Thursday, October 30, 2014

Why I bought the first residential project at Sunway Iskandar ? (Revision 03)

Revision 03 (last paragraph): updated on December 30, 2015
Revision 02: updated on November 1, 2014

I am not going to repeat the general information that are available widely at the Sunway Iskandar offical website (shown below) or you can google the information about Sunway Iskandar. There are tons of information out there.

Why I bought first residential project at Sunway Iskandar?

(1) The price is reasonable at the current market.

(2) If Bandar Sunway and Ipoh Sunway first launch owners are enjoying huge capital appreciation, Sunway Iskandar can too! No doubts.

(3) The product is from Sunway. It is a QUALITY brand.

I was a Sunway College student in year 1998 and 1999. I witnessed the transformation of Bandar Sunway. Such township development success will appear at Sunway Iskandar, for sure.

Let's talk about the product briefly.

I particularly love 3 bedder units but it is out of my budget.

So, I pick up a 2+1 unit instead. I think the orientation of this Type D is fantastic, if not, it is the best.

(1) Type D is North East facing, no West sun. Perfect.

(2) Living hall and bedroom units facing is actually Eastern & Oriental development or forest at the moment. However, I love the master bedroom huge L shape windows. The other half of the window is actually facing South East - SEA VIEW ! I need to be conservative here. I do not think Sunway is so nice to unblock this view by making sure no buildings are built at this direction (see the model below). I as well do not know the height restriction at the sea front precinct. Therefore, higher floor units will have a better chance to enjoy the sea view. This is just an extra. I do not think the current selling price has included such premium. It fact, this unit type per square feet is the cheapest.

(3) I like the kitchen location. It is separated from the living hall and dining area.

(4) Even though this 2+1 layout is larger than typical 2 bedroom but the price is very close to each other (might as well buy the larger unit).

Type D layout

Layout Plan of Citrine. I like C1 location too, especially the 2 bedroom and living hall are ALL facing SEA VIEW ! But the layout is the smallest and the kitchen is very close to the living hall (open air concept)

Lakeview Precinct - belong to Medini Zone- 129 years lease , NO Real Estate Gain Tax.

Total 6 precincts - a massive 15 to 20 years development.

The location is so near to Tuas second link check point which is very ideal.

Type D - 1,087 sq ft - very generous layout indeed for a 2 bedder unit.

 The floorplan.

Take note there is a "open space" to unblock the view for Citrine service apartment which I doubt they will really do this. We will see. I might be wrong. :)

Are you ready to move in? My dear tenant.

I am the 5th to select a unit, spoilt for choices.

I can see my unit !

These are impressive SEA VIEW facing units.

Let's talk about price. The downpayment is FREE. Yes, indirectly.

Let's take the real selling price of Type D , highest floor , 36th floor as an example.

Type D - 1,087 sq ft , selling now at RM 855,000 (still available as of October 31, 2014)
The price has since gone up by 4+%.

RM 855,000 is the SPA price. Sunway developer is giving 7% + 3% discount right now.

You pay RM 10,000 booking fees.

10% of SPA price is RM 85,500.

Sunway gives 7% discount, hence, your remaining down payment is:
RM 85,500 - RM 59,850 (7% discount) - RM 10,000 (booking fees) = RM 15,650.
You have to pay this amount while you sign the SPA (Sale and Purchase Agreement).

So, your up front commitment is RM 10,000 + RM 15,650 = RM 25,650.

Remember Sunway developer is giving 7% + 3% discount?

While it hits the next 10% loan disbursement, Sunway developer will refund you the 3% discount, which is a cheque to your name of RM 25,650.

Indirectly, your "10%" is fully paid by Sunway developer, you only need to take care your remaining 90% loan. Effectively, you are on 100% housing loan, in other words.

FREE SPA Legal Fee & Disbursement (EXCLUDING Perfection of Transfer and Stamp Duty on MOT); with Terms & Conditions - SPA & Loan Agreement must use our panel lawyer.

I have to pay around RM 18,540 of MOT fees upon completion date.

FREE loan agreement Legal Fees & Disbursement (Inclusive 0.5% stamp duty EXCLUDING Perfection of Charges); with Terms & Conditions - SPA & Loan Agreement must use Sunway developer panel lawyer.

My housing loan is from CIMB bank. Hence, RM 9,118.81 fees will be fully paid by Sunway Developer.

Nevertheless, upon completion at the end of year 2017, I have to pay Perfection of Charges. That is 25% of Loan Legal Fees, which is 25% of RM 6,176 , estimate to be RM 1,544.

FREE 1 year maintenance charge (excluding sinking fund); indicative RM0.35 PSF, subject to change).

The sinking fund is about 10% of the maintenance fees. Hence, sinking fund is about RM 38 per month.

By the way, my unit is at 35th floor. :)

As of October 6, 2014, below are the sales results.
Total 129 units sold out of 263 units launched. That's 49% sales.
There are total 328 units.

Sales Chart as of October 17, 2014.

Updated on November 1, 2014

I received an update from my friend who was at the Sunway gallery. He sent me the latest Sales Chart and I would like to update the sales progress for the past 25 days.

Sunway is able to move another 15 units.
Total 155 units sold out of 263 units launched. That's 55% sales.
It is worth to mention Type D is selling out fast. Hitting 82% sales and left only 6 units.

The best 36th floor unit is now SOLD ! Didn't I mention Type D is the best location? :)

The Sales Chart @ November 1, 2014

Updated on December 30, 2015
There are some changes on Johor state housing rules, so all the buyers of Sunway Citrine Residence have to resign all the lawyer documents. This create trouble for all the previous buyers to come again to the Sunway sales gallery to sign all the thick documents, some even have to fly from Taiwan or Middle East to come here and re-sign. For me, I just need to drive into Nusajaya to sign the document and go and buy milk powder at AEON, not a big deal. It was happened in July 2015.
Nevertheless, Sunway developer rewarded everyone the same token of appreciation of a RM5,000 cash for any inconvenience caused. That is actually to cover others flight ticket and hotel stay. For me, it is a FREE shopping voucher at AEON Bukit Indah. Ha Ha Ha... RM5,000 cash is a lot! I now don't mind to re-sign all the documents for the 3rd time for another fee. :) Thank you, Sunway.
On December 30, Sunway customer care told me the 3% refund cheque is here. They helped me to bank into my CIMB i-flexi loan account to offset my interest. Effectively, my loan account now has enough monies to offset all the interest. It is loan interest FREE right now (reaching 20% stage at the moment).
It is a cool refund of RM24,540. And now you know what is my SPA price and you can do further "reverse engineering" to know my net Purchase Price.
In short, Sunway paid me RM5,000 cash to buy a unit from them.
I pay RM 0 but receive RM5,000 at the end. :)

Tuesday, October 28, 2014

Exclusively for Malaysian - Amanah Saham Nasional Berhad (ASNB) (Revision 05)

Revision 05 (last paragraph): updated on 6 November, 2017
Revision 04: updated on 12 November, 2016
Revision 03: updated on January 4, 2016
Revision 02: updated on December 5, 2014

If you are Malaysian, you should take this privilege to invest in ASNB products. They are unit trust funds for Malaysian. Some are dedicated only for Bumiputera and some are for all Malaysian. I have highlighted below that are opened for all Malaysian. The fund's objective is clear. It is to provide an alternative savings vehicle for all Malaysian. It aims to generate long term, consistent and competivive returns for all the investors.

Do you ever imagine a return of 101705 % ? Yes, turning a capital of RM 37,000 into RM 434,038 ? That's right. That's the powerfulness of ASNB unit trust products. They yield super duper good yields that you will ever imagine or dream of. The problem is, it is hard to get extra units or even new units.

ASNB wide range of products (circled are for all Malaysian)

Just look at their FAT dividend yields !

AWS 2020 unit fund
Total of 899,952 holders as of August 31st, 2013
But 70% of them hold less than 5,000 units, there are 3,515 people (the lucky 0.4% group) holding 500,001 units and above!
I belong to the 17% group.

These the top 20 stocks that AWS 2020 invested, that's how they make AWS 2020 flies up high!

Above information are from annual report dated 31 August, 2013. I shall have the updated version in year 2014 at my hometown.

My parents bought the AWS 2020 for me during the new launch in year 1997.
I almost dumped all my red packet monies into this fund.

We initially placed RM 12,000 in year 1997.
We managed to place another RM 2,000 in year 1998 and RM 23,000 in year 2005.

Thereafter, there is no chance to invest more into this AWS 2020. I wish I could dump as much monies as possible into this great fund.

Just take a look at their super great dividend yields that was even top at 10.10% ! The lowest yield ever was 6.30% in year 2009 during the economic crisis and I took that lowest yield of 6.30% to calculate the rest of the years until I reach age 63.

Guess what, a capital investment of RM 37,000 will give you a 101,705% returns which is a dividend of RM 413,310 and you get back a grand total of RM 434,038 while I am at age 63. Take note this numbers are based on the rate of 6.30% yields only. I believe the rate will be much BETTER throughout the years.

So, it is not too late to help your children or you yourself (only Malaysian) to buy ASNB products. Do invest early for them and they will really thank you while they grow up.

These returns are amazingly good. Too good to be true. This is super low risk and high return investment products and best of all, it is exclusively for Malaysian. If you don't take this privilege, it is your loss.

Updated on December 5, 2014

Based on the annual report on August 31, 2014, there are many people able to get more units in this fund.

There is an increase of 224 people , 6.4% increase, owning 500,001 units and above.

There is also an increase of 2,203 people, 4.4% increase, owning 50,001 to 500,000 units.

There are total 8,618 people exited the fund.

There is an increase of 853,308,284 units issued for the past 12 months (September 2013 to August 2014). It is close to a RM 1 billion new units flowing into the fund.

It is widely known that it is extremely hard to get an extra unit in this AWS fund but how can there be so many people able to obtain large quantities instead? How they manage to get it ?

When are these 850 million new units open to the public application ? Or these new units are purely for insider people ?

There are also some movements of the top 20 stocks hold by this fund.

Updated on January 4, 2016
On August 27, 2015, Amanah Saham Nasional had announced a 6.40 cents dividend for a unit of the Amanah Saham Wawasan 2020 (ASW 2020) for the financial year ending August 31, 2015.
6.40% dividend is very close to the worst rate of 6.30% dividend declared in year 2009. Take note, the illustration table above is using the worst rate of 6.30% . Anything above 6.30%, it is a good sign. :)

Based on the annual report on August 31, 2015, 7,912 people were withdrawn from this fund, they are 10,000 units holders and below.
In fact, numbers of holding 10,001 to 50,000 had increased 2,854 people.
There is an increased of 2,619 people who hold 50,001 to 500,000.
Surprisingly, there is also an increased of 225 people who hold 500,001 and above.
How they get more units from the open market?
There is an increase of 401,667,000 units issued for the past 12 months (September 2014 to August 2015). It has now 17.08 billion units.
There are not much movement of the top 20 holdings.
SapuraKencana Petroleum Berhad was at number 20 in year 2014 and now it was out from the top 20 holdings, probably, it is also due to the weak oil and gas environment.
It is good to know there is a new comer in the top 20 holdings, it is IJM Corporation Berhad which now stands at Top 10 with 2.25% stakes at AWS 2020 fund.
Updated on November 12, 2016
On August 26. 2016, Amanah Saham National had declared 6.30 cents dividend payment for ASW 2020 for the financial year ending August 2016.
6.30% dividend is so far the worst rate declared, the same rate as year 2009.
Based on the annual report on August 31, 2016, there are 5,277 people withdrawn from this great fund, mainly the 50,000 units holders and below.
There is an increased of 1,383 people who hold 50,001 to 500,000 shares.
There is also an increased of 40 people who hold more than 500,000 shares.

UMW Holdings Berhad was at position 19 in year 2015 and now it was out from the top 20 holdings.
It now has new comer, IHH Healthcare Berhad which stands at position 13 with 2.05% stakes at AWS 2020 fund.
Updated on November 6, 2017
Based on the annual report on August 31, 2017, there are 4,187 people withdrawn from this fund, mainly the 50,000 units holders and below.
There is an increased of 5,921 people who hold 50,001 to 500,000 shares. So many people manage to get extra units!
There is also an increased of 243 people who hold more than 500,000 shares.
It is shocking to see Public Bank Berhad (position 2) is out from TOP 20 list this year.
UMW Holdings Berhad back to position 20 and Gamuda Berhad is out from the TOP 20 list this year too.
It now has new comer, SP Setia Berhad which stands at position 18 with 1.31% stakes at AWS 2020 fund.

In year 2017, Amanah Saham National had declared 6.00 cents dividend payment for ASW 2020 for the financial year ending August 2017.
6.00% dividend is so far the worst rate declared ever. :( That's bad.


Monday, October 13, 2014

Is it really worth to go into Johor just for the car petrol? (Revision 03)

Revision 03 (last paragraph): updated on March 1, 2016
Revision 02: updated on October 14, 2014

Do you hear your friends or colleagues always go into Johor for the cheaper car petrol ? How much they really save? I know some crazy folks just enter Johor, pump the car petrol to full tank (maybe shaking the car boot) and U-turn back to Singapore, is it really worth it?


Don't waste your valuable time and energy.

Singapore cars can only pump Fuel 97 in Malaysia. The current price now is RM 2.75. It will become RM 2.915 if government imposes 6% GST on Fuel 97. Let's see.

There are still many people do not know this biggest promotion in Singapore. The promotion had been in the market for years ever since I got my car in Singapore.

The total discount is always 20.1%.
Only recently, with the new SPC & U card, your total discount now is 21.98%.

NO ONE is paying the usual fuel price in Singapore.

 There are some key remarks you should take note:

(1) Let's assume you can pump 40 lit. full tank.
(2) Before entering Malaysia from Singapore, the rule requires you to have at least 3/4 tank of fuel. Meaning to say you only have 10 lit. free space.
(3) Okay, plus minus, you make a day trip to Johor, say you spend another 5 lit. That's a total 15 lit. of free space, how much do you really save? Do you ever calculate ? 35% is the exact percentage right now, BUT...

For 15 lit. car petrol, you only save S$8.90. Does it worth it? How much is the toll charges in Singapore custom ? How much is the toll charges in Malaysia custom ? How much wasted fuel for the distance you have traveled from Singapore to Johor and from Johor back to Singapore just to pump the car petrol ?

Do you calculate the jam in the traffic? Your time? You think you really save S$8.90 after deduting all the above?

Maybe S$0.90 for all the hassles.

Of course, now you will hear another set of voices saying, we go into Johor for bunlde activities. We makan lunch, makan dinner, foot massage, cinema movie, etc.

Well, that does not really help you to save more, maybe you increase your expenses just because you think such services are cheap and you want to go ALL for it and actually you don't even need it. :)

P/S: I know the calculation above is "unfair" between the Singapore Fuel 95 and Malaysia Fuel 97. Well, that's what majority of the Singaporean do.

Updated on October 14, 2014
One blog reader is quick to point out that 15 lit. of car petrol can't even save you S$0.90 if you include the total toll charges! He is absolutely right !

Causeway total toll charges now for round trips with car is S$12.80.
Tuas second link total toll charges for round trips with car is S$12.40.

15 lit. car petrol only save S$8.90 !

The breakeven cost is 21 lit. car petrol which manage to save S$12.45 and it will be fully wiped off by the toll charges for round trips!

If 6% GST is imposed to fuel 97, the breakeven cost is 24 lit. car petrol which saves S$12.65 only.

And yet that does not include the extra journey travelled just to pump the car petrol and the crazy traffic jam at the custom!

Updated on March 1, 2016

Singapore government is reviewing to remove the "3/4 tank filled rule". Are they serious? Johor-Singapore customs will be jam packed even during the non-peak hours if such rule is removed. I doubt they will remove it.

The price of Ron 97 is now RM 1.95. Such price was seen in year 2008. I have the information of the car petrol price exactly on March 2 , 2015 versus March 1, 2016. Let's see what are the differences.

The toll charges remains the same as SGD 12.40.

So, instead of breakeven the toll charges at 17 lit. of car petrol pumped, it is now 16 lit.

Even if Singapore government removes the "3/4 rule", the most you can save is S$19.77 per trip. Not to mention the "additional distance" you travel all the way there and your valuable time.

Is it still worth it ? Well, if you bundle up ALL the activities, why not?

It is simple for me, entering Johor is FREE and with some gain (S$7 ++ gain still after minus the Tuas toll charges) simply because I always pump around 25 lit. of petrol. Will I go there just for the petrol only? No.

Receipt was dated February 2016

Wednesday, October 8, 2014

CIMB HomeFlexi (Malaysia Housing Loan)

I get to know this CIMB HomeFlexi housing loan recently.

This is the general features of HomeFlexi published at CIMB website.

Just a few notes:
(1) There is a monthly service charge of RM 10 only. You can easily earn this back with the interest you have saved.

(2) You can park your money at the current account (just like saving account, NOT housing loan account) and save the interest. You can withdraw the money anytime without any service fees. Of course, your loan interest amount will be added back.

(3) Exactly how much do you save as compare to put the money in the fix deposit? Actually, it is just a mere saving of 1+%. I have one example below.

There are three scenarios here:
(1) You place RM 50,000 into the current account
(2) You place RM 100,000 into the current account
(2) You place RM 150,000 into the current account

Assuming, your property is completed and the full monthly installment kicks in.

When you make the monthly instalment of RM 3,461.25, RM 2,730.08 will go into the interest portion (that's the first month).

Hence, if you have placed RM 50,000 into the current account, the interest for that month actually reduced to RM 2,544.66. You are still paying RM 3,461.25, but your monthly principal actually increased (because you reduce the interest) , so you are actually paying RM 916.59 for monthly principal instead of RM 731.28 (this figure is for the first month as an example).

Same goes for RM 100,000, your monthly interest reduced from RM 2,730.08 to RM 2,359.24.

As for RM 150,000, your monthly interest reduced from RM 2,730.08 to RM 2173.83.

Assume you place this RM 50,000 , RM100,000 and RM150,000 respectively into Malaysia fix deposit for 24 months and the interest rate say 3.3%, you will find out, you rather put the money back to the current account.

You can actually save additional 1.1% P.A. Hence, you can actually get 4.4% interest instead of 3.3% from the fix deposit. The saving is nothing fantastic but you have the good saving with great flexibility.

As for the new launch residential purchase, your first 3 years is progressive payment. Hence, if you put an amount of RM 150,000 , your first year housing loan might be 0% interest. That is pretty cool eh ?