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.
OK, back to her sharing today at the seminar.
In our current environment we face certain challenges and opportunities.
Challenges:
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.
Opportunities:
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 :-)
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| Renesial in action |
OK, back to her sharing today at the seminar.
In our current environment we face certain challenges and opportunities.
Challenges:
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.
Opportunities:
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 :-)
Hello Haruki, I would like your opinion on my current situation. I'm 31 years old and my wife and I just registered last week. We have been looking to purchase a home for ourselves for the last one and a half years but until now we have yet to make a purchase. One reason is because we took our time trying to decide if the unit we're looking at (we can only afford a medium cost condo) are suitable or not. Another reason is by the time we have decided the asking price have gone up another 10%. Is it advisable to buy in this hot property climate? The place that we would like to purchase has now gone beyond our reach.
ReplyDeleteDear Lim, as you are buying a home, the most important factors to consider for yourself is the location (close to your working place, schools for your future family, and being able to get support, ie babysitters etc). Once you have decided on the location and also zoom in on that particular condo that you can afford (double income to qualify, perhaps) then look at the listings for sale everyday. Team up with 1 or 2 good real estate agents who are familiar with that area and work with them. Once you found a good unit at the market price range that you can afford, then don't wait to buy! Buy property and wait. Because medium-cost condo (below RM500k) will always be in demand as homes. Only those luxury properties are at risk of price corrections due to speculators in cooled-down market. For example, you see that govt has implemented many cooling measures to slow down the property market, but the segment of medium-costs have not slowed down. There is genuine demand from home-buyers. That being the case, once your own factors are right, I still say, buy your property now. In my opinion, property is this segment will not come down. And after the GST implementation on 1 Apr 2015, you will see another round of price hikes even on properties.
ReplyDeleteDon't take 1.5 years to look for your home, secure it now.
Hello Haruki, thank you so much for your advice. I'm beginning to see now another side of the problem, especially if I delay buying a home. Really appreciate the time you took to reply my questions. Hopefully my wife and I are able to find place to call home :) Regards, Lim
ReplyDeleteDear Haruki, thanks for your sharing.
ReplyDeleteI'm an investor myself and am looking to network with other like minded investors. Do you have any means of contacting them for any upcoming events? As i couldn't get through to the organizers through the links i gound online. Thanks in advance for your help.
Dear Haruki, thanks for your sharing.
ReplyDeleteI'm an investor myself and am looking to network with other like minded investors. Do you have any means of contacting them for any upcoming events? As i couldn't get through to the organizers through the links i gound online. Thanks in advance for your help.
Hi Stephanie, there are many Facebook groups now that you can request to join or follow: Wealth Mastery Academy, Get Started in Property Investment with NO MONEY DOWN..!...Propertywaltz.com, Dr Renesial Leong etc.
ReplyDeleteThese are open groups and will be advertising property events from time to time and you can post your questions to the organizers.