Be aware of the Economy Reality by Improving Personal Financial Management

Bank Negara already increased the Overnight Policy Rate or OPR twice since the end of the MCO (Malaysian movement control order). 

"At the height of the Covid-19 pandemic in July 2020, BNM reduced the OPR to 1.75% – Malaysia's lowest level ever. It maintained this level until May 11 this year, when it raised the OPR by 25 basis points or 0.25% to 2.00%."

"On July 6, the central bank raised the OPR again by another 25 basis points to 2.25%."

https://www.malaysianow.com/news/2022/07/15/economists-tell-who-will-feel-the-pinch-if-opr-is-raised-again

During the first OPR increment, my property investment required me to pay additional RM310.30. I have many loans in a total more than RM one million. Today, after the second OPR increment, the banks finally increase again the monthly loan payment. I have to add another RM161.00 to the existing loans. In total, I have to pay additional RM471.30 to service my existing loans. The total increment is almost 7.6% of my total loan monthly payment. 

This also means, many Malaysian have to pay additional 7.6% to their loan or monthly expenses. In other words, many Malaysians have less 7.6% ability to spend. Combining the high inflation and 7.6% less ability to spend, Malaysia economy growth will stay slow until next year. This also means I don't agree with the Malaysia GDP expansion as calculated by the ministry of finance or Bank Negara. If you look carefully, the growth during Q1 (3.8%) and Q2 (8.9%) are based on comparison with 2021. 

 

Read more at: https://www.nst.com.my/business/2022/08/821605/malaysias-economy-grows-faster-89pct-q2-first-half-growth-69pct

The actual comparison should be the comparison with 2019 when the MCO have not occurred! Measuring the economy performance when the economy at bottom low is not only inaccuracy, it is misleading as if our economy is a Trust Fund performance! So many people are being fooled by a Trust Fund performance using this technique. If the performance is really high, why the dividend return is low? If Malaysia economy is so good, look at the reality of today economy performance which is your pocket. It has minimum effect to those who work in government. But it is hard for those who work in private sector especially when prices of daily consumption has increased a lot.

Another clear indicator that the economy has not been back to the original level as before MCO, look for the retail shops around you. There are still many empty shop lots with banners "For Rent" or "For Sale". How bad is the area being hit is depending on how many shops are still vacant. Some of the retailers cannot survive when they cannot operate the business and have to close the shop forever. Some of them try to relocate to a cheaper or affordable location. If we are observant, we can see some new retailers have moved into the vacant shops. While some of the shops are still vacant.

All I can advise is spent your money wisely and carefully. We should work harder and look for opportunities for more income streams. But, my wife just bought a new CRV TCP1.5 AWD car!! It is time for us to use some of our success in property investment. But, you should beware for another OPR increment in the near future. It is closer than you think.

Happy investing!

Kejar Ilmu Pelaburan dan Cuci Mata - Window Shopping for Your Investment

Rezeki tidak akan datang menggolek.

Usaha wajib ada.

Tetapi kalau berusaha tanpa ilmu, rezeki di depan mata pun tak nampak.

Saya pernah menerima tawaran membeli restoran berserta kedai, sekitar 2005 berharga RM450,000. Kawasan taman universiti teknologi malaysia. Corner lot. Sudah beroperasi beberapa tahun. Saya selalu juga makan tengahari atau petang di restoran tersebut. Owner perlu berpindah ke Kuala Lumpur mengikut suami.

Pada masa tersebut, berdasarkan pendapatan sedia ada, saya tidak mampu membeli kedai dan perniagaan tersebut. Tetapi kini setelah membeli beberapa buah kedai dan rumah untuk pelaburan, barulah saya sedar rezeki menggolek di depan mata. Saya tidak mempunyai ilmu mencukupi pada masa tersebut untuk merancang pembelian.

Kini kedai tersebut berharga sekitar RM2 juta!

Hari ini walaupun sibuk, saya berjaya membuat lawatan tapak ke sebuah rumah terpakai,

20X70', sederhana rendah, 3 bilik tidur, 1 bilik air, pegangan kekal, Bandar Baru Uda, Jalan Padi, RM315,000.

20 meter dari rumah ada taman permainan kanak-kanak. Jadi, tiada masalah parking. 

Kedudukan rumah amat strategik kerana Bandar Baru Uda berada di tengah-tengah kawasan samada ke pusat bandar JB, Nusajaya atau ke utara seperti Skudai dan Senai. Di bandar baru Uda juga ada pelbagai shopping complex terutama Angsana. Rata-rata penduduk sudah lebih 25 tahun berada di kawasan tersebut - lokasi matang.

Anggaran sewa rumah tersebut sekitar RM1,000 hingga RM1,200.

Masalah utama, rumah tersebut berada lebih rendah kira-kira 1m dari permukaan jalanraya. Apabila hujan pasti air hujan dari jalanraya akan memasuki laman rumah. Semakin lebat hujan, semakin buruk kemasukan air ke laman rumah. 

Ke dua, walaupun lebar rumah boleh memasukkan dua buah kereta, sudut dari permukaan jalanraya ke laman rumah amat curam dan jarak yang pendek menyebabkan kecuramannya tidak boleh dibaiki.

Rumah tersebut juga memerlukan pelaburan yang besar untuk dibaik-pulih terutama untuk membolehkan dua buah kereta diletakkan di dalam laman rumah.

Keputusan: tidak sesuai untuk pelaburan.

Menjana Pendapatan dari Pelbagai Sumber

Ramai orang boleh menjawab apakah pekerjaan mereka. Tetapi persoalan akan menjadi lebih rumit untuk dijawab apabila ditanya apakah pekerjaan sambilan mereka.

a) Pekerjaan utama

b) Pekerjaan sampingan

c) Pekerjaan berdasarkan hobi

d) Pekerjaan berdasarkan hobi ke 2

e) Pekerjaan berdasarkan peluang segera

f) dan lain-lain

Ramai memberikan alasan mereka tiada pekerjaan sambil agar mereka boleh fokus kepada pekerjaan yang ada. Tetapi ramai yang tidak menyedari, ramai jutawan menjadi kaya kerana mereka mempunyai lebih satu pekerjaan atau lebih satu sumber pendapatan. Sesetengah pakar motivasi menceritakan seseorang jutawan memerlukan tujuh atau lebih sumber pendapatan. Atau lebih tepat, ramai jutawan menjadi kaya kerana mereka mempunyai pelbagai sumber pendapatan.

Di dalam keadaan ekonomi yang merundum, semakin ramai melakukan dua atau lebih kerja serentak untuk menambah pendapatan. Jika perancangan lebih awal dilakukan, pekerjaan kedua, ketiga dan seterusnya seharusnya membantu kualiti hidup. Sebaliknya, sekiranya pekerjaan sampingan cuba dikekalkan di sepanjang karrier, hanya musibah akan menanti anda. Melakukan pekerjaan sampingan yang sama hanya akan menyebabkan "Diminising return". Sebagai contoh, semasa saya baru menjadi pensyarah, pendapatan pensyarah sampingan adalah RM100 sejam. Selepas 20 tahun, pendapatan pensyarah sampingan masih tetap RM100. Saya memaksa diri berhenti mengajar secara sampingan semenjak 2014. Jadi, tenaga dan masa saya boleh digunakan untuk berehat, memikirkan strategi dan menjana pendapatan lebih tinggi dan berterusan.

Tetapi ramai tidak sedar ciri-ciri di dalam pelbagai sumber pendapatan sampingan.

1. Pelbagai sumber pendapatan bukan bermakna semuanya mesti dilakukan sepanjang masa. Jika anda mempunyai dua pekerjaan yang sentiasa mesti dilakukan sepanjang masa seperti pekerjaan dua shift sehari, anda harus bertanya kepada diri sendiri berapa lamakah anda sanggup bekerja selama dua shift dalam sehari? Setahun? 5 tahun? 10 tahun? sampai pencen? Anda bukan robot. Sila bangun dari tidur.

2. Setiap pendapatan sampingan mempunyai jangka hayat dan kewujudan waktu yang terhad. Oleh itu, sangat penting untuk merancang priority hidup anda. Sesetengah pendapatanan sampingan mempunyai waktu dan tempoh tertentu perlaksanaannya. Jika pendapatan sampingan hanya untuk kerja dua shift di kilang, kesibukan kilang juga bermusim.

3. Setiap pendapatan sampingan mempunyai faktor kesesuaian yang berlainan seperti:

   - seasonal seperti di atas

   - faktor umur: umur semakin tua menyebabkan sesetengah pekerjaan sampingan tidak sesuai, semasa umur muda lebih banyak pilihan pekerjaan berdasarkan tenaga dan masa yang banyak tetapi apabila usia meningkat pekerjaan sampingan berdasarkan pengalaman, ilmu dan masa yang sedikit menjadi keutamaan.

   - faktor keluarga: pekerjaan sampingan akan menyebabkan anda kekurangan masa untuk keluarga. Tetapi pekerjaan sampingan yang flexibel akan memberikan lebih banyak masa untuk keluarga seperti ejen insuran, ejen hartanah dan sebagainya.

   - perubahan ekonomi negara: setengah pekerjaan sampingan tumbuh seperti cendawan apabila ekonomi negara semakin rancak seperti ejen hartanah, ejen permohonan pinjaman, pendidikan dan sebagainya.

   - perubahan polisi negara atau syarikat: sesetengah syarikat tidak mahu terikat dengan pekerja-pekerja tambahan, sebaliknya pekerja kontrak atau separuh masa digunakan. Perubahan polisi negara juga membantu sesuatu pekerjaan akan bertambah peningkatan gaji seperti kemasukan buruh asing, pertumbuhan bidang ICT, semikonduktor dan sebagainya.

4. Pekerjaan sampingan yang mudah bertahan adalah pekerjaan yang berdasarkan minat

   - perkara sukar menjadi mudah kerana minat

   - perkara mudah tapi leceh tetap mudah jika minat

   - hobi yang berterusan sangat bagus jika boleh menjana pendapatan sampingan

   - sesetengah pendapatan sampingan memerlukan perancangan lebih awal atau persediaan awal

5. Senarai pekerjaan-pekerjaan dan pendapatan sampingan yang saya lakukan:

   i. (23 tahun) Pensyarah

  ii. (25) Penulis aturcara

 iii. (22) Consultant 

 iv. (10) Teaching and training part time

      - (stop) university: UTM, UTHM, UMP

      - (6 dan  sekarang jarang-jarang) training for companies: Kriptic Devices, Zal Computer, Kelab komputer sekolah

      - (lebih untuk kerja kebajikan) chess

      - kursus pendek: microcontroller, PLC, visual basic, IC Design 

  v. (8) Mengasaskan dua buah syarikat

 vi. (25) Menyewa rumah sejak 1998

vii. (14) Melabur hartanah melalui pembelian bangunan kedai

viii. (2) Tourist guide

 ix. (14) Palm oil plantation

  x. (5) Manpower supply

11. (15) Service repair

12. (15) Paperwork for tender, grants and operational setup

13. (20) Selling agent such as property, computer

14. (25) Software development

15. (4) Invest: bela lembu 

16. (3) Jual baja dan benih

17. (30) Melabur dalam ASN dan ASB

18. (10) Melabur dalam Bank Rakyat

19. Professional Chess player (4)

Nota: dalam kurungan adalah tempoh masa pelaksanaan, kebanyakan aktiviti bukan berterusan tetapi tempoh tahun aktiviti tersebut masih berlaku.

Semua ini tidak mungkin saya lakukan serentak atau berpanjangan bertahun-tahun. Jadi, rancang pekerjaan sampingan, pelaburan dan hobi anda untuk masa depan.

Security and Accessibility for a Home

I wasn't planning to buy my current house. My original intention to visit this housing development was to find out about shop lots at this location. I wanted to compare the shop lots with the shop lots at my previous housing development. The prices were similar but here, the available shop lots were at the end of the housing development which made them not attractive. While the better located shop lots facing the main road were already sold out. The shop lots at my previous housing development is located at the main road. In addition, the shop lots at my previous housing development are located in a more matured surrounding.

In my first visit to this housing development, the main roads were only consists of single lane in each direction. I was shocked to learn the strategic shop lots had already sold out. But, the sales girl told me that the developer is doing pre-launch last phase of the housing development. She invited me for a tour. When I asked what is so special about the housing development, she informed me besides the security guards, the housing development has swimming pools and gymnasium. Since my wife was tagging a long, we decided to take a look even though it was not our original intention.

The last phase of the housing development consists of cluster and semi-D houses. The club house has sufficient space considering there are only about 550 houses. The swimming pool is large enough for many people to use at the same time. There is also a small swimming pool for children under 10 years old. Now, an access door is installed so that only the paid home owners can use the facilities and also ensure added security.

The fence is secured with tall and strong fences. Barb wires are also installed at the top of the fences. The housing area look fully secured. Some housing development were proposed on full fences but they were still under development. As a result, there are some security risks. After living here for more than five years, the committee decided to add CCTV at each main roads especially at each junction.

My wife main concern was the main roads were only single lane in each direction. But, we realized that the developer will be forced by the municipal to develop two lane roads in each direction which is confirmed by the sales girl. Since the traffic was not heavy in the vicinity, the road planning should be sufficient. Based on the distance, the housing area is only about fifteen minutes to my working office.

One year after I lived in the new housing area, there was rumor a new highway exit will be developed. This should be a bonus to us. Accessibility is always one of the main concern among the neighbors. It took another two years before we finally can use the new exit highway. This is better than some housing developments where the promise for a new exit highway was not fulfilled. The existence of a new exit highway cut travel time, gas cost and human energy in many directions significantly. The new exit highway also helps to reduce or assist traffic flow in the surrounding areas.

Living in this new home really taught me many important factors when purchasing a new house. Security and accessibility are crucial.

The bad news was the moment the new exit highway can be used, the municipal almost double the exit tax (cukai pintu) of my house!! This also means the value of my house is double from the purchase price.

Based on the selling price, it was impossible for me to buy the house and a shop lot at the same time. Fortunately, I did an extensive calculation to find possibilities to buy both properties at the same time, the danger and mitigation plan. All of these were done in a spreadsheet with many tabs.

Membeli Hartanah Semasa Usia Muda

 I have to post this since I saw many inquiries in my facebook links.

My response:

Kalau bodoh, kena bertanya dengan sopan supaya boleh menjadi lebih pandai. Kalau sudah awal mengkeji, menghina kepada orang lebih tahu, sampai ke tua le kau tak beli rumah. Ada pun sebijik. Lebih sedih kerja jadi hamba duit. Kita mahu duit jadi hamba kita. Pengiraan ditunjukkan ada kebenarannya tapi kena guna akal. Bukan gunakan hati busuk. 

Pertama, kena kerja kuat semasa muda supaya boleh bersenang lenang selepas umur 50 tahun. Ada cara untuk dapat pendapatan rm3,000 sebulan semasa berumur 22 tahun kalau berusaha, bukan berangan sahaja. Lagi kuat kita berusaha, lagi tinggi pendapatan yang sepatutnya diperolehi. Jika kita kuat berusaha tapi pendapatan tetap sama, anda memilik perlaksanaan yang kurang elok. Sila lihat jawapan saya kepada satu pertanyaan di bawah.

Kedua, kena belajar teknik buat loan bukan berharap kepada ejen atau salesman pemaju. Penjimatan kos sangat penting. Di dalam keadaan ekonomi semakin mencabar terutama recession, permohonan pinjaman semakin sukar diperolehi. Tetapi jika kita tahu apa yang pihak bank lihat ketika menilai permohonan pinjaman, kita lebih bersedia untuk memperbaiki pengurusan kewangan sebelum membuat pinjaman.

Ketiga, kena belajar memahami pasaran sewa, bukan hentam ikut suka. Pasaran sewa penuh cabaran. Setiap masalah mesti ada peluang. Pelbagai persediaan perlu dilakukan sebelum boleh menerima penyewa terutama perjanjian sewa. Ini perkara utama yang diabaikan oleh pemilik rumah dan akan mengundang masalah pada masa hadapan.

Ke 4, kena belajar mengenal-pasti lokasi rumah yang strategik, bukan percaya semua yang salesman cakap. Ramai orang apabila membeli rumah, mereka memikirkan apa yang mereka suka bukan memikirkan apa yang bakal penyewa suka. Di antara dua cara pemikiran ini, memang sukar untuk mempunyai ciri-ciri yang bertindih. Hanya mereka berpengalaman akan nampak dengan jelas. Jika tiada pengalaman, masuk kursus la.

Ke 5, perlu belajar kawal nafsu, bukan sesuka hati berbelanja. Pastikan hidup di bawah paras kemampuan anda untuk mengawal perbelanjaan. Tentukan sasaran jangka pendek dan jangka panjang untuk menabung pelaburan dan hiburan. Rancang perbelanjaan untuk membeli barang keperluan dan bukannya membeli apabila perlu. Pembelian tanpa perancangan menyebabkan kita membeli sedikit-sedikit seperti di 7-11 menyebabkan perbelanjaan lebih tinggi.

I saw a good question from one reader:

Asyiqin Abdullah bagus soalan macam ni. Baru boleh belajar. Ada banyak kerja gaji tinggi kalau rajin berusaha contoh oil and gas. Lepas spm dan kursus kemahiran 2 tahun boleh dapat gaji rm3,500 sebulan. Kerja di Singapura gaji diploma Berumur 22 tahun boleh dapat sing$2,000x3.4 = RM6,800. Buat dua kerja berlainan, satu full time, satu part time contoh programming pun boleh dapat rm3,500. Kerja full time, part time jual burger pun boleh. Macam2 lagi boleh buat sementara masih muda. Gunakan akal, dan bukan tenaga semata2.

Boleh hubungi saya untuk personal coaching. Bukan percuma. Kalau nak free, sila cari sendiri ilmu.

Mydin Mall at Taman Mutiara Rini, Johor Bahru, Johor

Mydin just launch its sixth shopping complex in Johor. It is located at Taman Mutiara Rini. It is a strategic place to be since it is next to Taman Universiti, and Taman Tun Aminah. In the future, there will be highway exit from Taman Mutiara Rini to the 2nd link highway. The GPS coordinate is @1.5155876,103.6349022.

The entrance:

There are three levels.
The main hall with stage performance:

The second floor where the Mydin store is located.

There are many small shops in this level.

 The third floor where the clothes sales are. I didn't spend my time on the 3rd floor.

The best of Mydin Mall is the food court. There are plenty of choices of foods to choose.

The best thing about the food court is the sittings are located to an open space. We can see Mutiara Mas houses from the open space. The wind blowing is comfortable. There are also plenty of tables and chairs.

Buyer's Time and Landloard's Time

     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.

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.

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

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

4th day work in progress

5th day work in progress

I will continue update the work in progress in the future.

Property Investment for Long Term Reward

My tenant at Bandar Seri Alam house ended the tenancy last month after extended the rent for a month. The rent rate was RM880. The house was bought in 1997 for RM80,000. The country was about to face economy crash in 1998. The interest loan was 13.9%! As a result my monthly loan was RM800. I could only rent the house for RM350 in the first few years. After about 5 years, I managed to rent the house for RM400. This also means I sponsored my tenant every month.

As time goes by, the rental value increases. My income also increases steadily. So in 2012, I managed to make a full settlement payment for about RM28,000. There were times during economy crashed, I cannot make the monthly payment for 6 months! But there was nothing the bank can do since there were about a quarter of houses in the surrounding area were down under. Thus repossess the houses and auction those houses will not give much capital back to the bank. The best course of action by the bank was to advice me to do my best to settle the late overdue. I managed to do so in 1999 after about 6 months of my discussion with the bank manager.

After improving my financial, I bought my second house in year 2000. It was a strategic decision based on my long term goal. And I successfully used my second house to achieve the goal in the year 2013.

Last year,  my wife want to sell my Bandar Seri Alam house for RM160,000 (read My First Property for Sale). Instead, I preferred to rent the house. Previously the house was rented for RM600. After a new tenant rented the house for RM800, my wife willing to hold the house. The following year (after 12 months contract expire), the rent automatically became RM880. My tenant paid timely every month. And they also informed two months in advance before they want to extend and end the contract. Thus, I have almost two months time to look for a new tenant.

Early this month, I managed to get a tenant from a company who want to relocate her executives in the house. But, I have to upgrade the house from half furnish to fully furnish. In return the company is willing to pay the rent for RM1,600. It was a good deal as long as the company will stay in the house for two years. I need at least a year to recoup my investment to buy furniture. So, the following year will be my profit.

As usual, I repaint, do some repairs and upgrade some of the available facilities before a new tenant stay in the house. This is to ensure the house is well maintain. If my new tenant continuously stay in my house for the same rent fee, how much do you think the house worth!?

It is always profitable to invest for a long term in property.

Security Versus Luxury II

Some people prefer to live in high rise building with many facilities and security. They thought the 24 hours security plus strict floor accessibility and stand by guards are sufficient to ensure they are safe. On the contrary, high rise building even with security guards are still exposed to higher probability for unwanted incidents. I don't really realize this until I made some simple past incidents.

There were many cases where people were robbed while living in an apartment. The most recent case was a woman was robbed in a lift in Setapak Condominium. The condo has a 24 hours security and close circuit TV. Yet, nothing can prevent the robbery. After almost a week, there is still no news that the perpetrators were caught. (http://www.thestar.com.my/News/Nation/2015/10/24/Crime-Woman-Attack-elevator/)

Some bad accidents also happened in high rise building which are hard to control. It could be due to young age, unsound mental health, too tired, and etc.. Some of the news I gather here should be sufficient for you to think carefully. Today, your physical and mental health may be at optimum. How about the next 10, 20 or 30 years?

A man in Malaysia fell eight floors from a condominium and not only survived after crashing through the carpark roof, but used his mobile phone to call his father.
The advertising worker had just bruises on his legs after falling from a condominium block in Bagan Ajam in Butterworth, Penang on Sunday evening.
http://www.straitstimes.com/asia/se-asia/man-falls-8-floors-from-penang-condo-but-survives-mostly-unscathed-calls-dad-on-phone

Foreign student survives fall from condo window

June 24, 2015, Wednesday

KUCHING: A foreign university student survived a fall from a window of her condominium unit yesterday onto the ledge of the floor below.
The victim, a 22-year-old from Mauritius, was found by a female friend sprawled on the ledge of the fifth floor of the condominium complex at Jalan Petanak around 11.45am after apparently falling out the window of her unit located one floor above.

Read more: http://www.theborneopost.com/2015/06/24/foreign-student-survives-fall-from-condo-window/#ixzz3pbTUHDf9

Read more: http://www.theborneopost.com/2015/06/24/foreign-student-survives-fall-from-condo-window/#ixzz3pbTMDe3c

Air stewardess plunges to death from Bukit Jalil condo 

KUALA LUMPUR: An air stewardess plunged to her death from the fourth floor of a condominium block in Bandar Bukit Jalil here.
In the Monday incident, Cheras OCPD Asst Comm Chong Kok Sin said the fully clothed 29-year-old woman was found sprawled face down on the ground at about 6.30pm.
"There were signs of critical injury on her head and body. She was wearing a black shirt and black skirt when her body was found.
"Initial investigations revealed that she had fallen through a window on the fourth floor," he explained.
http://www.thestar.com.my/News/Nation/2015/08/25/Stewardess-falls-from-condo/

Somali man falls to his death at condominium

Published: 20 August 2015 8:33 AM

A Somali man died after falling from his 7th floor unit at Kondominium Villa Putra, Jalan Tun Ismail, Kuala Lumpur, about 5pm yesterday.
Dang Wangi police chief, ACP Zainol Samah said Hussein Mohamed Rabi, 44, died at the scene due to the injuries sustained in the fall.

- See more at: http://www.themalaysianinsider.com/citynews/greater-kl/article/somali-man-falls-to-his-death-at-condominium/somali-man-falls-to-his-death-at-condominium#sthash.oKENHm06.dpuf

New mother falls to her death from 16th-floor condo

KUALA LUMPUR: A new mother fell 16-floors to her death at her Bangsar South condominium, just 10-days after she gave birth to her first child.
Police said it is believed the 30-year-old accountant handed over her crying child over to her maid for feeding at about 10am Saturday, and fell from the balcony of her home while the maid and child were in another room.
She was found in a pool of blood by security guards, on the ground floor. She was declared dead at the scene. Police have ruled the incident a sudden death.

 http://www.thestar.com.my/News/Nation/2015/10/25/Mother-falls-from-condo-baby/

Somali man falls to his death at condominium

A Somali man died after falling from his 7th floor unit at Kondominium Villa Putra, Jalan Tun Ismail, Kuala Lumpur, about 5pm yesterday.
Dang Wangi police chief, ACP Zainol Samah said Hussein Mohamed Rabi, 44, died at the scene due to the injuries sustained in the fall.
- See more at: http://www.themalaysianinsider.com/citynews/greater-kl/article/somali-man-falls-to-his-death-at-condominium/somali-man-falls-to-his-death-at-condominium#sthash.SfbThA35.dpuf

 A Somali man died after falling from his 7th floor unit at Kondominium Villa Putra, Jalan Tun Ismail, Kuala Lumpur, about 5pm yesterday.

Dang Wangi police chief, ACP Zainol Samah said Hussein Mohamed Rabi, 44, died at the scene due to the injuries sustained in the fall.

A Somali man died after falling from his 7th floor unit at Kondominium Villa Putra, Jalan Tun Ismail, Kuala Lumpur, about 5pm yesterday.
Dang Wangi police chief, ACP Zainol Samah said Hussein Mohamed Rabi, 44, died at the scene due to the injuries sustained in the fall.
- See more at: http://www.themalaysianinsider.com/citynews/greater-kl/article/somali-man-falls-to-his-death-at-condominium/somali-man-falls-to-his-death-at-condominium#sthash.SfbThA35.dpuf

http://www.themalaysianinsider.com/citynews/greater-kl/article/somali-man-falls-to-his-death-at-condominium/somali-man-falls-to-his-death-at-condominium

The high probability for bad incidents to happen is one of the main reasons for me to decide not to invest in any high rise building investment (where both have security). And since I live in Johor Bahru, lands are still plenty; it is more strategic to invest in landed property than in high rise property. 

Another consideration you have to think is a landed property development must be completed in 2 years while a high rise property development must be completed in 3 or more years. This also means you have to pay more interest to the bank. Although some developers love to use DIBS scheme, you still lost opportunity for next investment since you income per expenditure is less while the buildings are still under development.

Of course if you live in Kuala Lumpur and Penang Island, you have less choice to invest in landed property. But, investing in landed property in those areas will give you much higher return in the long run. But the most important thing is landed property has less probability for unwanted accidents compared to high rise building. Some of you may disagree, but that is the reality.

The more important question is what is your strategy to ensure you can maintain the bank loan repayment. Anyway, landed property investment should be your next major milestone if you have not done any yet in Kuala Lumpur, Penang and close surrounding area. For Johor Bahru, opportunity in landed property investment is still plenty. Again, what is your best strategy to achieve it!?

Somali man falls to his death at condominium

Published: 20 August 2015 8:33 AM

- See more at: http://www.themalaysianinsider.com/citynews/greater-kl/article/somali-man-falls-to-his-death-at-condominium/somali-man-falls-to-his-death-at-condominium#sthash.SfbThA35.dpuf

Security Versus Luxury

Some people are willing to spend money to buy expensive cars. For them, it is among the top most priority in life. Most of the time, they justify themselves it is for their comfort. But in reality, it is more for show off than a necessity. This is also the habit most of young work force in Malaysia have including my relatives. They never think that they have put the wrong priority in their dreams.

Some people are more concern to buy a secured home: gated and guarded. Security is always a priority. In some countries, their culture is always emphasis on public and individual safety first before any action. With the global and country's economies are getting slower next year, the impact is already felt this year. Criminals are getting more desperate to gain big. 20 years ago, a crime which involve a human life is a rarity. Nowadays, it is a common incident in Malaysia.

http://www.thestar.com.my/News/Nation/2015/10/09/Kidnapped-boy-reunited-with-family-in-Kajang/

I am not saying life in Malaysia is getting worst. As the number of population increasing rapidly every year, and there is no serious effort from the government to reduce illegal immigrants, the number of crimes involve human tragedy cannot be reduced. So, the best course of action is to take action on our own. My car was broke in two years ago. Almost the same months, my neighbor house was robbed while it was still about 10pm! There were also some other incidents beyond my memory. These made me determined to buy a gated guarded house.

End of last month, I finally got the keys to my new home. A week after that, one of my neighbors' house was broken into while people inside were sleeping. The neighbor was also my colleague at work. Fortunately, he only lost a MyVi and hand phones. The following week, my neighbor next door lost a car which was parked outside this house. I am glad that I already got the keys of my new house. I hope I can renovate the house as soon as possible and move in ASAP.

You mentality determine your reality!