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3 reasons why you should only invest in below market value property

Firstly, what is below market value (BMV) property? In a nutshell, BMV property are property that is selling at a discount in the property market.

Imagine this, you, walking in the shopping mall and seeing all your favourite items (clothes, shoes and etc..) on SALE at every corner, with the tag of 30%, 50% and even 70%.

Now, imagine you, driving around in your favourable neighbourhood shopping for your property and seeing the sign “For Sale at Below Market Value”.

Below market value (BMV) property is essentially property that is selling from as low as 20% to 40% below the real market value.

However, you will not able to see it so easily. You need to do a little bit more research about where this below market value property is and look out for it.

The next question you may ask, so what’s so good about buying below market value (BMV) property?

For simplicity sake and easy understanding, I have listed the reasons why buying below market value (BMV) property has more benefits/ advantageous, into 3Ms as below:

Margin of profit

We already make a profit when we buy below market value property. We do not need to wait another 5 – 10 years to sell it to enjoy the profit. This is because, there is already a healthy profit margin.

Let’s say a property in the market is asking for RM 500,000 but you successfully bought it at a 30% discount (or better known as 30% below market value), at RM350,000. You would have make a RM150,000 profit!

Minimise your risk

Historically, property prices depreciated at most 20% lower than the original selling price. If a RM500,000 property were to depreciate 20%, it would be worth only RM400,000. You will not make any money selling this property in a down trend market.

However, because you bought the property at below market value, you have very little risk, or none at all.

Minimum capital

Of course, when you successfully found a below market value property, you definitely minimize your capital. Using the same example as above, you would have already save RM15,000 on the initial deposit needed.

Using the Master Key Method®, you can even structure to purchase the below market value property in such a way that not only you purchase it with minimum capital, but potentially at zero capital.

Read Discover How To Buy Your Property With Just Under RM1,000 And Make RM20,000 to RM60,000 A Year here

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Penang bags RM8.8b investments in first quarter of 2019

GEORGE TOWN — Penang recorded RM8.8 billion in total investments for the first three months of the year, Chief Minister Chow Kon Yeow announced today.

Quoting figures from the Malaysian Investment Development Authority (Mida), he said Penang secured 41 projects or 35 per cent of total approved investment in the country for the period.

“Penang’s achievement of RM8.85 billion in the first quarter of 2019 has already surpassed 2018’s full-year investment amount of RM5.78 billion,” he said in a press conference in his office today. Read more

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Early signs of recovery for property market in 2019

Despite the market slowdown in 2018 for the property segment, Napic sees that sector to bounce back in 2019 based on the slight growth in volume and transaction in 2018 according to Napic deputy director property market division Norhisham Shafie.

“Judging from the marginal increase in volume and transaction in 2018, the property market is expected to stablise in 2019,” he said during the Big Data Analytics conference hosted by the real estate and housing developers’ association (REHDA). Read more

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BNM trims OPR to 3% on market headwinds

Bank Negara Malaysia (BNM) decided to cut the Overnight Policy Rate (OPR) by 25 basis points to 3% from 3.25% at its Monetary Policy Committee (MPC) today amid weak economic outlook.

This is the first adjustment since January 2018.

“The ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 3.25% and 2.75% respectively,” the central bank said in a statement today.

BNM said latest developments in Malaysia point towards moderate economic activity in the first quarter of 2019.

“Looking ahead, slowing global demand conditions and subdued growth of key trading partners will continue to weigh on the external sector.”

The central bank noted that while domestic monetary and financial conditions remain supportive of economic growth, there are some signs of tightening of financial conditions.

“The adjustment to the OPR is therefore intended to preserve the degree of monetary accommodativeness. This is consistent with the monetary policy stance of supporting a steady growth path amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.”

 

Source: The Sun Daily

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Monetary Policy Statement

At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) to 3.00 percent. The ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 3.25 percent and 2.75 percent respectively.

The global economy continues to expand moderately. While growth outcomes for several major economies were better than expected during the first quarter, underlying economic conditions continue to suggest moderation going forward. Considerable downside risks to global growth remain, stemming from unresolved trade tensions and prolonged country-specific weaknesses in the major economies, further dampening global trade and investment activities. Although the tightening in global financial conditions has eased somewhat, heightened policy uncertainties could lead to sharp financial market adjustments, further weighing on the overall outlook.

For Malaysia, latest developments point towards moderate economic activity in the first quarter of 2019. Looking ahead, slowing global demand conditions and subdued growth of key trading partners will continue to weigh on the external sector. Domestically, stable labour market conditions and capacity expansion in key sectors will continue to drive household and capital spending. The baseline projection is for the Malaysian economy to grow within the projected range of 4.3% – 4.8%. However, there are downside risks to growth from heightened uncertainties in the global and domestic environment, trade tensions and extended weakness in commodity-related sectors.

Headline inflation increased to 0.2% in March 2019 (February: -0.4%), due mainly to the less negative transport inflation at -3.0% (February: -6.8%). Underlying inflation, as measured by core inflation[1], remained stable at 1.6% in March 2019. In the immediate term, inflation is expected to remain low mainly due to policy measures. These include the price ceiling on domestic retail fuel prices until mid-2019 and the impact of the changes in consumption tax policy on headline inflation. For 2019 as a whole, average headline inflation is expected to be broadly stable compared to 2018. The trajectory of headline inflation will continue to be dependent on global oil prices. Underlying inflation is expected to remain stable, supported by the continued expansion in economic activity and in the absence of strong demand pressures.

The domestic financial markets have remained resilient, despite periods of volatility primarily due to global developments. While domestic monetary and financial conditions remain supportive of economic growth, there are some signs of tightening of financial conditions. The adjustment to the OPR is therefore intended to preserve the degree of monetary accommodativeness. This is consistent with the monetary policy stance of supporting a steady growth path amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.

Source: Bank Negara Malaysia

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Penang govt sees promising future for property market

Penang Chief Minister Chow Kon Yeow has expressed his confidence that the state’s property market will be promising in the near future as the present soft market situation is only a cyclical phenomenon.

“The promising future for the Penang’s property market is also supported by the state’s strong economic fundamentals and upcoming infrastructure projects for transportation such as the Penang Transport Master Plan, which continues to be a key agenda of the state government,” he said when officiating the launch of the state’s Home Ownership Campaign – Malaysia Property Expo 2019 (HOC-MAPEX 2019) in Seberang Perai Arena today.

Chow urged the property developers in Penang who have approval for affordable housing project to be more prudent and aware of developments in the property market.

The three-day Penang HOC-MAPEX 2019 ending tomorrow showcases more than 3,000 units of properties worth over RM3 billion from 20 participating property developers.

The event is part of the national Home Ownership Campaign 2019 (HOC 2019) initiative by the Federal Government to address the nation’s property overhang issue and also to increase home ownership among Malaysians.

HOC 2019, a partnership between the Ministry of Finance, Ministry of Housing and Local Government and Real Estate & Housing Developers’ Association (Rehda) Malaysia, was officially launched by Prime Minister Tun Dr Mahathir Mohamad on March 1.

During HOC 2019, Malaysian home buyers can enjoy stamp duty waivers for the purchase of certain categories of residential units priced from RM300,001 up to RM2.5 million (before discount), as well as incentives including a minimum of 10 per cent discount for all properties, extra rebates, renovation packages and special packages by individual property developers.

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Buying for our ‘future’ children… literally

We are used to reading articles on the importance of buying property for our children’s future. This is because when they are adults, they will likely be able to afford only a very small sized home or one that is very far away from us.

Therefore, one reason why parents buy for their children is so their kids can afford to stay in a place not so far away from them.

They also buy property so that when their kids require funds to further their studies, the property can be sold and the money used for their education.

In one particular advanced country, it is reported that some parents buy property even before they have children – yes, they are buying property for “future” children.

The reason? They want their children to have the best quality of education.

In an article in news.com.au entitled “Childless buyers line up for sought-after school zone”, it was reported that young couples in Brisbane feel that education is important.

As such, they are willing to fork out money to ensure their children get the best quality of education possible. Many buyers are weighing the costs of private school fees and the mortgage of properties in the area of well performing schools.

Here, public school fees are only $110 a year whereas it can go up to $30,000 for private schools.

Thus, many parents are buying properties in school catchment areas to future-proof their children’s education.

The article quoted a parent, Paul Lynch who said that when he bought a home in 2007, his main concern was that the property be located within a $5 cab ride of Brisbane’s CBD.

With that in mind, he and his wife opted for a low-maintenance lifestyle in a four-bedroom apartment in West End so they could still be within the school catchment area.

It was his opinion that this was the main reason why people desperately wanted to live in the school catchment area.

Actually, this is already something which parents in Malaysia are doing, except that most are only doing this after they have kids.

A friend moved to Sri Damansara so that her kids could go to a nursery within walking distance from her house and a primary school of her choice less than five minutes away.

The cost of that terrace home was just RM1 million, plus a few hundred thousand for renovation.

Kids are the future of all the investments we make today, whether it’s for them or due to them.

Think about it. We want our kids to grow up healthy and strong but we do not currently live in a place where they have the space to run around every day.

 

Source: Free Malaysia Today

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Get Your Free Credit Report

 

By understanding your credit report, you will know the reason(s) why your loan application or credit card application is rejected.

Sometimes, it’s as simple as just missing one installment payment.

Or (surprise!) paying too much into your bank account.

And in property investment, it is important to know your loan eligibility i.e. how much more loan you can take from the bank. With this knowledge, you can plan your property portfolio better.

To get your FREE credit report; just complete the form below:

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