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Saturday, August 9, 2014

Renesial Leong's Buy, Sell or Hold Seminar

I'm very thankful to have obtained a sponsored ticket to my sifu's seminar to be able to listen to her again in this current economic situation.  She looked just the same as 5 years ago - a happy, blessed person who has abundance of everything and is spending a lot of time doing charity work. She urges all of us to donate 5% of our passive income monthly to charity.  So many people around the world now need our help and if we are blessed, we then should give some of our wealth to help others.
Renesial in action

OK, back to her sharing today at the seminar.
In our current environment we face certain challenges and opportunities.
1. Rising costs of goods - fuel hike, electricity tariff, withdrawal of subsidies, GST implementation
2.  Rising costs of land - land price, borrowing costs by developers, compliance costs etc
3. Oversupply of certain types of properties - continuous building at neck-breaking speed in certain areas.
4. GST will increase costs of doing business in Malaysia, creating competitive pressure by other lower costs countries.

GST implications:
1. If buying commercial property offplan from developer and the completion stages falls after 1 April 2015, those completion stages will be subject to GST.
2. It is not clear whether rents of commercial properties are subjected to GST or not.  Landlords need to be aware when renewing tenancies that will continue over the GST effective period.

1. Malaysia's ETP that aims to make our per capita income from US7k to US15k per annum.
2. Population has hit 30million in Feb 2014.  Good % of Gen-X and Gen-Y who will demand housing and business properties.
3. Greater KL will hit 10million population by 2020.
4. Low unemployment rates, best highway infrastructure among countries South East Asia.

In summary, given current situation, now is the time to either buy, sell or hold, depending on our individual current cashflow and holding power :-)