So here is my question to all the 'sifus' and gurus. What or rather How should I invest RM100k which has been accumulated over the years?

Some info:
1. RM100k in bank, normal savings account.
2. Monthly income expected to be around RM2.5K a month.
3. Monthly expenditure is expectd to be RM2.3k to 2.4k.
4. Expected savings from monthly expenditure will be low.
5. Only SPM qualification so far.
6. Planning to start family soon as well. 1 year.

How can I make this RM100k make me more money than I can earn so that can save more?

Options being considered:
1. Fixed deposit long and short term.
2. Real estate investment.
3. Unit trust.
4. Stock market speculation.
5. Start business as my own boss.
6. Invest in business as a partner.
7. Invest in education and get better job.

What do you ladies and gentleman think?

This post has been edited by billycomeback: Feb 13 2007, 03:11 AM

1. D/P for a condo around Mont Kiara / Sri Hartamas.. very good rental and appreciation value.

2. Invest 50k for good stock. FD 50k.

Hope This Help

Keep ur money in FD for now.

Wait for the economy to go bad.......then you can buy stocks cheaply then.

Keep it for 5-10 years. Then watch you money triple

FD 50k... and try ur luck in unit trust with the remaining 50k... i asked around and there seem to be a few ok UT around. depending on your choice, you can either go for the fast gain-substantial risk types or the slower gain-minimal risk types.

hope that helps...

Blow it on sex, drugs and alcohol. Waste the rest.

Nah, check out the banks and mutual funds for their offers. Check around amongst your friends to see if any of them require capital for their ideas. Economics-wise, I would very much like you to continue studying, because of supply-side benefits to the country, but it depends on your preferences, how much it will cost in terms of real cost and opportunity costs (will you have to quit your job?) and what you plan to do when you get out and the market for that job.

For example, dentists are often overlooked as a career opportunity. Vets, too. And everyone wants an accountant and a good tax lawyer. Hard part is the last two are very hard to master. Give me some numbers and I'll crunch it for you, no charge!

As a young man, you should actively seek out money now beecause you're still able to work hard. Savings and investing, though important, is even more important when you are older and less active. Having a large capital at that time is essential. So work hard while you still can.

Hope that helps!

This post has been edited by empyreal: Feb 13 2007, 08:31 AM

1. RM100K in savings account?! Should at least deposit in FD and get higher interest.

2. Based on what you said, your income = your expenditure, you won't be able to make monthly repayments for the loan in the even your property is not rented out. Please also note that investing in property have risk too i.e. tenant run away living you utilities bills and outstanding rental, tenant use your property for illegal activities, etc. etc.

3. Unit trust investment is ok but depends on timing.

4. You can try stock market speculation if you are willing to take risk. Make lots of money or vice-versa.

5. Start your own business and see it grow and grow and grow. If you are sure on the business prospect and is focus on your work, should be ok.

6. You trust your partner?

7. Education is one of the things that people cannot take away from you. You can always go get a Education loan and still invest your RM100K.

Yah this sounds like a low risk investment. Invest in high paying dividen stocks like PB, Panamy, Shell, etc etc.

<<6. Planning to start family soon as well. 1 year.>>

With this coming, I doubt you have much room to take risk. My advice:

1) Put 6 month to one year expense into one year FD -> 15K to 30K

2) If you are a bumi, buy ASB. If you are not, that option is out.

3) Avoid unit trust. The commission and loading is high in Malaysia. You need at least 5 years for any hope to break even. You are starting a family. So, you will need money soon.

4) Are you renting or you own a house??

5) Do you have car loan??

6) Keep the 70K in FD. Wait for stock market and housing market to crash. Buy good dividend paying blue chip stock when the market crash.

7) Start looking around where do you want to live. Wait for people to go broke and buy a house to live.

Dreamer

agree with dreamer 100%
wait for the market to crash right at your face telling you "INVEST!!!"

the 'crash' may be a 8-10 year cycle, too long for a 'wait' . I would say wait for a correction on the stock price b4 invest.

1) If you believe the "crash" is 8-10 years cycle, we are close to one.

2) Anyhow, my belief is we are close to one now.

Dreamer

U ll never know. Even if it would crash this year, the down trends would take at least 1/2 year. Then the market would go side way or further down trend for a 1-2 years before slowly climbing up at a turtle pace. The whole process may take another 5-8 years. Most ppl already give up by then, so its not practical to hold it for so long.

Thanks for the replies guys, really appreciate it.

The 100k saved was a result of working my ass off overseas. Now that I'm planning to come back to Malaysia for good, I doubt I can get any high paying jobs for now, hence the Rm2.5k expected salary. All my expenses includes car loan and the rent for the home I'm staying in. I'm not a Bumi so ASB is out I guess.

The thought of studying again to get a Diploma or a Degree was to improve my job prospect in the future, so I don't get stuck with a low income. Looking at engineering courses or in IT since I have experience and interest in both. (worked in manufacturing and love computers) Education is still expensive in Malaysia in my opinion but I guess it is offset in the future. By the way, I'm already 27 this year so I'm not getting younger . The problem with education is, I would either have to do it part time while I work or do those distance learning courses. Not too sure if the distance learning degrees are good enough though.

"Blow it on sex, drugs and alcohol. Waste the rest." Hehehe, been there done that and got the t-shirt.

The real-estate investment idea, I got it from this forum, but I have no idea whatsoever about it. Never owned my own house before, so it is in the pipeline to get a house for my family. Is it a good idea? Or should I just continue renting?

Regarding business, I have a friend who runs a cafe business, his business is good but it is not his business, just running it with the owners being sleeper investors. So he always thought of coming out on his own, I thought if I had the money and no idea how to use it, I would help him with some capital and I get some of the profits while he runs it. Still nothing planned yet, just an idea when he told me of his intentions.

So the general advice I'm getting is to put the bulk of my savings in a FD account to earn interest while I wait for opportunities to arise. My partner has been talking about investing in unit trust as a future savings for our family, but I haven't really checked out anything so far. This forum seem to like Public Mutual, I guess that is what I'll check first. Does it really take up to 5 years to see a good margin of profit? Wouldn't the stock market crash cause it to come down?

Hmmm, I always try to avoid stock markets but the promise of very good returns always tempt me to try at least once to see it for myself. Still have no guts to put money in it though. So is the stock market gonna crash anytime soon or is it the low season already?

Thanks again for all the helpful responses. I will take your advice and put some of my savings in a FD account for now and try to figure what I want to do with the rest. Keep your ideas coming though, as I think there are others as well with some savings to use but don't know how. Funny I always thought when I had money, everything would be easier, now that I have some I get even more confused than before.

Singh_Kalan,

1) Your goal is to sell stock to make money. So, you cannot hold stock for long.

2) My goal is to buy stock with high dividend yield. So, I can hold forever. I get pay every year without selling the stock.

Dreamer

I won't recommend this. Not if you don't have at least 2 years experience in stock speculation.

yup, most newcomer will go down the drain. or swallow by big fish

if u dare to take risk,go franchise some biz in malaysia to do,the best thing to franchise is F&B food and baverage

if u dont 1 to go out malaysia u always can find biz in malaysia,like 1901 hotdog, its a good biz but u need a very good location
,or,if u have any good idea in mind,like u have a special recipe, just open n shop selling that,
since u said u only have spm qualification only.

in malaysia F&B is a good biz,
so think of it

---

Added on February 13, 2007, 10:46 amyup stock speculation not recomended.unless u have a good remiser,sorce
if u just buy and sell is either u lose all ur money or gain money.

the best is buy blue chip and keep

but no experiance not recomended.do biz better

This post has been edited by kelvio: Feb 13 2007, 10:46 AM

1) Google "Rent versus Buy". You ARE NOT doing real estate investment. You are buying a house to live. So, you want to buy a house at a price that it does not cost more than your rent.

2) The best investment that you can do now is DO NOT TAKE A 9 YEARS CAR LOAN.

Dreamer

hm...ya I agree wif dreamer. Wait for market to crash(whenever that is) and buy good paying dividen blue chip shares....
Put in fd as of now is the best. I think mutual funds are quite risky, better buy shares.....and if u do go into it....might as well take the most risky one, its either u hit it or lose it....
buying property...nah....if u cant rent out, u still gotto pay the loan, pay the maintenance, pay the utilities, pay this pay that......can cause quite a headache. Wanna sell it also can cause another headache unless u got a dem freaking good deal la....but its not as easy as in the books...hehe.
As for getting a degree.......hmm.....maybe can do parttime...

Base on your info of ur income, i found that how long u have been saved for ur Rm100K.Anyway well done bro.
For me i always invest to FD which gives me security. If let say 100K with FD4.2% will annually get RM4200 richer..its such a big amount & gurrastee amount.
About investing in businness, i will not recommended as RM100K is not sufficent to start a busineess.For ROI for a business takes at least 3-5 years.
BEside that i would say invest some on insurance saving.
And also invest on your upgrade education. HOw abt a say for a diploma first,from here definite u will getter paid after graduate.And a very goood recommendation is to at least invest education till a degree holder which there will be your earning more path. No risk & no waste by the end of the day.

beside that don't involve in:-

Credit Card
Personal Loan

need a real good self discipline to manage this two, if not.... thru my own experiences and still living with it....

Since you are going to have a family soon. You need to have a budget for that, thus,... you might need to take some amount of the 100k. Then only you start...

1. Fixed deposit long and short term.
Perhaps just a small percentage of 100k to keep in Fixed Deposit. Like 10% or 20%?

2. Real estate investment.
You have not mention about the house you staying now? Are you going to have your own house? or already have? And would last for long term? If mate have not consider this, you might need to take out the item 2. Real Estate investment.

3. Unit trust.
Can choose those capital guaranteed fund. Capital fully protected that can investment advantages too.
Annual charging fee is 0%, and sale charge just might be 1.5% till 3%?!

4. Stock market speculation.
For new comer. Try to stay away from Stock market. Learn it from Unit Trust first.

5. Start business as my own boss.
Always a good option when you have the specific skill.

6. Invest in business as a partner.
Normally partnership won't last long. Me experienced this, no matter how good friend or relatives or father and sons. When business, money in the talk. I got a bad habit that might always think that, is it fair in the profit distribution?! Then, when the business got any profit. It would always not enough for me. Me a too greedy man that not suitable to have a partner.

7. Invest in education and get better job.
Depends on how old are you? And your plan in getting married... actually when you got kids that time. The way you viewing money, life might change...

if i were u,

i'll spend 1/3 of them on myself for degree in oil & gas field. the rest into FD and UT. after 4 years can go offshore start earning USD.

u wouldn't want to be on offshore platform for long, trust me. it's soooo boring there.

If I were the threadstarter,

i'll get married as fast as possible! To get a true trustworthy life-time financial planner for me! ...um... No, no... i won't go oversea.

a very very strange situation indeed .....

for your saving of RM100K .... i wonder how you made it ....

quote by your statement : your income 2.5K .. and your expenses 2.4K ... so this is only saving of Rm100.00 ...

and with your statement as only SPM ... and having .. grilfriend or wife ( I assume ) .. but no children .. that why you wanted to have a family .....

Now comes the question : if only spm result .. how on earth you can managed ... to saving uip to RM100K over the years ... ( ohh yes .. Mind to tell .. how long have you been working for an income )

and with your income versus your expenses only equal of RM 100.00 saving ... how .. how ... to save that much .....

so , my friend .. pls wake up from your dream 1st b4 talking on how to in vest your $$$$$

hmm mm, Who told you that with SPM can't have 100k?!
If I telling you, me start work since 10 years old. And no SPM. Would you say me dreaming on how to invest my $?

aiya maybe parents, maybe rob bank, maybe strike lottery, it doesn't really matter. However judging from his salary and cashflow situation, and the fact that he needs to get married, the investment has to be short term and if long term, the ability to withdraw the money out anytime.

ppl went overseas to work la.......now coming back home.

In malaysia expected salary is RM2.5k and spending is RM2.4k

If you earn in foreign currency such as GBP, EURO and USD, very easy to save RM100k la.....which is actually not much by today's standards.

This post has been edited by uniglo: Feb 13 2007, 01:22 PM

1.) if you want to invest - get some education, read lots of book about money, talk to some experienced people

2.) if you put it in FD - stay low, no need to do anything.

3.) if you never did any investment, probably that 100k will give you an invalueable lesson of life when it is 'poof'

4.) never thinks if you have money you will be successful in investment, it doesnt work that way.

5.) Dont do any investment if you DONT KNOW WHAT YOUR MONEY IS DOING.

I think the first thing to do is to put the money into FD first, (large portion) while looking and learning about the opportunities to invest either start business or invest in stock market or whatever.

The most important is, don't blindly invest into the field that you have no knowledge about it. I know sometimes we learn in the process of investing but make sure you know what you are doing.

Very good advice which I 'try' practice myself.

Must know what you are doing lor.....and never listen to ppl selling you an investment scheme.

Dreamer101 way the best i assume. and Buy stock for dividend not short selling. Malaysian Stock don't have fundamental value just merely speculation and short term profit.

actually listening to ppl investment scheme is a good way to improve & test yourself how much you know about investment. i agreed some of you may encounter scams, or shady investment scheme, but dont let those bad egg affect your view about investment industry, because sometimes the best investment advice came from very successful people.

I'm sorry I wasn't clear in my first post so apologies for that. But yes I do have RM100k in the bank at the moment. If you read my 1st post carefully and my subsequent post in the 1st page, I meant to say my 'expected' salary and my 'expected' expenditure. As explained in my 2nd post, I worked overseas and I'm planning to be back in Malaysia soon to start a family to settle down. Since I will not be earning anything comparable to what I was earning before, thus the RM2.5k expected salary based on my SPM. Took me about 5 years to get that amount although I worked a little longer but I wasted it all on booze, sex and rock and roll before i realised my mistakes. If not I could've saved almost double of what I have now.

Thanks to all again for the advice. The FD route will be what I'm choosing for now. Probably take out some for my marriage and probably further education if I can find a job with time enough to do part time studies. I don't think I want to work offshore to be honest, as that means I'll be away from the family again so it won't mean any difference to what I was doing before.

I will hold the thought of investing in stocks for now although I have already received PMs from financial advisors. Some of my friends also offered their financial advice so I'll just be patient and wait for the right time.

"If I were the threadstarter,

i'll get married as fast as possible! To get a true trustworthy life-time financial planner for me! ...um... No, no... i won't go oversea. "

Hahahaha true true. My partner already trying to control me financially already.

perhaps you might want to revise the expected expenditure. I have a feeling you're not considering everything when it comes to marriage. The marriage alone can cost you 30k.

getting married and buying a car will surely cost u a lot ... when buying a car (if you were), make sure u buy a good car that have good market value & quality ...if not arrr, you gonna have headache bringing the car back and forth to the service center ...and got charged for silly fixes ... the car doesn't have to be new, as long as it's fine for ur needs ... u know lar ...ms'ian cars are so expensive relative to our earnings per mnth ..


hmm better start to think about ur education too ... it can secure ur future ...i strongly belief on education as a 'secure' investment ...so that u can get a decent job!
(unless u already have a good biznes to do)

another thing that concerns me is how r u going to get money of 2.5k once u come back to m'sia with just spm?
can ahh? ... u want to makan gaji first or straight away open business or something?

from what i see ... even a diploma technician have a salary of 1000-1500 ...after doing bunch of OT hours then only can get 2.5-3k worr ...
even for fresh grads (degree) , for example engineers ...starting salary is only around 2500+

btw, how's ur partner? is she working? how's her education level?


** nyum nyum ... 100k in bank $$$$ ... * ka-cing *

This post has been edited by mmohdnor: Feb 14 2007, 02:21 AM

Where can I get that shirt?

If you wanna get a house, just check how much it costs you to buy or rent. To make it easy, we'll just ignore appreciation of the house, taxes and all that. Calculate the yearly rent total and divide this by the best interest rate you can get for your capital. If that number is larger than what you put down as capital, seriously do some research and consider. There's a lot of stuff I left out (like taxes, mortgages, blah blah blah), but it's a good initial indicator. Research required, though.

True, I can't seem to figure out how much a marriage will cost until I see a marriage counsellor, but overall, I believe it won't be a big spending spree. Planning to keep it simple yet memorable, and hopefully the angpows I get can cover some of the cost involved.


Yeah the salary part is my biggest worry to be honest. I'm not even sure what I can get with my qualification. The Rm2.5k is just a guesstimate at best, not even sure what the market is like these days in Malaysia. Already registered for the local online job search websites, now just to test the market to see what I am offered.

My partner has no problems I suppose, already has a degree and working in a reputable company in Malaysia. So I don't worry much about her, only myself because I can't stand the thought of being unable to provide for my family.

I'm not sure what you mean by 'this by the best interest rate you can get for your capital.', but let's just say I'm paying a RM400 rent every month which would make my yearly rent to be around RM4800. So do you mean I divide this by the amount of interest I can earn from the capital I'm willing to put down for a house?

if u put FD also about 4% so make it 4k per year= 400 per month...get a job at penang to cut living cost,salary maybe about 1.5-1.8k,plus FD is about 2k more,drive motor bike for 5 years,can save another 50k or more i think..
i lived at penang,drive motor 1 week only spent rm50 plus food plus motor,rental room rm200,1 month MAX spend rm500..
u save 5 years, 1.5k x 50 = 75k
but no future 1..just simple very simple life

Billy, if you can amass Rm100k with an SPM qualification, you must be a hard worker.

With such quality, I recommend you to find a sales job. Rm2.5k is peanuts for excellent salesperson. This is what you want to consider selling. You dont need degree for sales job. Be a sales agent :-

1) Stock market is doing good - Consider joining Public Mutual as unit trust agent, they dont pay you salary but commission is 2.8% - 3.1%. My senior makes RM5k like this. He's excellent. Your target are people with EPF. Those people invest a lot. If you can get RM200,000 from EPF (this is normal), how much is the commission.

2) Ever heard of Marcus Evans ? This company sells ticket that costs a bomb. Their target are usually big companies. Commission is good and salary is minimal. IINM around Rm1.5k+ for salary and 30% commission. Tickets are like RM500 each. LOL

3) Be a computer salesperson for Dell or IBM.

This post has been edited by luqmanz: Feb 14 2007, 09:30 AM

If you are good in selling, sell insurance. Insurance has the highest commission comparing to everything else. And, everyone need some kind of insurance.

Dreamer

Sorry bout that. I meant that if you bought a home, you wouldn't need to pay for rent so you'd save on 4800rm. To get 4800rm a year, and thus not need to pay for rent through your salary, you'd need (according to colorola's 4% FD) 120,000 in the bank. Furthermore, the dividend you'll get will be taxed, so that means that the chap who's renting the house to you is actually making a nice profit off you. You might want to shop about for a home yourself, but you'd have to consider the mortgage if it's applicable and all that nonsense. Try going to this other post by jasondotcom over here to which dreamer has also contributed.

I apologise if what I write doesn't make much sense but I'm lacking sleep, sorry.

I do not use that kind of formula. The formula and system that I use according to typical rent versus buy decision is based on a very simple assumption.

Does it cost more for you to rent or buy??

So, if it cost you $4,800 to rent a house, the house need to cost you less than $4,800 per year to own. Or else, it is NOT worthwhile to buy. You may be willing to pay a bit more but not a lot more.

Dreamer

o.i.c ...that 's how you earn your 100k ...

sorry for my statement prior posting ..

but .. this is a special advice ( if i may ) to you biilycomesback ,

with all the hard work while at oversea .. you had no clue what is the actual happening here in town be in penang or in KL ....


your 100k now seems no big deal at all ( at this Moment of time ).... cos ... the actual facts is that the 100K will be down to nothing in no time....

just an example ... buying a house .. 100K or lesst is hard to come by ...unless in a very very small town ..... so if you are looking for investment in buying an house ... forget it ....

and if your invest it on "money market" also.. forget it .. cos .. the return its slow .. and will not be able to support you in time ... and needing ....

buying a car ...??? you must be really think twice .. !!! .. your 100k will even burn fasting ...

but if you are buying a car for the job requirement ....
then can consider ... but still it will lead you nowhere ..

with a car available ... you may look for a "sales" job ... in any fields that suits you ... then you
are taking about RM2.5K or more ....

but the company can be "cina ah peh" company ... whom are paying cheap and does not bother about your SPM status....


even open up a "watan mee store " will burn half of your 100K ...



conclusion to this :: It will be better to "Jump the Plane" again and work hard for few more years to earn another 100 K


believe me my friends ..I am in the fields of works .. that has the exprinces seeing thousands of this people whom works overseas ( Jump plane) ... and the results is all the same ...


well ..!! i guess this is the price you pay in life .. remember .. the phrase : you win some , you lose some...

so good luck to you ... take care ....

use that 100k to start a hawker food stall in singapore. can earn 5k per month if im not mistaken

How bout investment?
I think RM100k is enough for u to do land banking. Land banking is always better than invest in condominium or other property as land value can grow rapidly if u work on it.

yeh, the rental can kill u fast if no customer. My aunt rent a small shop below the HDB Flat for S$10k p.m that's RM23,000 p.m selling clothes.

i'm considering dis too. 35% commision is very attractive. but never know wether i'm gud in selling becoz never do. haiya wat to do. no harm to try but is it worth my time to try

There are 100,000 insurance agents in Malaysia. Most will drop out after a while. You need to be really good at sales to make a living from insurance.

---

Added on February 14, 2007, 8:51 pm

To save cost ... why not just register your marriage and organise a small dinner party where only the immediate families and closest friends are invited? That's what one of my friends did. But of course, your partner and relatives might not be too happy, since the concept of face is very important in Asia.



This post has been edited by Addicted2Money: Feb 14 2007, 08:53 PM

Mucklampir,

From my understanding, the commission is 130% to 140% of the first year premium. It is NOT 35%.

Dreamer

i mean not really a shop, i said food stall. not really sure how much is rent, but the profit sure can get SG$5 - 6k per month. especially busy place like chua chu kang, toa payoh..

although i duno much bout economy...but i think money changer and air ticket seller make quite a money...

still young n already have rm100k, salute to u bro..
if u are not a risk taker : put yr money in FD, ASW2020 0r ASN..
if u are not : Unit trust n Stock Market

Addicted2Money,

Agree with you in that there is a lot of competition. But, it is the same everywhere. Can you really find any profitable job that has NO competition?? The difference here is selling insurance is actually highly profitable comparing to MLM, unit trust and so on..

Dreamer

This is a major burden to people getting married. In the West, nobody cares about the size of the wedding.

may I ask why you came back since life seems greener for u on the other side...

every job also can make alot of money if u r best in it. Even grave digger, corpse collector, executioner also can make lots of money. Type of job is not important, most important is the attitude toward the job.

It is greener because I earn more, but the reason I saved so much is because I have no life there. I saved where I can and hardly spend on anything other than the necessary. There are other colleagues of mine that have worked outside their country for so long that they don't even see their children more than 2 weeks a year. It becomes like a self imposed prison because the money is so good, it would be crazy to quit their jobs and go back home at their education level. I don't want that kind of life, so I decided to come back early when I'm still young to start myself new so I don't fall into the same situation. Money isn't everything. It's a means to an end but it should never control your life.

Thanks for your advice dreamer101 and also empyreal regarding house buying. I've done some thinking as well about buying a house, it will be a hard decision but most likely will involve some kind of beneficial loans from banks which I have family working in. Still too early for that at the moment but your advice will be in my head of course. I won't increase my monthly expenditure too much just to pay for a house compared to renting a house. I'm wondering though, is it possible to pay the entire amount for the house? Is it worth it? Because if I can find a medium cost house, I might share it with a family member to pay for the entire house in full so no loans will be applied. Just wondering if it is a wise thing to do.

Don't think I'll do insurance selling to be honest. I have a habit of avoiding insurance agent friends, not that I don't like them, but I treat them the same like MLM friends. Just something I'll try not to do, unless I have tried every possibility. No offence to any agents out there, I respect your job as a provider of a service, I just don't feel comfortable with certain sales tactics that are questionable. Maybe just me and my suspicious outlook.

Regarding wedding, absolutely impossible to have a small dinner with immediate families. It would be a PR disaster for me and gf hahahaha. My side would probably think I'm such a 'scrooge' and her side would think I'm trying to hide the marriage from public like as though it is something wrong hahahaha. So it would be a reasonably sized dinner, nothing pompous or extravagant, just simple and easy. Just need to convince the other side to do the same....

I thought about that before but money changer is a definite no-no because the capital needed is too big. Air ticket seller sounds like a credible business since Air-travel in Malaysia will be broadening with Air-Asia selling cheap flights but then Air-asia doesn't have plane tickets. They just give you the booking number and thats it.


Maybe if I can't survive in Malaysia after trying then maybe I would consider the option of "jump plane" again. I've seen people make it with minimum wage, I believe I can too. But if it really is bad beyond my expectation, I will probably look for other opportunities elsewhere then.

reserch shows tat in japan alone a person hv 7 policies but in m'sia only 10 out of 3 ppl got insurance.
so start think bout it now!

This post has been edited by janice87: Feb 15 2007, 03:27 PM

but dun forget that the 7 ppl is mayb 5 is conservative and unwilling to buy insurance...there are such ppl....

RM100,000 isn't much these days to invest. Any fast money is risky, stock market is risky if the money is hard earned. Invest in good return real estate needs more than RM100,000. I would consider to loan money from bank if possible and invest RM50,000 in business. Work the hardest possible than other ppl, have good attiutude, focus on what you doing, and be nice to ppl, I am sure your investment will double in no time and it is long term plan. Any business can expand and well known, just depend on how you manage it.

hahahah so by definition only midgets have insurance? Coz 10 out of 3 requires some real tiny ppl

jokes aside, Sg Japan and Korea have penetration of abt 80-90 % while we're languishing at the bottom with no protection. Hope bancassurance and TuneMoney help bring this within reach

With respects to dreamer, his formulations would mean that if you can pay less to rent, you'd end up with no proprety at the end of the day. Might as well kick up some extra money to be able to afford to own the house rather than rent in perpetuity. That's where opp. cost comes in. You have to calc. the profits you get by either choosing between the home or another investment.

Oh, and consider selling the house and rent once you're retired. <runs into a trench to await flaming. "Flamethrower!">

<<Money isn't everything. It's a means to an end but it should never control your life.>>

Right idea!!

<<I'm wondering though, is it possible to pay the entire amount for the house? Is it worth it? Because if I can find a medium cost house, I might share it with a family member to pay for the entire house in full so no loans will be applied. Just wondering if it is a wise thing to do.>>

1) If you buy a house and pay in full, you will be audited by income tax.

2) What is medium cost?

3) Keep your money and shop around as to where do you want to live. Wait for recession or for some desperate house owner to sell house at low price.

My point is YOU WILL LOSE MONEY on the house that you bought and lived in. And, please calculate how much that is. But,

<<Money isn't everything. It's a means to an end but it should never control your life.>>

If you think if it is worth it, then you buy.

NEVER NEVER buy a house to live with an illusion that you will make money. 99% of the time, it does not work out. And, that is the problem with most people. They SPENT TOO MUCH on a house that they cannot afford. Then, they get into a debt hell that they can never get out for the rest of their life. They worked for the bank for the rest of their life to pay that house off.

Dreamer

Thanks dreamer101 for your replies.

1) So being auditied is a bad thing, am I right? Never paid any land taxes before, not sure if house is considered as well.

2) Medium cost to me would be around RM80k - RM130K. I might be willing to go up to RM150k if it is really worth it and I can source other funds from my family. But I'm trying to find something within the RM120k and below range.

3) I've thought about this and I am keeping an eye around my neighbourhood and nearby housing estate as it is where I would like to live in. Problem about desperate seller is, I'm afraid I might inherit the problems by the previous owner, like debt collectors, bad luck or even supernatural forces. I guess it come with the package.

I've been looking and asking around about what to do with my money from close friends and relatives. Most ask me to get ready to settle down but keep a good part of it for emergency and investments. Settling down meaning, buying a house and a family car.

I've also let my friends know that I am interested in businesses they run or have contact with. Just to see how it runs and test the waters. No commitments as yet. But it's kind of hard to commit money into a business I have no passion about, so I'm still a little doubtful about it.

Job vacancies has been a bit slow so far, but I'm hoping it would pick up after Chinese New Year, so I'm not that worried about it at the moment. Planning to take up a Diploma course as well to back myself up and to sort of certify my experience.

This Chinese New Year has so far been great and I believe it will get better. So I hope I can do reasonably well for myself and I wished everyone celebrating a Happy Chinese New Year and Prosperity to all in this coming years.

Thanks again for all the comments and suggestions from everyone. A lot of good points I feel has been shared and I feel some other souls can benefit from the ideas in this thread.

1) If you are audited, you need to PROVE where you get the money and why you are not paying income tax on those money.

2) Have you budget in around 30K to move into a house? Those cost include buying all the necessary appliance?? Do you have money left to do that after buying your medium cost house?

3) You can ask and do all those research before anyone is selling. That is why you survey the area for a few months and up to a few years before you buy.

Please buy as little car as possible. And, if you plan to have kids, DO NOT BUY a hatchback. You will be forced to buy a new car when you have kid.

Dreamer

just curious why not bring your partner overseas too...then got some life lor...
btw, your english quite good ah.... better than most fresh grads here...

I think 80-100k is considered low cost. In this range most of the apartments are arnd 600-700sf and you'll find quite a lot of indons and bangla. I mean KL house prices btw. If you're talking about other states, then i donno. Ipoh houses are quite cheap though.

This post has been edited by PowerDunk: Feb 21 2007, 01:33 PM

in penang most medium cost apartment with 3 rooms is about 90k-130k!
so expensive ...u can buy terrace houses in slangor i suppose!!

1) Ahh no problem then, already proven since I worked outside the country and I'm taxed there, so I won't get taxed again in Malaysia. I've checked this once and I'm sure it still holds true, but I will check again when the time comes.

2) Regarding house renovation and such, I've only factored in about RM10K or so for some simple renovations, since most of my furniture from my rented house will be going to the new house. Of course for older homes, I would need to fork out more for renovations and paint. As this won't be my 2nd home, most of my furniture from my rented home will be reused and it should be sufficient for another 5 years or so.

3) Yeah very true I suppose, no reason to go in blindly and inherit every problem that made the seller desperate in the first place.

Thanks for your feedback and suggestions dreamer101, I really appreciated it. I'm still driving a small car so it's no problem. Will probably upgrade it to a slightly bigger car if I start to have kids. What's wrong with hatch-backs? Too small?

Fortunately my partner is currently in a comfortable position where she works and she likes to be near her family so it has been pondered upon and the decision was that she maintains her status and I should be the one to see how I can improve my situation. If my plan backfires completely, at least she still holds a stable position for both of us as we ride out the storm.

English SPM onli leh But thank you for your compliment. I guess it's because I speak English to everyone I know. Unfortunately my Chinese language is not on par with my English. Some people call me a 'banana'. (Yellow outside, white inside.)

Yeah, I believe what you say is true, for KL medium cost would be in the range of RM160k - RM300k. Thankfully my hometown is still affordable so I hope to find one nice place to live in that fits my budget.

Billy,

1) Do you have something in black and white aka documented proof?

2) This might work

3) The home owner is desperate to sell NOT because of house problem but due to personal financial problem. Check to see whether the house has ever been flooded too.

Hatchback costs about the same as sedan but it is two doors and too small for a family. Many had bought a hatchback when they are single and think that it looks good. Then, they were forced to trade/bought a new car when they get married and have kids.

4) Sound like you have a good plan.

Dreamer

wah which part of selangor are you talking about la, even my place in KL terrace houses are goiong for 250-350K. 90K -130K is expensive?

u should invest in stable and reliable top companies in the world
return much much more than FD
somemore got insurance coverage as well
if u interested to know more kindly PM me

on low times at least 18% and high times is 20%-30% per yr


regards,
LittleDiana

he's talking about the outskirts like rawang etc. my mom bought the house here at a cost of rm 175k and it's a double-storey terrace house. (bandar country homes,rawang)

if i were you, put in FDs. Split it to each RM 10,000 and tenure 1 year. Do not expect constant return in any money investment (like unit trust, commodities, business, stock market bla bla bla). Since you are coming back for good, many costs are unforecasted and make provision for that. Be conservative until you monthly paychecks able to cover your bills.

Wait for KLCI to crash and panic. Ready to buy from one year after crash date. Buy blue chip with strong cashflow and sit tight for 3 years. Here you go and from RM 100,000 cost hopefully will triple your money. FDs probably will yield very low return but i suggest you wait until better oppurtunity arises.

my 2 cents

Planning to start a family? Better keep that RM100K for a house and renovation and your wedding tables instead. Since one year long way more to go, can try taking RM30K to do some small business, and see how it goes. And after you kau tim the house and everything, if there's balance, then you might consider doing some professional courses.

Yup, I'm following what the others have advised me to do. The current stock market correction is making me excited and am looking at some blue-chip stock as an investment opportunity when the price drop some more.

For me, I will not put into fixed deposit already... previously i put into the fixed deposit, actually now i feel i wasting money.. i should go take the money into investment...

I also wont put the money to buy stock... lately the all stock really gone up very high, too high, it not really a bargain and good for value buy... once the stock market come down, u never can recover the money you invest at the first place.. you may wait for 5 - 10 years...

I also wont invest in business now except you really have a good idea business because the current situation in Malaysia, there are all kind of business already available.. dun have anything that people not yet did it... except u really have good idea for ur business la... the best business is in the food industry but it require ur food to be good and in a good location..

I will recommend you to to put half your money into unit trust.. n half of your money use for your education.. Unit trust is a more secure investment and you must choose wisely, there is high, medium and low risk... take medium risk because 60% will be put into the stock market and 40% will be in fixed deposit.. if the stock market really drop, u still got 40% in ur fixed deposit... you monthly also can deposit more money to buy the unit trust when you see the price drop and increase more in future... "buy cheap, sell expensive"...

You also should invest in ur education... in the future, all the people in the street will be a degree holder.. experience is a important factor, however in Malaysia, degree or a certificate can be a determined factor... if you want to change job, you will face difficulties except people come to u and recruit u... ur current boss also will take this opportunities to abuse u such as low increment, no promotion and a lot of work because the boss expect u cant find other jobs and never leave the company...

this is only my advice and my opinion.. thanks...

Your statement contradicts itself. Buying unit trust (equity) is same as buying blue chip stocks in the market since the unit trust money you put in will be use to buy some blue chip stocks as preferred by the fund managers.

How about tryin this one out www.enrichclub.biz ??

Of cos, it is wise no to dump all of your 100k there..perhaps you can start small and see if they are real

it's not wise to even dump 1 ringgit in such a scheme.

Please don't advertise any get-rich-schemes here. Any service or company that promotes get-rich-schemes are liars and cheaters in my opinion.

Saving 100K is a great achievement - you should fell good about it. Although yes, in perspective, 100K looks smaller these days, but still you should feel confident abt having such money in the bank. It's at least 3 years of expenses covered just in case!

Most graduates I know who are now at age 27-28 may not have been able to save that much in KL. If you think about salary for professionals starting at 2.5K at graduation, most ppl by age 27 will get bumped up to about 6-7K if they have been focused and successful. At the same time, living costs in KL if you did not live with your folks/relatives, can cost up to 2K+ per month, + so many other distractions like clubbing, mobile phones expenses, holidays, karaoke, nice clothes, nice restaurants, nice car, petrol, upgrades to you car, etc. even buy expensive watches to keep up with appearances - hence the low savings. That's why going overseas actually is good cos you have less of these distractions.

It's always good to have some back up cash: 20-30K or 1 yr of expenses is more than enough. Then you should put the rest of the money into small real estate investments. It's always ok to start small. You learn just as much cos you will need to do all the same homework as you would do for investing in a bigger piece of real estate. For e.g.there were some studio units launched 2 years back by MK Land in Damansara Perdana. They were going for RM100K. You can put 10K down, and then borrow 90K and service the monthly repayment ~ RM700 inclusive of maintenance. The bank usually approves the loan if the monthly repayment is about 30-45% of your gross salary.

Today the units are ready, the rental for basic unit is rented out at RM750 and the studios are being sold upwards of RM130K!!! You've just created wealth either in a positive cashflow stream of RM50 per month (inflation of rent will make this higher) or in RM30K of equity (before tax)!!!

Depending on the individual location/market you may want to keep or sell the unit. Either way you would have learnt alot from having to:

1) survey the market/location/company so that you can continue to find good deals
2) perform all your cashflow calculations (in this case your cashf outflow is fixed at RM700 but your rent is already giving you positive RM50, and with inflation, rental will go up, but your loan repayment will not move very much - it will if you take a BLR + loan)
3) sum up your courage and intelligence to transact in this deal and mitigate all your risks/concerns by talking to ppl and asking a bunch of stupid questions (we all learn from the ground up)
4) understand that MRTA is better than taking out life insurance
5) learn to be a landlord
6) do a similar deal quickly when the opportunity arises

Remember, start small, then you can move on to bigger units. You can even start with low cost housing, I know some people started with investing in RM80K type of housing, of course, do all the same homework - cashflow (can it be +ve cashflow generating? by looking at the potential rental, or look at completed units).

Then you can sleep well at night - stable job (with increments every year), stable rental (you can adjust for inflation) and enough cash in the bank in case you need it.

Good luck. Now you can also do this without RPGT.

The only other thing I'd add is to develop a skill such as plumbing, painting or electrician. Nothing to do with being a landlord, but I feel this skill is in danger of becoming a shortage cos everyone wants to work in an office/factory. If you develop such skills from the ground up, and you can speak good english, I believe there's a lot of "banana" clients whom will want to deal with you. After a while you don't even do the job yourself you just hire some ppl, you supervise.

I say this because all my parents' good friends who are now retired or having an easy life have started successful businesses from the very ground up - car air con repair, duck rice stall to owning the whole coffeeshop, electrical wiring business, etc.

Very sound advice from dopey (Not so dopey after all, it seems).

Billy, you've only told us about your part of the financial story. Since you are getting married soon, you must plan your finances with your soon to be new bride.

Being a graduate, I guess we can safely assume that she has a good monthly income and will also have a substantial lump of savings too.

Combine your savings and I'm sure you'll be able to afford a decent single storey house in and around KL. She'll probably have a car too, so sell off one of the cars so that you can further reduce your costs there.

Also, because your wife has a stable income, you can actually consider doing business that are more risky. Coz to me, being your own boss is always better than being an employee.

Go and plan with your soon to be wife, and all the best!

Sorry Dopey, I have to disagree with you.



If you have seen Jobstreet's or Personal Money's recent salary guide, you'll know that an average graduate with five years' experience earns only RM2.5k-3.5K. Only those in certain fields (investment banking, oil & gas etc), managers and the exceptional few earn a salary of 6-7k at the age of 27. Yeah, good salesperson can earn 6-7k too, but mainly from commission. MOST 27-year-olds only dream of 6-7k salary.




So overseas don't have all these distractions? Hmmm, maybe Iran or Zimbabwe don't have-lah. The key is having the discipline to resist the temptations to buy, buy, buy ...



You were referring to Ritze Perdana. *Cough*Cough* the rental is actually RM650 upwards. But I don't have issues with the rest of what you wrote.



This is a very good point. I'm a banana myself

Overall, an informative contribution

This post has been edited by Addicted2Money: May 17 2007, 01:30 AM

((most ppl age 27 will get 6 - 7 k salary ????????))

hey, u think malaysia standard is the same as west ?6-7 k being what job ?clean?

to the thread starter, i think u were sort of like aeroplane jumping, right ? from what u told, i think it is most appropriate to take ur 100k to get involve in business. a potential business, not those cyber cafe,handphone shop.....and also forget all those ridiculous FD,ASB,UNIT TRUST.

property is a good long term investment.but, u nede to have a stable financial background. rentingout will not always promise what u been dreamt.still, is risky.

This post has been edited by a6meister: May 17 2007, 10:13 AM

I think Dopey's post makes a lot of sense.

Just a few points to note. I probably have to agree to some extent on Dopey's point about being less distracted whilst overseas when it comes to spending money unnecessarily on nice cars, entertainment etc. I think wherever we are in this world, we will always be tempted by nice things as long as they are accessible to us. However, the difference probably lies in how much we are willing to pay for access to those things. I currently work and live in the UK and find that entertainment can be quite costly. A few examples :

1) A typical cover charge to enter clubs is £20 (RM140) and that does give you a free drink. One drink in a UK nightclub costs a minimum of £4 (RM28). And the concept of opening a bottle of JD is almost non-existent. In KL, cover charges are almost non-existent if you are willing to share amongst friends to 'open bottle'. One bottle of JD is approx RM350, split amongst 5 friends - that's RM70 per person plus at least 3 glasses of drinks each for the rest of the night.

2) Cinema - One ticket at TGV costs RM10. One cinema ticket here costs between £8 to £14 (RM56-RM98) depending on cinema and location.

Of course the argument is that I'm earning in GBP so the conversion costs should not affect me. True, but also my income tax rate is 40% and all UK employees have to contribute a further 2.5% of gross salaries to National Health Insurance. This effectively reduces my nett income to about half and hence reducing my purchasing power.

With the knowledge that I have rent to cover every month as well, it really puts me off spending so much unnecessarily on entertainment/clothes. It's hard sometimes because who can resist clothes right? After all, I am a girl and I love to shop. But I think once you have lived here and realise your purchasing power, you will realise that you really should resist temptation most of the time.

It's like eating out vs cooking. Eating out in London can set you back about £6 to £10 for a normal one-person meal in a chinese restaurant. For that same amount you can buy groceries (meat, veggie and fruits) to last you at least 4 days. It's not only me - trust me, ask Malaysians here in London if they willingly eat out every night. Nobody does.

If want to shop, wait for the summer/winter sales. You can almost buy anything you want at greatly reduced prices.

Car? Most people are happy to just take public transportation here. In UK, you have to pay for a Congestion Charge just to drive in London. Plus parking and car insurance is not cheap at all.

any investment can be successful if you have enough knowledge about it. lack of knowledge is putting your money at risk.

if i may understand you correctly from what you've said.. you're moving from a saver to an investor/businessman.

mind you, this transition can be scary and exciting for those unprepared. you may listen to alot of recommendations.. but the more important thing is, are you prepared mentally to cross this treshold?

alot of expensive mistakes can incur if you just dunk your head into it. the way how money are made is very different from being a saver to an investor.

learn all the asset classes (e.g fixed income, equity, derrivaties, commodities, etc) as each of them have their tantrums and hypeness(aka pro and cons).

learn about asset allocation (it's a simple term.. but if you grasp the idea, it's one of fundamental of good wealth management)

all the best