MKH developer acquire stake in Puncak Alam Resources... Next to UITM PUNCAK ALAM, SHAH ALAM..

Dear All,

For those who have invested in Puncak Alam Township, Congratulation!. More good news are coming!

This is  my strategy for all these years... Focus on growth area! You cannot go wrong... However, it must be done properly and do not go blindly... I'll share with you one of the lesson learnt for NOT knowing the marketplace well in my eBOOK. Download today!

In the Edge website, MKH has taken over PARSB to develop another township in Puncak Alam. The original plan to develop Rozali City is now become Hillpark Shah Alam.

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KUALA LUMPUR: Kajang-based developer MKH Bhd has acquired a 100% stake in Puncak Alam Resources Sdn Bhd (PARSB) from the family of Tan Sri Rozali Ismail for RM30.6 million.

According to MKH’s announcement to Bursa Malaysia, PARSB holds an exclusive right to develop approximately 550 acres (222.6ha) of land in Ijok, Kuala Selangor, that belongs to TM Facilities Sdn Bhd, a unit of Telekom Malaysia Bhd.

MKH said the development agreement between PARSB and TM Facilities was signed in 2005, followed by a supplemental agreement in 2011. However, it did not elaborate on the status of development on the land or details of the agreement with TM Facilities.

It is worth noting that PARSB’s vendor Rozali is the controlling shareholder of water utilities group Puncak Niaga Holdings Bhd, which has unresolved issues with the Selangor government regarding the water infrastructure in the state.

The acquisition of PARSB is made through MKH’s wholly owned subsidiary Pelangi Seri Alam Development Sdn Bhd, which has already paid the RM30.6 million to the vendor.

“The purchase consideration was arrived at based on the estimated gross development value (GDV) of the land of approximately of RM1 billion,” said MKH, adding that there would be no liabilities assumed by the group arising from the acquisition.

MKH said it planned to develop the land into a new township comprising mixed residential and commercial development with a GDV of RM1 billion over five years.

“The acquisition is in line with the group’s objective to further strengthen its future revenue and earnings from property development and to enhance the group’s presence in Puncak Alam,” it said.

MKH added that the land is located at the northern growth corridor opposite the existing UiTM Puncak Alam campus and is easily accessible via major highways such as the Guthrie Corridor Highway and the New Klang Valley Expressway.

This article first appeared in The Edge Financial Daily, on August 07, 2013.

Tip No 1#: Buy the neighbourhood, NOT homes! Consider Growth Potential

If you are looking for home, buy with your heart more than your head. BUT, if you want to an investment, put on your thinking cap.

Buying a home is an emotional decision. Everybody likes to feel that he is getting a good deal or that the property value will appreciate, but the truth is, most people buy a home because it uniquely reflect their personality.

They just want to live in a house like the one in which they grew up, and they proceed to buy a house like that, wherever it may be located. That can be FATAL.

Home buyers sometimes make mistake of focusing on home acquisition as an investment and overlook quality of life factors such as proximity to schools, parks, work and amenities. All these aspect of daily life that make a healthy, safe and comfortable home.

Tip No 1#: Buy the neighborhood.

My advice is to find the neighborhood that you like best and then select the best home for you in the neighborhood. It may not be the perfect home, but it will give you the best combination of factors that you need the maximum value and not lose your shirt when you sell.

Neighborhood drive values more than the individual homes do.

I have posted earlier in my blog on the new upcoming township called HillPark at Puncak Alam. I want to relate my tips to why you should invest in the neighborhood of Puncak Alam. This is my case study so you may want to explore other similar area that has the same traits.

As you can see from the google map above, it's going to be the next hotspot in Shah Alam. Hill park is situated just a stone away from UITM Puncak Alam main campus. With the existing mature township as Glomac Saujana Utama, IJM Shah Alam 2, and Worldwide Puncak Bestari, this is your next growth Potential Area. It has the right neighborhood, great accessibility from the new LATAR highway, University and Industrial Zone where work come in play.

Neighborhood drive values more than the individual homes.!

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 This is a sneak preview of what you will get in my eBOOK. I have another 87 hot tips# to share with you. I've been wanted to write this book for years. What I know, I know well. However, on real estate wisdom, I don't have the monopoly. In this new centuries, everyone want cheaper, faster, better way to gain maximum return on their property investment. The faster way is to learn from other people experience and lesson learnt from their mistake and the their success.

Download it today and learn from the best that you can get only from a lifetime experience.

Good article... Why we should buy a property now? Do I have too?

Interesting article by a reknown expert in property Datuk Alan Tong. It does make sense.

Why wait? History has proven that investing in property with the right knowledge will definitely give you an excellent return.

A PACKET of nasi lemak (rice cooked in coconut milk) with a fried egg costs around RM2 nowadays. I remember getting a similar packet (and in bigger portion) at RM1 ten years ago. It is a 100% price appreciation in ten years! My friends and I were jokingly saying that nasi lemak would be a good investment tool if it can be kept for ten years.

However, all of us know that nasi lemak is best served when it is fresh. It can never be kept for long despite its potential for value appreciation. In fact, its value will drop to zero as soon as it turns stale. And interestingly, the same situation applies to the money we hold today. Our currency can be as “perishable” as nasi lemak in this global money printing era if money is not produced for the right purpose and use in the right way and the right time.

The global economies have been embarking on expansionary monetary policies since the financial crisis broke out in 2008. Central banks around the world are printing money to support their economies and increase exports, with the United States as the primary instigator.

Since 2008, the Fed initiated several rounds of measure termed “Quantitative Easing”, which is literally known as an act of money printing. The Fed’s balance sheet was about US$700bil (RM2.1 trillion) when the global financial crisis began; now it has more than tripled. With several countries’ central banks including the European Central bank, the Bank of Japan and the Bank of England taking similar expansionary measures and encouraging lending, more than US$10 trillion (RM30.3 trillion) has been poured into the global economy since the crisis began.

While the global central banks have become addicted to open-ended easing and competed to weaken their currencies to boost economies, the impact of these measures to the global economy is not quantifiable or realised yet. However, basic economic theory tells us that when there is too much money chasing limited goods in the market, it will eventually spark inflation.

When money is created out of thin air, there is no fundamental support to the new money pumped into the economies. More money supply would only be good if the productivity is going up or in the other sense, when more products and value-added services are created. In the absence of good productivity, more and more money would not make people richer. Instead, it would only decrease the purchasing value of the printed notes.

Let’s imagine a more simplified situation. For example, we used to purchase an apple for RM1. If the money supply doubled but the amount of apples available in the market remains, one apple will now costs us RM2 instead of RM1. Now, our money has halved its original value. If the central banks of the key economies keep flooding the global markets by printing more money, the scenario can only lead to the worst, i.e. hyperinflation.

This occurred in Germany after the First World War. Hyperinflation happened as the Weimar government printed banknotes in great quantities to pay for its war reparation. The value of the German banknote then fell since it was not supported in equal or greater terms by the country’s production.

Flood of money

The sudden flood of money followed by a massive workers’ strike, drove prices out of control. A loaf of bread which cost 250 marks in January 1923 jumped to 200 billion marks in November 1923. People collected wages with suitcases. Thieves would rather steal the suitcase instead of the money, and it was cheaper to light fire with money than with newspaper. The German currency was practically worthless during the hyperinflation period.

That scenario may seem incredible in today’s context. Nevertheless, we should not downplay the severity of a global inflation should the current synchronised money printing push the economies of major countries to burst like a balloon in sequence.

When this scenario happens, people with savings and fixed income will likely be the hardest hit. To withstand the tide of inflation, the best defence is to invest in assets such as publicly traded shares, metal commodities like gold and silver and properties that can hedge against inflation.

Investing in any assets require in-depth research before embarking on one. Commodities and stock markets are liquid assets that can be bought and sold with relative ease, while properties are favoured as long-term investment.

With Malaysia’s current economic and population growth, added with its still comparatively low property prices in the region, our primary and secondary market properties are good investment assets for investors to gain from the continuous capital appreciation that this industry is enjoying.

With the above as a backdrop, are property prices really going up globally?

Using the nasi lemak analogy, if we were to buy a RM100,000 medium-cost apartment 10 years ago, it would be equivalent to 100,000 packets of nasi lemak. Assuming it has doubled in price today, it would still be the equivalent of 100,000 packets of nasi lemak at RM2 today. It would seem to me that the true value of properties hasn’t gone up, but that global currencies have just gotten cheaper.

Asia Pacific chairman Datuk Alan Tong has over 50 years of experience in property development.

Property Make Money eBOOK Trial Period Launch!

Dear All,

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Can I buy a house? Now..check this out..

THE STAR

At current rates, fresh grad workers cannot afford to buy a house.

It was one of those long eye-opening conversation between father and his soon-to-graduate son.

“What are you going to do when you graduate?”

“Get a job, buy a car.”

“Don’t you want to buy a house?”

“It’s too expensive. I can always live with you and mum,” says Sonny.

There was a long silence.

“Dad, I went into environmental studies because I believe I can do my little part for the world we live in today. I am not looking for a fat salary,” says Sonny.

“But you need to have a decent salary in order to buy your own house one day. You can’t live with mum and dad forever, although I know your mum would like that,” says Dad.

“I read somewhere that it is possible for young people to buy their own house without taking a two-generational loan. And I am trying hard to be independent. I just need to get around some puzzling issues.

“Like what?”

And so begins the little lesson in house ownership.
What sort of loan tenure will be suitable for a young person?

A 35-year loan is more than adequate. If he needs a loan tenure longer than 35 years, it just means that he is buying something that is far beyond his current income levels.

What sort of loan tenure do most banks provide?

Most banks only give housing loans up to 30 years. Selected banks previously gave loans up to 45 years. These are two generational loans. Most people are against two generational loans as the second generation is born into debt – “Slave into debt”.

How much of my salary should go towards housing loan repayment?

The rule of thumb is always the following:

(a) Any single loan repayment should not exceed a third of the borrower’s income

(b) All combined loan repayments should not exceed half of the borrower’s income

(c) The price of the house ideally should be three times that of the borrower’s annual household income to be deemed as affordable based on a study by Harvard University and World Bank. A young couple with RM10,000 between them is equivalent to RM120,000 a year.

The value of the house that this young couple should be looking at is RM360,000 at the most.

Does a young person need help from parents to buy a house today?

It has become almost impossible for a fresh graduate to buy a property without parental support. Many condominiums are now launched in excess of RM500,000 even in suburban areas and landed properties in areas such as Kota Damansara are almost RM800,000 and above.

How is a fresh graduate with a starting salary of RM3,000 ever going to afford such properties?

Here are some numbers to chew on. The monthly repayment for a housing loan of RM450,000 (average condo price of RM500,000 less 10% downpayment) for 30 years is RM2,175. This is 72% of the fresh graduate’s monthly income of about RM3,000.

Fresh graduates will have to continue staying with their parents until both the parents and the borrower have saved enough money for a larger downpayment, or for the parents to withdraw their own EPF funds to help their children.

What about young people applying for government-linked projects like Perumahan Rakyat 1Malaysia (PR1MA)?

Some quarters have commented that young professionals still have the option to do that. PR1MA has just raised the ceiling price of their properties to RM450,000 and the maximum household income eligibility to RM7,500. Based on a study by Harvard University and World Bank, the ratings of the Value of Property over Annual Household Income are as follows:

Based on the above study, the Value of PR1MA properties are actually not affordable by international standards. In fact, it is between “Seriously” to “Severely unaffordable”.

Under PR1MA, the borrower need not pay the 10% downpayment and can take a 100% loan for the RM450,000 property.
We have illustrated a typical household income vs expense of a prospective PR1MA buyer (see table)

Hence, it would not be unusual for banks to reject PR1MA applicants for housing loans as many of them are buying far beyond their income eligibility. In other words, PR1MA properties are just too expensive. House Buyers Association (HBA) has suggested a price of between RM150,000 and RM300,000.

By this time, both dad and son are glad the conversation is coming to an end. There does not seem to be a happy ending though.

“What does this mean, Dad?”

“It means the Government must introduce further measures to reduce speculation in the property market. The Government must bring back the old formulae of real property gains tax, higher stamp duty for buyers of multiple properties, further reduction of loan to value ratio,” says Dad.

Selamat hari raya dari kami sekeluarga dan maaf zahir batin

Alhamdullilah, syukur kepada Allah swt, kerana dengan limpah kurnianya, kini kami selamat melalui satu lagi bulan Ramadan yang mulia ini. Insyallah, jika diberikan rezeki dan panjang umur, diharap  sempat untuk bertemu dengan ramadan tahun hadapan. Semoga segala amalan diterima oleh Allah taala.

Kesedihan meninggalkan ramadan amat terasa. Segala pintu syurga, pintu rahmat, segala amalan di lipat gandakan pahalanya, malam lailatuqadar, dan segalanya kelebihan kini tiada lagi. Kami terpaksa menunggu 11 bulan lagi untuk bertemu dgn bulan ramadan yang mulia ini.

Kesempatan ini, saya sekeluarga ingin mengucapkan selamat hari raya, maaf zahir batin. Semoga hari ini mengubat kesedihan meninggalkan ramadan.

08.08.2013

Allahuakbar, allahuakbar, allahuakbar, wallilahilham...

Start from zero! Another interesting approach by gen Y!

Today, I had the chance to read another book by a very own Malaysian Gen Y.

3 Years to a RM 10 million property portfolio by dexter Kim and WT Kam.

Another interesting approach and similar to faizul method. Both had used credit card as down payment but they are very disciplined to recover their loan on credit card which I personally think risky but they manage to do it.

Both of them had a very clear game plan in their hand. I like the way the projected to see how many property will they owned if they decide to take this route, etc. It give them clear target and develop the strategy to achieve it.

Although first I thought that these are young kids  will end up in trouble as they start buying property at the very young age and in a very orthodox way, I found one common thing that make these 2 gen Y survive and able to increase their portfolio to more than rm 5 million in less than 5 year.....

They have MENTOR..... They partnership with their mentor, leverage the experience and combine with their crazy idea... Boom... Cheaper, faster and better way!

Who would have imagine that to have rm10 million of property portfolio in 3 years is possible? Well, they prove me wrong..

Thank you for sharing the knowledge and the approached which definitely can be very useful in this era especially when property price are on the rise.

Pls download my property book today to learn more.

One alam jaya @ Bandar puncak alam, shah alam

Selamat hari raya and maaf zahir batin. Time fly so fast, it is already at the end of Ramadan. 2 hari lagi, umat Islam di Malaysia akan menyambut hari lebaran dan highway kini sibuk dipenuhi kenderaan yang mahu pulang berhari raya di kampung.

When I read through starproperty today, I saw one interesting advertisement on one alam jaya at Bandar puncak alam. Banglo unit are now fetching a price about rm 1.5 million. No joke.. and you know when the house are now reach these kind of price range, it going to be the next hotspot.

With Tesco puncak alam opening soon, all the houses and shoplot price will definitely increase. Good to those who had invest in early in this township.

I made some call to few agents to gauge what is the current price for shoplot near Tesco puncak alam. Sale price is now about rm900,000. Believe it or not, rental demand for those shoplots are now stands at RM 6000 for corner lot and for intermediate lot RM 4000. There are not many shoplot in the area, so guess that is why the demand is high. Mark my comment and this is 2013... Wait until 2016... I'll update what would be the price.

I read somewhere in the internet, with the current house price, any new graduate and started new career, there are likely unable to purchase their first house. Average income for new employee is around rm3000. With half of the salary gone to the housing loan, after deduction of car loan, daily groceries, etc, they only have rm 300 balance.

So, my advice, go back and draw your strategy on the drawing board and set your strategy right!