5 new digital banks for Malaysians to love

Bidding does not mean winning

Many months ago, a close friend told me that his company is bidding for a digital banking license. His company is a listed entity. I told him that there are just 5 licenses up for grab and the winners are likely to be people with the banking experience and backed by a super huge partner with financial muscle. Without at least one or two of these combinations, winning a license may still be an uphill battle.

It’s not sure-success even for the winners

Please remember, digital bank does not mean they immediately become successful. The current banks already have digital services and they have the support of branches and also the experience as well as financial power. With their current profits, they could continue investing to ‘fight’ with new competitors even if the new ones are digital banks and looked upon positively.

Lots of investment may be needed

Thus, without industry experience, this new company will have to hire people from the banks (if they are rich, it’s easier. Else paying the same salary will be hard to do it) and later on will need to invest a lot of money to get people to know them, trust them and use them. Here are the 5 winners. (nope, my close friend’s company were not within the 5 winners)

Press Release from Bank Negara Malaysia here.

Bank Negara Malaysia (BNM) wishes to announce the five successful applicants for the digital bank licences as approved by the Minister of Finance Malaysia.

A. The following applicants are to be licensed under the Financial Services Act 2013 (FSA):

a consortium of Boost Holdings Sdn. Bhd. and RHB Bank Berhad;
a consortium led by GXS Bank Pte. Ltd. and Kuok Brothers Sdn. Bhd; and
a consortium led by Sea Limited and YTL Digital Capital Sdn Bhd.

B. The following applicants are to be licensed under the Islamic Financial Services Act 2013 (IFSA):

a consortium of AEON Financial Service Co., Ltd., AEON Credit Service (M) Berhad and MoneyLion Inc.; and
a consortium led by KAF Investment Bank Sdn. Bhd.

Three out of the five consortiums are majority-owned by Malaysians namely Boost Holdings and RHB Bank Berhad, Sea Limited and YTL Digital Capital Sdn. Bhd. and KAF Investment Bank Sdn. Bhd.

All 29 applications received were thoroughly assessed pursuant to section 10 (1) of FSA, and IFSA
[1]
, which require BNM to consider all the factors in Schedule 5 of the Acts and other relevant policy requirements. The assessment criteria cover the character and integrity of applicants, nature and sufficiency of financial resources, soundness and feasibility of business and technology plans as well as ability to meaningfully address financial inclusion gaps. Applications were assessed on their individual merits, as well as relative to other applications based on consistent evaluations of each assessment criteria. This horizontal review is based on the assessment criteria applied across all applicants to determine the relative strength of each application and identify successful applicants.

Throughout the assessment process, BNM instituted strict governance and evaluation procedures to ensure robust, objective and consistent assessments across all 29 applications received. Four levels of assessment were carried out, supported by a cross-functional technical team, a review team and internal independent observers from BNM’s risk and legal departments. The final recommendations to the Minister were deliberated and endorsed by BNM’s Management Committee.

Bank Negara Malaysia Governor Tan Sri Nor Shamsiah said, “Digital banks are expected to further advance financial inclusion. By adopting digital technology more widely for everyday transactions, we can significantly increase opportunities for our society to participate in the economy – by overcoming geographical barriers, reducing transaction costs and promoting better financial management.”

“Digital banks can help individuals and businesses gain better access to more personalised solutions backed by data analytics. As businesses move online, digital banking also provides a safer and a more convenient way to transact,” she added.

Following this announcement, the successful applicants will undergo a period of operational readiness that will be validated by BNM through an audit before they can commence operations. This process may take between 12 to 24 months.

In line with the 5 strategic thrusts stated in the Financial Sector Blueprint 2022-2026, BNM will continue to work with the financial and fintech industries and relevant stakeholders to continuously enhance access to financial services throughout the country and across all segments of society.

[1]
 FSA and IFSA: Section 10. (1) In assessing an application duly made under section 9 to carry on any licensed business, BNM shall have regard to all the factors set out in part 1 and Part 2 of Schedule 5 and such other matters that BNM considers relevant.

Bank Negara Malaysia
29 April 2022

— end of press release —

Yes, I would definitely be a customer to some of these digital banks

I have been a CIMB Preferred customer for a long time. This is unlikely to change. I am also a customer of a few other banks because of my home loans with them. Somehow some of them offer me better rates than CIMB during the time of application. However, I do think that there may be many innovations from these new digital banks apart from the almost certain higher returns if I leave my money in these digital banks. (They are supposed to have lower operating costs).

Who knows, my future home loan could be from these digital banks too! All the best yeah. Be ready to offer the best services to all Malaysians and beyond.

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

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

Next suggested article:
Property is no longer a key retirement asset

Header Image by
Joseph Mucira
 from
Pixabay

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Digital marketing? Here’s that awesome 60 seconds online happenings.

This afternoon, I saw a super huge billboard along the road I was driving (don’t want to tell you where) and the advertisement was about a FB expert. Yeah, he is selling his FB digital marketing services and he is telling everyone who sees the billboard that he’s the expert. So, the digital marketing world is also now in the offline world too.

The below image from
visualcapitalist
 is a super amazing one because it tells us what’s happening on the internet every 60 seconds. For those who are as ‘mature’ as me, you may note that even connecting online with that special internet modem sound would actually take more than 60 seconds. Haha… Now, the below are all the things which are already happening every 60 seconds.

Some of the items, we are not that familiar but let’s run through some of the familiar ones shall we? In 60 seconds, these happened:

#1 – Zoom hosts over 200,000 participants in meetings…

#2 – Instagram had users posting 347,222 stories…

#3 0 YouTube has users uploading 500 hours of videos. (WOW!)

#4 – Consumers have just spent US$1 million online…

#5 – Facebook users shared 150,000 messages!

#6 – Amazon ships 6,659 packages (amazing…)

#7 – Nearly 1.4 million people made video calls!

#8 – Whatsapp? Over 41 million messages were sent through Whatsapp.

For the rest, do click the image to read yeah. By the way, with the ever faster internet speed and the fact that more and more people are depending on online nearly all the time, it will get even more
interesting when visualcapitalist
were to show us this same themed image again just 2 years later. I do wonder how many of the things in the image today will still be around in the image 2 years later.

Yes, I do believe digital marketing is here to stay. I do believe that digital marketers would have lots of jobs to be done today and in the near future. The only issue may just be how to stand out from everyone else since everyone would now be attracted to become a digital marketing expert too. Are you thinking of becoming one as well? Well, there are many of these digital marketing courses online too. Happy moving in strongly.

Love to be updated on all investment news? Please LIKE
kopiandproperty.com FB page
 to get daily updates about the property market beyond kopiandproperty.com articles.

Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)
 Else,
follow me on Twitter here.

Next suggested article:
Should I be worried with property market postCOVID-19

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Ready to dine-in? 20th August 2021 is the day. Only for certain group yeah.

Waiting to dine-in? Ready to dine-in? You have the money but not the place? 20th August 2021 is the day when people could dine-in IF they have been fully vaccinated. Definition as below.

According to caretaker Prime Minister Tan Sri Muhyiddin Yassin, Malaysia has reached the threshold of having 50% of its adult population fully vaccinated. Therefore, there is now a further relaxation of standard operating procedures (SOP) under the National Recovery Plan (NRP). This has been agreed upon at the National Security Council (NSC) meeting on Thursday (Aug 19 2021).

Fully vaccinated individuals will now be allowed to dine-in. This is applicable even for states under NRP Phase 1. The meaning of fully vaccinated meant that you have received the full doses (Pfizer, Astra Zeneca and Sinovac) and it’s already 14 days after the second dose. If you are one of those who took CanSino, Johnson & Johnson, then it’s 28 days after the jab.

Image as below from
Majlis Keselamatan Negara (MKN’s FB page)

It’s not just dine-in yeah.

Sports activities are allowed for jogging, taichi, cycling, skateboarding, hiking, tennis (singles), badminton (singles) etc. Camping is also allowed too. Pasar Malam and Pasar Minggu are also open for anyone who’s fully vaccinated. I personally think it will be super hard to ensure SOP compliance in these pasar malam or pasar minggu. Please really think thrice and only go if there are really no other choices. This is not like dine in where the distance between table can be determined yeah.

To all the fully vaccinated ones, happy enjoying this new flexibility. PLEASE NOTE that there are no such thing as fully vaccinated means would not get infected yeah. The probability will always be there and this has been shown in all countries regardless of what brand of the vaccine which they have access too and that includes even that one everyone think if the best vaccine brand. (totally not true by the way). Hopefully we can reach 60% by end of August.

Last but not least, we are NOT YET at a safe stage yeah.
This opening is for livelihoods of many people, else they may not survive without any income. Please refer to message from our DG Noor Hisham Abdullah yeah.

Image: NST

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

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

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

Next suggested article:
We really do need to live with Covid-19

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Dine-in? Fake vaccination cert will be an issue. Solve this please.

Someone said to me the other day that if the government allows dine-in only for fully vaccinated people, surely many unvaccinated people will also ‘cheat’ their way into the restaurant too. I told him that humans will be human and this will happen anywhere, even in the most advanced nations.

Anyway, he is one of those who think Malaysia is the only super special country in the world where we are the only country where SOPs are not followed. I WONDER WHY HE THINKS SO.  🙂  Whatever. I will NOT want to dine-in with unvaccinated people. These people are free to stay home once dine-in is allowed in Selangor.

So, for me, there must be a way to determine who’s actually vaccinated and who’s not and the restaurant better be very vigilant. For the ones who tried to fake their way in, take their photo and send to police. Make sure this is highlighted extensively so that the rest of the unvaccinated people would not dare to try and fake their way in. By the way, it has already happened in an advanced nation…

Article in thestar.com.my
   The Empire Eats Group, which owns eight brands of restaurants and bars including Standing Sushi Bar, Tanuki Raw and The Secret Mermaid, had guests who did not understand the requirements, and even some who tried to hoodwink their staff.

The Group’s director Howard Lo said, “We encountered some people thinking they can dine-in while unvaccinated if they are in a group of two; we also had a small number of people who presented fake certificates or insisted they’re fully vaccinated before the 14-day milestone.”

Lo also shared that one used a doctored HealthHub printout paired with a vaccination card that belonged to a person of a different name.  He said, “When caught, they left willingly, but they were unhappy.” He added that they were worried that they would be penalised. Thus, they are very strict in enforcing this requirement; only fully vaccinated customers are allowed entry. There are many more details in the article:
Article in thestar.com.my

Now, do we understand that people will definitely try?

Personally, I would not go to any restaurant where I see that they are very lax with their checking of all the diners. By the way, I would ALSO report these restaurants if I know they admitted anyone unvaccinated too. So, for all the restaurant owners, you either be very strict or get ready to be fined and then forced to shut down.

For the unvaccinated people, now it’s already a WALK-IN. The choice is yours yeah. It’s also your right NOT to get vaccinated. It’s my right NOT to enjoy a latte at the same place as you. By the way, I disagree with any rewards just to encourage people to get vaccinated. That’s a foolish measure implemented by some advanced nations and it is not needed here. Thank you for enforcing my right as someone vaccinated.

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

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

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

Next suggested article:
Latest happening and the update after vaccinations

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Direct flights – Penang to Bali?

I checked. There are no direct flights currently and all airlines must stop at KL first. I do not know why are there no direct flights between these two awesome cities but I seriously hope that the authorities do something about this. There are several reasons why this is very important for Penang. Of course I am talking about benefits for Penang lar. I am a Malaysian. Bali is an international tourist destination. I have been to Bali three times. I find it intriguing but Penang is nowhere inferior. The only inferior point I can think of is perhaps the beers in Bali is cheaper than Penang.

If there are direct flights, this would bring up the economy for both cities and for Penang, this meant that besides just Medan there are now another source of medical tourists. Bali is visited by a lot of Australians who would definitely feel at home in Penang too. I am quite sure some Penangite parents may want their sons and daughter to study medicine. Bali can be a close enough choice not to mention much more cheaper too compared to a lot of other places. Russia may be good but it is so far away.

If there are direct flights, indirectly this would also bring up the profile of Penang because there’s really nothing inferior, just that perhaps not as well known. The last I checked, Georgetown is top 10 most liveable city in Asia. It is also one of those exclusive UNESCO Heritage sites which everyone must visit at least 2 times before they die. Why not once? Are you joking? If a tourist has visited Penang once before, do you think once is enough? Thus, twice. Haha. Plus the food is also locked in a forever debate with a city down south, Singapore. No need to ask, WE know which is much more delicious.

Foreign property purchase in Penang remain to be small. Perhaps with this, a few more units of the high end ones may find buyers too. Hopefully this will come true in the near future.

written on 23 dec 2013.

Next suggested article:
Penang property vs Tokyo Property

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Fireside chat: Direction of the property market. Positive? Negative?

What do you think of the direction of the property market currently? What do you think will happen in the future? If you like to just spend 40 minutes listening to me talking about property, happy listening yeah. This was the Fireside Chat session with my good friend Ernest Towle. Yeap, it’s a frankly speaking session. 🙂

The video is here:

Let me know what other topics you think I should do, perhaps will do a video and post it later.

Property investment is long-term yeah. The direction of the property market as long as we bought a typical property is always good because of the value of money a.k.a inflation.

Photo by Pixabay on
Pexels.com

Please do not try any sudden get rich scheme unless you really understand that the price you enter is truly below the market and was not a marked up and later discounted price later on. If the development was overpriced and there were a few hundred buyers getting their keys at the same time, it will be messy and the property price will usually be trending downwards. By then the property expert who told you to buy is not responsible. It’s the market issue yeah.

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

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

Next suggested article:
Best time to buy a property? When yeah? 2025?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Discounts for properties up to 50%? Where and Why.

When a close friend sent me an article from
freemalaysiatoday.com with this title, “Houses at half-price, anyone?”
 I already guessed the content with accuracy of around 68% (simply give you a number) even before I read it. After reading the article, I wrote this to her. “Sell me your [property name] at half price you bought, I sign today.”

Her response? “OK. I bought at 1.4mil. so I sell u 700k.”  My reply, “As long as u show me the original SnP, sure ON!!”

Her response? “Let me find…”  Yes, what she meant was that she will NOT be selling me her condo which she bought for RM700k at RM350k, even if I am her close friend.

Actual conversation below:

Yeah, I failed to buy her condo at 50% discount. Haha.

Article in freemalaysiatoday.com
   How low could discounts on properties go down to? KGV International Property Consultants Executive director Samuel Tan said the percentage of discount for overhang units is higher.

In early June, Chinese developer Country Garden Pacificview Sdn Bhd advertised its Danga Bay, Johor Bahru, project at 50% discount for about six weeks. Earlier buyers were angry. New buyers were delighted. A Singaporean buyer, Hassan (not his real name), who bought an apartment unit in 2015 for RM1.82 million, was shocked and upset. Overnight, his unit was worth about RM900,000. Please do read the full article for more details yeah.
Article in freemalaysiatoday.com

Current Property Market?

Generally, the property market is rather stable. Many buyers who are familiar with the market are buying undervalued properties. There were 80,000 property transactions in Q1 2021. Some needed a property, so they bought. Some needed a bigger place, so they upgraded. Some bought because of some good discounts too. That’s why there were 80,000 property transactions.

Some buyers may not be familiar with the property market

Many buyers who are not familiar with the property market continue to believe some owners would soon be selling them their dream property at their dream price. By the way, when a financial crisis do strike, there is a chance for many more owners to sell their properties at a discount to the market price. However, if a financial crisis do strike, how many would dare to buy a property? Better just stay safe… right?

Due Diligence needed even if there’s heavy discount

I always tell everyone that when we buy anything at all, do not look at the discount percentage but the value of the thing you are buying. Do not buy a property simply by looking at how big the discount is. For overhang units, by selling, the property developer gets cashflow. It may be more important than holding the property and having no cash.

I would buy a shirt from the brand I love (because it made me look good) and NOT buy a shirt from an unknown brand just because it came with a huge discount. Hopefully, you realise that property is so expensive that due diligence is needed. Compare the prices to all equivalent properties. If it is undervalued, that’s a good buy even if it does not come with a huge discount. Happy deciding.

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

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

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

Next suggested article:
Why buy secondary property? Advantages are many too

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Discovery Park by Gamuda to be ready in mid-2019

New townships are in focus these days. They are usually found over 30 minutes from the city centre. This is where developers could have a large piece of land for developments over the next 10-15 years. Every developer is trying to build up the attractiveness of such a township because they are usually not your typical mature neighbourhood which has been around for a long time.
Earlier article here on why buy into townships.

Full article in Edgeprop.my here.
Gamuda Land is building a 50-acre Discovery Park within its 1,530 acre Gamuda Cove development and it intends to make this into the next tourism and entertainment hub in the Southern Klang Valley after it starts operations in mid-2019. Gamuda Land CEO Ngan Chee Meng said, “Part of the Discovery Park will starts operation in mid-2019 and the park development is expected for full completion in 2020.” There are 6 key strategic partners too including Aerophile, AKA Balloon, Blastacars, Invade, Kitchen Mafia and Caravan Serai. They will be participating in Discovery Park’s development with exciting offerings. He shared, “The Adventure Park is the vantage point for thrill seekers to enjoy lush greenery of the adjacent Paya Indah Wetlands and
Kuala Langat
 forest reserves through various adventure offerings, such as Malaysia’s first tethered hot air balloon operated by AKA Balloon, indoor go karting in Blastacars Drift Karts, mountain bike or all-terrain vehicle (ATV) riding, outdoor glamping with Caravan Serai and climb through adventure rope course.” He added, “They (the six partners) are just the beginning, there will be more exciting offerings in Gamuda Cove in near future.”
Full article in Edgeprop.my here.

With the current rate of urbanisation, especially from other states into Greater Kuala Lumpur, I think the demand for property will continue to push developers to do more to attract these newer generation of buyers. If we are to look at how Sydney and Melbourne is growing, we will notice the same phenomenon. Homes are being built further away but with connectivity, amenity and many times, something extra for everybody. Malaysians are not used to the word suburb but I think suburb will be the keyword for a long time to come. It used to be ‘so far away’ comment because there’s nothing much once one moves out of the city centre. These days, it’s worth a serious look. Happy visiting the Discovery Park next year.

written on 27 Nov 2018

Next suggested article:
Gamuda Cove’s RM20 billion GDV development of next 20 years

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Disneyland in Melaka? Disney says…

Disneyland in Melaka? Disney says…

Well, someone announced it. Media reported it and now Disney has also given their clarification. Briefly, they said, NO. As for how did this Melaka exco got the nerve and confidence to announce such a news is beyond me. Probably need to wait for his own explanation then. Amazing run around the garden indeed. That earlier announcement and also Disney’s clarification here:
https://www.thestar.com.my/news/nation/2022/11/17/disney-no-plans-to-build-disneyland-in-melaka

My Disneyland visits (real visits, not some dreamy announcement)

I have been to two Disneylands thus far. The one in Paris, France and the one in Hong Kong. Latest photos of both of them as below (from their site ok…)  If you are thinking of going to the one in Paris, go ahead and book tickets!
https://www.disneylandparis.com/en-usd/
  If it’s the Hong Kong one, here’s the link:
https://www.hongkongdisneyland.com/?located=true

Do bear in mind that for Hong Kong, there’s the 0+3 arrangement to prevent Covid from getting out of hand. Read here for the tips to handle the 0+3. Article:
Travelling to Hong Kong. Tips to handle the 0+3

It’s the 30th anniversary of Disneyland Paris

As at 17th Nov, HK Disneyland is running a promo for the 2-day ticket

What if Disneyland really does open in Melaka?

Disneyland Hong Kong received 6 million visitors per year before the pandemic hit us.
Stats source here.
 Meanwhile Disneyland Paris, France received aroud 10 million visitors per year.
Stats source here.
 Let’s assume that Melaka will receive half that of Hong Kong’s visitors? That would be 3 million per year. It’s still around 250,000 visitors per month and that’s a substantial number for Melaka actually. Melaka’s population is around 550,000 yeah. Before pandemic, it used to receive close to 14 million visitors per year BEFORE pandemic.

If Disneyland could attract even more tourists, that means even more accommodation is needed. Even more chicken rice ball restaurants have to be opened. Even more Nyonya restaurants have to be opened and everything lah. So, yes, it would bring lots of economic benefits to Melaka if it does come.

Would Disneyland come to Melaka?

Actually all these theme parks do not just choose a place in the middle of nowhere to open one. It has to be at a place where there are already existing infrastructure and connectivity. INTERNATIONAL airport for example. HIGH SPEED TRAIN for example… and well, all the other roads and perhaps even some cruise ships as well? These are issues yeah. Melaka does not have an International Airport, does not have a High Speed Rail station and does not currentl receive international cruise ships. So… perhaps these should be answered first before we talk further about anything else.

Well, we can always wish and hope that the happiest place on earth would one day be open in Malaysia or Melaka specifically.

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

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

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

Header image:
https://www.pexels.com/photo/red-roller-coaster-1208055/

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Happiest place on earth (Disneyland France) is now silent

Disneyland says that they are ‘the happiest place on earth.’ I have only been to one Disneyland thus far. It is Disneyland France. I could still remember that boat ride where we went around the world and the song ‘It’s a Small World After All.’ was played. Plus that unforgettable roller-coaster ride which I dread until today. At least I opened my eyes wide while my wife closed her eyes. She was the one who ‘forced’ (I meant, encouraged) me to go for the ride with her. Else, she would have to sit with a stranger. Argh….

This youtube video was not done by me but shows you what I went through yeah. Just feel happy, okay. It’s Disneyland after all.

Latest news about Disneyland France. It’s not doing well. Anyway, I do think all theme parks would be struggling currently.
Article in thestar.com.my
   Disneyland theme park in Paris is now closed until at least mid-February because of France’s COVID-19 restrictions.  Owner of four restaurants near the theme park, Tomica Vajic said, “As long as Disney doesn’t open up again, as long as there are no tourists, there’s no point crying victory even if we were able to open tomorrow.”

Val d’Europe is a group of small towns around the Disney site and it is home to about 50,000 people. There are several shopping centres too. According to authorities, including the malls, Val d’Europe and Disneyland, the number of tourists visiting it every year is higher than Louvre Museum and Eiffel Tower added together. The visitors to the theme park has dropped to about 5,000 on summer days versus 60,000 during peaks. Do read the article here:
Article in thestar.com.my

Will it be back to normal?

Photo by Zichuan Han on
Pexels.com

Perhaps I ask all of us a question. Would we stop visiting Disneyland when COVID-19 pandemic has passed?  No.  Would there be a new theme park which will get all the visitors from Disneyland and it could open immediately after the COVID-19 has passed?  No. Would we prefer to continue staying at home and visiting places by looking at videos versus going to the actual theme park? No.  I think the answer is quite clear.  As long as Disneyland is reopening after the pandemic, visitors are going to continue visiting.

How till it affect the property market nearby Disneyland?

Imagine no tourists. It meant no one’s coming. If no one’s coming, then no one’s staying. In other words, there’s no need for accommodation and all these operators are surely in the red because there are still fixed costs to be paid. If they wanted to sell those properties, then they would have to find buyers who could hold or are buying to use it for other purpose. No one thinking of turning into an accommodation immediately would choose to buy at this moment

Conclusion

Happy understanding this little fact about all these tourism related businesses yeah. Not just in Disneyland Paris but everywhere all over the world where COVID-19 are currently wreaking havoc. Perhaps the only important thing now is how to survive long enough so that they can continue to gain business when times are back to normal. When I could, I definitely would continue visiting and helping in its recovery.

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

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

Next suggested article:
Worried. I paid so much but mostly for interest. Did I lose money?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Distance and Duration, the two major considerations for a home.

Is this a choice between either one? Distance and Duration?

Must be a perfect choice, yeah?

If given a choice, everyone would love to stay a few minutes away from everywhere they love. The home should be of decent size to accommodate 2 currently and 4 in the future and even the occasional 8 if their relatives come visiting. It should be near their favourite food places, their working place, their most-loved supermarket, few minutes to the kid’s school and even as near as possible to the North-South expressway (PLUS) so that they could use it to go back to their hometown if they go back every week.

Must be affordable lah

Oh yeah, last but not least, after having all these conveniences, everyone also wanted the price to be affordable. I am very sure some of us have all these which I talked about. For majority of us, it’s a mixture of some of them usually. Today, let’s just talk about distance and duration. We need to start realising that the population growth in Klang Valley is not because of the birth-rates alone. It’s because of the hundreds of thousands of migration from the smaller places to the Klang Valley for study and work, usually.

Thus, demand is not just within the traditional areas because these new folks do not have any attachment to these more mature neighbourhoods. They just want a good place to stay and they may find their new favourite restaurants etc later on. Today, we look at three areas which is always featured in those top 10 most searched areas and all are around 35km away from KL city centre. We also use 730am as a peak-time since that’s off to work time.

Look closely and you may realise that the jam is that RED coloured thing at Jinjang and it’s not at Rawang side. So, using the PLUS expressway, it’s 37km and it may take between 30 – 50 minutes. Now do we realise why when people look for landed homes,
Rawang is always one of the logical choices to consider?
 Duration and Distance lah.

When we look closely, we could also realise the RED coloured road is not anywhere near Shah Alam. It’s in Subang area. For Shah Alam, it’s also taking between 30 minutes to 1 hour to reach the KL city centre. I have many friends staying here and I think this has been a popular choice for a very long time. In fact Duration and Distance was one of those factors at play here too.

If you are wondering, Semenyih is in Selangor yeah. This is the place where two of my good friends are staying. Yeah, the development is by that developer starting with E… 🙂  Distance wise, it’s similar to both Rawang and Shah Alam but the duration would be far longer and again, the two RED coloured areas, those are in Cheras and Pudu respectively. Duration wise, it’s between 35 minutes all the way to 1 hour and 20 minutes. So, it does seem that out of the three choices, this may be the most unpredictable of all. On good days, almost similar. On bad days, much longer duration is needed.

Just use Google Map… anytime

Google Map is available for free yeah. There’s really no need to keep saying someone else’s choice is too far away because if their place is an extra 10 minutes further than yours, but it costs half the typical price, then that further away place will continue its growth too. Affordability will always be key as majority of Malaysians are working people. Happy loving the nearby places or the further away places. Diversity of choices is the best.

Love news like this and more?
Sign up for daily investment news updates.

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

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

Next suggested article:
You Complete Me. Circle Line’s coming to complete Sungai Buloh and Putrajaya Lines

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Price is an issue. 2 choices; Distance vs Size.

It’s important to note that the Malaysian property market is not under the ‘advanced’ category. Advanced property market would definitely refer to those in advanced nations such Australia… think Melbourne and Sydney and to a lesser extent, Perth. It’s also London in the UK, closer to home we have Singapore and the top few in Asia includes Hong Kong, Tokyo and Shanghai. What can we learn from these places is this. It’s always a choice between distance and size.

Where do property prices rise first?

A home which is within the central business district (CBD) will always start to become expensive. People would then buy a little further from the CBD. As the CBD got even more expensive, these places near CBD will also get more expensive and people buy even further away. This is also why the term called suburb came about. This is also why there are today many huge townships away from the KL city centre as well. Of course, it does not have to be further away yeah. We just need to manage our size expectations.

What if KLCC and Rawang is the same price?

If KLCC and Rawang is the same price, then I would personally buy into KLCC instead. However, if we look at many of the studies, Rawang has shown that it has also become a property choice too. The reason is back to distance and size. When one prefers size instead. Say, a double-storey terraced home at lower than RM500,000.
How many cars can a double-storey home park? Here’s that earlier article.
By the way, a typical landed home can still park two cars. If it’s a small-sized highrise unit, then the car park space is likely to be just one (1).

What if we insist to stay in KLCC?

If we try to use the same amount of money to buy a home within KLCC or very near to KLCC, then this RM500,000 is likely to give us only a few hundred square feet. Lesser than 500 sq ft. Let’s just safely conclude that this home is not likely to be a new property too. We may have to buy some units which are older instead. The reason is because of the price per sq ft is already many times higher in KLCC vs Rawang currently. Thus a 350 sq ft place at RM1,500 per sq ft would already be over RM500,000. There are properties which are even more expensive than RM1,500 per sq ft.

Stay in KLCC or stay in a home with KLCC view?

When we look at the market in general, most buyers / renters will have to base their decisions on price. Well, except for those who could afford anywhere they want. Else, how much we earn on a monthly basis determines where we could afford to buy and stay. Want to stay next to KLCC?  Be a successful businessman. Alternatively be a senior manager of a Multinational organisation. Else, go for KLCC VIEW instead… (the further we are away from this view, the cheaper it will be too)

It’s the same everywhere, price determines the distance and size

Developers are forced to build and price the properties at the lowest possible price. Land cost is not on their side when they buy the land parcels nearby KLCC today. This is why we do see some projects having thousands of units because they just have to make it affordable. Imagine a Gross Development Value of RM1 billion and 1,000 units? They have to sell at RM1 million per unit. If they could build 2,000 units with the same GDV, they could price it at RM500,000 per unit. If they build 3,000 units instead?! It’s now RM333,333 per unit.

We will never be used to any units below 350 sq ft.

In Hong Kong, the typical unit size could be as small as 150 sq ft. In Malaysia, even for someone who’s single, I do not think we are at the stage where we could accept anything below 350 sq ft easily. However, all these would continue to be determined by price pressure. At this moment, there’s none. Everyone’s too busy staying home currently. Happy choosing between distance and size for that home sweet home which we could afford once we could move around again. Take care and stay safe.

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

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

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

Next suggested article:
Bankruptcy in Malaysia during the MCO period. High or low?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Distortion of property values when prices are artificially inflated.

There was one recent article which talked about distortion of property values. It was about cashback and The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) president Michael Kong says that  those who inflate prices to make cashback offers aimed at enticing homebuyers must be closely monitored by the authorities. He shared that this has been a long time problem in the real estate industry. Please read the full article in
 freemalaysiatoday.com
 here.

As this was an interesting topic, I have also gotten the views from FIABCI President (Malaysian Chapter) Sr. Michael Geh. He gave his frank opinions as below which I think reiterates to us again that ALL stakeholders who are involved must play a part in eradicating this potential longer term issue if this is allowed to continue. Potentially property prices may become higher because of the price expectations if people were unaware of the effects of cashback. Geh shared the following:

“When the practice of CashBacks are in the Rm20k to RM50k with the Moral of assisting the homebuyer with little cash to purchase & move in everybody in the Property & Banking closed one eye.”

“But today the Practice of CashBacks puts From RM100k to RM1 Million into the pocket of the Property Purchaser, by  Signing a Higher Sales & Purchase Agreement & guaranteeing the Loan Amount.”

“This Practice Creates a Distortion of Property Values of the Subject Project and artificially inflates the market value of the subject property.”

“In an economic downturn The Market Values of these Newly Purchased Properties can tumble up to 50% & this will create ripples of Problems for the Banking & Financial system. Therefore The Banking System must make a stand on this practice in order to preserve the quality of mortgaged asset values before it this problem becomes chronic  beyond  salvation.”

Everyone needs to understand yeah, money cannot appear from the sky. Banks want profits, they would not give you free money. Developers need profits, they would also not give you free money if they have to lose money. Real estate agents? They need their commissions too and definitely will not give you a cut from their commission when you buy a home.

Still wondering where the money comes from then when someone hands you a huge cash back? Where you need not pay anything but get money back? It could just be distortion of property values and this could be dangerous yeah.

If quick profit is the sole reason to invest, then I tell you for the 1,488th (simply put a number) time , property investment is NOT one of it. There are so many of those super fast kind of returns even if I am not sure how to call that as an investment yeah. Happy investing, really!

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

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

Next suggested article:
Investment is aimed at replacing our day jobs?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Ditching landed for facilities? Perhaps not so soon.

I am currently staying in my wife’s home in Sandakan. It’s a landed property that she has stayed since she was still in primary school. I told her that I wanted to do some brisk walking in Sandakan a few days ago. (Eating too much food, must exercise a bit) However, it was raining and I told my wife, sadly. She answered, ‘why not jog in the gym room in the condo then?’ That was an excellent idea actually. I have forgotten that I could access the gym in my condo unit. It was a weekend and as I was using the gym which faces the pool I could see the people using the pool. There were two particular segments, families with kids and the elderly. The family with kids are noisy as usual and the elderly (a man and a woman) were swimming at a leisure pace for around 20 minutes. I think Sandakan people may like to stay in high-rise, especially condos. I THINK.

Later, I posed a question to a few relatives and friends. ‘Would you move to a condo from your current landed home?’ 100 percent of them answered, NO. My next question, ‘Would you still buy a condo if it’s reasonably priced so that you can rent it, use it as a holiday home or even just to have access to the facilities it offers? This time, most of them said,YES. How much is reasonable then? Well, the current prices being advertised for the condo of 1,131 sq ft hovers from RM343k to RM350k while the developer are also selling some remaining units for close to RM400k. In other words, it’s just slightly over RM300 per sq ft. Perhaps that’s because the land used to be oil palm plantation and thus it’s cheaper than when developers needed to acquire the land before building on it. Of course when we compare this to KL, it’s cheap. Note that the area that this condo is in is considered a more premium address than many other areas within Sandakan. In terms of prices for landed properties within Sandakan, especially for semi-detached which are not new, the prices as per image attached beside. (Info from mudah.my)

From the prices of these older homes, I think the demand for landed homes is still by far higher than that for high-rise. In fact when we look into secondary or newer areas, the prices for terrace homes may be near to the high-rise. In other words, from the people I saw during my gym sessions for the past few days, I think some of them are choosing to stay in condos because they have been exposed to the condo lifestyle or they may have kids and would like their kids to have more space to run around and even have some family fun-time whenever needed. However, I think MANY of them may also own a landed property somewhere nearby too and happened to just buy a condo to enjoy the facilities. Ditching landed for facilities is unlikely to happen to the relatives and friends whom I asked. I think that applies only to me. Actually, this is true not only for Sandakan but also for Ipoh and many other smaller towns. Changes will not be happening anytime soon because the number of people moving into these smaller towns are not actually growing. In other words, demand will not be growing a lot and people already staying would likely maintain the status quo. Happy visiting Sandakan.

written on 7 Feb 2017

Next suggested article:
Easter’s Busan – Kota Kinabalu starts. Now 35 international flights

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Malaysian economy? Always watch ‘Services’ and ‘Manufacturing’

I have written about this two or three times. It’s okay, let’s repeat one more time since this time it was announced during a Bank Negara Malaysia press conference by none other than the Bank Governor herself. She said, ‘domestic demand is anchor and driver of growth.’ Period. Without any doubt, the just announced 6% growth for 2014 did not come from the fluctuating oil price. It definitely did not come from the plantation sector because it was way below the 6%. However, the growth came from the following industries.

Services sector – expansion was seen across ALL sub-sectors

Manufacturing Sector – growth supported by export-oriented industries, especially the in the electrical and electronic clusters.

Mining Sector – This is up though oil prices decline. Higher crude oil production contributed to this because the production increased 13.6% year on year.

Agriculture – lower palm oil production with the floods.

Looking at the above, the reason why domestic demand remain strong was because the oil and gas industry made up just 1% of all employment. Meanwhile the services together with the manufacturing sectors accounted for 87% of the country’s employment. Please note these two sectors from now onwards, if they are down, we have better be careful.

Current positive fundamentals include low inflation, favourable employment conditions, low external debt and ample international reserves. Note that she also said that the drop in oil price has affected Malaysia without any doubt but for the past many years much effort has been put into diversifying the economy, the exports and even the revenue base of the government (GST coming too). This helped to push domestic demand to be a key driver of the economy. Note that domestic demand is one key reason why countries like Indonesia and Thailand has been growing continuously too.

Next she said something which I just told Ken of penangpropertytalk.com just over one week ago. I told him that with lower fuel prices, every car owner would have more money to spend. I do not think they will keep or save the money. Most probably it will go into buying new items. Thus perhaps we should buy some consumer related stocks. He laughed and agreed. Tan Sri Zeti said that moving forward, the domestic demand would sustain as the lower fuel prices would contribute to higher disposable income of around RM7.5 billion.

Nevertheless, total foreign direct investment (FDI) dropped slightly from RM8.2 billion in 2013 to RM35.1 billion in 2014. The FDI is no longer into the manufacturing but was instead into major economic sectors such as manufacturing, mining, services, financial, as well as wholesale and retail trade sub-sectors. Long time ago, majority of all FDIs were always into manufacturing.

A much more detailed reporting can be found as follows:

Weak Ringgit does not reflect fundamentals – TMI

Zeti dispels oil rout – The Star

Economic fundamentals remain strong – FMT

Yes, as at now I still think the economic growth is intact even if it will be slower than 2014. Yes, I am not one of those who sold more than bought. In fact I think some of you may have read my articles that my involvement with stocks has increased a lot beginning end 2014.  Yes, I promise not to be lazy and will start looking at secondary properties to buy after Chinese New Year. Hope I am right, as usual. Happy Holidays soon….

written on 15 Feb 2015

Next suggested article:
Suddenly, now everything’s good? Haha.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Why should we diversify our investments? I think the answer is, it really depends on us.

Just have all my money in FD (Fixed Deposits)?

Should I have money in the Fixed Deposits? Yes.  How much should I put in there? Some say 6 months, some say 12 months and some say more. Just manage our expenses and I think 6 months is probably that minimum amount we should have.

Just rent since renting is cheaper

Should I own the place I stay versus renting my whole life and paying rental till the day I say bye-bye? Yes, buying seems expensive (monthly repayment versus the rental we are paying) but renting is forever. The tenant seems to be enjoying and the owner seems to be suffering but between the two, only one enjoys a potential capital appreciation if the home price increases.

Simply split the money?

Should I just split all my money into different assets and is that called investment diversification? Not really. That’s call splitting. Investing means you REALLY know the reasons why you invest and what you are really looking for. Now, let’s listen to two financial professionals on what they think about investment diversification and what it really is.

Article in themalaysianreserve.com
  One should reduce portfolio risks. MIDF Amanah Investment Bank Bhd VP and head of research Imran Yassin Md Yusof said, “We believe that diversification of assets is an essential investing strategy regardless of the situation. This is in order to limit any downside risk, as the diversified assets will average out any losses from one asset class with the profits of another performing asset class.”

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors must be clear about the type of assets they want to venture as each one would carry its own risk-reward profile. He said, “Therefore, it is a combination of many factors before one could really diversify into different assets. This may also include your financial goals and the liquidity requirement.”  Please do read the full article here:
Article in themalaysianreserve.com

Question is, do we want to invest?

This is a tough question because everyone wants profits but not everyone wants to invest. Investing is as interesting as watching the grass grow. That’s investment. It means that time is really needed. It also means that we understand what we are investing because all of us know that grass do grow, just that it grows slowly. However, if we believe investment is buying as much seeds as possible, dump it into the ground and tomorrow many fruit trees would start bearing fruits, then it’s proven that we are not ready for investment.

Investment is essential because inflation is eating away everything we earn today in the future. Unfortunately, savings alone is no longer enough because we need more money as we have a much longer life expectancy these days. We are fortunate that we have more time to enjoy after our retirement. We are unfortunate because now, ‘money is not enough’ term will be with us in the near future. Thus, please do invest and yes, diversify the investments. Just put all money into property investment is not enough and vice-versa for the stock market.

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

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

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

Next suggested article:
An update of the Malaysian property market. Just charts for reference

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Do it successfully or stay back and enjoy

When we google for some information, google will return some results. Most relevant ones on the first page and so on. When we click into one of those results, the website we clicked to may get the ‘search term’ we used. This helps google to learn and the website to churn out more relevant contents for future searches for example. I use WordPress as my host so it does give me some information about my readers. This morning, at 11am, someone searched
‘how much salary property agent malaysia’
and the person clicked on one of the search results which happened to be kopiandproperty.com

About the question of how much salary a property agent gets. Frankly, if we want a basic salary, stay with a company providing a basic salary. The benefits are plenty. We do not need to worry about whether we have money to pay the bills or not. The salary is credited into our account by our company every month. Every year, even assuming we did the same job and did not bother to upgrade ourselves, we get increments unless the company is in trouble. If we are a performer, we may get better increments and promotions and the money is pretty okay too. Someone with a salary of RM10,000 per month with an increment of 6% will now get RM600 extra every month! If the company does well, we get annual dinners and trips too. This option is ‘sheltered.’ Good for many but may be too stable for some. For these people yearning for higher and faster kind of pay, then perhaps a real estate negotiator (REN) and later real estate agent is the way to go.

There are no basic salaries as a real estate negotiator. I do know some agencies provide a small allowance but that’s about it. How awesome the person performs is how high the commission payout will be. It can be lower than the ‘basic salary’ days or it can be many times higher. Everything depends on following the advice from the mentors in the agency. As for what should a REN do as soon as he joined, here’s an earlier article:
New RENs? Your friends should buy / sell via you
 Let me tell you that I have many, many and many REN friends whose holidays are either paid by the agencies (due to performance) or paid by themselves (because of super high commissions) and many REN friends who quit after a few months too. Perhaps three qualities distinguish them. Courage (hey, no salaries…), Discipline (do, do and continue doing…) and Resourcefulness (learn, network and expand).

There are no rights and wrongs. Be happy with whatever we choose and just enjoy it. I am not a REN and I am happy too. (Yes, I do provide trainings to some real estate agencies too; property sales objection handling) However, for the person who searched the term ‘how much salary property agent malaysia’ this may be an article for him too.
How much is a REN’s salary? Well…
 Just remember, every time we ready about one successful business, it’s also because there are many other businesses which are just doing so-so and there are many businesses which had failed after some time. This is the world we live in. Happy searching for your dream.

written on 4 March 2019

Next suggested article:
Online does not kill RENs. It is a combo yeah.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Do not be too hung up about the overhang.

Unsold properties in Malaysia? I think everyone we ask will tell us about the seriousness of unsold units. Then, some will say that they intend to wait for price to drop before buying since the market outlook is negative. Upon asking about the level of price drop which will compel them to buy and many would now return a blank look. They do not know how low is low or at what price level they will enter into the market.

Of course, with the bank approving their loan applications too. Just note that I would personally prefer to hold and rent out my unit versus selling it if I do not get the price I wanted. I do think majority of all owners will think like me; not selling below the price they bought many years ago. Perhaps that’s why even based on the latest Malaysian House Price Index, the price is still… UP. Look below: (1.3% is positive yeah, not negative indicating a drop)

Image source:  housingwatch.my

Now let’s listen to a real estate prominent personality about the state of overhang.
Article in edgeprop.my
    Property consultancy Rahim & Co International Sdn Bhd executive chairman Tan Sri Abdul Rahim Abdul Rahman said, “In my opinion, it is not an economic calamity and we should not be overly concerned to the extent of having to set up a special body just to acquire these units given that developers are now reducing their prices [to try and sell them off].”  He expects the number to be reduced over the next few years.

He added, “Developers lacked proper research on the demand, pricing and cost structure before they embarked on new projects.”    He is also of the opinion that the government should not bail out any developer facing problems with their unsold stock. His personal conclusion is that there are still opportunities in the property market for those who seek them out. He expects 2020 to be a challenging year for property market but with a moderate recovery. Please read full
Article in edgeprop.my

I am happy to say that I agree with him and that I have written indirectly many times about the opportunities in the property market. Just have to note that the lowest prices for buyers do not happen during a boom and the highest prices for buyers meanwhile usually happen in a booming property market. As for the overhang, this article was written much earlier on my view:
You viewed, You hated, now discounted.

It’s a mismatch mostly for the property built versus the demand from buyers. As for the new supply, just look at most developers. Their one major focus? Affordability. They are adjusting either the distance or the size to ensure most of what they built could be easily absorbed by most households versus the RM700k or higher just a few years ago. Happy understanding yeah. Oh yeah,
Waiting for a property which everyone likes will take a long time

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

Next suggested article:
Demand and Supply is never perfect. It’s about demand and money

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


I do not believe majority can buy RM900psf, sorry.

A close friend again asked me about a condo in a hotspot. It’s around RM750psf and her agent is telling her that this hotspot is worth buying. There are not that many of these around anymore. Majority of the condos in the area are already at this price if not higher! My answer remain the same, ‘Would she buy the property in future for 20 percent extra? RM750 x 20% extra = RM900psf. Anyway, I did not repeat my answer. This time, I told her to rely on
her own research and evaluation
 instead. I know she could not accept my “secondary property” mode currently. So, I do not wish to cloud her judgement if the luxury condo is her cup of tea. There are definitely some people who may buy from her in future. The target group would have to be pretty wealthy too.

I do not think the property market of Malaysia would suddenly rebound anytime soon. Not even if some of the cooling measures were removed or the
sentiment turns positive
. The reason is because I feel that the affordability is already stretched to its limit. There’s really not that such a huge group of Malaysians who can easily buy properties priced above RM800,000 or RM1,000psf. If demand suddenly rebounds and the prices continue to charge ahead again like 2009 – 2012 periods, I think this time the property bubble may be real. Demand remain very strong even if subdued by negative sentiment but that’s about all.

Nothing will force people to buy a 1,000sf condo for RM700,000 or higher today when there are lots of choices around RM500,000 or lower today. This is especially true for secondary areas which are not hotspots. As for that few hotspots, I wish you luck if you still think they are worth that extra premium. For your sake, I also wish you are right. As for Malaysia’s property market’s sake, the rise must now be orderly. Perhaps slightly above the typical inflation rate but should never ever be double digit. Majority of Malaysians do not have an
 increment of double digits
, so who can support the prices of properties when it is increasing in double digits?

For hotspots which are popular today, it should still be popular in future. Reason? Location and distance from the city centre. There’s no way to replicate another Mont Kiara in Semenyih for example, unless the centre of KL moves closer to Semenyih. That’s why different areas would have different attractions and needs a different set of evaluations. Be reminded that luxury condo is priced that way because there are many people who does not wish to stay in an older and less favourable area. However, secondary areas would also rise in price because urbanisation is continuing and we have something called inflation. As for the majority of Malaysians? Not all would be able to afford RM900 per sq ft.

written on 20 July 2015

Next suggested article:
Real estate or Property? Manage it well and it’s a never ending well

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


No limit what we can invest in. Another opportunity coming soon.

I bought my first set of commemorative coins just a few months back.
I own one set. 100 years of significance

Commemorative coins may be worth a lot in the future. Here’s10 coins which are already worth by far more than the price that the first owner paid for.
Rarest and most valuable coins – UK, The Sun.co.uk

One of it is the London Olympics Aquatics 50p (RM2.70) which is now worth £600 (RM3,261). Let’s not even try to calculate the return on investment in percentage. Okay, the coin set I bought may not go to this level but let’s just say that should I intend to sell now, I can already sell at a small premium.
Here’s one of such advert to sell in mudah.my.
 Wait, if the goal is to get fast returns, I am not sure if this is the investment for you. However, if you are like me, buying because we appreciate the historical significance of such an issuance, then please proceed. There’s one which I personally consider as significant and will definitely be registering for the balloting in a few weeks time. Do refer to the Bank Negara Malaysia’s press release as below.
 This is the article in BNM if you prefer to read over there.

Issuance of Commemorative Coins in conjunction with the Installation of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XV

Ref No : 12/17/12 14 Dec 2017 Embargo : For immediate release

Bank Negara Malaysia is issuing commemorative coins in conjunction with the installation of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XV Sultan Muhammad V as the fifteenth Yang di-Pertuan Agong.  His Majesty was elected as the fifteenth Yang di-Pertuan Agong for a five year term, by the Malay Rulers at the 243rd Conference of Rulers (Special Meeting) at Istana Negara, Kuala Lumpur on 14 October 2016. His Majesty subsequently took the oath as the fifteenth Yang di-Pertuan Agong on 13 December 2016 at Istana Negara, Kuala Lumpur. The installation of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XV Sultan Muhammad V as the fifteenth Yang di-Pertuan Agong was held on 24 April 2017.

The commemorative coins were presented to His Majesty today by the Governor of Bank Negara Malaysia, Muhammad bin Ibrahim
, FCB,
 at Sasana Kijang, Bank Negara Malaysia.

Specifications of the commemorative coins are as follows:

Gold Commemorative Coin (proof)

This proof coin is made of gold with 999.9 purity and weighs 7.96 grams with a face value of RM300. The coins will be sold via public auction at a reserve price of RM4,000 a piece.  The mintage quantity is 300 pieces.

Coloured Silver Commemorative Coin (proof like)

This proof-like coloured coin is made of fine silver with 99.9 purity and weighs 92.0 grams. It has a face value of RM150 and will be sold at RM1,000 a piece. The mintage quantity is 500 pieces.

Copper Commemorative Coin (matte finish)

This matte finish coin is made of pure copper with 99.9 purity and weighs 77.76 grams. It has a face value of RM15 and will be sold at RM200 a piece.  The mintage quantity is 500 pieces.

Nordic Gold Brilliant Uncirculated (B.U) Commemorative Coin

The Nordic Gold (B.U) coin has a face value of RM1 and will be sold at RM11 a piece. The mintage quantity is 15,000 pieces.

500 units of sets of 2 priced at RM1,200 per set are also available comprising one proof-like coloured silver and one matte finish copper coins.

Note: Prices stated above are inclusive of GST.

Detailed specifications of the coins are as per
Appendix I
.

Coin Design

The design description of the commemorative coins are as follows:

Obverse

The portrait of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XV Sultan Muhammad V, is featured at the centre of the coin. The words “KEBAWAH DULI YANG MAHA MULIA SERI PADUKA BAGINDA YANG DI-PERTUAN AGONG XV SULTAN MUHAMMAD V” are inscribed along the circumference of the coin with the date of the installation depicted at the bottom of the portrait of His Majesty.

Reverse

The centre of the coin depicts the image of the official royal insignia of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XV Sultan Muhammad V.  The name “BANK NEGARA MALAYSIA” as the issuing authority of the commemorative coins is featured on the upper circumference of the coin, while the words “PERTABALAN SERI PADUKA BAGINDA YANG DI-PERTUAN AGONG XV” are inscribed at the lower circumference of the coin together with the respective face value of the coin.

The detailed design of the commemorative coins is as shown in
Appendix II
.

Public Viewing and Sale

Display units of the coins will be available for public viewing from Thursday, 21 December
 2017
at Bank Negara Malaysia’s Museum and Art Gallery and at the Bank’s offices in Penang, Johor Bahru, Kota Kinabalu, Kuching and Kuala Terengganu.

To provide a fair opportunity for the public to buy these limited edition coins, there will be a purchase limit (a set of 2, a silver coin, a copper coin and three Nordic Gold coins per person). To improve buying convenience, the public can place their orders online from 5 January 2018.
 In the event of oversubscription, balloting will take place. The gold commemorative coins will be sold via public auction on 10 March 2018. Further information on the ordering, auction, payment and collection will be informed to the public in a press release prior to the sale date.

Appendix I

Appendix II

Bank Negara Malaysia

14 Dec 2017

— end of press release —

The most exciting part for all these commemorative coins would definitely be the auction of the below set. I will share the details once I have them. Whether or not you will bid for one, drop by because it will be the time that we suddenly realise that the market for these limited issuances are not a small one.
The gold commemorative coins will be sold via public auction on 10 March 2018.

Gold Commemorative Coin (proof)

This proof coin is made of gold with 999.9 purity and weighs 7.96 grams with a face value of RM300. The coins will be sold via public auction at a reserve price of RM4,000 a piece.  The mintage quantity is 300 pieces.

Many people asked me why are people so ‘crazy’ with these coins? Well, this question may also be asked for those people who are ‘crazy’ for some McDonald’s toy set, for Pokemon playing cards and even some
used Peranakan (Straits Chinese) antiques..
 right? By the way, when we buy some OVERVALUED stocks, it is ALSO not that wise because we are hoping that the business would somehow earn much higher profits and thus we feel we are buying into the future. Well, investments are ALWAYS for the future… See you and cheers.

written on 15 Dec 2017

Next suggested article:
Banknotes as an investment is real. Get to know about it, really

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Do not miss a ‘small piece’ of RM22.5 billion sale

The
HOC 2019 will be here in less than 2 weeks time
. There are reportedly 180 developers with a stock of unsold properties worth RM22.5 billion. Whether these units sell or not would depend on the discounts that the developers are willing to offer to prospective buyers, the type of properties, location and housing loan approvals. Of course, we also have a Deputy Minister who asked for more
leeways from banks too. Read here.
 Speaking about discounts, Housing and Local Government Minister Zuraida Kamaruddin wishes for developers at the expo to give at least 10 per cent discount or higher to bridge the gap between property oversupply and lack of affordable homes. Our Finance Minister Lim Guan Eng meanwhile hopes that the discount can be higher.
Perhaps up to 20 percent? (Read here)

Article in TheSundaily.my here.
 It quoted that some banks are rejecting home loan applications even when buyers have a clean Central Credit Reference Information System (CCRIS) record.
(Let’s be frank. If the LOAN amount is ABOVE what the salary could afford, whether the CCRIS is clean or super clean, I think banks will still reject the application and they should!)
 Property overhang in Malaysia rose by 48 percent in Q3 2018 vs Q3 2017 and this reflected a mismatch between supply and demand. It also quoted National House Buyers Association secretary-general Datuk Chang Kim Loong who said that the number of overhang or unsold properties will continue to rise if developers ignore the three criteria that define affordable housing. Houses priced between RM150,000 and RM300,000 should be developed with a desirable size of 800 square feet, providing at least two bedrooms, and in the right location. Chang was also baffled with claims from developers that they could still sell houses priced between RM600,000 and RM800,000, which are in good locations.
 Article in TheSundaily.my here.

By the way, it is not just about discounts yeah. It is about building a positive sentiment where people feel positive in their future. Just 8 years ago, even when prices were on the way up, when we ask 5 of our friends if we should buy our first property, all 5 would tell us to go ahead. (somehow they feel the prices can only be going up non-stop). Today, in the same situation, when we ask 5 of our friends, all 5 would tell us to wait and see. This is even if everything else remain almost the same! (Salary and affordable property price) As for positive sentiment, these meant clear policies to guide the market too. Happy following and well, if you found a good unit you like during the HOC 2019, it’s still a buy yeah. Property investment is for the long term.

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

written on 12 Feb 2019

Next suggested article:
The focus for National Housing Policy

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Do not want, do not know and do not have the means

After years of talking to close friends, good friends and even far away friends, I realised there are only three distinct groups of people when it comes to property investment. Of course, there are those who are a mixture the three types but generally, just three. I define them as the “do not want,” “do not know,” and “do not have the means.” I was once in all three categories myself!

The first group, “do not want” would be those who believe property investment is not for them. They have too many friends who got burnt from property “investment.” Thus they do not want to fall into the same trap. In reality, not many people become multi-millionaires from property, thats real. However, there are really very few who bought properties earlier are now a bankrupt. Unless they bought the wrong one which until today would be minority group. The reason is simple, home prices do not go up every year and it is not likely to go down unless Malaysia falls into a financial crisis. For this first group, my advice is very simple, invest in other stuffs. It does not need to be into property anyway.

The second group, “do not know” would form the majority of everyone. As at now, they do not think of investment as that important. They also do not read much about investment anyway. Business news? Too boring lah. To them, they are young and the life is still long. Currently, it is for enjoyment because who knows what will happen tomorrow? More often than not, they would be driving a better car than me, in terms of price. The reason is simple, all their friends or most of their friends have the same mindset. In the animal kingdom, they look at ‘safety in numbers.’ Here in the human world, it’s ‘herd mentality.’ Well, advice for this group of people is this.
Lacking in financial awareness today? Peril awaits

The third group is the “do not have the means.” This refers to their current full-time employment. Doing the same thing day in and day out, not pushing oneself to do more than necessary and expecting an increment at the end of the year. As they do not earn above the average pay, their savings would be affected and due to this, they think the world owes them a living. It’s always house prices are rising faster than my salary. Seriously, in every country that I know of today, the home prices really do rise faster than the average salary increment. What’s the typical increment per year? Assuming a salary of RM4,000 and a 6% up, that’s an extra RM240 per month. A typical home worth RM350,000 rising at just 2% per year is already RM7,000 per year or RM583 per month! My question to this group is, in the career world, are you a blue-chip?
A good career is really the foundation to a better life, seriously.

In the beginning of my career life, I was under the “do not know” category. I actually wasted at least 8 years before realising that investment is a must or I will face problems with my retirement. Yes, I give my parents pocket money every month too. Once I started to read more, I learnt more and I was fortunate to have many friends who continue to share with me on the ‘how to do it part.

I then realised that it’s not easy to buy as I “do not have the means.” That was when I changed job from a stable MNC into a sales job with a small start-up. I worked very hard (at least until 8pm every day) and I did this for 9 years with the first 2 years being really tough. After that the salary was enough for me to save and soon, to buy a property.

Oh yeah, before I got married, I was under the “do not want” category too. My father-in-law forced me to get a property or forget about getting married. My salary then were mostly spent on expensive clothes, shoes and food. So, after endured all three categories, I would like to say the journey has been fulfilling. Still a lot needs to be done and I still need to work very hard to keep my job. Happy changing.

Love what you read?
Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)

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

Next suggested article:
Using “bad debts” to buy “good debts?”

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Business Owner / HR? Do Payroll, Go Kakitangan.com

[Not a single sen was received for this article. In fact, not even a cup of kopi-O in the kopitiam. kopiandproperty.com does not receive any commission for any signups too. All the links below does not have any identifier yeah]

Kakitangan has a hardworking Founder, that’s for sure

The first time I met the Founder of kakitangan.com Effon was maybe 8 years ago. I could not remember the exact year but it does not really matter. I remember these though in that meeting. He has a vision. He speaks fast. He tells you what he wanted to do very enthusiastically. He listens, analyses and quickly puts in plan if that’s what was needed. Most importantly, he is really conscious of managing costs so that the company could keep growing with limited funds. This is how he has managed to grow kakitangan.com to become a typical payroll software many SMEs know and use today. If you are NOT yet using this Online Payroll System, it’s best you quickly contact them and try it out.
Trying for free is FREE. (click here)

What are the service you could avail?

Visit them here for more information.
https://www.kakitangan.com/

Here’s an intro video of what they could do for you.

If you are looking for ways to grow faster, you need to attend the SME Growth Summit

This is where you click to join. SME Growth Summit – registration:
https://bit.ly/SGS23-Kakitanganrsvp
 ; more info:
https://kini.events/smegrowth/

If you would like to refer them customers, you could get rewards too

I know many readers have friends and customers who may be worried every end of the month. So many calculations, so many deductions, so many potential to get it wrong. In fact, what if the payroll person is not around?! This is why kakitangan.com is growing so fast yeah. If you like to help your friends as a referrer, do sign up here.

They have one current promo which is any referrer giving them 5 closed deals will get an Apple Watch too.
https://www.kakitangan.my/affiliate-registration-form
 or Wilson Goh
wilsongoh@kakitangan.com

Happy referring yeah.

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

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

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

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Do we want a high or a low inflation? (I wish for more time…)

Inflation is a very common word. Inflation caused prices to go up, thus purchasing power is reduced. By the way, inflation is also one of the reasons why we receive increments of a few percent per year. If prices of goods remain exactly the same; without any inflation at all, there is really no need to pay us a higher salary every year. Imagine if home prices were still RM85,000 for a semi-detached in a prime area in Ipoh today, why should people working in Ipoh be paid higher? That RM85,000 home is however RM540,000 today, that’s due to inflation and that’s why we have higher salaries, else we could not afford it.

So, is inflation good or bad then? Inflation numbers when it’s too high will crippled the economy. Anything double digits will be very bad. Anything higher than 5% in my opinion warrants a lot of actions from all stakeholders already. Okay, then what happens when the inflation is just too low? I mean below 1% or even closer to 0%? Should we do anything about it or just be MERRY with it? (Pun intended with the good Merry since Christmas is just around the corner)

Article in themalaysianreserve.com
  MALAYSIA’S Consumer Price Index (CPI) — a measure of the country’s inflationary level — rose 0.9% year-on-year (YoY) to 122.1 points in November from 121 points last year.  As for the similar period as last year, for the January and November 2019, the index has recorded an increase of 0.7%.

Department of Statistics Malaysia chief statistician Datuk Seri Dr Mohd Uzir Mahidin said, “The increase in the overall index was driven by the index of miscellaneous goods and services, housing, water, electricity, gas and other fuels as well as education.”

Three states, namely Kuala Lumpur, Selangor and Penang, recorded higher inflationary rates, surpassing the national CPI rate of 0.9% in November 2019.  In June 2018, the inflation rate fell below 1% for the first time in 40 months due to the zero-rated Goods and Services Tax, and discounted prices of goods. Bank Negara Malaysia said last month it expects the country’s headline inflation to be “low” in 2019 and remain modest with a slight increase in 2020.  Please refer to the full
Article in themalaysianreserve.com

By the way, inflation will also cause property prices to increase yeah. In other words, if inflation is low, property prices should remain almost the same.  Let’s wish for that yeah. The reason inflation influences property prices is because with inflation, people need a higher pay to buy the same goods and services which had also increased in price. Construction materials like sand, cement, bricks and more may have also increased in price and this will ultimately add into the final cost of construction for the home.

Yea, if you are hoping that property prices will remain almost the same since inflation is very low, I wish for the same too. I need time to save money for my next home purchase. Unfortunately for me, money does not grow on trees and I am not a speculator too. Happy understanding about inflation and planning your next property purchase.

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

Next suggested article:
Investing out of the city you live in

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Do we really want to work for money?

A question for all of us who’s reading kopiandproperty.com today. Are we really working for money? Some would answer, of course not! I am working for my family. Cool, hopefully your family is already self-sufficient WITHOUT your money. I seriously believe if I were to ask Bill Gates, Mark Zuckerberg or even my ex-CEO, all three would answer that they are not working for money. Their answer is a sincere one and I believe them. However, they are wealthy beyond the majority. That’s why we are still working for money. Many friends have complained about their companies in their Facebook and I am very sure even more did not do so but still dread waking up every morning to go to work. They hate their managers and yet have to smile at him for many more years UNLESS of course we can switch from not working for money to money working for us!

Since you are reading this article now, I think it’s important that all of us should have one major form of investment during our career life, way before our retirement. I say major because this is not
unit trust investment

which we can start doing and keep doing until we retire. It will give us good returns, hopefully double the fixed deposit rates. This is also not stock investing which if we can do what Warren Buffett does, it will make us richer than the majority. Remember, it’s
stock investing and not stock ‘gambling.’
 Yes, I am talking about property investment. It may be that RM300,000 or RM400,000 or even RM500,000 property. As long as we start early, the chances of getting a second property way before our retirement is definitely high. We often hear of how inflation will eat away most of what we have. Is this really the case?

Actually, most of the time, it is not inflation that eats away most of what we have. Most of the time, it is the need to look better than our peers that will eat away most of what we have. From the cars we drive to the phones we buy, the branded handbags that we must have and even the
FIRST PROPERTY that we buy
. The last one was not a joke. I have many friends who bought properties way above what they could afford and then struggle to pay for the renovations for many years. If the property appreciated very fast, then there is the chance that we can refinance / sell it to buy more. If the property did not really appreciate a lot and the overall price is even lower than our purchase price, then we have lost a lot of time. Time is essence when it comes to working for MORE money. If we are really working for money so that we can take care of our loved ones and all the things we care about, then it’s time we think about all the things we do today. Happy working for money yeah.

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

written on 9 Feb 2017

Next suggested article:
12 Great Reasons to invest in real estate

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Living longer, happy! More money needed, oops.

Long time ago, way before I was born, the life expectancy of a Malaysian was around 60 years. Explained briefly, it meant that from the day a Malaysian was born (then) until the day the Malaysian bids bye-bye to the world, it’s 60 years. Google’s sourced info from World Bank shows the below:

Today, based on the latest statistics available from Department of Statistics Malaysia, the life expectancy in Malaysia has now reached a combined average of 74.5 years.  Actually, it’s not so true for men. We are expected to live to 72 and our female friend may live to 77 years. That’s about 5 years of difference. Perhaps this should also tell the men to find older women?  Don’t think too much okay, love as they say is blind. Just make the best out of every moment. Do refer to the image for more understanding and reference.

We are quite fortunate because the healthcare for Malaysians remains accessible. We could already see this especially when we look at how our healthcare frontliners handle the COVID-19 pandemic. We have shown the world why our healthcare is consistently ranked among the top if not around the top. 🙂   However I still need to remind everyone that because we live longer, we would also need to prepare more retirement funds.

Our EPF has also announced that the quantum for the Basic Savings will be revised from RM196,800 to RM228,000 effective 1 January 2017. The amount will be set as the minimum target EPF savings members should have when they reach age 55.
Read the full article here.
This tells us that even EPF is worried for us when we retire. The money we have MUST be stretched longer. If we were to ask around, majority would say even RM228,000 is very little. Retiring at 55 and living to 75 meant 20 years. RM228,000 / 20 years / 12 months meant everyone has just RM950 every month or RM30 per day…  Do something about it, okay?  Keep reading other articles in kopiandproperty.com for options.
Savings is definitely one of it. Do it monthly please.
 Happy understanding.

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

Next suggested article:
Did you know EPF has a guaranteed return of 2.5% for us?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Do you like to earn 1% interest per annum for your savings? Or lower?

I admit, this is a trick question. I could have asked would you like to earn 10% interest per annum for your savings too. Just note that when we get an annual return of 1%, of course the rates for our home loans will also be low as well. It may just be 2% or lower, probably. If the FD gives 10%, then the home loan is likely to be above this number. Banks get your money and they use that money to lend to others who needed money. To put it extremely simplified, the margins for banks are between what they give out and what they earn…
Malaysia’s Overnight Policy Rate is currently at 2.
5
% yeah. (Earlier article here.)

Where is Malaysia at for Fixed Deposit Rates? The below is for a FD of RM10,000 and above. The rates are as at today (25th March 2020). For those who managed to save earlier, you would have secured much higher rates. As for now, well, do note that there’s news that there’s another cut in Overnight Policy rate (OPR) coming soon in May yeah.  Earlier article here:
Potentially another cut in May 2020.

Source:
https://ringgitplus.com/en/fixed-deposit/

With the COVID-19, many central banks around the world are doing their best to ensure businesses continue to have a lifeline. Recently,
the U.S. Federal Reserve cut the rates down to just 0.25%.  It was 1.25% before this. Article here.
   This was in response to the the damaging effects to the economy from COVID-19.  In this part of the world,
Reserve Bank of Australia (RBA) has also cut the country’s official interest rate to a record low 0.25% too (article here).
 The main reason is also to contain the fallout from COVID-19.

The Bank of England has also cut the interest rate from 0.25% to 0.1% and this is at the lowest point ever in the bank’s 325-year history.  Again, the main reason is to
face the coronavirus pandemic. Read the article here.
 Meanwhile in Europe, Sweden has a MINUS 0.25% interest rate while Denmark and Switzerland has MINUS 0.75 % interest rate.  The following countries have ZERO interest rates.
They are France, Germany, Italy, Spain, Netherlands, Greece, Ireland. Read the article here.

If zero rates, then what happens when my money is inside the bank? Well, you technically have less money after a year… This is because you did not earn any interest but the inflation has eaten up some of your money. Anyway, a more important thing to note would be that when we invest, the returns can still be far higher yeah. Plus risks too. Happy following.

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

Next suggested article:
Would you buy if the interest rate is 14%

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Investing does not need to start with property. Here are 5 things to note.

My investment journey did not start with property. My first property happened only when I was 26 years old. I know, so late…right? If only I started earlier, then perhaps I would have had much higher successes today. However, before property started, I have started to invest into unit trust and stocks when I have just started working. The extra money, I put them into the unit trust and the stock market.

I was speaking to a COO of a production house some years ago and she told me that her kids love to save their money. In fact their financial management seems to be better than hers! I was like, wow…  Anyway, with regards to savings, it’s super important that we turn those savings into investments yeah. Keep enough savings in Fixed Deposit for 6 months (minimum) just in case we are in between jobs but anything extra, it has to be invested. Investment does not start with property by the way.

#1 – Why must we invest? There’s inflation…

Inflation rate has been averaging around 3.4% for Malaysia if we look at a very long period of time. It meant that if we had put money in the bank and it gives us 3.5% in returns, we are technically gaining just 0.1% in wealth increase every year. Returns minus Inflation. Oh dear… Image as below:

Source:
https://tradingeconomics.com/malaysia/inflation-cpi

#2 – What could I start with?

So, what if I have just RM500 savings per month in the beginning, what could I do with those money?  Actually, quite a lot of stuffs.  We could invest it with a
Roboadvisor (I did. more details here)
 We could also put a comment in our FB page. ‘I want to buy unit trust. Anyone of you are selling unit trust? Please pm me’
Alternatively, it could also be opening a CDS account to start buying shares (click here to learn more) !
Okay, when it comes to shares, perhaps slightly more reading is needed but investing into good shares are just as safe as unit trust actually. Potentially the share prices could rise faster too.

#3 – Be calculative when it comes to money

Then, we come to the question of, should it not be property? Let me be very calculative. RM500 cannot buy us any property. However, RM500 per month invested on a continuous basis (including returns) meant that meant that 5 years later, it may just be enough for a new property downpayment. You still prefer to invest in something ‘property based?’ You have a choice. Please read this from a
good friend’s blog. Complete Guide to REITs. Real Estate Investment Trusts (REITS) may just be that great choice.

Photo by Karolina Grabowska on
Pexels.com

#4 – What about me then?

Do you know that Charles Tan who writes in kopiandproperty.com daily and who loves property investment is also into shares / stocks? He has also been continuing his investments into a few unit trust brands? Yeah, he wrote this article too:
Are we earning, saving, investing and preserving?
 Haha. Nope he does not run courses on property investment because it would be super boring. He advocates buying a property only after one has saved enough downpayment. Hard to get hundreds of thousands of cashback suddenly.

#5 – Money and Knowledge are needed

By the way, there are two major stumbling blocks to property investments yeah. Money and Knowledge. We need to save enough for downpayment and we need to read a lot more before we buy. Simply listening to our best friend does not work yeah. It may just land us into the world of debts and it’s super tough to come out of a bad property investment. Happy learning and investing. Yes, in this order, learn first, invest later. Please do continue to read kopiandproperty.com It helps a little.

Love news like this and more?
Sign up for daily investment news updates.

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

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

Next suggested article:
Most of us worry about money stuffs but do we do anything about it at all?

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...


Doing nothing is NOT a strategy

A relative asked me what’s the
BEST stock to buy
. The reason is because so many of her colleagues are now talking about stock and saying how much they have earned from buying and selling. Another relative working in bank sends her all the potential stocks everyday. I told her, I do not know. If I know, why am I still waking up early and working till 6pm everyday? She laughed and I laughed too.

Today, the equity market is volatile even though it has been on a rising trend. The property market has slowed down tremendously but prices have barely moved as can be seen from the
average property prices.

The Fixed deposit rate is still ever so slow. Unit trust needs time because if you were to buy into equity type of unit trusts today, it meant that you are buying at quite a high entry point. Many are still waiting for the affordable schemes by so many different parties, from the state to the federal governments. If the scheme is the very low end, the middle income class do not want to register. Yet, for the properties which are priced higher, say RM400,000, some may feel this is too high.

So, perhaps doing nothing is best, today? Perhaps
keeping cash
 is best so that we can wait for the right opportunity? Haha. May I ask, what kind of opportunity are we supposed to wait? For the whole market to fall? Say, the years of 1997/1998? Think objectively, are you sure you want that to happen, if you are an employee and you are in the middle income group? Since keeping cash is not, perhaps put it into fixed deposit for some returns? Well, truth is, if you already have RM1,000,000 or higher, I think keeping is FD is still ok. It should give you around RM3,000 plus per month. If however you have just RM50,000 and you have a very stable job, perhaps your goal should be to evaluate carefully and buy your first property.

RM300,000 for a condo? Depending on area, yes there are still available units. Buy one, stay there, stop renting. Save more for whatever you want to know but once you have bought that property, you have just forced yourself to save for your future. I do not think you would have the appetite to buy an
expensive car which may cause you to go bankrupt
. The number one cause for bankruptcy in Malaysia is still due to vehicle hire purchase. Of course, if you trust your unit trust friend, you can also put that amount into unit trust but it will at best be double that of your FD within the next few years. Over a much longer period, I really do not dare to say if the return would be enough to help you buy your first property. Okay, actually there are MANY things you can do but doing nothing is NOT a strategy. Happy deciding.

written on 21 Apr 2015

Next suggested article:
Bankruptcy before property, not after property, perhaps.

Share this:
Tweet
Telegram
WhatsApp
Like this:
Like

Loading...