Currently, it is harder to buy a new property due to tightening loan regulation. Even commercial property sales are affected. This foresight and actions taken by Bank Negara should be applaused because the steps help to stabilize property market especially in Johor Bahru.
The hardest property segment being hit especially in Johor Bahru is high rise building such as service apartment. I got a new pamphlet from a developer, originally the smallest unit was launched at RM480,000, two years later the same unit was sold for RM380,000, now the same unit is sell for RM320,000. I don't bother to pay any visit to the showroom. So I do not know how this new price will affect the monthly maintenance fee. But the funny thing is there are still a lot of new development of service apartment in Johor Bahru. Those new developments may be already under planning and received approval for development before the property market is confirmed on the downside.
It is still okey if you buy the apartment for your own stay but it is not good strategy for rental. This also means it is buyers market now in Johor Bahru. However, property price for landed property segment is still strong in Johor Bahru. Even though developers have difficulty to sell some of their units, those who already bought the property should be happy about it. The scenario help to stabilized the rental market. The population growth in Johor Bahru is getting stronger. A few years ago, traffic jam only happened during time to go to work or back from work. Now, it is a bad timing if you try to go to Johor Bahru on Saturday. Some major roads are always under traffic jam on Saturday.
The good news is economy activities in Johor Bahru is still strong. In fact, there are a few more new investment in Johor Bahru which can offer high salary for those who qualify. This definitely can offset the slowing down in oil and gas sector. Oh I forgot, this sector is still small in Johor Bahru which focused in Pengerang, Kota Tinggi. Most of contractors who got the benefits are from Klang valley. In addition, Oil and Gas sector does not employ as many people as in manufacturing sector.
Some manufacturers who depend on old products and technology cannot sustain in Malaysia especially with the raising cost of manpower.If they fail to automate their process and reduce manpower, the operational cost cannot be sustained in the long run. Hence, a few companies already shutting down their operation in Johor Bahru. But, new manufacturers in Johor Bahru are value added manufacturers and use a lot of process automation. Thus, minimum salary requirement is not a problem for these new manufacturers. In fact, a few more companies are in discussion to invest more than RM1 billion each of them in Johor Bahru.
If this scenario can be sustained, job market in Johor Bahru will continuously be stabilized and improved. Hence, the property market can also be maintained. Since developers have to slow down in their property development in Johor Bahru while job market is sustainable, this also mean property rental market is also sustainable.
Monday, December 28, 2015
Sunday, December 20, 2015
New House Renovation
Updated on 22-12-2015
There are many cases where house renovation was abandon or over budget or completed not as the owner wanted. Since this is my first time to do a major renovation, I would like to list out my procedure to do so and avoid the above problems.
1. Survey your dream renovation
- make sure practical usage rather than glamour
- several layers of renovations: most essential or minimum, must do now to avoid lost in future, safety, convenienc, estatic the last
- must also consider future needs such as increasing number of children, children getting mature, you getting old, or your parents may live with you
- my final renovation plan:
- originally, there was on a bathroom at the back, it is splitted into two bathrooms (Bath 1 & 2) and enlarged.
- the new room will have its own bathroom
- dedicated bathroom for each room will ensure privacy to may children when they grow up. It can also ensure to minimize squabbles in the future. It is more expensive and difficult to split the bathroom in the future.
- the side balcony will be enlarged so that the new room can have its own access door. In addition, the enlarged balcony can protect the ground floor doors during rain. The enlarged balcony can also ensure the family hall to become bigger when I have a high number of guests.
2. Select your contractor: minimum meet 5 contractors from different background
- local and farther away
- successful vs small business
- single vs complete team
- time, how strong their financial, current and pass projects, pictures, site visit etc.
- it is alright if some of the contractors refuse to give any quotation. The project might be too big for the contractors. But, you can still explore ideas from them what and how to do the renovation.
- most of the ideas I collected different contractors. Some of the ideas surfaced in my mind during the conversation with them or after discussion with them.
3. Agreement
- this is the part where most people are lazy and lead them to trouble in the future
- al quran advise us to write down when dealing a business. Thus verbal agreement is not enough. Handshakings are not enough. The agreement must be written!
- write down all you want to have or renovate
- ask contractor to write how are they going to do and progress schedule
- put forward a propose budget
- merge two together
- sign it
- it is something I cannot show in public. But it is alright in private discussion.
4. Payment by progress
- agree first on what to be completed in specific time and fund
- agree first what to inspect
- next payment only all work progress were done
5. Payment
- no cash
- NEVER PAY ALL THE MONEY AT ONCE!!
- payment must be made progressively as agreed in 3.
- all electronically for tracebility, account
- use more than a single account if you use personal saving account
6. Monitor the progress
- is an art, time, you can also learn something from the activity
- cannot trust 100% everything is ok
- watch , ask and learn a lot
I will continue update the work in progress in the future.
There are many cases where house renovation was abandon or over budget or completed not as the owner wanted. Since this is my first time to do a major renovation, I would like to list out my procedure to do so and avoid the above problems.
1. Survey your dream renovation
- make sure practical usage rather than glamour
- several layers of renovations: most essential or minimum, must do now to avoid lost in future, safety, convenienc, estatic the last
- must also consider future needs such as increasing number of children, children getting mature, you getting old, or your parents may live with you
- my final renovation plan:
- the new room will have its own bathroom
- dedicated bathroom for each room will ensure privacy to may children when they grow up. It can also ensure to minimize squabbles in the future. It is more expensive and difficult to split the bathroom in the future.
- the side balcony will be enlarged so that the new room can have its own access door. In addition, the enlarged balcony can protect the ground floor doors during rain. The enlarged balcony can also ensure the family hall to become bigger when I have a high number of guests.
2. Select your contractor: minimum meet 5 contractors from different background
- local and farther away
- successful vs small business
- single vs complete team
- time, how strong their financial, current and pass projects, pictures, site visit etc.
- it is alright if some of the contractors refuse to give any quotation. The project might be too big for the contractors. But, you can still explore ideas from them what and how to do the renovation.
- most of the ideas I collected different contractors. Some of the ideas surfaced in my mind during the conversation with them or after discussion with them.
 |
| The first action was to build the foundation |
3. Agreement
- this is the part where most people are lazy and lead them to trouble in the future
- al quran advise us to write down when dealing a business. Thus verbal agreement is not enough. Handshakings are not enough. The agreement must be written!
- write down all you want to have or renovate
- ask contractor to write how are they going to do and progress schedule
- put forward a propose budget
- merge two together
- sign it
- it is something I cannot show in public. But it is alright in private discussion.
4. Payment by progress
- agree first on what to be completed in specific time and fund
- agree first what to inspect
- next payment only all work progress were done
 |
| Demolish the kitchen and store room so that the dinning hall is bigger |
5. Payment
- no cash
- NEVER PAY ALL THE MONEY AT ONCE!!
- payment must be made progressively as agreed in 3.
- all electronically for tracebility, account
- use more than a single account if you use personal saving account
 |
| 3rd day work in progress |
- is an art, time, you can also learn something from the activity
- cannot trust 100% everything is ok
- watch , ask and learn a lot
 |
| 4th day work in progress |
 |
| 5th day work in progress |
I will continue update the work in progress in the future.