eco world 14 sept 2014-renesial leong asia's queen of property

Is it STILL

A Good Time

For Properties ?

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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

ALLFind us on



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 renewalFind us on



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

destinationsFind us on



Economic Drivers

• Malaysia has the BEST

Expressway networks

• Within Klang Valley & KL

15 Expressways & Highways

in operationFind us on



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 2020Find us on



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…

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By Dr Renesial Leong and her awesome team

eco world 14 sept 2014-renesial leong asia's queen of property

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