Eco world 14 Sept 2014-Renesial Leong asia's Queen of Property

Is it STILL
A Good Time
For Properties ?
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Facebook/asiaqueenofproperty

What are the Challenges ?
Where are the Opportunities ?
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Where are we
TODAY ?
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Where are we TODAY?
• Witnessing Subsidies Reduction
By the Government
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Where are we TODAY?
• Sept 2013
Fuel price hike
• Oct 2013
Abolishment of sugar subsidy
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Where are we TODAY?
• Jan 2014
Electricity tariff hike
• May 2014
Industrial gas price hike
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Where are we TODAY?
• 2020
Withdrawal of all subsidies?
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What are the
CHALLENGES ?
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What are the
CHALLENGES ?
• GST
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What are the CHALLENGES?
GST
• 1st April 2015
• Take off rate of 6%
(Govt assured rate stays
for min. 5 years)
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GST
Part of reformed tax system
• Generate a more stable
source of revenue
• Should bring more benefits to
ALL
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GST
Broad based Consumption Tax
• Burden of GST falls
Onto the FINAL consumer
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GST
• Generally Everyone
• Will Directly affect the
Real Estate Industry
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GST
Residential Property
• Tax Exempt
• Meaning GST is NOT Charged
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GST - Not subjected to GST
• Sale & Rental
of ALL Residential Properties
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• Sale & rental of land
used for Agriculture
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• Sale & rental of land
used for Burial
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GST - subjected to GST
• Sale & rental
of ALL commercial properties
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Impacts of GST / Residential Prop
For Developers
• No entitlement to recover GST
• Hence an added cost
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Impacts of GST / Residential Property
Supply of materials & services
(Absorbed by Developers)
• By Contractors
• Building materials
• Professional services
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Impacts of GST / Landlord
Important to take note
Include vital clause on GST
• For all NEW tenancies
• Tenancies renewal
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Impacts of GST / Landlord
GST is payable
• When billed or incurred
Not when collected
• i.e. if tenant pays up late
Landlord has to pay up first
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Impacts of GST
For Commercial / Industrial Prop
• Purchased off the plan
• Or under construction
From 1st April 2015
• GST will be imposed on
Next billing till completion
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Impacts of GST
• Interest shift more towards
Residential properties
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What are the
CHALLENGES ?
• Escalating Property Prices
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House Price Index
• In 2013 the Price Index
Stood at 192.9 point!
• Compound annual growth rate
For 2011 to 2013 at 11.7%!
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What are the
CHALLENGES ?
• Inflation
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Due to Inflation
• COST OF LIVING is
Going to be much HIGHER
ALL over the WORLD!
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Pretty obvious
All of us need
• MORE ringgit
• JUST to MAINTAIN our current
lifestyle
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Where
are the
OPPORTUNITIES?
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Where are the Opportunities?
• Politically stable
• Employment Rate @ 96.9%
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• Population Growth @ 1.54%
Malaysia’s population
30Mil in Feb 2014
• Greater KL Population Growth
From 6Mil to 10Mil
By 2020
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Steady population growth
• 2009 – 28.1Mil
• 2010 – 28.6Mil
• 2011 – 29.0Mil
• 2012 – 29.3Mil
• 2013 – 29.7Mil
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• Interest Rates for mortgage
Residential BLR -2.5%
6.85 – 2.5 = 4.35%
Commercial BLR -2.35%
6.85 – 2.35 = 4.5%
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Economic Drivers
• Malaysia is Strategically
Located in the Region
Within 2 to 5 hours flight to
Many Important International
destinations
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Economic Drivers
• Malaysia has the BEST
Expressway networks
• Within Klang Valley & KL
15 Expressways & Highways
in operation
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Economic Drivers
• Economic Transformation
Projects, under the Economic
Transformation Programme (ETP)
• Target to achieve USD444Bil!
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Economic Drivers
ETP
• To bring Malaysia to
fully developed nation status
By 2020
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Economic Drivers
ETP
• Government to move
Per capital income
From USD7K to USD15K
by 2020
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Economic Drivers
High Speed Rail (RM40Bil)
• KL – Spore in 90 minutes
• Take off 2015
• Target completion 2020
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Economic Drivers
Private Sector average wage
growth
• 6% in 2012
• 6.6% in 2013
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Economic Drivers
• Average Mean household
income growth 7.7%
(2009 – 2012)
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Economic Drivers
Banking Industry
• Expected to grow btw 8% to 10%
On expansion of economy
Fuelled by private consumption
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Economic Drivers
• Healthy no. of Marriages
(Demand of housing)
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Why you
MUST
INVEST?
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Why you must invest?
• The longer we hold on
To currency, the less valuable
It will become
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• Real value is found in
Assets, NOT currency
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• Key to WEALTH
Invest in ASSETS!
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• One of the best ASSET
Your money can buy is
PROPERTY
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What can PROPERTY
do for YOU?
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What can property do for you?
• Has potential to create
VAST amounts of wealth
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• Property is the BEST hedge
against inflation
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2 other huge benefits
• Leverage
• Cash Flow
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• 10% of Billionaires on Forbes list
made their wealth
from properties!
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Caution…
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Caution
• Almost everyone
Becoming a
Real Estate Negotiator?
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Caution
• Almost everyone
Becoming a
Developer?
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Caution
• Information Overload!
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What to
Buy ?
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What To Buy?
Buy RESIDENTIAL properties
• Everybody needs
a roof over our heads
• Safer investment
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What To Buy?
Buy APARTMENTS
• Functional layout
• Good amenities & facilities
• Good management & security
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What To Buy?
Buy LANDED properties
• For better capital appreciation
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What To Buy?
Buy properties
• With good infrastructure
• & connectivity
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What To Buy?
Buy in NEW township
• From reputable developer
• Better planning & management
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The BEST time
to INVEST….
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Happy Investing…
Fruitful Investing…
By Dr Renesial Leong and her awesome team
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Eco world 14 Sept 2014-Renesial Leong asia's Queen of Property

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