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

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Powerpoint presentation by Dr.Renesial Leong
Is it Still A Good Time For Properties?

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

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

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