I Made My 7th Purchase!

I Made My 7th Purchase!

Yes, I am very happy because I have finally made my 7th purchase of another property in Penang Island. I am a strong believer in property investment. If you are interested in property investment, I would suggest you to do the following homework before putting in your hard-earned money,

Believe in what you do and keep going!

1) Find a good location, it is OK to buy slightly above market value, keep the property and wait for capital appreciation.

2) Earn/Keep enough money, you must have holding power for at least 6 months even no one rents your unit!

3) Never fall in love in your property, sell if you can make a profit of about 20%. Roll the money and buy a better property instead.

4) Diversify your portfolio, buy some properties for rental yield and some properties for capital appreciation.

5) You can invest as well in REIT. Some REITs pay pretty good dividens.

Happy investing!

Penang Turf Club- Prime Land in Penang

Penang Turf Club- Prime Land in Penang

After vanishing for almost 20 years from Penang Property Scene, Tan Sri Vincent Tan of Berjaya Group is finally back again in Penang.

Penang Turf Club

Vincent Tan has bought a 57-acre prime land near Penang Turf Club for RM459 million  which translate to about RM185 per square feet. However, it is almost not possible for you to fully utilize all the land for buidling houses, therefore the 'real' cost for this piece of land is ceratinly above RM300 per square feet.

I think Vincent Tan is planning big again in Penang and certainly if he is only building low rise condominium, Bungalow, Semi D together with low medium cost housing according to The Edge, he has no choice but to sell the future high cost houses for at least RM600-700 per square feet!!

So I think houses near Medan Lumba Kuda will appreciate soon to about RM300-500 per square feet and once the final plan of Berjaya Land is finalised, they might go even higher to RM600-700 per square feet!!

Jump in Penang Property Prices

Jump in Penang Property Prices

Yes, you hear me right! Penang Property prices recorded a huge jump last year according to a report by The Star. I would say that it is now almost impossible for average workers to purchase a landed property in Penang Island. What is happening now in Penang is also happening in many cities across Asia- namely in Singapore, Hong Kong, Beijing and Shanghai in China as well as in major cities in Taiwan such as Kaoshiung and Taipei.

Pudong Skyline in Shanghai, China

So will the trend continues?? Due to the record low interest rate in many Western countires, we have been seeing outflux of hot money from these countires to Asian markets since the subprime crisis in US back in 2008. The issue is whether this buying trend in major Asian cities by foreigners will continues in 2012??

I am not sure! I am not sure should the support by overseas buyers ceases in future, is it possible our property market in particular the Penang property market will continue to have the upward trend in 2012?

But I still strongly believe that without the support from local buyers, this bubbling prices of Penang property will soon come to a halt once the economies in the West recover! There won't be any susbtainibility of high Penang property prices if average Malaysians and in particular Penangites are getting very low wages as compared to their counterparts from Singapore, Taiwan or even China!

Penang Island or Seberang Perai?

Penang Island or Seberang Perai?

Penang Island or Seberang Perai? If you have extra RM20k to invest in a property, will you choose a property in Penang Island or Seberang Perai?

E Park Condominium in Penang Island

That's a difficult question! I will just share with you a story, I bought my first property in 2001, a landed terrace house in Simpang Ampat. My brother in law also bought his first property that time,a 1000-square feet condominium in Sungai Ara, Penang Island. What is interesting about these two properties is they were same price in 2001- RM170K. I was quite confident that I made the right choice because what I had learned so far that time was landed property always appreciates faster than condominium. But I am totally wrong. In 2011, his Sungai Ara condominium has appreciated to RM380-400K but my ' LANDED PROPERTY' in Simpang Ampat is still just RM230-240K and the worst part is you just can't find any buyer in Seberang Perai Selatan.

So, am I hinting that you should buy a property in Seberang Perai instead of Penang Island? I think it all depends! It depends on a few factors, how much money you have and the time frame you can hold to that property.

Certainly we are not talking about buying property for own stay, I am talking about buying investment property. If you have enough funds ( more capital) and hoping to get return in short team, then buy Penang Island property. However, if you have less money but can hold on that property longer, I would suggest you to buy Seberang Perai Property.

I was suprised last week to find that a bungalow in Raja Uda, Butterworth is now selling more than 1 million. And I can assure you that the Semi D I bought in Simpang Ampat about 4 years ago has appareciated for more than 40%!!

Yes, you are right! When everyone is greedy ( and aiming for Penang Island property), why can't you just look beyond and find other oppoturnities in Seberang Perai!

The Peak @ Cairnhill, Singapore

The Peak@ Cairnhill, Singapore

Recently found out this new launch in Singapore. Very strategic location and I think the price must be out of reach for many average Malaysians and Singaporeans as well.

But if you one of the exceptions, you might want to find out more about this project!
Certainly very huge potential in long run!

Great location and ample amenities around the condominium!

And the most important point, minutes away from Marina Bay Sands!

Hidden Gem in Penang

Hidden Gem in Penang

Yes, as I told you before, for you to get a property that gives you 8% rental return is almost impossible in Penang. However, recently I noticed  an interesting trend in Penang property market. Yes, there is a hidden gem in Penang area that is left unnoticed for very long time!!

Bandar Tasek Mutiara, Simpang Ampat

If you ask me that next area in Penang that will prospers in the next 5-10 years, I have no choice but to tell you is Seberang Perai Selatan. Yes, this area is long left unnoticed by property developers and investors. And the good news is I think the property price in this area is likely to appreciate very fast in the next 5 years!!

Some of you might know that I come from Seberang Perai Selatan. I bought my first property in 2001. It is a terrace house in Bukit Tambun, Simpang Ampat. The purchase price was RM170K back then and sadly, the price never appreciated for the past 8 years. The good news is the launching price for a terrace house around Simpang Ampat is now around RM220K, That translates to almost 30% capital appreciation in 10 years which is 3% per annum.

But what suprises me most is I rented out my house recently at RM1100 per month!! Wow, that is a solid 7.7% rental return for a landed property!! I think you can't get it anywhere else in Penang except in seberang Perai Selatan!!

Eight percent return on Property Investment??

Eight Percent Return on Property Investment??
I am a strong believer of property investment. However, a lot has been said about this investment. If you read your local newspaper- you might find different strategies to do this- no money down, positive cash flow, auctioned property etc etc.

Gurney Park in Penang Island

If you read about Robert Kiyosaki books, he mentiones about positive cash flow with good return on equity. I just attended a property talk in Penang and the speaker asked us to buy only property that gives you 8% return per annum based on property price. But the reality is- Can you find this type of property in Penang Island or even Singapore??

8% return per annum, that translates to RM2000 rental income for a RM300K property!! Can you get this type of property?? I have been living in Penang Island for the past 1 and half year and personally purchased 3 properties in Penang, I think 8% per annum return is almost impossible in Penang and Singapore if you are aiming at medium cost or high cost condominium.

How much the rental now in Sri York or Gurney park condominium in Penang?Yes, you are right, may be around RM2000-RM2500 per month but the selling price of these condominiums is well above RM500K now.

Therefore, I always aim for 6% per annum and if I combine a capital appreciation of 4% per annum, I am certainly very happy to buy the property without hesitation.

But if you ask me about then how to achieve cash flow if you are talking only about 6% per annum?? Yes, there are only 2 ways to do it- extend your home loan longer or pay more downpayment!

Is Penang Property Price too High?

Is Penang Property Price Too High?

I certainly agree with you that a normal working adult can not afford to buy a landed property in Penang Island and you might know, Penang island property price is the highest in Malaysia, even above the level of KL property. However, as compared to property in Singapore, we are still far far behind.

So the question now is will Penang property price goes higher this year?? I am not a economist but I agree that the price now is far beyond the average people can afford, I don't quite understand why the property in penang Island is so high even though the renatl yield si not as good as KL property but one thing for sure, the property price in penang Island in 2011 will be higher!!

One lesson I learned in property investment is the property price always lag behind stock market about 3-6 months, which means when the market is bull, the price in property will shoot up after 3-6 months behind stock market.

However, be aware that I told you that the market will make a U turn likely in 2012, therefore I anticipate the property price will cool down starting from middle of 2012.

Happy Investing!

Property Investment Made Easy

Property Investment Made Easy?

I am a strong believer in property investment. People may say 110 bad things about property, I only say 2 good things about property- they seldom depreciate and you feel proud owning a property.

However, tenants are always a big problem for landlords. Therefore, before starting to become a successful property investor, you must learn how to pick a good tenant!

A few principles apply to choose a good tenant,

1) They must have a steady pay job. And will be better if they are a government servant. No believe how much they can earn blogging or doing online bussinesses, only trust pay cheque to pay cheque faithful workers!

2) They are young and newly married. This will be the best. If you find the spouse is also working, take them quickly even though they want a discount!

3) They do not cook. I would prefer someone seldom cool to stay in my property because cooking makes you to spend more money to renovate again when the tenant moves out!

Your Home- your asset??

Your Home- your asset?



People always think that their homes is their assets. I asked them what makes them think so. A lot of you will reply:" Of courselah, can appreciate in value ma!"





I strongly disagree that. If you are living inside your house now and still paying your home loan/mortage, I am so sorry to tell you that your home becomes the asset for the banks and a liability for yourself!



Therefore, if you are not making any money out of your house and need to pay money to stay inside, it is your liability and not your asset. You only can consider it as an asset once you settle your housing loan!



'How to settle the housing loan? Are you kidding? I am taking a RM 500k or S 300k housing loan?' some people may argue! I think one commonest mistake people make after they get their fisrt job is buying cars and houses too soon!!



Second mistake we make is buying too big car and house that we can't afford. Actually, you are recommended to buy a house that is only 3-4x your annual income. And I can tell you a truth, getting a house with that price will most probably end you up in one on the lousy flat in KL/Penang. And if you are lucky/unlucky to live in Singapore, you most probably can't even find any HDB flat that falls within your budget.


What I suggest you to do,


1) Work 2-3 years first and save up at least 20-30k before hunting your first house.

2) If your head is not so big, never try to show off to buy expensive house ( or show people how big your hat is!)

3) Settle your loan fast, pay extra every month until you settle your loan.

4) Get second cheap property and rent it out, then you only can consider it as your asset ( positive cash flow)!

The Oasis-Cheapest Condominium in Penang

The Oasis

Nowaday, it is hard to find a nice condominium in Penang below RM300k. Rececntly found out this condominium and suprisingly it is below RM300k.

The Oasis is situated on a parcel with land area of approximately 6.5 acres.

LOCATION

The subject property is located off Jalan Yeap Chor Ee and sited next to the west of Minden Heights and lies in between Jalan Kaki Bukit/Lorong Bunga Raya. Adjacent to the subject land is the Custom Village and an undeveloped site which belongs to the RTM (Kementerian Penerangan Malaysia). It is located approximately 18 km due south of Georgetown and 5 km due west of Penang Bridge. It is easily accessible from Georgetown via Jalan Sultan Azlan Shah, Jalan Scott, Jalan Yeap Chor Ee and Jalan Valley.

SURROUNDING LOCALITY

Surrounding developments within the vicinity are mainly residential and commercial developments. Located opposite the subject property and due west are rows of government quarters and due east are rows of bungalows, double storey semi-detached houses and single storey terrace; and the custom village which is under construction. Bukit Jambul Complex is located nearby and within 15 minutes drives due south of the subject property. Commercial and retailing activities are concentrated mainly within the Bukit Jambul Complex and Bandar Gelugor area. Housing neighborhoods nearby include Minden Heights, Taman Gelugor, Taman Brown, Kampung Kastam, Taman Tun Sardon, Taman Pekaka, University Place and Taman Bukit Jambul. The wet market of Taman Tun Sardon is located nearby and within walking distance due south of the subject property. University Science of Malaysia is located at Jalan Yeap Chor Ee and within walking distance due south of the subject property. Located opposite the subject property at Jalan Sultan Azlan Shah is RECSAM.

Since it is so strategically located but why it is still so afforadable?? The catch is it is a not freehold land!

Property in KL- Rosvilla

Property in KL- Rosvilla


Mount Kiara is always considered as the prime addresses in Kuala Lumpur. You can find a lot of facilities near by such as shopping complexes, international schools etc. My friends told me that if you want to get a unit of condominium nearby Mount Kiara, you better have a five-figure salary every month.


Anyway, I think the developement over there is a bit over-heating and even if you have a unit there, you will see mainly fly-overs if you open your windows and no more greenery.


But I think a lot of people especially foreigners like to live there. Recently, found a newly launched project which is affordable for most people.


The Rosvilla Condominium at Bulit Prima Pelangi is launching now. Designed with exquisite taste and endowed with luxurious facilities and features to cater to your exciting lifestyle, Rosvilla Condominium has even more to offer.


Pegged from only RM238,000. Rosvilla Condominium is the oyster of prime investment with Garden International School, Plaza Mont Kiara and Solaris at your doorstep. Rosvilla Condominium is sure to be a buyer’s delight





You may want to find out this project!!

KL Hilton and KL sentral







I recently attended a conference in KL Hilton. I was surprised that although we are performing about 50-60 kidney transplantation in Malaysia, even one Chinese hospital in Beijing is performing more than 1 hundred kidney transplantations a year.

Anyway, I hope I won’t talk much about medicine in this blog, there is another thing that surprised me most when I was in KL sentral, yes you are right, the development at KL sentral.

I still remember that when I was a medical student 10 years ago, if I am not wrong, there was only a small piece of land at the location where KL sentral stands tall now.

Certainly, a lot of investors are getting good return now if they have bought a unit of condominium many years ago. I was shock to find that a condominium at KL sentral is selling at RM700K. I am not sure about the launching price of that condominium about 10 years ago but I was told it was only RM200-300K.

Why KL sentral attracts so many buyers?? If there is a transport hub in Penang similar to that of KL sentral, do you think it is a good buy??

I heard that MRCB is going to build a similar transport hub in Butterworth, maybe we should get a small piece of cake if possible!!

Penang Cyber City

Penang Cyber City

I always think that property investment is the best among all investment vehicles. OK, just found out a good project which will be launched in Penang Island.



If you look at the property price in Penang, nowaday, you can hardly find a landed property priced below RM500k. However, if you have money to invest, why don't you try to put your money in landed commercials rather than residential property.

Penang Cyber City is offering you to own a piece of commercial property below RM700k!!

Check out this project!!

Platino Condominium- Penang Best Location?

Platino Condominium- Penang Best Location??



After Bayswater Condominium, IJM recently launched another luxury condominium in Penang island- Platino Condominium. Most of the units were grabed within hours after the launch.



If you can remember, when Bayswater condominium was launched years ago, the price of a unit was around RM200-RM300k but I heard that Bayswater is selling at RM450k currently.



I still think that Platino condominium is overpriced, however, in property market, it is same as stock market, there are crazy sellers and there are crazy buyers! Anyway, based on current property market, I am confident that Platino Condominium price will appreciate in short term before it becomes static later.



For a working adult like you and me, I think RM700k certainly is out of reach. Anyway, if you are interested in the project, here are the details,







Land Area:3.48 acre
No. of Units:229 (Tower A - 117 units, Tower B - 112 units)
Built-up Area:1850sf (171.8 sq.m) - 2850sf (264.7 sq.m) - typical3850sf (357.6 sq.m) - 5300sf (492.3 sq.m) - duplex & penthouse (1 penthouse and 2 duplexes per Tower)
No. of Carpark:Penthouse/duplex (3)
Proposed Price:From RM550,000 to RM2,000,000
Facilities
Swimming pool, wading pool, Jacuzzi, Sauna, Gym, Tennis court, Pavilion, Landscape garden, Water fall / water features, Security, Function room.
All units with minimum 2 carparks lots (basement carpark)

Penang City Centre

Penang City Centre Project


As compared to an over-heating Singapore property market,I would say that Malaysian property market is far lacking behind. If you would to compare the price of a condominium in Kuala Lumpur to a 3-room HDB flat in any part of Singapore, you will be shocked to find out even a 5-star condominium in KL city is cheaper!!



The property scene is Penang is even more pathetic. A lot of people believe that property price in Penang is escalating, however, if you want to rent out your apartment for a good price is almost impossible here.







Hopefully, Penang City Centre Project will change Penang faith in future. Still remember what is happening to condominiums around KLCC? I think the presence KLCC helps a lot to boost the property values around the Golden triangle area in Kuala Lumpur.



The RM18bil Penang City Centre (PCC) project by Abad Naluri sdn Bhd, an associate company of Equine Capital Bhd, will take 15 years to complete. Equine holds a 25% stake in Abad Naluri, which is developing PCC on the 260-acre site where the Penang Turf Club is presently located. The PCC is one of the projects highlighted in the Northern Corridor Economic Region (NCER) blueprint.


I also heard that apartments and condominiums around Penang Turf Club have appreciated tremendously for the past few months.


Hopefully, PCC will bring wind of change to this island property scene and we all in Penang will get good rental income from our apartments in 10 years time!

Malaysia Property-Setia Walk

Setia Walk- Another Bintang Walk??


SETIA Walk, which is SP Setia Bhd's first showcase project to mark the company’s entry into the commercial retail sector, will transform Puchong through its revolutionary lifestyle experience and refreshing retail concept.

Positioned as a one-stop boutique lifestyle centre that appeals to the trend-conscious younger clientele, the integrated residential and commercial development comprises retail blocks, offices, an entertainment complex, service apartments and residential apartments.

Setia Walk may turn into another popular 'Bintang Walk' in future which might transform Puchong to another international city!

KL Property-Hampshire Residence

Hampshire Residence

One of the more affordable properties in KLCC area,

Township:KLCC
City:City Centre
State:Kuala Lumpur
Property Type:Condominium
Land Title:Commercial
Built Up:753 - 2,936 sq.ft.
Land Area:2.557 acres
Listing Price:RM525,000 - RM2,102,000
Total Unit:388
Tenure:Freehold
No Of Bed:1 - 4
No Of Bath:1 - 5
Bumi Discount:5
Completion Date:3rd Quarter 2008
Maintenance Fee:RM0.35

Find out more HERE

Hot Tip to Make Money!

Hot Tip To Make Money!


If you read newspaper everyday either in Malaysia or Singapore, you will certainly come across advertisement that promises you huge return if you attend their 'preview' seminar. They are offering 'insiders' secret' about property investment, online bussiness, FOREX, stock..... etc.



I am certainly very interested to know more about this and actually I made my first step attending one of these previews two years ago.



People want to make more money and certainly most of us want to make fast, easy and huge bucks if possible. I always believe that if you are to continue to trade you time for money ( what I term as 'rat race'), you will never make your first million before your funeral! Therefore, I like to attend these seminars to learn how people make money in their lives. By the way, I only attend 'FREE' seminars, and I never attend and pay money for the 'real' courses.



I find out an interesting way how people are making money nowaday which is quite fashionable. I just want to introduce you this way and it is up to you to apply it,



OK, you have to follow these steps,



Step 1:

Find a few good friends and pool all you money, if possible 30-40K and these must be in cash.



Step 2:

If possible, get a banker or property agent in your group.



Step 3:

Locate a good property, either in auction or a new project, put your cash as deposit to purchase that property



Step 4:

Sell your property ASAP and mark up the price for at least 20%.



Step 5:

Get the profit and repeat all the previous steps.



Sounds easy, right?? I know people are making money this way because there is no Real Property Gain Tax (RPGT) in Malaysia currently. You only have to pay stamp duty and legal fee, therefore, find a lawyer in your group if you can!



Happy investing!!

Scotts Square in Singapore

New Project in Singapore- Scotts Square

Scotts Square Scotts Shopping Centre and The Ascott Serviced Apartments, between the Grand Hyatt and Marriott hotels, are now being demolished to provide a large freehold site for the new Scotts Square - a 43-storey luxury residential tower with 338 international quality one-, two- and three-bedroom apartments and a stylish retail podium for your everyday needs.

Check out this site. Scottsquare.com