Cikgu Norazimah

Aged old debate should we invest in real estate or stock

July 01, 2018

When you want to make any form of investment in Malaysia, it is good to ensure you take time to decide the best investment to undertake. The best form of investment is one that will give you good returns without involving great risks and stress. There are two major forms of investments that you can make in Malaysia — real estate or stocks. The major question that many people ask themselves is which between the two is better than the other. Just like any other form of investments, both stock and real estate have strengths and shortcomings. It is good to know them, so that you can make an informed decision. In order to help you make better decision, it is good to look at each form of investment and what each of them entails.

Real estate

When you enter into Malaysia property market, there are a myriad of options for you to opt for, be it low cost flat; serviced residence; condominiums; townhouses; linked houses; commercial shops and offices; and of course even physical land. To dive further into the property market, you will need to decide yourself whether you want to consider investing in under construction or fully developed property.

Stocks

This is a form of investment in Malaysia in which you purchase stocks. This means that you are purchasing a piece of a company. Regardless of the products or services that the company is involved in, you will benefit from part of the profit of the company for each and every share that you own.

Why invest in real estate

One of the reasons why you should invest in real estate than stocks is that it is a more comfortable form of investment, as it does not involve a lot of complex transactions as it might happen with stocks. Also, with the rise of internet, one can complete their research using some of the most reputable property listing website such as PropertyGuru.

The other great thing about getting involved in real estate in Malaysia is that you put your money in a tangible investment. This means that you have peace of mind because you can see where you have invested your money. This is unlike when you invest in stocks because you cannot see what you have bought.

Investing in realestate is also less risky than when it comes to stocks. You are less likely to be defrauded as it might happen when you invest in stocks. This is because you will be able to see what you are buying unlike stocks that are not tangible, meaning you cannot know if you are being scammed or not. When you are buying land or any other property, it is possible for you to carry out background checks and ensure that you are buying something genuine. When you decide to buy stocks, you have to ensure that you are buying from a reputable company with trustworthy auditors and management. It is easy to structure debt when you want to invest in real estate than it happens when you want to buy stocks.

Shortcomings on real estate investment

When you compare stocks to real estate in Malaysia, it involves a lot of work. This is because you will be involved directly in managing the properties and even if you hire professional to do the management, you still need to be involved. You will have to deal with calls of your tenants complaining of leakages or other problems with your properties. This does not happen when you invest in stocks because it is the company that manages your stocks, so you are not involved in any way, making it hassle and stress free.

Real estate investment might cost you money if your property is not occupied. This is because you will still be required to pay utilities, taxes, maintenance and others. This means that if your property remains unoccupied for a long time, you have to get money from other sources to keep your property intact and safe. When you invest in stocks, you feel safe because you get no such calls because your money is put in shares, so no tenants or clients are involved. Of course, thelist of risks can go on and on.

Why you should consider investing in stocks

Studies have shown that investingin stocks has long-term benefits. When you buy the stocks and reinvest in dividends and holding them for a long time you will gain more money in the long end. Stocks are very advantageous because you will also be purchasing a part of another business that you have not invested in creating it. You will benefit from a business that you do not spend any money or time running it. There are professional managers running the company for your own benefit. This is unlike the real estate where you have to get involved in the day to day management.

There is also diversification when it comes to investing in stocks unlike in real estate. There are many companies in Malaysia that allow you to purchase dozens of stocks at a flat monthly fee for less money. This is unlike in the real estate market where you have to invest in large sum of money. Therefore, even if you do not have a lot of money, you can still invest in stocks and gain some profits. When it comes to real estate, you will need to have large amount of money and if you do not you have to incur large debts in terms of loans or mortgages.

In terms of liquidity, you better got for stocks compared to real estate. Stocks are more liquid that the real estate. Just within a few regular market hours, it is possible for you to sell your stock shares and attain high profits. This can happen just within some very few seconds. This is unlike in real estate whereby you have to list your property or land. This might take a long period of time before you can get a buyer willing to pay the price that you desire for your property. If you have a rental property, it might also take you long time before you can get a worthy tenant.

It is easier to get borrow money when you want to invest in stocks than in real estate. If you have received approval from your broker, all you have to do is to fill a form and get the amount that you want against your account. In case there is no money what happens is that a debt is usually created against the stocks that you purchase. All you will have to do is to pay interest which is usually very low.

Cons of investing in stocks

One of the greatest shortcomings of investing in stocks is that they can fluctuate greatly within a very short time. The return you get is determined by the performance of the company in Singaporean market. This is unlike the real estate where the price of properties or land does not deprecate. You are assured that when you buy a property at a certain price, it will appreciate within a short time. This means that when you want to resell it you get good returns for your investments.

Conclusion

As you can see, each of the above form of investment has its own benefits and shortcomings. It is good that you consider all of them, so that you make an informed choice. You need to make sure that you have enough money before you decide to put it in either stocks or real estate. It is also important that you seek professional advice from investment experts in Malaysia, to guide you on the best investment to put your hard earned money.

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tips

3 Beauty Tips that Every Person Should Know

July 01, 2018

It’s a proven fact that the more you pay attention to your body, the more you have a satisfying general health and thus feel confident about everything within you and around you. There are a lot of beauty tips on Google. Here are some essential beauty tips that every man and women should know from my view :

1. Night Care

You might be wondering why we had put a night care regime at the top of the list. Ask yourself – ‘is there anything in the world that is better than a good night’s sleep?’

Even if you get to sleep for only 4 hours, it’s crucial that you sleep at peace. Here is a scientifically recommended night care regime that every men and woman should follow for a better general health:

Take a hot water bath using peppermint essential oil and follow up with a moisture locking body conditioner or oil.
Massage your face with lavender or rosehip infused aloe Vera gel.
Switch on an essential oil diffuser (with rosemary, ylang ylang, rose, lavender or other aromatherapy pure essential oils), tune in a calming music and go straight off to sleep without looking at your gadgets.

If you can’t regularly practice yoga and meditation, this is the best alternative to calm your senses.

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2. Always look good

It’s a human nature - the better you are praised of your looks, the more you feel positive. Obviously, that doesn’t mean you have to be a fashion maniac, but, it’s of utmost importance to feel confident and comfortable in whatever you wear. Some of these evergreen choices are a must have in your wardrobe that you can interchangeably wear on suitable occasions:

For Men: Dark blue washed/ regular jeans, black pants, white full sleeved shirts, black, olive or mustard overcoats, coffee boots, black or denim loafer and sneakers.

For Women: Washed denims, ruffled tops, layered tops or dresses with embellishments, pleated skirts, striped tees, handmade appliques dresses from fashion boutiques, black and red dress, olive or mustard shorts, beige and brown sandals.

3. Exercise and Eat Well

Doesn’t a natural blood rush to your cheeks look much better than those artificial blush and make ups? One can hardly deny that exercising regularly brings a natural glow to your face and you can always confidently walk off to the university or the office in nude make up or no makeup with that gorgeous personality. Would like to go for more beauty related offers to save some bucks click here.

Similarly, here are some of the diet regimes that you need to incorporate from tomorrow to make your exercise routine more rewarding:

Start your day with a dose of Apple Cider or Coconut Apple Cider Vinegar
Your morning breakfast should be energizing and the top favourite morning super foods are: quinoa, chia seeds, banana, coconut, almond milk, almond butter, papaya, oats, hemp, yogurt, avocados, blueberries and goji berries.
Cook your lunch as you like, but only in coconut or extra virgin olive oil.
Your dinner should be fat free, full of green veggies or fruits accompanied with chicken or fish. Avoid rice or breads.

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Your guide to buying a HDB BTO

July 01, 2018

To get a BTO flat is a big milestone in your lifetime. But to get a BTO flat is as tedious as it seems. You start facing different issues. You do not know where to start, how to start and when to start. You get confused with the steps, the processes and the terms when it comes to buying a HDB BTO unit. Keep on reading to have an idea on getting a BTO and say goodbye to those tedious issues.

Below are the 6 steps that you need to go through in order to buy a HDB BTO.

1. First of all, you will need to screen your eligibility to purchase a BTO flat.

2. After meeting the eligibility of buying a BTO flat, you can start looking for a BTO flat around the area you desire that suits your needs and wants in terms of location or others, and try balloting for the BTO flat online. Do wait patiently as you will need to wait for approximately a month time to get notifications on whether you have succeeded or failed to ballot for a BTO flat.

3. Thirdly, you need to get an approval in principle (AIP) from your desired bank if you require a bank loan. Another alternative is that you can apply the HDB Loan Eligibility (HLE) letter if you require a HDB loan. The difference between a HDB Loan and bank loan is that HDB Loan is 90% LTV whereas bank loan is only 80% LTV. The HDB Loan also allows you to pay for a lower down payment, however, HDB loan offers less flexibility. As for bank loan, it requires a higher down payment but comes with greater flexibility. Do take caution that the validation for HLE is only 6 months. More information on ways to apply can be found here.

4. Next, after getting a notification on your success ballot for a BTO flat, you can start looking for grant available from Special Housing Grant (SHG) and Additional Housing Grant (AHG). SHG is a housing subsidy that covers both the low and middle income families with grant ranging from $5,000 to $20,000, subject to buyer’s income. As for the AHG, it is a scheme that aims to help Singaporeans with lower income to purchase their first flat with grant ranging from $5,000 to $40,000, subject to buyer’s income as well. To qualify for an AHG grant, your household income should not exceed $5,000 per month, for a period of 12 months before your application for the flat. You will then be invited by the HDB person in charge to choose your desired flat and make payment for Option to Purchase (OTP). Again, do note that the time to wait is approximately 2 months to 3 months between the period of successful ballot and flat choosing.

5. After 2 or 3 months, you may sign the leasing agreement. You are also required to make payment for the down payment, conveyancing fees and stamp duties.

6. Lastly, sit back and wait for the collection of keys after the completion of your BTO flat.

What is AIP, HDB, BTO and OTP

You must be wondering what are some key terms that I have mentioned above. Let me explain. Firstly, Approval in Principle (AIP). AIP is a loan from the your desired bank to promise you according to your monthly salary, ratios of debt servicing and etcetera. However, this AIP is only valid for a month and is only applicable to bank loans. Secondly, ballot. HDB or BTO uses a computerized system for the balloting process to determine the queueing position to secure the flats. Bear in mind that every individual has different chances of balloting. Some applicants have better opportunities and some do not, depending on the type of applicant, such as (normal/public applicant, married child priority scheme - near parents/married child or married child priority scheme - with parents/married child).

Next, OTP. OTP as a document that save your rights in order to buy the flat. However, getting an OTP demands a deposit that is known as option fee. For or 4 or 5 room executive flat, OTP is priced at $2,000, a 3 bedrooms flat is priced at $1,000, a 2 bedrooms flat is priced at $500 and a studio apartment is priced at $250. In the event of backing out from buying the flat, the option fee will then be forfeited unless there is a good reason for deciding not to buy the flat. You will then need to write a letter to HDB to ask for a refund, but with no guarantee.

After that, conveyancing fees and down payment. Conveyancing fees are the lawful paperwork you are involve in when you purchase the house. For example, if you are using a HDB loan, the first $30,000 is $0.90 per $1,000, next $30,000 is 72 cents per $1,000 and following amounts above $60,000 is $0.60 per $1,000. Conveyancing fees could also be paid through your CPF. As for down payment, it the the total amount that you are required to pay in cash. For banks, downpayment is 20% of the property. 15% of the 20% can be paid via CPF or housing loan. However, the last 5% of valuation have to be paid through cash. As for HDB concessionary loans, down payment is 10% of the property’s valuation. In addition, all of the 10% can be paid via CPF or housing grant.

Differences Between a Bank Loan & HDB Loan

Before I conclude, it is crucial to know that there are differences between a bank loan and a HDB loan. To make it easier to understand, the main differences between a bank loan and HDB loan are as follow:

i) HDB loans are able to fund as much as 90% of the valuation whereas for bank loans, it is able to fund up to only 80% of the valuation.

ii) HDB loan has a fixed interest of 0.1% above the current SPF rate, which is approximately 2.6%, for the whole loan tenure, whereas for bank loan, the interest is not fixed. However, are cheaper, at approximately 1.7%.

iii) HDB loans typically have a tenure of maximum 25 years whereas bank loans are able to allow the extension of the loan tenure beyond 25 years. However, this will result in a larger sum for the down payment.

In other words, bank loans are known to have greater down payment but lower interest rate and better flexibility. As for HDB loan, it allows a lesser down payment but with greater interest rate and lesser flexibility. So if you are planning to apply for a BTO unit, think and choose wisely and accordingly.

In conclusion, the steps to getting a BTO unit is not that tedious after all, provided you follow the guide and plan ahead to avoid going through the unnecessary issues. You can understand more on the process of getting a HDB flat by reading stepby step guide to buying your first BTO flat and guide tobuying a new HDB flat.

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