As I write this, the price of oil has fallen so much that it is even cheaper than water. As of 1st Jan, the price of Ron 95 petrol was adjusted to RM1.91 per litre and it costs RM2 to buy a litre of mineral water.
Unfortunately, the price of our favourite food nasi lemak,laksa and teh tarik remains unchanged.
Coming in April 2015, Malaysia will implement the 6% GST despite a weak economy.
Falling oil price, rising household debt and rising inflation … the only thing not rising in and stagnant is our income.
It does look like the rich will get richer and the middle class will suffer the most and most Malaysians will become poorer.
What can we do about it?
Well, financial literacy is important to ensure that we invest wisely and grow our hard-earned money. One investment vehicle I find that is able to hedge against inflation is property. Not only does it offer capital appreciation, it is also able to provide monthly cashflow.
Thursday, 8 January 2015
Pantai Jerejak Landed house
One of my close friend saying that his relative is asking him to buy into the landed property at Pantai Jerejak.
There is very little information provided by him and I do not do much research there. This is because the price quantum is too high for me.
As such for the advice and strategy, below is my assumption:
Assumption:
Market Price is $1.1m (Bank valuation)
Rental $1700
Buying Strategy:
Target buying price=$900K which is 20% below market price
With 90% loan,bank will loan you $990K
Ur mortgage is $5.2K with 30 years @ 4.85% interest rate.
Exit strategy 1: Sell at $1.1, you may calculate your own profit
Exit strategy 2: Own stay and Sell only at the higher profit say 5 years later.Impact of slower property growth
A reader from KL sent me an email to ask my opinion on the current property market.
The e-mail correspond as below
Mr.C
Hye. It's been awhile.
I have read an article about malaysian economy recently. What is the impact on property in this coming years.
What do u think? Have u attend any seminar about this? Pls find below link.
http://www.beritasemasa.com.my/prof-dr-hoo-ke-ping-kegawatan-ekonomi-malaysia
My Reply to the Mr C as below:
My view the Impact to the property will be as follows:
1) More sellers in the market
2) More bargains can be found in the market
3) More freebies to be given out by the developer
All in all, it will be buyers market.
So what do we do?
a) We have to work harder to source for good deal, what is good deal?
i) Below market price at least 20% to 30%
ii) Positive cash flow
Above are the main criteria for now.
For example, if you buy at RM200K, with positive cashflow say RM100 per month.
Does it matter if the property price drop to RM150K? What is the impact to you?
What if the value of the property value drop to 0, but your property still give u positive cash flow?
Is there any impact to you?
We have to act differently from the market, people will keep given all negative report on economy, housing etc.
We have to read and take it as reference and MUST KNOW WHAT ARE WE DOING.
If we just stay sideline and follow the majority, there is no help for us as well.
The e-mail correspond as below
Mr.C
Hye. It's been awhile.
I have read an article about malaysian economy recently. What is the impact on property in this coming years.
What do u think? Have u attend any seminar about this? Pls find below link.
http://www.beritasemasa.com.my/prof-dr-hoo-ke-ping-kegawatan-ekonomi-malaysia
My Reply to the Mr C as below:
My view the Impact to the property will be as follows:
1) More sellers in the market
2) More bargains can be found in the market
3) More freebies to be given out by the developer
All in all, it will be buyers market.
So what do we do?
a) We have to work harder to source for good deal, what is good deal?
i) Below market price at least 20% to 30%
ii) Positive cash flow
Above are the main criteria for now.
For example, if you buy at RM200K, with positive cashflow say RM100 per month.
Does it matter if the property price drop to RM150K? What is the impact to you?
What if the value of the property value drop to 0, but your property still give u positive cash flow?
Is there any impact to you?
We have to act differently from the market, people will keep given all negative report on economy, housing etc.
We have to read and take it as reference and MUST KNOW WHAT ARE WE DOING.
If we just stay sideline and follow the majority, there is no help for us as well.
Saturday, 3 January 2015
Park View reno update
I was relief as this is the longest transaction I ever experience. We signed the S&P in June 2014 and only will be complete in 5 Jan 2015. It is exactly 6 months.
The main reason is due to the seller is using goverment loan.
I went to check out the renovation progress:
Sunday, 28 December 2014
Pangsapuri Widuri Study tour
Today arranged a study tour to the Pangsapuri Widuri at Raja Uda.
Total 6 persons turn out at 2pm sharp.
That is great as we do not waste much time and straight away can study around Pangsapuri Widuri and visit 2 units on Block B.
Agenda:
2.00pm - Gather in Block A Pangsapuri Widuri (in front of Guard house)
Everyone is very punctual. Kudos for all attendees.
2.05pm - Briefing on the Pangsapuri Widuri Details
Quick and brief on the project can explained during the study. Past and Present click Here
2.15pm - Viewing on 2 units at Pangsapuri Widuri
Head to Block B Level 14 to view 2 units with different facing.
One is facing the Raja Uda main road and the other unit is facing Penang island.
Unit facing Raja Uda is very windy.
Unit facing Penang island command an awesome unblock view of the Andaman Sea.
2.40pm - Discussions
Members discussed the Do's and Don't during the unit viewing.
Also give ideas and suggestions how should all go and work together to acquire units.
Discussed the plus points of the locations, amenities at surrounding, potential upside of this project compare to the Sri Chempa, Tambun Indah latest project etc.
The potential growth for this project looks very positive with a lot of activities going around.
2.55pm - Moving forward : Plan and execution
All agreed to work as a group and help each other to acquire as much unit as possible.
Tracking required for each unit and follow up from there by other members.
Below are some of the picture taken during the tour.
Total 6 persons turn out at 2pm sharp.
That is great as we do not waste much time and straight away can study around Pangsapuri Widuri and visit 2 units on Block B.
Agenda:
2.00pm - Gather in Block A Pangsapuri Widuri (in front of Guard house)
Everyone is very punctual. Kudos for all attendees.
2.05pm - Briefing on the Pangsapuri Widuri Details
Quick and brief on the project can explained during the study. Past and Present click Here
2.15pm - Viewing on 2 units at Pangsapuri Widuri
Head to Block B Level 14 to view 2 units with different facing.
One is facing the Raja Uda main road and the other unit is facing Penang island.
Unit facing Raja Uda is very windy.
Unit facing Penang island command an awesome unblock view of the Andaman Sea.
2.40pm - Discussions
Members discussed the Do's and Don't during the unit viewing.
Also give ideas and suggestions how should all go and work together to acquire units.
Discussed the plus points of the locations, amenities at surrounding, potential upside of this project compare to the Sri Chempa, Tambun Indah latest project etc.
The potential growth for this project looks very positive with a lot of activities going around.
2.55pm - Moving forward : Plan and execution
All agreed to work as a group and help each other to acquire as much unit as possible.
Tracking required for each unit and follow up from there by other members.
Below are some of the picture taken during the tour.
Small garden at Pangsapuri Widuri
Car park at ground level at Pangsapuri Widuri
Ground level car park at Pangsapuri Widuri
Friday, 26 December 2014
Visit to Spectrum Residence Show house
It has been raining for the past few days.
The rain has stopped and the weather turn out to be better on the Christmas day.
I went to the Spectrum Residence show house near the Beng Teik Primary school.
Spectrum Residence is a condominium developed by Zuwen Bina.
Build up sice is from 1217 sqft till 1282 sqft.
The difference is just the balcony size.
Smaller unit only has one balcony whilst bigger unit has 2 balconies..
Each floor will have 12 units.
In term of location, it is close proximity to ameniteis as below:
Pricing start from $288/sqft.
The rain has stopped and the weather turn out to be better on the Christmas day.
I went to the Spectrum Residence show house near the Beng Teik Primary school.
Spectrum Residence is a condominium developed by Zuwen Bina.
Build up sice is from 1217 sqft till 1282 sqft.
The difference is just the balcony size.
Smaller unit only has one balcony whilst bigger unit has 2 balconies..
Each floor will have 12 units.
In term of location, it is close proximity to ameniteis as below:
- RHB bank
- SRJK (C) Pusat Beng Teik
- wet market
- Billion supermarket
- Food courts
- 5 minutes to North-South highway
- 10 minutes to Penang bridge
Pricing start from $288/sqft.
Park View Renovation in progress
Here is the update for the renovation photo which is in progress
A lot of challenges face when dealing with the management and the site supervisor.
Anyway, all dealing went as per wish.
Anyway, all dealing went as per wish.
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