Budget 2013 ~ Any Good News for Property?

Stamp Duty

• 50% exemption extended to 31 Dec 2014 
• only for 1st time buyer for Residential property not more than RM400k (previously RM350k)

Real Property Gains Tax (RPGT)

• from 1 Jan 2013, properties disposed within 2 years ~ RPGT raised to 15% from 10%
• and disposed within 2 to 5 years ~ RPGT raised to 10% from 5%
• after 5 years RPGT not applicable

Are these good news??

Lets say you buy a property RM400k, stamp duty is approx. RM7k ~ 50% off ~ RM3,500 savings!!

Yeah, right....you think I'm stupid?

Nowadays, most developer absorb the stamp duty fees. So what savings you get??

RM400k property, say 5% increased per year, 2 yrs = RM441k, 3yrs = RM463k.

Sold within 2 yrs

 ~ say RM41k profit ~ you pay RPGT RM6,150 (previously only pay RM4,100). So you loss RM2,150 & minus the RM3,500 savings = only RM1,350 savings

RM1,350/ RM400k = 0.3375% (You might as well put in FD which get you around 3% interest per annum)

Sold after 3 yrs

~ say RM63k profit ~ you pay RPGT RM6,300 (previously only pay RM3,150). So you loss RM3,150 & minus the RM3,500 savings = even Better! only RM350 savings

RM350/ RM400k = 0.0875% (You might as well put in FD which get you around 3% interest per annum)

Good for Investor?

To me, definitely not. You are taking more risk now to invest in properties. What risk?

1. High property price (some ppl might disagree with this)
2. Higher RPGT (increased 50% for first 2 yrs & increased 100% for 2 to 5 yrs). Increase further in 2014??
3. Higher BLR in future?
4. Lower house loan ratio in future for 3rd or 2nd property?

As mentioned in my previous post {Click Here} I don't believe Malaysia will STOP creating more rules and regulations to harm the property market ..... seems like it is happening now .....

More rules & regulations to come after election? I believe so. Beware & all these will only change to favour Investor when property market crashed.

By the way, above just simple calculations, I didn't take into account those lawyer fees, agent fees etc.

Good luck with your investment!!! ^_*

Shares, Properties & FD ~ which one you choose?

To me:

Shares ~ fastest investment

Properties ~ safest investment

FD in bank ~ worst investment

Which one you choose?

For me, definitely Shares & Properties ^_*

Good luck with your investment!!

Nadayu 28 Bandar Sunway ~ Comments From "Smart" Reader

I posted Nadayu 28 Bandar Sunway on Monday, May 21, 2012 {Previous Post}

Recently received a "Smart" Reader comments as follows (highlighted in Red):

Bro...ur analysis not right wor...

AWong Investment view: Are you sure I'm your bro? If not pls don't simply say it. 

pls compare apple to apple la, dont compare iphone 4 to nokia 3210 ma.

AWong Investment view: If you can find two exactly same development then you can compare apple to apple, if not you have to compare with other developments to find out whether the price/ft2 is worth or not.

1. 8 petaling - location not strategic as sunway, sunway got so many colleges & unis. Some more nadayu28 provides semi-furnished with fully air-con, water heater, plaster ceiling, built-in kitc. cabinet & wardrobes to all rooms, fully equipped bosch brand kitc. appliances leh.

AWong Investment view: Bandar Sunway might be better location but does that means worth to pay approx. 105% more in terms of price/ft2? Those items mentioned by you which Nadayu28 provided worth how much?  

2. Olives residence - all units are over 2k+ sft, sure lower psf lo, if u compare nadayu 1850sf, its only RM565psf(Aug12'). i believe the psf for olives n nadayu28 is the same at this moment lo.

AWong Investment view: I don't know how you get RM565/ft2. It doesn't matter what size you compare with - the price/ft2 can only be calculated based on the actual size you get. You can believe any price you like.

3. Acappella & I-residence - both are in shah alam area, dont compare these 2 location as the price for shah alam is far lower than subang & sunway. u try to compare nadayu28 & icon city, which is very very near to each other, u c which 1 is cheaper, of cos nadayu28 lo...

AWong Investment view: Refer to my comments above for Item 1. If you have better comparison, do post here and let ppl know whether your view is correct or not.

4. Se terra - again all units are in bigger size, the smallest 1 if im not mistaken is from 18XX sft to 36xx sft, Rm573psf is even higher than nadayu28....siao meh (some more nadayu28 is offering 6 units/ floor while se terra is offering 10 units/ floor)

AWong Investment view: Refer to my comments above for Item 2.

5. Neo damansara - bro, this 1 is office suite, nadayu28 is high-end condo...how can u compare office with condo. Non-sense at all

AWong Investment view: Refer to my comments above for Item 1. The information I based on is Serviced Residence not office suite.

6. Boulevard residence - dont use last yr pricing compare to this yr ma, not fair at all, last yr u buy 1 medium cost condo = RM250k, this yr u hav to pay RM350k-380k, loads of changes within 1 yr time what...petrol price also increase la. my opinion price for boulevard is almost the same as nadayu28.

AWong Investment view: Do you think 50% more in terms of price/ft2 is reasonable due to 1 year period? Again you can believe any price you like.
 

Lastly, nadayu28 give 2 car parks & pls dont mixed up, nadayu28's 411 units are divided into 3 blks, so each blks is only 13X units, 6 units per floor & serve by 5 lifts, low density + shorten time for waiting lift.

AWong Investment view: If you believe these things worth the extra price/ft2 then do buy a unit there.

P.S. im not from developer, i just want to say that every development is good if u think its worth to buy. Dont try to damage the goodwill of the development publicly if u dont like or cant afford to buy.

AWong Investment view: Did I damage the good will of the development? How? I'm sharing the information I have for each development and compare them against other developments. Did I ever mention that I don't like this development?
Can't afford to buy? How you know? What is your understanding about the word "afford"? Did you buy a unit there in cash? 

To me, if you can buy in cash then it means affordable. Or you borrow loan because the interest is low, you taking the advantage of low interest and can pay off the loan any time when the interest goes up - this means affordable.   

Another thing, u go check sunway monash residence, ppl are paying RM1.5k for a single room with ensuite bathroom. Pls be reminded that all rooms @ nadayu28 are with ensuite bathroom & nadayu28 is just next to sunway uni. I dont c why the unit cant fetch such rental that u mention lo...

AWong Investment view: If you believe it can rent out for RM3,089/month then do buy a unit there.

pls do more survey 1st b4 u comment...

AWong Investment view: Is more like you need to do more survey and not just comment without giving any fact. Do let us know the price you pay for the unit in which year, how much you able to rent it out etc.

sorry if i offended u but what im mentioning now are the result of my survey...

AWong Investment view: I'm more than happy if you can let ppl know more about the true figures of this development.

Good luck with your investment!

MAS (3786) ~ Good News for 2Q2012

MAS price is currently @ 1.03




Some updated info:

• July 2012 - Petron Malaysia Sdn Bhd (previously Esso Malaysia Bhd) and MAS signed a deal to supply and purchase fuel with a favourable rate for Airbus A380 flagship fleet for six months (Profit to MAS)
• Petron also provided complimentary fuel for MAS A380 flight MH2 from Kuala Lumpur to London (Profit to MAS)
• MAS plans to fly Airbus A380 to Tokyo and Beijing (Future Profit)
• MAS Airbus A380 will start flying to Sydney, Australia end of November 2012 (Future Profit)
• MAS has ordered six A380 aircraft - 4 will be delivered by end of 2012 and the balance in 2013 (Future Profit)
• MAS started flying three direct flights a week between Kuala Lumpur and Kathmandu from September 2012 (Future Profit)
• MASkargo Sdn Bhd launched A330-200 freighter flight to Colombo, Sri Lanka (Future Profit)
• Rolls-Royce extended total care services support to MAS for the Airbus A380 aircraft engines which will provide significant financial savings (Profit to MAS)
• MAS launched the "Log Out Experience" on Facebook (Future Profit)
• MAS received SKYTRAX World Airline Awards. MAS reputable cabin crew won the "World’s Best Airline Cabin Crew", MAS signature satay dish won the "Best Airline Signature Dish" and MAS awarded a 5-star status. (Future Profit) 
• Aug 2012 - for Hari Raya, MAS increased flights between Kuala Lumpur and Medan as well as for domestic routes (Profit to MAS)
• 1 Aug 2012 to 7 Nov 2012 - MAS offer all-inclusive advance purchase for international travel to over 41 destinations in Asean, India, China, North Asia, South Asia, Australia and Europe (Future Profit) 
• MAS increasing number of flight from Mumbai, Chennai and Bengaluru to KL from September 2012 (Future Profit) 
• Firefly added three new routes - Subang to Hatyai, Kota Baru to Singapore and Penang to Koh Samui (Profit to MAS)

Latest Financial news:

• MAS latest 2Q2012 net losses approx. RM349million - LOWER than previous year which has a net losses of approx. RM527million (Approx. 34% less losses)  
• Year to date net losses approx. RM521millions - LOWER than previous year which has a net losses of approx. RM769million (Approx. 32% less losses)  
• Net asset per share increased to 0.45, previously 1Q2012 is 0.28 (Approx. 61% increased)  

Latest investment/research companies view:

• OSK Research upgraded MAS to “buy” from a “trading buy” with an unchanged fair value of 1.38.
• 17 analysts by Bloomberg, 12 analysts with a “sell” call, three analysts with “hold” call and two analysts with “buy” call. The target price ranges from 0.85 to 1.79.
• Kenanga Research maintains its “underperform” rating with a 1.06 target price.
• Hong Leong Research also maintains its sell call with a 0.92 target price.

So, their range is 0.85 to 1.79. With current share price of 1.03, so the share price might drop approx. 17% or shoot up approx. 74%. What do you think?

To me ~ MAS is worth to consider. I'm hoping it will reach 1.50.
 

Good luck with your investment!!! ^_*

Again as mentioned in my previous post, One main point is MAS have stop paying out dividends since 2008. If you are not risk taker, you should consider put it in the bank for FD and get around 3% interest per annum.

Previous posts related to MAS:

• MAS (3786) ~ More Good News to Come?
• MAS (3786) ~ Share Swap with Airasia is Off