Property Investment | Malaysia Financial Blogger | Financial Freedom Ideas

My Investing Strategy for 2012 [ February 5th, 2012 ] | 128 views | Leave a Comment

Although the market outlook is uncertain due to the European debt crisis but I will also plan to make minimal stock investments. I will only invest my savings in high yield dividend stocks when the market plunges. I think property is the best hedge against inflation. Therefore, I will invest in a medium cost apartment soon. Besides, gold is another option to preserve our money and diversify our portfolio. It would be great if you can plan to allocate some funds for gold of 20g to 50g.

investing strategy

My recent strategy is to invest for income and capital preservation in view of the market volatility. For my unit trust investment, I will try to diversify by allocating one third of my portfolio into medium term aggressive fund. Meanwhile, for my stock portfolio, I will try to minimize my risk by investing in defensive counters which also provide dividends consistently.

Leave a Comment | Posted in » Finance Tips

Malaysia Property Set to Boom Again in 2012

In recent years, the property in Malaysia is getting huge attention from many investors. According to the national House Price Index, the property prices rose steadily from 97.9 - 150.7 in the past 10 years. And, a residential property would have risen in value from RM135,293 in 2000 to RM208,725 in 2011, up 54%.

house price index

From the chart above, we can see that there’s a rapid growth of house prices over the years.

November 27th, 2011 | Posted in » Property | 1 Comment | 796 views

Earlier Retirement via Property Investment

Many of my friends who did not have higher education are all to be more adventurous and grab any golden opportunity to earn a higher income in a strong currency. Most of them went to working oversea as they think that the amount that earns working overseas in 1 year is almost equivalent to at least 3-5 years of working in Malaysia.

I hope one day I managed to accumulate extra income over RM10k per month to allow me to retire comfortably. I have promised myself that my goal is to retire debt free, which is before the age of 65. But now, I have changed my mind and set higher target, which must achieve it within the next 10 years by just property investment.

investment_property

Consider between the ROI and interest cost. Assume that you are investing in low medium cost apartment below RM100k in a good location:

November 2nd, 2009 | Posted in » Bank & Investment, Property | 3 Comments | 3,544 views

Why Property Investment Better Than Fixed Deposit?

Do you think investment through property rental can guarantee you to earn higher return in the long run if compare to fixed deposit saving? Anyway, you should make a proper plan before buying any property for investment.

rental_property

Based on my understanding, if buying a house now, then for sure the price will go up. But, will you really earn? You need to know that some of the money have to be paid to bank interest first and also you might spend some money to renovate your house and other expenses like maintenance fees for the house.

How to Calculate Return On Investment for Property Rental?

Property Type: Apartment
Size: 650 square feet
Housing Price: RM 75,000
Down Payment: RM 7,500
Housing Loan Amount: RM 67,500
Loan Interest Rate: 5% (assumption)
Loan Tenure: 15 years (assumption)
Housing Loan Installment: RM 534 per month
Gross Rental: RM 600 per month
Other Expenses: Maintenance fees and renovation cost

Monthly Net Rental = Gross Rental - Loan Installment
= RM 600 - RM 534
= RM 66

Fixed Deposit vs Property Investment
Read More …

July 24th, 2009 | Posted in » Bank & Investment, Finance Tips, Property | 19 Comments | 8,887 views

Buying And Selling Property Procedures

After considering several places and you have decided to buy a house and the price is agreed by both parties, you will need to pay some earnest deposit (min 2%) for booking purpose. My advice, don’t pay the 10% straight, just in case you changed your mind later.

selling and buying property

After paying the earnest deposit, you will need to appoint your lawyer for the Sales & Purchase Agreement. It may take up to 2 weeks to prepare. Once the SPA is ready, you will need to make the balance 8% of the purchase price upon signing of SPA. (Assume your applied loan is 90%)

Besides, you must prepare some funds to pay the legal fees for S&P(Travelling, Stamping, Photocopying, Miscelllanous fees), which are relied on the purchase price of your property. Basically you should be able to estimate your lawyer fees based on the following:

snp legal fees