An imminent uptrend?

Which cycle are the property market of Malaysia in right now? Peak high? or deep mud?


The property market will only start its upward trend again in 2018/2019 before peaking again in 2020/2021 , by The Sun. It is also mentioned that although the market are looking real bad right now, but things will soon come to a turn as everything is a cycle. Few years round and the market will be emerging again from its damaged form since few years back.


In 2017, the housing market is expected to continue slow growth, due to concerns about the slowing economy and the ringgit's weak performance, among others. Not to mention the high-rising debt ratio of Malaysians and more scandals from GLCs ( Government-Linked Corporations) which definitely affect much of our currency and stocks market.

According to New Straits Time, house prices in Kuala Lumpur continue on an uptrend, posting a modest 5.1 per cent year-on-year increase, despite the weaker property market condition. 

Why? Because properties are your assets. Your net worth. It doesn't run and it doesn't leave you in one night. 

Even when the market sentiment is not optimistic, house prices continue to rise. Despite the fact that the salary is not increasing linearly along in a reasonable way, which has been mentioned for years now, the price is still increasing. 

Don't try to time the market for property bubble popping and price dropping significantly. The price will always continue to rise. Our Malaysia currency was the worst performing currency in whole Asia for the year, clipped together with the scandals of 2.6bil donations and 1MDB debts and more. You know what? Our economic growth continue to grew by 4.3% y-o-y (year on year basis) and housing price continue to rise as well.

Can you imagine when your next of kin grow up and start to buy their own properties, what price will be given at that time? Will their salary level increase much better compare to now? Did your salary differ much compare to your father and mother generation? As much as the property price difference?

Stay tune to this blog for more info on Penang property market news!
New project from May2017 :
- Urban Suites
- Golden Triangle 2

You can just leave a message or pm me if you wish to know more about available housing projects in Penang! 

W.

You have enough money to purchase either a house or a business. Choose which one?

You have enough money to purchase either a house or a business. Which would you choose to buy? 

After working for 10years and eating maggie everyday and you have finally saved enough money ( or the deposits) to purchase a house or start your own business. Some chose to venture into stock markets and some in JJxxx, they are considered as business investments too, just higher risk.

 What will be your choice?

When you purchase a house, it will never go wrong, it will always be yours. unless you stopped paying the mortgage. It might stress you harder in terms of the monthly loan payment like a liabilities , but in fact if you chose a property with good entry price, it will always be your assets. It increases your personal net worth in a astronomical value. Because , property price will always rise higher, just a matter of time and rising speed. 

When you increase your own net worth, it actually provides credibility to your account as well which in turn allows you to loan from the banks in a easier and faster pace. The chances of getting rejected is lower compared to those with low net worth and credibility. Which means, more investment choices can be opted since you can have the loans approved , MORE HOUSES = FASTER TO FINANCIAL FREEDOM. *Provided that you are able to handle the mortgages.

If I bought a few houses and I have few children, they can take one of mine as they grow up. Can you imagine the housing price when your next kin has grown up to an adult? You have to work 10 years to afford a house, how about them? Remember, property price is always rising, and it is not completely their fault if they could not afford their own house as salary usually does not increases along fast enough with the property price.

 Moreover, having a few house in the hustle cities and lenient countryside is always a good choice. Live in the city near to your own work place in weekdays and go over to your countryside farmhouse to enjoy your weekends and relax. Indulging in different environment allows you to think more creatively and less stressful. Not to mention that I am able to rent it out by myself or using apps like AirBnb. By doing this, fixed positive monthly income can be generated from the house to pay for its mortgage.

Its like having a worker to earn and get paid for his own salary. Why not?

     

   On the other hand, rolling into a business will have higher risk. 90% of the successful businessmen or entrepreneur out there have failed more than 5 businesses before they get to the correct one , which leads them to the road of millionaire. Are you ready to afford that? Are you resilient enough to handle that stress? Will you keep on going despite the look down from everyone?

  

If all the answers are Yes to you, then you should probably go for business option. Business can definitely brings you a fortune, but high profit comes with high risk. Proceed cautiously and don't give up, who knows you might be the next Ma Yun of Alibaba.

  

   However for the lazy men like me, I would obviously choose property as the option. Its not that I do not have dreams and targets to achieve, but I choose to achieve it in a safer way, although it is much slower in pace but at least I can sleep well in the night. Buying a house with good location , good price will never go wrong!

Stay tune to this blog for more info on Penang property market news!
You can just leave a message or pm me if you wish to know more about available housing projects in Penang!

W.

Penang Property Bubble?

Are the property markets in Penang heating up for an imminent bubble pop? I don't think so.

A property bubble is when the housing prices irrationally surge up in a short period of time and reaches a peak price record with some unforeseen reasons. As the bubbles pop, the prices will undergo a deep consolidation plunge, which could be the cause for the next economic crash.

If we look at Penang nowadays new condo projects which cost around RM 500K in average for 1000 sqft area, it would cost about RM  per sqft

Comparing to Hong Kong, a case in point – a 26-year-old government-built apartment of 420 sq ft in the Sham Shui Po area of Kowloon district was transacted at HK$1.98mil, or HK$4,714 per sq ft. which is around RM2600 per sqft !

Does Hong Kong pops its bubble yet?  It has been surging up for years due to their unbalanced population and land area.

In fact we are very similar to Hong Kong in terms of geographical landscape , we all have the same problem of land scarcity. I believe that sooner or later Penang will have its housing price continue to rise in a healthy pace. Which means, more expensive houses are waiting for the next generation.

However, we should not be reckless to invest by merely taking Hong Kong as a guide since Malaysia has a different economic structure and stability with HK. Property price will be higher in Penang in the future for sure and we as investors could earn from it significantly, just make sure that we do not buy overvalued properties as it would drag down our profit margin of safety and expose us to further risk of property bubbles.

Investing in property will hardly go wrong. Best time to buy will always be now.

Stay tune to this blog for more info on Penang property market news!
You can just leave a message or pm me if you wish to know more about available housing projects in Penang!

W.

Buying 4 properties in 10years. Possible?

Buying 4 properties in 10years. Possible?

A news came out in Taiwan.
A 35 years old woman named Mandy bought 4 properties and saved 5 buckets of gold ( 5 million TWD = ~RM700K ) in 10 years, By being a real estate agent and investing in properties.

Which means she started in 25years old. Looking back at Malaysian's 25 years old. What are we doing by that age?

Mandy originally worked as a beautician after she graduate, earning around RM2000 of basic salary per month. Can we put 4 properties and 5 buckets gold in our pocket within 10 years, with RM2000 montly salary? Boleh lahh... if got donation...

Fortunately, she knew that she got no donations ready for her, and she was ready to jump out of the hole.

She joined as real estate agent in 2006, and during that time, Taiwan market was having their bad-economy-low-property-demand cycle, which means she will have a harder head-start. But, she took it as a good chance to start learning and ready herself for the next property booming cycle, which happened to be the following years after she joined.

She reached out for the chance and got what she dreamed for. Her own property investments.
Which is definitely a huge leap forward for her to the heaven of financial freedom.

Now, she mentioned that Taiwan is currently undergoing another cycle of grey weather for the property market, thus she is now preparing to go into the property markets of Canada , Japan and even European countries.

I believe that this would also be the ultimate goal for all readers here, Including myself.
Investing in property will hardly go wrong. Best time to buy will always be now.

Stay tune to this blog for more info on Penang property market news!

You can just leave a message or pm me if you wish to know more about available housing projects in Penang!

W.

Golden Triangle 2 , Relau

[ Golden Triangle 2 ]

Howdy everyone , new project in Relau, Penang. *A hustle and bustle of the big city
Although this area is sometimes a bit slow with the traffic, it could means the area is growing steadily so as your house price isn't it? Lets not look at the bad side of everything and look at this new awesome deal in Penang!

[Agent's Perspective]

The block is going to be built side by side of Golden Triangle 1 with commercial shoplots in a few floors below. Construction starts May-July 2017 and expected to complete in 2021.

Location
- A strategic location sitting by the mountain and facing the sea. (sunrise view as it faces the PISA/sPice arena.)
- Close to public university of Penang which is USM and also to the international school of INTI.
- Several food courts are available within few minutes away
- Near the route to penang airport

Unit attractions
- 38 storey high residential suites that comes with two sizes : 1163sqft and 1238 sqft.
- New attraction of having a sky garden on every floor [Which shows you the greens each time the lift opens]
- Three tier security [ Security guards with card scanning access to carpark and lift ]
- Low maintenance sinking fund of RM0.18 per sqft (which makes up to ~ 2xx / month)
- 2 carparks are given for each unit!
- Few floors of commercial shoplots are right below your house, land appreciation is going to be awesome!

Payment
- Low booking fee of RM5,000 only
- Priced 5xxK onwards
- Free SPA and Loan fees ( but excludes stamping duty)

[Investor's Perspective]

Well this is definitely an awesome choice for families that would be expecting their children to study at local universities such as USM and Inti. Just avoid going out on peak hours alright.

Although it is priced at 5xxK for now, it actually offers a rebate of 50k to the purchase price ( which mean the final price after calculating everything in)

And also an Interest Subsidy of 20k in terms of voucher form ( which you can use to pay off part of your loan, it is going to be given in two building stages with 10k each)

Now thats 70k off the price we bought the unit, whats more to the spice?

Freebies that comes with the unit!
Developer will give you another two units of air-conditioning with inverter, and they will also help you put it up on the house with concealed piping!
Thats probably going to cost us around 2k if we do it ourselves. (not including the setup fees yet)

Tinted windows and window frames, shoe racks and FLOOR TILES are provided as in showroom!
Now the tiles are important factor too, could be quite costy if you do-it-yourself.

The bad side? Hustle and bustle. Good for someone who enjoys the city liveliness though.
Traffic jams are quite common in the peak hours. Could be quite pricey compared to available condo projects in Penang Island right now. Each have their own reasoning for their price though.


Last but not least, do leave your comment or send me your details ( name, phone number) if you are interested to get to know more about it! I am both a real estate agent and investor as well.

If you want to be anonymous, just use the google form  here !

Kindly remind me if there are any mistakes or copyright infringement. Thank you.
*Photos obtained from GT2 Brochures

W.

Urban Suites - Jelutong, Penang

[ Urban Suites 21/5/2017]

Looking great from the location and also, the price!

[Property agent's Perspective]
This is a new project in Jelutong area near to the Lim Chong Eu highway. It is commercial-titled and also free hold building that is estimated to complete ~ 2021year.
A prime location near to Karpal Singh Drive and the future-LRT-station is within walking distance.
Over 40+ six star facilities like futsal court, cinema and gym.

3 types of sizes are available : 630 , 753 and 836 sqft from RM3xxK onwards

Low registration fee of RM3,000 only and 10% rebate to the unit price according to building stages.

As for GST (since it is commercial titled), developer will fully absorb the GST if you bought a unit of 753 or 836 sqft. If you opt for the 630sqft unit, developer will still absorb 3% of the GST for you , which mean u will need to pay the other 3%.

High return of investment in a shorter timespan compared to other projects!
Definitely worth if you are a investor for homestay/airbnb business!

[Investor's Perspective] 
The developer [Aspen Vintage] introduced a new concept for investors/buyers for this project with the theme of "luxurious hotel" , there will be a lobby on the ground floor and it is able to help owners to manage their house for Airbnb purposes (including cleaning, micro-managing the tenants and stuff , with some charging fee of course. But you can still choose to do it yourself. )

Future LRT station is within walking distance , great news for tourist looking for homestay location.
Not to mention the Jelutong wet market nearby that would be a heaven for the tourists (homestay people like to cook their own foods)

Just calculate the ROI (Return of investment) roughly in simple way from doing AirBnb
1) Assuming your purchase price is 400k and got a 85% loan which makes your loan amount to be 340k , according to the installment amount of interest rate of 4.6% divided to 30years installment, it would requires you to pay a monthly installment of ~RM1700

2) Assuming rental is RM200 per night with 10days rented out of a month = RM 2000 / month

Tadaaa , positive cash flow!

10days out of a month is not a hard thing for city of tourist isn't it? *Lets be positive here

Did I calculate in the potential capital gain from the increase in housing price over the years?
The high-rise building in Karpal Singh Drive was sold for 3xxK at first , now its priced around 7xxK!

More attraction points!
- 10% rebate for the total unit price ( which saves you ~40k if you opt for a 400k unit!)
- 6% GST absorbed by the developer = another saving of ~12k
- Free legal fee on loans,stamp duty and SPA signing except MoT = another saving of ~ 5k
- Legal for airbnb/homestay business , which means no saman! Weeeee!

Some non-attraction points *I have to be fair on both perspective shouldn't I?
-The carpark are not included in the price. Extra RM39888 for one carpark and RM59888 for two. You can choose to not buy any. (if you're on homestay business, tourists would love to use uber and future LRT station anyway!)
- It is commercial titled so its slightly more pricey on the water/electricity bills


Last but not least, do leave your comment or send me your details ( name, phone number) if you are interested to get to know more about it! I am both a real estate agent and investor as well *winks

If you want to be anonymous, just use the google form  here !


Kindly remind me if there are any mistakes or copyright infringement. Thank you.
*Photos obtained from Urban Suites Brochures.

W.