Hi catfish0001, there is an active thread on properties in LYN. It's anyone's guess how the M'sia property market will fare in the future. I can see that you are prudent (which is not a bad thing) but just be aware that inflation can erode your purchasing power without you knowing if you only keep your money in the bank. Anyway, you are doing well investing in ASB (so far, the return track record of ASB has been quite impressive).

As for 300k loan, your mthly instalment will be around 1,520 (for a 30-year loan at 4.5% p.a.) or 46% of your current net income - it is quite a stretch. Please note that the current M'sia mortgage rate is relatively low (partly due to developed countries' central bankers keeping the interest rates low to "stimulate" their weak economies ) - there is always a risk of i/r increasing in the future when the economy turns around (although not likely to be in the near future).

( I/R ) 4.0% 4.5% 5.0%
20 yrs 1,818 1,898 1,980
25 yrs 1,584 1,667 1,754
30 yrs 1,432 1,520 1,610

This post has been edited by chabalang: Apr 4 2012, 08:41 PM

Wolf den... Wow never think such things....
But remember, even the wolf are not aware of the danger lurking around it.

Just a small expose here,

it was similar to land banking investment.
real estate basis.

Hey guys, I didn't knew that financial forum full of useful information.

Anyway here my question

I'm a 22 and i'm earning around a 6k salary currently and my transportation,food,living is all under the company and i also get RM300 for allowance for purchasing some material. Now the problem is i have a some money inside my saving account and i'm planning to invest into some good places. I heard a lot regarding ASN and ASB which is for bumi putera only.. So anyone here with advise can teach me how to invest or guide me ?

you are only 22 an already making RM6k a month? that's very good. may I know what you do?

Agriculture, Aquaculture

Hi all this thread is really useful hope u guys can share ur opinions on my situation.

im earning 5k a month (4.5k after tax epf etc)
monthly expenditure -1.4 k
give my parents - 1k
so that leaves me - 2.1k

im not sure whats the best thing to do with the balance 2k but i was thinkin of saving 800-1k in asb and also buy a property home with monthly installment around 1-1.3k.

shud i reduce my savings and spend more on the property monthly installment?

tq

This post has been edited by kripton888: Apr 8 2012, 10:50 PM

buy gold la, u no hear meh, everyone saying property is a big bubble that will explode
with gold, u can rent it out to tenants. the income received can be use to off-set some of the loan u took
somemore, u can refinance gold later when the price goes up
no need spent any money for storage or kena sell at lower price to those gold dealers
it is so liquid & easily transferable that bank will accept it as collateral

Kripton888, personally i'd do what U were thinking OR option 2 (see below later)
A home is NOT an investment.
It is a cost - cost to buy, maintain, repair, pay the bank, WITH NO INCOMING CASH FLOW (unless U rent out a few rooms like moi ). If not planned properly, a home may eat its owner alive - not a nice sight.
Thus, IMHO, IF U select to buy a bigger home OR pay down more instead of putting the $ to use in savings & investments, the U'd have effectively killed your "assets growth". Yar yar - home can also be counted as Net Worth but where are U going to live ar if/when U sell it? Not that easy right.

Option 2
IF U are currently living with your parents and have no pressing need to "move out and be free" (gwei lohs' idea of freedom but broke), why buy a home per se?
Buy a property to rent out ok lar
Or take the $ and max out your ASB and/or other investments first

Just a thought yar, no right/wrong - it's a matter of priorities & choices

Does anyone know which banks delivers the best Personal Financing now ? Saw Bank Rakyat giving out 3.25% but i'm not sure whats the catch when most of other banks are close to 10%.

Hi wongmunkeong,

I think u r rite,saving my money would be good juz that im scared that i wud spend it as im easily tempted on cars,travelling and leisure spending, so thats why i considered gettin a property and having a commitment as such would tie me down for something good if i chose the right property.
im still living with my parents no rush to move out im only 24. plus the idea of owning a property at this age kinda appeals to me.

so unless i can find the right property i think saving would be juz fine for now.
btw u mention about asset growth, im curious how else can i add more value to it?

Heheh my dear Kripton888.
If U worry / scared that U would spend the $ on cars, travelling & leisure spending (women? ), then i'm sure U will do fine.
See - U already WORRY about it, most ppl are not even AWARE of their habits.
Since U are already AWARE and WORRIED, U can plan and execute. Treat it as a game - i'm a crazy gamer that can spend tons of $ to buy changgih rigs last time UNTIL i became AWARE and WORRIED

I'd suggest:
1. Draw up your net worth
2. Execute some sort of monthly or quarterly investment program(s)
3. Check and update your net worth monthly / quarterly AND have a historic reference to previous calculated net worth.

By doing so, U can literally SEE your actions' results and know how fast/far U have come and how much longer/harder to go to reach certain financial goals. Talk about making the invisible visible eh? Literally your own financial results visible and comparable.
It's also having something to challenge yrself (ie. try other investment methods/assets to make yr net worth grow even faster OR optimize risk/rewards)

As for investing in assets, i'd suggest NOT FALLING IN LOVE with your investment(s). Having a fluffy lalaland linkage to a specific investment(s) makes it harder to be logical and using common sense. Heck, love is the most illogical thing in the world - love people & animals, NOT assets


Asset growth - how else can U add more value to it?
Other than having and tracking your net worth, i'd suggest
a. having and tracking your asset allocation held
b. then have a planned asset allocation to hold, at least in 3 major asset classes: Fixed Income (cash, FD, EPF, Bonds, Bond Funds), Biz Equities (your own biz, normal stocks, normal Equity funds) and Real Estate Equities (Properties, REIT stocks, REIT Equity Funds)
c. calculate your savings and move-able EPF $ and tabulate how much to apportion where (item b above) every quarter or month AND how to execute
ie. allocating $/resources to each asset class is one thing, what about how/when/why are U buying in & how/when/why are U exiting from that investment
simple talk - have some investment methodologies / entry & exit plans for each asset class

Just a thought

This post has been edited by wongmunkeong: Apr 9 2012, 02:13 PM

[quote=wongmunkeong,Apr 9 2012, 02:05 PM]
Heheh my dear Kripton888.
b. then have a planned asset allocation to hold, at least in 3 major asset classes: Fixed Income (cash, FD, EPF, Bonds, Bond Funds), Biz Equities (your own biz, normal stocks, normal Equity funds) and Real Estate Equities (Properties, REIT stocks, REIT Equity Funds)


hi wongmunkeong & kripton88 (soory for stepping in uninvited)

apart from the emergency cash put aside, what is the advisable approtion for the 3 major asset classes should one do on his/her bal $$? isit 4:3:3 for a medium risk taker?

[quote=vincentwmh,Apr 9 2012, 03:33 PM]
[quote=wongmunkeong,Apr 9 2012, 02:05 PM]
Heheh my dear Kripton888.
b. then have a planned asset allocation to hold, at least in 3 major asset classes: Fixed Income (cash, FD, EPF, Bonds, Bond Funds), Biz Equities (your own biz, normal stocks, normal Equity funds) and Real Estate Equities (Properties, REIT stocks, REIT Equity Funds)
hi wongmunkeong & kripton88 (soory for stepping in uninvited)

apart from the emergency cash put aside, what is the advisable approtion for the 3 major asset classes should one do on his/her bal $$? isit 4:3:3 for a medium risk taker?

[/quote]
Hi VincentWMH (ooo.. so close to my initials WMK ),
No worries - this is a forum for airing, bouncing and poking ideas / plans around mar.

As a "calculated risk taker" (ie. medium risk taker), there are no hard/fast rules as to the Asset Allocation (excluding emergency funds).
Generally, if unsure, i'd suggest 1/3 for EACH, thus, even if U total up your Equities, it's 66.66% vs 33.33% Fixed Income, which is near the "traditional advised" of 60% Equities vs 40% Fixed Income.

Personally, since i'm a "backside" itchy feller that wants to have some leeway to trade or test some investing methodologies, my planned holding is:
5% gold/commodities/trade/testing
(1/3 - 5%) for Fixed Income (note - i've a 1 year emergency fund which is NOT included in my Asset Allocation)
1/3 for Biz Equities
1/3 for RE Equities

My investing methodologies for Biz & RE Equities are 50% programmatic (every quarter invest based on value and dollar cost averaging) + 50% opportunistic (value buys, trend buys). Note - these excludes my 5% crazy money which i try out things like gold, commodities, FUTURES, options (my next test hehehe - after i recover from my stupidity in Index Futures), etc.

Just a thought

This post has been edited by wongmunkeong: Apr 9 2012, 04:06 PM

..................................................................................................................................................................................................

(ooo.. so close to my initials WMK ) heheee.. we have got exactly the same Wong Mun but a 'K' to yourself and an 'H' to me.

thanks for re-affiming my 'sort-off' existing asset allocation and 'new to me metho-do-logies' on the "50% programmatic (every quarter invest based on value and dollar cost averaging) + 50% opportunistic (value buys, trend buys)" gonna shift my gear towards this

secondly, i will want to top up my emergency fund from current 9mths to 12mths too but i define this as ?mths x $net take home/mth

i'm a 'front&backside' itchy fella myself also, each year i allow 10% of the 40% fixed income or cap<12K/pa for 'fun-luck' eg casino gaming, 4D, big sweep lottery.

thanks again WMK!!

I got an investment vehicle that deliver 15%-17% return per annum. Real estate basis. If you interested, i tell you more bout it. Im confident in this program. Benefits for family and oneself.

---

Added on April 10, 2012, 12:34 pmTo all who are reading this thread.

Developer making money in daily basis. Just a question is anybody can be a developer? Can we invest in development project? How much capital that we need to invest in any of development company?

Thanks In Advance.

This post has been edited by va1kyr13: Apr 10 2012, 12:34 PM

Heheh - you're welcome dude.
The normal "emergency buffer" is based on average expenses per month, not net salary per month.
Thus, if say U have 12 months' emergency buffer, it should be U can go zzz for 1 year without work and still be able to pay all your bills

BTW, Wong Mun Ho? Dont tell me you're ex GO2020 (now gone2020 )?

---

Added on April 10, 2012, 1:55 pmGood lord.. stop BS-ing here will ya.
Share the info in detail or stop BS-ing.

BTW, since U are so confident about this program, how much have U personally invested in it?
How much $ and how much % of your net worth?
How much loan did U take out at what %pa interest to make even more $ from this program?

This post has been edited by wongmunkeong: Apr 10 2012, 02:06 PM

[quote=wongmunkeong,Apr 10 2012, 01:53 PM]
Heheh - you're welcome dude.
The normal "emergency buffer" is based on average expenses per month, not net salary per month.
Thus, if say U have 12 months' emergency buffer, it should be U can go zzz for 1 year without work and still be able to pay all your bills

.....................................................................................................................................................................................................
hahaa.. go Zzz.z a nope nope. one will turn LAZY after a too long Zzz.. i'm oledi in my early 40+ so i'm on 'carborator' not like the young ones in 'fuel injection'.. enjin got too cold sure damn susah to start again.

the 12mths emergency fund is just an addition to, in the event that i need to face re-employment (touch-wood) at my age ..just some extra lead months of 'non-panic'

anyway, its HO??

This post has been edited by vincentwmh: Apr 10 2012, 02:33 PM

WMK,

Reccently , just go through yrs notes on Asset Allocation, but i have some problem to identify the Investment in Properties, eg, i have 2 house, one for own stay, one for investment. Thus, for own stay not consider a asset.

The one for investment, i pay 10% down patment, , house price 260k, down payment 10%, have own the house for about 8-9 years, currently stil on instalment monthly, but have rent out for kinder garden purpose. (rental Rm1,200/mth) while instalment Rm1,600/mth , balance about 180k, Current market price around 600k.

For the case about, what value shall i use to estimate the value of this properties?. Afterthat i can do my Asset Allocation more precisely.

Btw, may i known what the differrent between Bonds and bond fund?

This post has been edited by youngman28: Apr 10 2012, 03:21 PM

Hey there YoungMan28 (YMCA? great song ),

err.. 1st off, let me clarify a bit ar. Your home is an asset but not an INVESTMENT asset if U don't get cash flow in / income from it.

Ok, next, to the meat of your question.
How much should U value your investment property?

Personally, i do the below (which may not be too right ):
Whichever lower: (Market price (lower end) OR Purchase price *(103% IF landed or 101% IF strata)^years held )
LESS
Loan Outstanding
= Net Value if i disposed now

Reason:
a. I expect 3%pa on long term average capital gains for landed properties due to simple average inflation (yar yar i know, it's higher than 3% but i'm being prudent).
BTW, based on my parents' old house (older than me heheh) in SS3 PJ, the long term capital gains is about 4%pa+/- and we're talking about 43 years of holding yar.
b. I expect 1%pa only on long term average capital gains for strata properties. Some old strata properties have negative capital growth!
c. Using (a) or (b) VS market value (lower end), i'd have some sort of self-correcting / check & balance figure
------------

Thus, using your numbers:
Market price $600K VS ($260K *103%^9years)
= ($600K VS $339K) pick either number or an average
THEN LESS $180K
= Net Value if U disposed it now (easily get this $). Use this as your number for this particular investment asset's value in your Asset Allocation held

---------
BTW, $600K?
Er.. even at 9%pa compounded ($260K *109%^9years), that's like $564,692.25 only.
Just thinking whether $600K is the "max, median or min" market price.

BTW 2 - i tend to be pessimistic when valuing properties i hold, ie. valuing it using the lower end of the spectrum. However, it doesn't mean it's the right thing to do yar I just want to know for sure (well, sure enough lar) that i can get that value easily if i decide to throw the property.

---------
Bonds VS Bond Funds
Er.. both underlying assets are bonds BUT...
https://www.fidelity.com/learning-center/fi...s-vs-bond-funds
http://finance.yahoo.com/education/bond/ar..._vs._Bond_Funds

Bottom line:
The common Joe usually has no chance in buying AAA Corporate Bonds, thus i (yes me, common Joe) buy Bond Funds, which does not behave like bonds 100%.

Just a thought

This post has been edited by wongmunkeong: Apr 10 2012, 04:33 PM

Im doing what the development company does. Invest in the land that spare for the future developement.
As much as i concern, the land currently are in phase 2 which mean in the next 4 or 5 years in gonna be develope to residential.
This is not in Malaysia. The land are not for own possesion but we shared to make business. Which mean we are the land owner and we are the one who make decission to exit. As simple as that.

On the other wise. its much more like a long term FD. But we gave you a land to hold on.

Buying RAW land --> Rezone and apply for concept plan approval --> Develop

3 Stages of Program.

This is what it all about.