Some Good Quote From Guru - Milan Doshi

One key skill that you must develop to become a professional property investor is to acquire the ability to accurately see into the future as property investment is for the mid- to long-term. As you acquire more knowledge and experience over the years, this skill will somehow become second nature to you.

For example, when I arrived in Kuala Lumpur in early 1994, I took a long drive (there was no SPRINT expressway back then) from Bangsar Baru to check out the landed properties in Taman Tun Dr Ismail. Back then, the land at Bandar Utama was just being cleared and I was wondering why anyone would want to stay in a property so far away from town. If I recall correctly, double story link houses in Bandar Utama were sold for around RM350,000 then. 16 years later in 2010, house prices there are more than RM750,000.

Today, I know of a few upcoming and better designed townships that reminded me of the Bandar Utama of 1994. Having seen how Bandar Utama and its surrounding areas have transformed, it’s not too difficult to imagine how these new townships will eventually look like in the hands of a reputable developer. Hence the risks for me to invest in these new townships are much lower compared to someone who is just starting out.

How Much Will A Landed House Cost In Year 2015?

Seeing the crazy property price now, I am a bit scare to imagine, how much will a double storey house cost in next 5 years time ???

I done a simple calculation, using assumption that a property price will appreciate 10% per year
- In reality, property appreciate more than 15% in past few years in some popular area
- In theory it should be around 7-8%, and they might be some depreciation during economy downtime

Let say I put aside all other factor, below is the estimated property price at few prime areas, in year 2015.

Look like you may need to have RM1 million, to own a double storey house in year 2015?

Questions are:

Can you afford to buy and pay for RM1 million house in year 2015?

Will will salary increase at the same or better pace than the property price?

Or shall we start think of other alternative way of earning money to keep up the pace?

Or should we start buying it now since still "not so high"?

Or is there any possibilities the property price will drop in next few years like UK and Australia?

First home scheme to attract young buyers - StarProperty.my

First home scheme to attract young buyers - StarProperty.my

To promote home ownership among Malaysians, the Government has proposed to introduce First Home Scheme whereby Cagamas Bhd will provide a guarantee on the 10% down-payment for houses priced below RM220,000.

The scheme is for first-time house buyers with monthly household income of less than RM3,000. It is aimed at young adults who have just joined the workforce.

With the guarantee from the national mortgage corporation, it means that eligible house buyers will be able to obtain a 100% loan.

First-time house buyers will also be given stamp duty exemption of 50% on instruments of transfer on a house priced at not more than RM350,000. The Government has also proposed stamp duty exemption of 50% be given on loan agreement instruments to finance such first-time purchase of houses.

Honda Insight

What is the trend nowadays ? - Living in gated community - Eating organic food - Environmental friendly, no plastic day - Getting a pets - Driving hybrid car Good news is, Honda is bringing it's new hybrid car to Malaysia next month ! "Honda Insight". Is economical version of Toyota Prius... can't wait to try it..hopefully the price is cheaper than Honda Civic Hybrid...

Setia Alam - Gloriosa (20 x 70 DSL) at RM588k

Requested to review this property. Launch this weekend, details as below

Size: 20 ft x 70 ft

Price: RM588,000

DIBS - Developer Bear Interest Scheme

Scheme: 5/95 (Mmm..only apply to those who have < 2 properties ?)

First impression, Setia Alam house nowadays no longer "cheap". In fact, I feel it is very expensive, so do Bandar Kinara. Not sure is good sign, or bad sign; as this year, lot of properties at "not so expensive" area suddenly become expensive.

DSL at Bandar Kinrara is selling at RM600k-RM700k. DSL at Setia Alam is also approaching RM600k. What will happen next year? Will it up another RM100k?

Imagine, how can a normal working individual, or couple can afford to buy house at RM700k? It will cost them RM3000 - RM4000 for monthly bank installment !!! Crazy, crazy, crazy....

For those looking for investment, they should be prepare to fork out at least RM2000 per month, just to pay the bank mortgage. The rental at this area probably will fetch only RM1000, means the investor need have spare cash every month to cover the monthly mortgage payment.

While for "cash rich" buyer, their only hope of return is capital appreciation. I not sure how much a DSL at Setia Alam will be able to sell next year, or next next year. But I know, the price at this area have almost increase 50% or more compare to those purchase it 3-4 years ago. While price at Setia Eco Park (high end) have almost double. Assume if it appreciate another 50% after 3 years, means a DSL is selling at RM882k in year 2013 !!!

Is this a good buy? Not sure actually, however I like Setia Alam township concept, if this is property is build with Gated and Guarded concept, maybe it be a better bet. Unless I am so cash rich, and not sure where to spend, and don't want to think so much, then just whack it lar, worse case, earn RM100k in 3 years time also not bad.....

Facebook Poker - http://www.cheapfbpokerchips.com/

Met with some of my old time friends today, notice that I am quite "out dated" after chatting with them. They are talking about Facebook game, especially the Texas Poker game. I can see how addicted they are into Facebook games....

Imagine some of them are actually spending real money to buy virtual poker chips !!! Decided to search around Internet and found this website...

http://www.cheapfbpokerchips.com/

Seem like life become more and more interesting now with facebook around...

Renovation - Kitchen Tiles

I spent about RM2800 to change the tiles for my kitchen area. The cost consist of RM1600 for tiles, and RM1200 for the workmanship, to lay tiles for 60ft area. I have been searching around for the tiles contractor, is so hard to find contractor with better price to do small area tiles change. To me, this material and labour cost is quite expensive, until now I still not sure whether I make correct decision to change the tiles colour. Below is the half finish product, hopefully overall will look better once the Kitchen Cabinet is installed...

Renovation - Kitchen Cabinet

Recently don't have much time to spend in property investment, Sep, Oct and Nov is super busy month. Hope thing getting better in December.

Anyhow, would like to share with you my recent experience about renovation - Kitchen Cabinet.

I have deal with few Kitchen Cabinet company in past few years for my rental property, in which I usually will try to spend minimum $ for Kitchen Cabinet for rental property.

However for this new property, I will use it for own stay, therefore I decided to spend a little bit more for Kitchen Cabinet. I have visited quite a number of Kitchen Cabinet company and have different experience dealing with them. For easier elaboration, I group them as below (purely personal judgement) :
Class A - Super Luxury - Out of My Reach
Class B - Branded - Aino Kitchen, Signature Kitchen
Class C - Well Known - In Cube, Kian Classic
Class D - Freelance, Sole Proprietary Type

I have engaged Class D company few years back to build the kitchen cabinet below, it only cost me RM5-6k including Hood and Hob. Overall I am quite happy with the quality of the kitchen.

This time around, I try search for Class B and Class C company, to build Kitchen Cabinet for my own house. Overall Class B company will cost 25% or more than Class C.

However, dealing with Class C company is very tiring, as it require you to pay extra attention to all minor details, the material, the design, the measurement, the surface and etc. I am not a carpenter or ID designer, there are a lot of things that I don't know OR I don't know what should I know. So there is a risk you may see a lot of surprise when the final product is ready, as you will not be told for those thing you did not ask for.

On the other hand, dealing Class B company give me more peace of mind, in which I just need to focus on the design I want, and they will take care of the rest. I guess the main reason is this type of Class B company want to maintain their brand and standard.

However, finding a better company does not guarantee they able provide good service. I dealt with few Class B designer before, even though their company product is good, but their designer service is no really on par. In fact, some might be worse than Class C company. Therefore, it is very important you find the right company, with right people for your renovation; then this person will help and reduce your burden. Sometimes, he/she may able to give you new idea on your overall house design. And glad to say, I found mine, my right hand man in renovation after searching around for months :)

Announcement on loan-to-value ratio for properties very soon

Announcement on loan-to-value ratio for properties very soon

KUALA LUMPUR: BANK Negara is expected to make an announcement on the loan-to-value ratio for mortgages very soon, according to a source.

“Genuine home buyers need not worry as it will most likely be implemented on buyers making their third and subsequent house purchases, and be confined to specific locations and prices.

“These are only pre-emptive measures as currently there is no property bubble,” said the source, adding that genuine house ownership would still be encouraged.

Means for those looking for investment with low entry cost, should act fast fast before this new rules implemented. No doubt developer is very creative when come to property launch, however I believe this new rules might impact those who looking for zero or minimum entry cost type of investor...

Selayang Spring to launch 2nd phase in October

Selayang Spring to launch 2nd phase in October

You may view their website here... http://www.selayangsprings.com/