Ever since my feature was out, forumers have been debating if Malaysia is a better bet as compared to Singapore real estate? With all due respect, I think if I have the cash, I would invest in Singapore as compared to Malaysia. As land is scarce in Singapore, there will always be demand for reasonable price property. But due to constant Singapore Government intervention, the rich gets richer while the middle class stays put. So, the only way to get out from that category is by investing elsewhere. I am not going to debate why property is better than shares, cause I failed at shares. I did invest in shares for a brief moment but I can never understand why it went up on certain days and drop the next minute. It was beyond my control. I broke even in my shares trading.
Now, why Malaysia?
1. Strong Singapore currency.
Having a strong currency is an advantage as we (Singapore earners) can easily secure a nice condo in a prime area at half the price. But then again, the shortcoming would be further depreciation of RM against SGD, making the conversion no longer attractive. Unless you have some local business in Malaysia to offset against your income. Else enter into a hedge, again not feasible when your cash flow is minimal.
2. Proximity.
Would you invest in Indonesia? Thailand? Vietnam? Or even US? If you don’t see yourself investing in such country, so apart from Singapore, where else can you invest? Malaysia is just a ride/fly away. Besides that, let us analyse the potential country to invest internationally. Starting from the west to east.
- United States
Plenty of foreclosure, time to load up the property, but massive subprime debt, distance a problem, no leverage avenue for foreigners.
- Canada
No data
- Europe
Same as United Stated
- Africa
No data
- Middle East
Dare to invest in Middle East? Not me.
- China/Hong Kong
Overheating prices, worst than Singapore, dare to go in now? Currency control measure, currency fluctuation, language barrier (for me, I can’t read Chinese), not familiar with local legislation.
- Thailand/Vietnam/Indonesia/Philippine/ Myanmar
Underdeveloped countries, politic instability, chances of currency control is even higher, they have yet to get their fundamentals right where the basic infrastructure and human needs are yet to be met. The gap between the rich and poor is too wide.
- Malaysia
Government a bit screw up, but still acceptable. ETP plans, upcoming MRT line within Greater KL, possible high speed train from KL to Singapore. Once this high speed train is made possible, connectivity makes easy. Similar to Hong Kong MTR that connects to Shenzhen, bringing vast business opportunity between both country. Singapore can only grow at a certain extent due to its size, it’s economy has to expand beyond its own backyard. The tipping point for Iskandar Johor, KL and Singapore is the high speed train, then we will be known as a Mega Region as popularised by Mr Ho Chin Soon.
3. Population growth
While Malaysia is hit with high percentage of brain drain, we still have locals from the remaining 11 states to fill in the vacancy in KL. At the moment, the population of people in KL itself is 7.2million (quoted from Tim Murphy, Buying Asia), which equals the population of whole Singapore.
So, where would you invest now apart from Singapore?
Sunday, June 26, 2011
Monday, June 20, 2011
Singapore Business Times 20 June 2011
MELISSA Low's firm belief in investment lies not in monetary terms, but in investing in herself.
To this end, the 26-year-old accountant takes the time and effort to attend investment seminars and to pore over books and research before deciding what to invest in.
Her passion for investment lies in real estate and to date, she has three properties in Malaysia to her name, with one rented out at a 7 per cent yield while the other two are still under construction.
Besides her main passion for real estate, Ms Low has also diversified into an online and book distribution business, where she sells books concerning real estate. http://www.alphamarketingsg.com/
Q: How did you handle money when growing up?
A: I was very prudent with money. Since young, I had been financially independent. My venture into business started when I was as young as six years old, when my neighbours and I would organise house parties and charge an entrance fee to other neighbourhood friends. In school, I would organise games and events where again I would charge a fee for participation.
Q: What sort of financial planning have you embarked on?
A: I've placed 60 per cent of my assets in real estate. I also have a few insurance policies in Singapore and Malaysia. I also invest regularly in unit trusts, which so far have been giving me a 30 per cent return because I invested in commodity-linked unit trusts during the financial crisis.
Q: Do you spend more or save more?
A: It depends on certain months. When I buy property, I will certainly spend more, but I consider that as an investment rather than pure liability spending. I only shop when necessary or when there are bargains.
Q: Do you use credit cards?
A: Yes. Having credit cards can be good for loan application if you pay your bills on time. The Central Credit Reference Information System or Credit Bureau Singapore keeps track of your credit record, which can be helpful when you apply for a loan, as a clean record can help you secure one much more easily.
Q: What got you interested in investing?
A: I was influenced by my dad, who is an entrepreneur himself. I was taught to be independent and work hard for what I want in life. When I joined the corporate world, I realised I was living paycheque to paycheque, and having an investment plan assures me of a side income as well as a way out of the rat race, as I have control of my finances.
Q: When and how did you get started investing?
A: I first invested in a bubble tea business when I was 23, which folded after six months. I then decided to earn passive income instead, and hence I started to actively search for real estate properties in Malaysia.
Q: What do you currently invest in?
A: Real estate is my main investment. I also invest in my own business, Alpha Marketing, which sells and distributes real estate books and research articles online.
Q: What is your investment strategy?
A: My objective is to buy properties with positive cash flow. At the moment, I only have one property in KL with a yield of 7 per cent and two under construction, one of which will be ready next year, and the third one due four years later.
Due to the new cap of 70 per cent margin of financing for third properties onwards, my investment activities has slowed down tremendously.
Secondly, I buy properties in prime locations and target the middle to higher income tenants, as I do not want the hassle of dealing with problematic tenants due to the distance as I am currently working in Singapore.
Q: How would you describe your risk appetite?
A: Prudent. I do my homework before putting my money down. I buy properties for yields and am not much of a speculator.
Q: What has your best investment been so far?
A: An office lot in the city centre of KL. I bought it for RM700 (S$284) psf, the project beside the office was launching at RM1.2k, that is already a gross RM500 psf gain.
Q: What has your worst investment been so far?
A: Most probably my bubble tea business at Wisma Causeway, KL. It was mismanaged and not quite optimised despite it being located strategically. It was also a hassle to manage as I was in Singapore. Long distance management is not suitable for a retail business.
Q: Any tips to share from experience in investing?
A: Do a lot of research and mingle with the right crowd. Networking is important.
Invest in financial education, attend seminars and set an objective when you invest.
Before you start parting with your hard earned money, set aside a few hundred dollars to be educated, be it through books or seminars. Take action only after you think you are ready.
In terms of real estate, look for undervalued, distressed and fire sale properties.
Q: What are your long-term investment goals?
A: To have five properties giving me positive cash flow before I turn 30.
Q: If you were a millionaire, where would you put your money?
A: I would invest in real estate and would like to set up hotels. It will be killing two birds with one stone, as I like businesses and real estate. Owning a hotel would be good.
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I know there are a lot critics out there questioning how did I do it, owning 3 properties in short one year.
First and foremost, I do not inherit any riches from my parents, infact I am funding my youngest sister's education to a private university in Malaysia. My capital purely derives from my salary as an accountant in an MNC, if you must know, I work in IKEA Singapore. Before that I was an auditor in KPMG Singapore.
My bubble tea business only cost me about S$2k to set up, if you convert into RM, thats about RM5k, how did I do it? Magic. Being an accountant, I know my numbers. My business was just breaking even when I close it down. Was thinking to revived it but again distance is an issue.
How did I managed to afford 3 properties?
1. I earn in S$, thats 2.4 times for you :) Don't blame me, blame the currency.
2. I don't go for long holidays, the further I have been to is Hong Kong, and even that is sponsored :D.
3. I bought undervalued property (not very much undervalued but still below market).
4. My dad's a contractor, so I save a lot in renovation as he only charges me for the material and labour :D (ES Interior - 012-3983903 ask for Mr Kingston Low)
5. I have got the guts to sign on the dotted line. I dont have much liquid cash in all honesty, you can rob me but there is no money in my bank account.
Cheers :D
Sunday, March 20, 2011
Palazio Mayland
My dream came true early!
Palazio Mayland, Johor Bahru - Studio 484sf, Under construction.
Palazio Mayland, Johor Bahru - Studio 484sf, Under construction.
Show unit 484sf
Construction until 9th floor.
TOP: July 2012
Tuesday, February 22, 2011
Moving on
Alec and I broke up the week after CNY, it was my call. It was not easy, he was part of my life for the past 4 years, day in and day out, he was always there for me. But somehow or rather, the feeling has faded, he loved me too much that I took him for granted, dictate how we should move forward. I was the captain of the relationship, I didnt want us to be an ordinary couple, I was trying to change him. He did change for my sake, but still I am not satisfied. I am selfish, self-centered. My parents gave me a long lecture when they found out.
Alec has great bond with my family and my extended family that is. Marriage was just a formality, we were married in their eyes. I am always in Alec's priority list, he places me above all things, his work, his time, himself.
Alec,
I am sorry for breaking up your heart, I know you were planning to propose next year, but I can't be giving you fake promises when I know I am not ready to marry you.
It might be the stupidiest decision I have ever made but what's done is done.
Alec has great bond with my family and my extended family that is. Marriage was just a formality, we were married in their eyes. I am always in Alec's priority list, he places me above all things, his work, his time, himself.
Alec,
I am sorry for breaking up your heart, I know you were planning to propose next year, but I can't be giving you fake promises when I know I am not ready to marry you.
It might be the stupidiest decision I have ever made but what's done is done.
Wednesday, January 19, 2011
Summer Suites @ Jalan Sultan Ismail
Okay, no time to update. Here, a picture of what Alec and I have bought this month. Summer Suites at Jalan Sultan Ismail. Will blog more when I have got the time.
Friday, December 24, 2010
Summary of Q4-2010
As the year is coming to its glorious end, I shall recapped what I have managed to achieved this year. First and foremost as I have proudly declared over and over again on my blog is my very first major purchase. VK!
The very first time I wrote multiple cheques with 5 digits on it (downpayment, legal fee, renovation & furnishings), the very first time I screw my lawyer upside down and came to realised that lawyer afterall isnt that smart, not even if they speak the best Queen's English nor they sat for the toughest exams around. And, a lot investors too concurred with my findings, sigh, pathetic. Most importantly, the very first time being a landlord =D.
Aside from investment, I have left audit and joined my client, Ikea (yes, yes, meatball) for a finance role. I still remember 2 years ago, I was sent to audit ikea temporarily, it wasnt even in my portfolio. My then client (turned colleagues) were very nice and friendly, documents were given promptly and the environment was really good. Nice workstation, nice culture and I jokingly asked if they are looking for people for any role. Promptly after the engagement ended, I requested to be on the ikea audit permanently, and I have to keep reminding my manager to book me on her job. Well, and two years later, they have a vacancy and asked if I would love to join them, I was hesistant at first due to conflict of interest but got the green light from my audit partner to go after a grace period.
Networking wise, I have made lotsa investors friend from PMC and on facebook. It is great to have so many generous investors who dont mind to give you a few pointers on investment. But there are also the stingy ones that keep asking but refused to share their focus area and a few noobies that ask ridiculous question which is easily found online. I usually ignore those ppl, not that I am snobbish but clearly, you have no idea what you are getting into without enough research, how could you be a property investor when you don't know the different between freehold and leasehold?
Relationship wise, what relationship? I am free as an eagle! :P (I am so going to be murdered ;D). The other day, mum just told me so and so is getting married and so and so gave birth while I was busy surfing the net, and the obvious reply would be 'Oh, okay' right. The next thing you've guessed it, she asked me when is my turn. I turned around and looked at her, nonchantly I said, after I have 5 properties. Of course, she called me crazy for being so materialistic and demanding! But I further explained that, I am going to buy 5 properties myself on my own! (Indirectly saying that I don't need a man, aside from cleaning and companionship ;D).
I guessed that pretty sums up my whole year apart from the day to day 9-5pm usual stuff.
And for my new year's resolution! Hmm... I would need to shed a few kilos to fit in that dress of mine, try to jog at least twice a week to prepare for my expedition to climb mount kinabalu again. ( I climbed up 5 years ago without much preparation, think I didnt do well hence the second round). To learn as much as possible from my bosses so I could do better in my work, read up on commercial properties and perhaps JV with other investors to buy into commercial. Be more dilligent in keeping my face wrinkles free! (I can see fine lines around my eyes!) and improve my salsa dancing!
P/S: I am still attached to the guy I met online 4 years ago in case you got the wrong idea, but I always welcome new proposals as I need to QC my current companion to match against the market benchmark :D
Merry Christmas everyone!
The very first time I wrote multiple cheques with 5 digits on it (downpayment, legal fee, renovation & furnishings), the very first time I screw my lawyer upside down and came to realised that lawyer afterall isnt that smart, not even if they speak the best Queen's English nor they sat for the toughest exams around. And, a lot investors too concurred with my findings, sigh, pathetic. Most importantly, the very first time being a landlord =D.
Aside from investment, I have left audit and joined my client, Ikea (yes, yes, meatball) for a finance role. I still remember 2 years ago, I was sent to audit ikea temporarily, it wasnt even in my portfolio. My then client (turned colleagues) were very nice and friendly, documents were given promptly and the environment was really good. Nice workstation, nice culture and I jokingly asked if they are looking for people for any role. Promptly after the engagement ended, I requested to be on the ikea audit permanently, and I have to keep reminding my manager to book me on her job. Well, and two years later, they have a vacancy and asked if I would love to join them, I was hesistant at first due to conflict of interest but got the green light from my audit partner to go after a grace period.
Relationship wise, what relationship? I am free as an eagle! :P (I am so going to be murdered ;D). The other day, mum just told me so and so is getting married and so and so gave birth while I was busy surfing the net, and the obvious reply would be 'Oh, okay' right. The next thing you've guessed it, she asked me when is my turn. I turned around and looked at her, nonchantly I said, after I have 5 properties. Of course, she called me crazy for being so materialistic and demanding! But I further explained that, I am going to buy 5 properties myself on my own! (Indirectly saying that I don't need a man, aside from cleaning and companionship ;D).
I guessed that pretty sums up my whole year apart from the day to day 9-5pm usual stuff.
And for my new year's resolution! Hmm... I would need to shed a few kilos to fit in that dress of mine, try to jog at least twice a week to prepare for my expedition to climb mount kinabalu again. ( I climbed up 5 years ago without much preparation, think I didnt do well hence the second round). To learn as much as possible from my bosses so I could do better in my work, read up on commercial properties and perhaps JV with other investors to buy into commercial. Be more dilligent in keeping my face wrinkles free! (I can see fine lines around my eyes!) and improve my salsa dancing!
P/S: I am still attached to the guy I met online 4 years ago in case you got the wrong idea, but I always welcome new proposals as I need to QC my current companion to match against the market benchmark :D
Merry Christmas everyone!