PROTECTIONS as a local property buyer. There are also no specific restrictions such as foreigner quota per project or being forbidden from buying freehold properties like some countries. There are also no requirements such as selling the property only to other foreigners too. So, yes, purchasing a property in Malaysia for foreigners can be considered a good decision. The only limitation would be the price threshold by state.

Who do I contact if I am interested to apply for MM2H?

This is a list of the MM2H agents,
mm2h.gov.my
  kopiandproperty.com does not know them and is not affiliated to any MM2H agencies.

Comments from kopiandproperty.com for potential MM2H participants

Happy applying and yes, I definitely think Malaysia is a wonderful country for foreigners. We love people who love our country. So it’s easy for any foreigner to get good friends here in Malaysia. Please feel free to compare Malaysia to many often mentioned country names in some other parts of the world yeah. MM2H is a second-home programme for participants but as a home, we are second to none.

Just need to remember that most liveable and best for retirement cities are two different lists.
Penang for retirement?
  Google for them and you will understand. Go for value yeah unless we have unlimited amount of retirement money, then go anywhere and one could still drop by Malaysia for a few weeks every year to enjoy a different place too.

Whether it’s white sandy beaches to amazing rainforests and even numerous
UNESCO World Heritage Sites
or you just love to shop, we have it all.

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MM2H and who can qualify for it. Johor Ruler has his views too.

Recent article about MM2H was this:
MM2H reactivation, issues and concerns from Malaysian Institute of Estate Agents (MIEA).
Basically, there are suggestions on how to enhance it further for the benefit of the economy and subsequently the property markets too. The reason is because MIEA represents agents and they serve many of these MM2H participants when they are buying a property.

Then, we also have this view from a state government which basically says that I have my own set of rules and it’s a different one. Read it here:
MM2H new rules do not apply to Sarawak
. Now, we have the views from Johor Ruler Sultan Ibrahim Sultan Iskandar.

Article in freemalaysiatoday.com
  Johor Ruler Sultan Ibrahim Sultan Iskandar stressed today in a Facebook post that the government should be more compassionate and lenient towards foreigners keen on settling down in Malaysia, he said foreigners would lose confidence in Malaysia if the government keeps “shifting the goalposts.“ This is not the right time to raise fees.”

He warned, “When we continue to flip-flop on conditions, how can we promote Malaysia as an investment destination?”

“Drastic changes like this will tarnish our image and will make us a laughing stock of the world.”

He also said that it was “ridiculous” to subject even existing MM2H pass holders to the new conditions, and predicted that they would now leave the country. Please do read the full article here:
Article in freemalaysiatoday.com

Let’s look at who can qualify just from our neighbour, okay?

Let’s go down to basics. Let’s look at the qualifying income criteria for the new MM2H programme. It’s US$10,000. (S$13,447 or RM41,600) Using this, now we compare this to the median income of our richest neighbour in ASEAN; Singapore. In 2020, the median household income in Singapore was $9,189 (US$6833).

By median definition, 50% of Singapore households would be earning less than the median, while another 50% would be earning more than the median. It is thus safe to conclude that perhaps only the top 20% of households in Singapore could apply and get approval for the MM2H programme, if they indeed chosen to do so.

 In case, we did not know, Singapore’s median household income is within the top tier in the world. 🙂  So, yes, I have also made my point today. I personally believe MM2H programme is not just to get the people to come and stay but it will also get that top of mind thought for visitors thinking of countries to visit.

Beyond MM2H yeah. It’s attention too.

Thus, it’s not just to attract the MM2H applicants but also to attract attention to our country too. More visitors are definitely welcomed yeah. Even if they do not buy a property they will need accommodation. This is good contribution to economic multiplier yeah. Let’s see if there are changes on the way.

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MM2H applicants and the property market of Malaysia

Personally, I like MM2H as a programme which features Malaysia as a second home for foreigners. I love Malaysia and I think foreigners would too. We are a friendly nation and more cultural exchanges are good too. Earlier article here:
Best place to retire vs best place for retirement
 These foreigners would then be spending a lot of their time here and thus a lot of their savings too which is win-win situation for everyone. Earlier article about MM2H here:
MM2H: higher quality applicants on the way
 I was thus happy when I met my good friend
Sr Michael Geh who’s also the current FIABCI Malaysia President
 two weeks ago and we spoke about property matters.

Every time I sit down and speak to him, I would learn something new. I asked him about the thought that foreigners are to be blamed for the property price increase in Malaysia. He gave a frank answer, NO. These foreign purchasers are NOT contributing to the affordability issue in the property market. He said, “I find that foreign purchasers, who buy properties to live in, are an important group that contributes to the primary and secondary property market for the last 10 years.” He shared that some foreign purchasers are here to stay under the MM2H programme. “They come here to buy or rent local properties to live in as they want to stay here so they are contributing to the property market,” he added.

MM2H applicants should be welcomed into the country as they contribute substantially to the Malaysian economy and the property sector. He said Malaysia has much to offer foreigners such as a modern and peaceful environment, low pollution and warm weather all-year-round. “Malaysia do not have major natural disasters such as earthquakes, typhoons and volcanos so it is also considered a safe place to retire in or to bring up children. Geh said foreigners want to sign up for the MM2H programme and live here due to several reasons. “They want to escape winter or harsh weather conditions in their home country, some want to let their children study in international schools here, some come here for our top-notch healthcare services and some are returning Malaysians who want to retire here.”

Geh however also shared that there are instances where foreign purchasers were invited by project developers and marketing agents to invest in Malaysian properties. This is not healthy. “I observe instances where foreign purchasers were invited by agents and developers to speculate in Malaysian properties.” He said these foreign investors invested in off-plan projects and then after a couple years, the investors will sell off the properties to locals for a profit. These instances contributed to the affordability issue in the housing sector. In such cases, he said stringent measures and policies should be put in place to curb property speculation by foreign purchasers. “Speculative foreign purchases will ultimately result in the purchasers off-loading the properties to Malaysian buyers at a higher price for a profit,” he said.

I think all stakeholders would agree that MM2H is a good programme unless the foreigners are speculating on the property market which is then very bad for Malaysia. Approve only quality ones and we will reap all the benefits. Let’s hope relevant ministries will work together in the MM2H programme which will be good for the property market as well besides the multiplier effects to the economy. Happy understanding and if you are a foreigner, Malaysia is certainly the best country in the world for retirement. Liveability wise, it’s nearing many of the advanced nations which meant that prices are still under the emerging category and can continue to grow too.

written on 26 Jan 2019

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MM2H? Higher quality applicants on the way.

I have lost track of the year when Malaysia My Second Home (MM2H) started. I think it’s a good programme because it gives these applicants a chance to live in one of the best places to live in the world. 🙂 Okay, one of the
most affordable places in the world for retirees.
 To my country, it meant that more ‘investments’ are coming into Malaysia. Win-Win situation. So where do these applicants come from and what’s happening next for MM2H programme?

Article in edgeprop.my here.
 MM2H was started in 2002 and as at end-2017,  it has attracted a total of 38,932 participants from as many as 130 countries as at end-2017. In 2017, the applicants approved nearly doubled from 3,347 approvals in 2016 versus 6,195 in 2017. Take a look at the image for the top 7 participating countries. Yes, we can see many applicants from advanced economies as well and there are definitely Singaporeans too. This is what Ministry of Tourism, Arts and Culture Malaysia (MoTaC) Datuk Haslina Abdul Hamid has in her mind for MM2H. She said it’s a good time to review some aspects of the programme, such as its financial requirements so it could attract better quality applicants to ensure that the Malaysian economy benefits.

Currently, the programme requires applicants aged below 50 years old to show proof of liquid assets worth a minimum of RM500,000 and offshore income of RM10,000 per month. For applicants aged 50 and above, they will need to show proof of RM350,000 in liquid assets and offshore income of RM10,000 per month to be eligible under the programme.
Article in edgeprop.my here.

Malaysia is not just an affordable country but we are a friendly one as well. PLUS, that property that the MM2H participant bought will most probably be increasing in price too. The logic is simple, just compare it to the prices at the homes of the MM2H applicants. If we (our properties) are already more expensive, then we definitely cannot attract them to come here. Happy following.

written on 8 Dec 2018

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MM2H is FROZEN… Oh dear. Could we kill more birds with one stone?

Malaysia My Second Home (MM2H) programme is frozen. Briefly, stopped. No new applications would be accepted and there is that news that 90% of all the applications have been rejected. MM2H is a programme to allow allow foreigners who fulfill certain criteria, to stay in Malaysia on a multiple-entry social visit pass. The social visit pass is initially for a period of ten (10) years, and is renewable. There are no talks that there are any changes to the current MM2H participants who were approved earlier and is now enjoying their second home, Malaysia.

Article in freemalaysiatoday.com
   Tourism, Arts and Culture Minister Nancy Shukri said thatThe Malaysia My Second Home (MM2H) programme in the tourism ministry is temporarily frozen for review and improvement by the federal government. The MM2H centre in the tourism ministry had been closed until further notice.

Nancy however said that MM2H is frozen for a review of all the activities and processes involved in the approvals for the programme. She said that the federal government hopes to improve the programme and that the immigration department is now reviewing the process. The target is to get everything done by December 2020.  She said, “It’s not a permanent closure because it is for the good of our country’s economy.” Do read the full
Article in freemalaysiatoday.com

Somehow I think the MM2H agency operators may like an answer beyond just ‘reviewing of the process for improvement.” Perhaps it is also time that we stop all these “by December” remark and becoming more like the current Finance Ministry where there are progress updates on how much funds have been disbursed under the Prihatin, under the Penjana and even on the all the meetings with the industry players about what could be done further to help economic recovery.

I support MM2H programme but I think it’s time we enhance the programme further. For example, we may want to run the MM2H programme together with tertiary education programmes for the children of the participants. I am not sure why we have yet to start doing it. I mean Malaysia is the only country which I know where students could get local private university degrees, UK university degrees, Australian university degrees and even Chinese university degrees by studying here. (Did I miss any?)

Aim for parents with kids who are about to go to the university and get them here. Joint promotion between the tourism ministry and the higher education ministry and we could now kill two birds with one stone. Beyond just the children, it is time that we also start attracting the professionals who are still active (not just retired ones). Those researchers… niche talents… and more. This is where the tourism ministry could work with our TalentCorp. If this could be done, we can save funds and kill three birds with one stone.  Yes, if the tourism ministry needs me to join their brainstorming session, do invite yeah.

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Do not come to Malaysia just to retire… Be an Enjoyee instead!

For ‘young’ at heart people who are thinking of places with white sandy beaches overlooking the sea, over 4,000 metre mountain peak loved by many, world’s oldest rainforests worth exploring every year and even UNESCO Heritage sites and cities? All these are in the same country; Malaysia. This is also a read for those who wish to find a place to spend most of their their time since they are no longer in full-time employment? This is also for expats who have grown to love Malaysia after moving here with their families? For potential MM2H applicants who sees Malaysia as beyond just a place to read a book and drink coffee by a luxurious swimming pool everyday? Do not come only as a retiree. Come here to enjoy and become an ‘Enjoyee!’ Read on.

Malaysia is the “Ideal Retirement Destination in Asia in 2018” according to a new Retirement Index from International Living.com. These are the underpaying reasons for the index; cost of living, healthcare and climate. Malaysia is ranked fifth globally, while Costa Rica was crowned the most preferred retirement destination in the world.
Do refer here for the full article.
Of course, the best retirement city does not necessarily be the top ranked most liveable

city. Here’s an earlier article.
However, do note that within Asean, Kuala Lumpur is ranked second most liveable city, right after Singapore. On a global basis, Kuala Lumpur is ranked 70th most liveable city. How many cities are there? According to
statisticbrain.com, there are 457 cities with over 1 million population.
Assuming this is true, 70th ranking is top 15 percent which is not too bad at all. 😛 Top 15 percent most liveable and top 5 best retirement country is an excellent combination already. Okay, frankly speaking I would prefer a much cooler temperature definitely, say 20-24 celcius would be perfect. However, most foreigners I know says they love the sunny days here. Haha.

Other reasons why Malaysia’s in the top 5 list? Here’s the
full article in asiancorrespondent.com
 “Easy, English-speaking, and first world.” Renting in Malaysia is “hard to beat.” One is able to live “extravagantly” on US$2,500 per month INCLUDING RENT. (Yeah, I think we know in some countries, just the rent alone may ‘kill’ many people). Well, the next comment is something we could do everyday. “It’s a gastronomic delight, and the street food here is hands down the best in Asia.”

Malaysia also have “cities with a buzz” (From Kuala Lumpur to Penang to Johor Bahru and even Kota Kinabalu, there are already lots of choices and this is without including some other prominent towns too) According to International Living, “When you compare surgery prices between the US and Malaysia, the benefits are obvious.” For example, “A knee replacement in Malaysia costs just US$4,000 compared to US$45,000 or more in the States, while a hip replacement can cost as little as US$5,200, versus US$39,000 in the US.” Here’s another
article for reference in channelnewsasia.

Actually, this is not all yeah. One would also find friendly people and Malaysia is also aptly called “Malaysia, Truly Asia” because you could find grand celebrations for all the different Malaysians ethnic groups.

Here’s that full list of holidays

and just note that if you are here as a retiree (I refer to you as “
Enjoyee”
) , you basically get to experience it all, within the SAME country. I think you would also know that just as the celebrations are all different, it meant the food diversity is beyond MANY.

It’s more like ‘CRAZY’ number of choices.
Yeap, Malaysia has also been labelled as the most obese country in ASEAN
. Sigh… One may not want to do this (unless one loves bargains) every day but on a weekly basis, shopping can be a non-stop activity too. Malaysia happens to also be the
top 5 best shopping cities in the world! Here’s that article in Huffington’s Post.
 Oh yeah, because of the country’s friendly size, a driving trip around Malaysia is extremely easy too and one gets to experience cities to towns to even remote villages too. There are many more reasons but that’s for another day. Happy deciding between a retiree’s life or an Enjoyee’s life here.

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written on 4 April 2018

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MM2H Malaysia for Japanese, 3,346 here and ‘busier here than in Japan’

Assuming the day that you are retiring finally comes. Have you ever thought about things that you can do once you are retired? Would you sit around the typical restaurants every morning and drink Kopi-O with a few friends, chit-chatting until lunch time when you go home have a simple lunch by your wife and then continue with your Kopi-O session in the afternoon? At night, it’s an even simpler dinner, eating whatever is left from the lunch? There are some who’s doing this today, in Malaysia. I seriously do not think I will be doing such a thing when I am older. Ok, perhaps a day or two but definitely not for weeks, months and years until they day I bid farewell. It’s just so boring and unproductive!

In Japan, a quarter of the population are above 65 years old. Majority of them would live another 15 years easily which meant that whatever money they have would have to be sufficient to last them for quite a long time. If they stay in the country side, I think it should not much of an issue. 3,346 decided however to spend some of their time here, at least a huge portion of their retirement here. Sometimes you do wonder, when they really do move here, what can they do? Even the language might be a barrier! Well, fyi, besides these MM2H applicants, there has always been a sizeable Japanese expats here for a very long time.

When they are here, instead of the few friends they have back in their home, they suddenly have hundreds of new friends whom they meet on a regular basis and as usual, that camaraderie spirit is always highest when you are overseas. When I was in UK, a Malaysian is a Malaysian only, nothing else. That I think is the feeling that these Japanese MM2H participants had when they moved here. So much so that this was one comment. ‘I am much busier in Malaysia than in Japan. When I was in Japan, I used to pass time at home quietly sipping tea. Whereas here I am involved in multiple activities. I am having the time of my life here’, says Mr Aoyama, who is in his early 60s, during a singing session.

See the similarity with Malaysians? Instead of sipping Kopi-O, they were sipping green tea in Japan. Yes, quietly too. I think this is true not just for the Japanese but also for the Chinese from China, the Koreans from Korea and many more other nationalities who have chosen Malaysia as their second home, at least for 10 years or more. The cost of living, the quality of healthcare and the huge groups of friends here meant that the pull would always be there. I think MM2H is a very good programme. An article about these Japanese MM2H participants can be accessed here:  http://www.eastasiaforum.org/2014/09/03/japans-elderly-in-malaysia-like-shooting-stars-in-the-twilight/

written on 7th Sept 2014

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Latest on MM2H Malaysia. Rules are relaxed for current MM2H participants. Good news?

Remember all the NEW requirements for MM2H announced earlier? Here are all of them if you have forgotten them. Click to refresh.
All MM2H new requirements which are applicable even to current participants of MM2H
  Yes, it was hotly debated and everyone provided their views. In fact even the MIEA issued a formal statement on it too.
Reactivation of MM2H is applauded and here are MIEA’s views

Now, we have latest information for MM2H Malaysia

I think this should be a good news for property news Malaysia. At least we would have fewer MM2H participants who did not qualify for the the new rules selling their properties for a lower price than the market price. Selling it lower does affect other owners owning the same unit too. So, if they are not selling that’s considered good for the property market in general.

Article in theedgemarkets.com
  The government has relaxed its rules for existing participants of the Malaysia My Second Home (MM2H) programme. Out of the 10 new criteria, existing MM2H participants only need to adhere to two.

These two are the increase in annual fee to RM500, from RM90 previously, and the requirement to stay in the country for a minimum of 90 days each year. This was said by Home Minister Datuk Seri Hamzah Zainudin in the Dewan Rakyat on Tuesday. Hamzah gave his assurance to existing MM2H participants that they will not be bound by the other new conditions.

He added, “However, for all new participants, they have to comply with the new requirements of the MM2H programme to ensure that only those who are genuine, of high quality and can provide positive contribution to the country’s economic growth (are allowed to join the programme).”  There are a lot more details. Please read it here:
Article in theedgemarkets.com

Staying a minimum of 90 days per year is fair since this is their second home (if not the first)

90 days per year is roughly 3 months out of 12. It’s around 25% of the time within the whole year of 365 days. While I agree that many other new conditions will be hard for many MM2H potential applicants, I do think 90 days is a fair requirement. After all, MM2H does say Malaysia is my second home. So, staying 90 days in my second home every year should be achievable.

Staying 90 days would definitely encourage these MM2H participants to purchase a property too. Without the need to stay, then there’s really no need to buy a property because staying in hotels may be way cheaper. Now imagine staying 90 days in a hotel which may cost easily 90 days x RM300 = RM27,000 per year. That’s certainly an incentive to think about owning a place instead.

Yes, Malaysia is definitely a better place as a second home versus some other country names mentioned

We do not want to be just cheap. There are a lot of cheaper places. No need to talk about expensive, we are definitely not expensive too. However, we really do have everything when we speak about why MM2H Malaysia. We are also liveable, friendly Malaysians, full of diversity and for food, we are really second to none. I have been to close to 20 countries. I can vouch for that. For all the current MM2H participants, I am happy to have you here. Enjoy Malaysia. We can be a great second home or maybe even first home. Cheers.

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