A very good insight sharing by Mr KL Wong. I do believe we will have bad economy but this is a market for those who are prepared. Those who look into opportunity during bad time. A lot of reputable company actually is founded during bad economy. So it's good or bad its up to your preparation.

Article credited to Mr KL Wong
Referred from https://www.facebook.com/photo.php?fbid=10154185584277501&set=a.10150178488382501.363436.799677500&


Dear all kindly digest the real situation in Malaysia.
1. After Malaysian Airline @ MAS laid-off 6000 staff, NAZA at Gurun Kedah too laid-off 300 staff in August

2. CCM Fertilizer in Shah Alam closed down. 200 people lost their jobs

3. Ansell and JVC in Shah Alam also closed down. 200-300 staffs lost their jobs

4. RHB Bank laid-off 2000 staffs with VES @ Voluntary Exit Scheme. That is after CIMB Bank laid-off 1800 staffs in Malaysia and 2200 in Indonesia

5. Maybank is running ERS @ Early Retirement Scheme. Not sure how many will be laid-off

6. Kuwait Finance House is shutting down their whole operation and business in Malaysia. They are negotiating with other banks to will take over their operations, including their assets and liabilities. During a M&A @ Merger & Acquisition or buy over, part of the staffs will be laid-off

7. Ringgit to USD dropped to RM4.35, It’s predicted to drop even further until end of this year

8. Inflation rate will increase, unemployment rate will go up, and buying power will reduce especially in 2016

9. In the private sector, companies are downsizing and all new hiring are put on hold

10. Government will reduce budget for all ministries. Public universities are urged to take their own initiative to raise their own funds, instead of solely depending on the government.

11. The unstable political scene is preventing foreign investors to invest in Malaysia. The economy will not grow due to that, and there will be lesser work opportunity

12. Due to the weak Ringgit value and the increasing inflation rate, government and other sectors are forced to import good with a high price and paying the debts with higher rates

13. This will cause price of goods and services to increase at an alarming rate.

14. House price will increase, banks will be stricter on loans, causing difficulties in owning a property

15. PLUS is increasing the number of automated counter. Seems like some of the staffs will be asked to have a long rest.

These are signs that Malaysia will face a very bad economy crisis soon. This will highly affect all that are in middle class and below. Hope for the best and prepare for the worst"

Do you know the term Refinancing? Its one of the powerful investment skill and here's some information about it. Some may agree on refinancing and some maybe not. Its individual preference, there is no right or wrong.

Refinancing basics and tips used by experts
BY LOANSTREET.COM.MY

Refinancing your mortgage is something you should re-visit every once in awhile if you have a property loan. In this article, we explore the basics of property refinancing and some tricks from the experts.

Know your objective
Firstly, before refinancing, it is important to know why you are doing it. Knowing your objectives makes it easier to know what to compare and what to watch out for. It usually falls within these 4 categories:

1) Get overall monetary savings. Usually from interest rate reductions against your existing home loan.

2) Withdraw cash for other usage.

3) Debt consolidation e.g. credit cards, personal loans, overdraft facilities, car loans. Housing or property loans have the cheapest interest rates compared to other types of loans and credit facilities.

4) Change the installment repayment pattern to suit your goals / ability.
Refinancing basics and tips used by experts

Beware of the dog
Once you know why you want to refinance your house / property, there are potential costs and pitfalls to consider.

1) Lock in periods on your existing loan:

Terminating your loan prematurely may result in early exit penalties.
Penalties typically range from 2%-3.5% of the original loan amount.
If you were on Zero Entry Cost packages (e.g. Valuation Fees, Legal fees absorbed by the bank), there are potential claw back charges.
It is safe to start the refinancing application process 4 months before the lock in period expires. You can usually get away with no exit penalties.

2) Loan redemption fees:

Paid to lawyers for the documentation necessary to redeem a loan (also known as Perfection of charge).

3) Termination of existing MRTA policies (not applicable to MLTA):

Typically, MRTA policies are not transferrable to the new loan, except if you refinance with the same bank.
Insist to cash out on the surrender value of your existing MRTA policy. This will bring down the total redemption sum. Many people neglect to take this step.

4) Loan documentation fees for the new loan:

You can know your legal fees of refinancing by using our Home Loan Calculator.
You may not get the best possible interest rates or get locked into a longer lock in period. But consider Zero Entry Cost (ZEC) packages if you want to refinance for no money down at all.

Look around
After you know your refinancing costs, start looking around for the best home loan/commercial property loan packages available. The interest rate comparisons will be especially useful for those seeking monetary savings and those looking to consolidate their debts (credit cards, personal loans, overdraft facilities).

Aside from that, the maximum loan tenure and other product features e.g. flexi, payment holidays, fixed rates will be especially useful for those seeking to reduce their monthly installment commitments. If you are looking to cash out for other usages e.g. renovations, other investments, pay attention to the property valuations offered by banks.

Alternatives to Mortgage Refinancing
If you are looking for monetary savings, your existing bank may be open to restructuring your existing loan with better interest rates, subject to conditions. Check with them before you go hunting. If you are looking to cash out, your existing bank may be able to offer Top Up Loans. Some also have what is known as a Renovation Loan. Enquire with them, or submit an application to Loanstreet.

If you only want a small amount of cash, a Personal Loan may be a better option to avoid all the legal fees involved in refinancing. It is also faster.

Other tips and tricks
By refinancing from Conventional to Islamic packages, you can enjoy 100% stamp duty waiver on the existing loan balance. Factor this into your decisions.

Conclusion
Before refinancing, determine your objectives. Know the costs involved, and check with your existing banks on restructuring or top up possibilities. Use Loanstreet’s Home Loan Refinancing Comparison tool to compare your available options. Once you are happy and certain about doing a mortgage refinance, you can continue by submitting an application to Loanstreet for the fastest and best results.

>> Loanstreet.com.my is a website enabling one to compare and apply for loans online.

Property Owner's most headache is dealing with difficult tenants. Those have this past experience will know the difficulty.

Here's some good article written by Bhad Singh
Source: The Star

DEALING WITH DIFFICULT TENANT
Updated: Thursday September 10, 2015 MYT 7:14:56 AM
by bhag singh

Landlords these days also take risks when renting out property.

A WHILE back, I wrote of the plight of tenants who are sometimes shortchanged on account of security of tenure. In many ways, a tenant may have settled himself in when the landlord tells him the tenancy can no longer be further continued.

For a tenant who is running a business, he may have just established himself and created goodwill for the business when he is asked to move and he would need to start all over again.

For a family man, he may have enrolled his children in a nearby school, arranged for tuition in the vicinity and made arrangements for himself to go to work.

Moving to new premises means many changes.

Of course, all this is part of being a tenant. A tenant must always be aware of his status as such.

In many such situations, it may appear unfair to the tenant especially when the tenant holds over because he cannot find another suitable premises and ends up paying double rent.

To a tenant who pays a monthly rental, it may appear that the landlord’s position is a pleasant one of just collecting rental every month and doing little else.

However, the position of a landlord is not always an easy and pleasant one.

In fact, after my previous article on the challenges faced by a tenant, a reader wrote in to describe the plight of landlords with tenants who fail to pay the rent or damage the premises, creating problems for the owner.

Not all landlords and tenants enjoy a cordial relationship. The most common problem is the collection and payment of rent.

In small towns or where the rented premises are nearby, the landlord can easily walk or drive over to collect the rent or to remind the tenant that it is due.

In larger cities, however, collecting rental where the tenant is not reliable and sincere can be a problem. Driving over to collect the rental or to remind the tenant may be costly.

Furthermore, the tenant may not even be in when the landlord visits.

At the end of the day, the cost of travel and time may well diminish the effective rental collected. This, of course, cannot be the objective of renting out premises.

In other cases, a tenant in the beginning stage comes with cash to pay the deposit and the initial rental and then suggests that he would in future pay the amount into the landlord’s bank account.

Initially, this may appear to be a suitable arrangement that would be convenient for both parties. However, it often transpires that when the landlord checks his account, the money is not there.

Furthermore, the landlord will need to ascertain that the sum banked in is from the tenant because there may be a similar amount banked in by another party.

Here again, cooperation is required from the tenant to send the bank-in slip or other evidence of payment, and this may not always be forthcoming.

The tenant may say he has banked in the amount but the landlord may not find it in his account. This is of no use to the landlord who wants to have the money in his account and does not want to be entangled in communications as to whether the money was banked in or not.

This is why many landlords today require tenants to give postdated cheques to cover a six-month or even a one-year period.

In this way, the landlord does not have to chase the tenant to collect the rental. As and when the due date arrives, and according to the date of the cheque, the same is banked in.

If the cheque bounces, there will also be consequences for the tenant. At the same time, there will be clear and reliable evidence that the tenant has defaulted in payment of rent if the cheque is not cleared.

This will come in useful if and when legal action is filed to recover the rent.

Where the tenant is in default of payment of the rental, what can the landlord do?

The only option is to take legal action to recover the rental as well as the premises if the tenant is still in occupation.

At the same time, a claim can be made to recover the cost of any repairs due to damage caused by the tenant.

Quite apart from the fact that taking legal action has its disadvantages and inconveniences, it may be difficult to locate the tenant who has already vacated the premises.

In many cases, the address the tenant may have given and which may even appear on his identity card could very well be the address for the last premises he rented.

Therefore, even if a summons is filed, there will be difficulty in serving it on the tenant, which is a prior step to move on with legal action. In this connection, it will be useful to have pre-agreed in the tenancy agreement how or where the summons may be served – by registered post or by leaving it at the premises referred to.

It would also be desirable to know exactly where and for what organisation the tenant works.

This is to facilitate locating him once he leaves the rented premises. But this again is no guarantee that one will always be able to reach a tenant or former tenant because he may change his job when he changes his residence.

In the present scenario, especially in parts of the country where mobility of individuals is high and frequent, there are further safeguards which landlords will want to explore.

This could include doing a credit check on the tenant or asking an acceptable third party to be a guarantor.

Of course, engaging in all this may appear to be troublesome to some people for just renting out a property.

The idea is to do all that can be done to ensure what is due is collected or to have a loose arrangement where recourse to an effective remedy may not be available.

Given all the hassle that may be perceived to exist in the renting out of a property, the owner may prefer to just leave it vacant and wait for the value to appreciate!

Any comments or suggestions for points of discussion can be sent to [email protected]. The views expressed here are entirely the writer’s own.

Malaysia is moving towards cashless toll direction. Here's 12 tolls that will go fully cashless in September. Please take note!


Article credited to Hafriz Shah (paultan.org)
Referred from http://paultan.org/2015/06/13/twelve-tolls-plazas-to-go-fully-cashless-in-september/

Twelve tolls plazas to go fully cashless in September, including AKLEH, DUKE, SMART, Penang Bridge
By Hafriz Shah / 13 June 2015 1:21 pm

The Malaysian Highway Authority (MHA) has announced that twelve more toll plazas will go fully cashless starting at noon from September 9 onwards, Bernama reports. They are all set to switch to the all-Electronic Toll Collection (ETC) system, requiring the use of SmartTAG, Touch ‘n Go or PLUSMiles card.

Affected toll plazas are:

• Penang Bridge toll
• SMART Highway toll
• Dato Keramat toll on the Ampang-Kuala Lumpur Elevated Highway (AKLEH)
• Ayer Panas, Sentul Pasar and Batu tolls on the Duta-Ulu Kelang Expressway (DUKE)
• Jitra and Bukit Kayu Hitam tolls on the North-South Expressway (PLUS)
• Lunas and Kubang Semang tolls on Butterworth-Kulim Expressway (BKE)
• Gombak and Bentong tolls on the Kuala Lumpur-Karak Highway (KLK)

Queries regarding the implementation of this system can be directed to the MHA hotline at 1-800-88-7752.

Insight Sharing on Subang Jaya area.
What do you think? Here's some sharing from different perspective

Article credited to Nurul Asmui Md Azmi (starproperty.my)
Referred from http://www.starproperty.my/index.php/articles/investment/why-invest-in-subang-jaya-from-3-different-perspectives/


Subang Jaya: From the point of view of a developer, investor and real estate agent
Posted on September 8, 2015 
BY NURUL ASMUI MD AZMI


Different point of views matter when you invest in any area. If you are looking to invest in Subang Jaya, check out below for the different point of views from a developer, an investor and a real estate agent. These views might help you to consider if it is profitable to invest in Subang Jaya, and also ask the right questions when you are exploring and researching a property.

Asking questions is the simplest and most effective way of gaining deeper insights on where and why to invest. Many investors could have avoided trouble and losses if they had asked basic questions before going into property investments.

Subang Jaya is a town that has been growing rapidly for the past 20 years. Even though it started primarily as a residential area, today it can be seen as a town with a myriad of developments and amenities.


From a developer’s perspective: The different property and infrastructure developments
A developer that is currently constructing a property development in Subang Jaya is Tropicana Corp Bhd. The group is developing a township named Tropicana Metropark as its first foray into the growing, affluent neighbourhood of Subang Jaya.

Tropicana Corp Bhd head of marketing and sales Ung Lay Ting said that Subang Jaya is an area worth investing in because it boasts a population of over 700,000 people and is set to be the next affluent neighbourhood in the Klang Valley region.

“Subang Jaya has witnessed a steady growth of business and retail hubs, international education centres, medical centres and mushrooming of modern residences to cater to the flourishing neighbourhood.

“Recognising the growth potential of Subang Jaya and understanding the needs of our customers, Tropicana Metropark is specially created as a gateway for city-dwellers.

“This exclusive development has been built clearly to capitalise on the shift of mindset among new homeowners who prefer expansive green spaces that bring families and communities together, she adds.

Tropicana Corp Bhd has started the construction for a new flyover that will link Tropicana Metropark to the Federal Highway, and is slated for completion during Q4 of 2016. With the increasing number of property developments in Subang Jaya, and the strong infrastructure readily available as well as those provided by the developers, there is a possibility that those could add value to the property in Subang Jaya.


From an investor’s perspective: Rental potential and amenities available
“The core objective of being an investor is to preserve and build wealth, and properties are a good way to achieve that. Therefore, I look for potential growth of an area before I invest,” says a property investor and director of IQI risk management Sdn Bhd, Alexander Woo.

In comparison to some other areas within Klang Valley, such as Petaling Jaya, Damansara and Mont Kiara, Subang Jaya has equivalent developments that are at lower prices. It is also an established area with high demand so investing for rental income can be profitable.


Woo has done an extended research on property market and he finds that property investors should look into Subang Jaya area as it is an established area with universities and colleges nearby, allowing potentially healthy rental yields from a steady and ready tenant market.

For example, in Q4 2014, a freehold terrace house in SS15 has an indicative rental yield of 5.30% with prices ranging between RM1.75 and RM 1.80 psf.

One of the precincts in Subang Jaya that has a large student population is SS15, where most of the tertiary institutions are. With a high volume of students looking to rent a room or house, it could be a great idea to invest in SS15 and also the neighbouring areas, such as SS12, SS14 and SS17.

“The BRT and upcoming LRT extensions are also a boost to the area, making it even more accessible and convenient,” says Woo.

Subang Jaya is well established with a myriad of amenities, thus people living or renting in Subang Jaya does not have to travel far to get their desired necessities and lifestyle.

“SS15 is now one of the best areas in Subang Jaya that buyer’s market and investors can look out for potentially good bargains in the subsale market. There are also attractive packages for projects provided by developers, such as in Tropicana Metropark or You One @ USJ 1. If done right, Subang Jaya is one location that will give you good yield and a healthy capital gain,” adds Woo.


From a real estate agent’s perspective: Opportunity for residential and commercial investment
Twincrest Properties senior negotiator Eric Ng says he would definitely recommend Subang Jaya for property investment.

“It would be best to invest for a property in Subang Jaya and renting it out for those who are working in Subang Jaya as many who work in Subang Jaya prefer to stay in the area so they don’t have to endure the congested traffic of driving out to workplaces like Petaling Jaya or Kuala Lumpur,” Ng adds.

Besides investing in residential unit for rental income, investing in commercial shop lots and small offices in Subang Jaya could also be lucrative.

Subang Jaya sees an increase in economic growth for the past years with a large crowd of consumers. Thus many businesses, be it local, international, small or big could be looking for a commercial unit in Subang Jaya. Buying shop lots and/or offices to rent out could gain the attention of the diversified businesses so there is a high chance of renting out your unit.

“There is a better investment opportunity in the commercial area in SS15 because during the day, there are two colleges and offices to cater to, and by night the students and residents living nearby will keep the food outlets busy,” says Ng.

Investing in an established town as Subang Jaya might foresee a great capital appreciation as there are abundant amenities available.

It is crucial that you seek professional advice and do your research before investing in property. Make sure that you don’t let your hard-earned cash go to waste by investing unnecessarily without evaluating your property investment strategy.

Market is stabilizing or crashing, opportunity or disaster?
You decide

Article credited to therakyatpost.com
Referred from http://www.therakyatpost.com/business/2015/09/02/asian-stock-markets-stabilising-after-china-oil-rout/


ASIAN STOCK MARKETS STABILIZING AFTER CHINA, OIL ROUT
TOKYO, Sept 2, 2015: 

Asian shares got off on the back foot on Wednesday after weak manufacturing activity reports from both the US and China sent Wall Street reeling, while the US dollar steadied after steep losses.

US S&P e-mini equity futures were up 0.7%, suggesting that some calm could return to markets later in the global day.

Data showing US factory activity hit a more than two-year low in August added to an already grim mood, coming on the heels of a survey showing China’s manufacturing sector shrank at its fastest pace in three years last month.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4% in early trade, while Japan’s Nikkei stock index shed 0.8%.

Investors were braced for volatile day in Chinese equities markets, the final trading day before a two-day holiday to commemorate the end of World War II.

Yesterday, the blue-chip CSI300 index and the Shanghai Composite Index both finished lower, though off their respective steep session lows.

The downturn in markets is based less on rising fears that China’s economy is slowing but is “more that the policy initiatives seem engineered on a daily basis and the plans seem to lack a cohesive, well thought-out process,” Chris Weston, chief market strategist at IG, said in a note.

Last month, Beijing stunned markets with a move to let its currency devalue.

A senior Treasury official urged China to carefully explain its policy changes to financial markets and to shift its economic focus toward consumer spending so that its economy can keep growing.

China’s central bank plans to tighten rules on trading of currency forwards from October, said sources with direct knowledge of the matter, in a move to curb speculation and volatility after last month’s sudden devaluation.

On Wall Street yesterday, US stocks fell nearly 3%, with all three major US equity indexes solidly in negative territory for the year so far.

The downbeat US factory figures made it appear less likely that the US Federal Reserve would opt to hike interest rates at its next meeting later this month, with Friday’s nonfarm payrolls report for August awaited to provide more timing clues.

Economists expect the report to show US employers added 220,000 jobs in August, up from 215,000 in July, a Reuters poll found.

Expectations of an eventual increase to US interest rates underpinned the battered dollar, which steadied early today after dropping in the previous session as investors bought the perceived safe-haven yen and unwound speculative positions funded in euro.

The US dollar was last up about 0.4% at ¥119.8, after skidding more than 1% overnight and moving away from last week’s high of ¥121.76, while the euro slipped about 0.2% to US$1.1299.

Crude oil futures continued to drop after plummeting 8% overnight after the weak Chinese manufacturing data raised fears of slowing demand.

US crude was down 2.2% at US$44.40 a barrel, while Brent fell 1.7% to US$48.74.

Spot gold edged down slightly to US$1,138.60 an ounce after rising 1% in the previous session as the US dollar dropped.

This some of the question which is subjective. Some investor likes Soho, Condo type of investment. Some prefer landed as traditionally landed is more assurance in terms of property price appreciation. Some investor prefer condo due to safety and facilities. Anyway, which is your preference?


Article credited to LOANSTREET.COM.MY
Referred from http://www.starproperty.my/index.php/articles/investment/property-investment-landed-or-high-rise/


Property investment – landed or high rise?
Posted on September 1, 2015
BY LOANSTREET.COM.MY


When going into a real estate investment deal, the first thing that should be kept in mind is the location. The location of the real estate determines how close it is to business district, schools, restaurants and also to public transports which is a huge deal to the tenants. The second thing to keep in mind is the convenience for your tenants, whether there is a parking space, good security system, access to major highways and if you are renting out a condominium, its facilities and view could all help add value to your property also. However if all of the above are more or less the same for both landed and high rise property, which one will you choose?

The most common way to earn a profit from your property investment is by renting it out. When renting your property out it is important to keep in mind how much return on investment you expect and stick to it. In terms of return on investment, a condominium will definitely yield the highest revenue. Even though landed property may cost more, it does not necessarily guarantee a higher revenue than a condominium.

Besides renting your property out, you might also want to sell your property one day to earn a lucrative amount of money. The way to make sure you do not lose money when selling your property is to make sure that your property appreciates in value.

For a freehold landed property, the prices are more resilient to depreciation because there is land attached to it. On another hand, for leasehold landed property, the property value will stagnate or depreciate towards the end of the lease. Other than that, there are also a lot of regulations and uncertainties when going through the renewal of your lease. Therefore, if you are going for a short term investment it is advisable to hold on for 5 years before selling. While for long term investment it is not advisable to hold more than 10 year if less than 70 year lease.


Every property requires maintenance. For landed property, the responsibilities for maintenance falls to the investor to keep it in good condition. Condominium properties rely on good maintenance to keep the building in good shape and the facilities in good condition. If the condominium management is subpar and leave the building to its own device, the building value will depreciate very quickly and at that point it is advisable to sell your property as soon as possible.

Some studio apartments could be above a shop lot. Therefore, if it is a good retail shop below offering peaceful, convenient and quiet environment, then the studio will have a good chance to appreciate. However, if it is a shady shop or very crowded and poses a security threat causing discomfort to the tenant, then that studio might drop down in value quickly as people quickly move on to nicer locations.

Another aspect that you should keep in mind when purchasing a property is the developer planned Phases for their area. If you purchase property at a later phase, it will always be more expensive than purchasing it at an earlier phase. The prices for these phases are usually planned out very early and only reflects the projected value of the property in the developer’s perspective and does not necessarily reflect the true market value at that point of time. Therefore if you are planning to purchase a condominium at a later phase, look around for early owners and buy it from them rather than developer’s to avoid buying a overpriced unit.

Conclusion
In summary, always keep in mind your goal for your investment, whether you are angled towards short term/long term investment and then always invest into your choice of real estate property appropriately.

>> Loanstreet.com.my is a website enabling one to compare and apply for loans online.