Malaysia Household B40 M40 T20 Target Tenants

My household studies objectives:

  1. Potential market size of targeted tenants.
  2. Estimate monthly rental value of targeted tenants.
  3. Derive properties price suitable for the targeted tenants.

To achieve the studies objectives, I need to have facts on

  1. Number of households in Malaysia and specifically for Selangor as I invests mostly in Selangor.
  2. Estimated income level of each household

Malaysia Income Level

Malaysia households are categorized into three major income groups.

  1. B40 – or bottom 40% with median income of RM3,000 (Y2016)
  2. M40 – or middle 40% with median income of RM6,275 (Y2016)
  3. T20 – or top 20%  with median income of RM13,148 (Y2016)
malaysia household b40 m40 t20 household income
malaysia household b40 m40 t20 household income

Number of Household In Malaysia

In 2010, number of household is around 6.35 millions. Lets say I estimate by 2018  the number of household is around 10 millions.

In 2016, 19.9% Malaysian population resides in Selangor. Hence number of households in Selangor is 10 millions x 19.9% = 1.99 millions.

malaysia number of household
malaysia number of household
malaysia population distribution
malaysia population distribution

 

Rental Affordability for Each Household Group & Targeted Property Price

Assumptions:

  1. All household group only willing to spend one third of their income for rental.
  2. Property price is estimated based on monthly loan equal to monthly rental affordability and calculated based on 4.5% interest, for 30 years tenure and with 10% deposit.
NoHousehold GroupMedian Income (RM)Malaysia Total NumberSelangor Total NumberRental Affordabilty (RM)Property Price (RM)
1B403,0004,000,000800,0001,000220,000
2M406,2754,000,000800,0002,100460,000
3T2013,1482,000,000200,0004,400900,000

Conclusions:

  1. I target mostly to B40 household group. Hence, I need to purchase properties within RM220,000 range.
  2. I don’t target M40 or T20 as they can afford to buy they own house, hence vacancy rate will be higher than targeting B40.

References:

All statistics are from Department of Statistics, Malaysia.

Chitika Revenue

I installed Chitika ads at my website www.ikatankasih.my. I didn’t realize I tried it from April 2017 till June 2018. Unfortunately it doesn’t bring any income during that period.

It might be due to lack of hits from my websites. On average my website clicks from Google Search is around 380.

I decided to uninstall it and try with Nuffnang.

 

chitika income
chitika income

 

google webmaster clicks
google webmaster clicks

Windmill Upon Hills Genting Progress As of August 2019

Windmill Upon Hills is a freehold condominium located at Genting Highland, Pahang. Specifically it is located at Genting Permai near Petron and Starbucks.

Below are pictures that I compiled from February 2017 till August 2019.

Updated till August 2019.

Target completion is October 2019.

(sources from Windmill Upon Hills Facebook & others)

Please join owner Windmill Upon Hills Telegram Group Chat

  1. Install Telegram
  2. Click this link from your mobile phone: t.me/windmilluponhills

 

windmill upon hills genting residents lobby
windmill upon hills genting residents lobby @ august 2019

 

windmill upon hill genting jacuzzi
windmill upon hill genting jacuzzi @ august 2019
windmill upon hill level 9 facilities
windmill upon hill level 9 facilities @ august 2019
windmill upon hill level 9 facilities
windmill upon hill level 9 facilities @ august 2019
windmill upon hill level 9 facilities
windmill upon hill level 9 facilities @ august 2019
windmill upon hill level 9 facilities
windmill upon hill level 9 facilities @ august 2019
windmill upon hill level 9 facilities
windmill upon hill level 9 facilities @ august 2019

 

windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills progress 21 june 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills wb 27 unit progress - 25 april 2019
windmill upon hills wb 27 unit progress – 25 april 2019
windmill upon hills genting common area - 25 april 2019
windmill upon hills genting common area – 25 april 2019
windmill upon hills genting common area - 25 april 2019
windmill upon hills genting common area – 25 april 2019
windmill upon hills genting common area - 25 april 2019
windmill upon hills genting common area – 25 april 2019
windmill upon hills genting common area - 25 april 2019
windmill upon hills genting common area – 25 april 2019
windmill upon hills genting common area - 25 april 2019
windmill upon hills genting common area – 25 april 2019
windmill upon hill 16 april 2019
windmill upon hill 16 april 2019
windmill upon hill 16 april 2019
windmill upon hill 16 april 2019
windmill upon hill 16 april 2019
windmill upon hill 16 april 2019
windmill upon hill 16 april 2019
windmill upon hill 16 april 2019
windmill upon hills progress 13 april 2019
windmill upon hills progress 13 april 2019
windmill upon hills genting progress 22 march 2019
windmill upon hills genting progress 22 march 2019
windmill upon hills genting progress 22 march 2019
windmill upon hills genting progress 22 march 2019
windmill upon hills genting progress 22 march 2019
windmill upon hills genting progress 22 march 2019
windmill upon hills genting progress 22 march 2019
windmill upon hills genting progress 22 march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills genting highland march 2019
windmill upon hills progress 17 february 2019 p2
windmill upon hills progress 17 february 2019

 

windmill upon hills progress 17 february 2019 p2
windmill upon hills progress 17 february 2019
windmill upon hills progress 24 january 2019
windmill upon hills progress 24 january 2019

 

windmill upon hills progress 24 january 2019 - 2
windmill upon hills progress 24 january 2019 – 2
windmill upon hills progress 24 january 2019
windmill upon hills progress 24 january 2019
windmill upon hill progress december 2018
windmill upon hill progress 22nd December 2018

 

windmill progress november 2018
windmill upon hills progress 14th November 2018

 

windmill progress november 2018 roof top
windmill upon hills progress 14th November 2018 roof top

 

windmill upon hills progress 27 oct 2018
windmill upon hills progress 27 oct 2018

 

windmill upon hills genting permai progress september 2018
windmill upon hills genting permai progress september 2018

 

windmill upon hills genting permai progress september 2018
windmill upon hills genting permai progress september 2018

 

windmill upon hills genting permai progress september 2018
windmill upon hills genting permai progress september 2018

 

windmill upon hill genting progress august 2018
windmill upon hill genting progress august 2018

 

windmill upon hill genting progress july 2018
windmill upon hill genting progress july 2018

 

windmill upon hill genting progress april 2018
windmill upon hill genting progress april 2018

 

windmill upon hill genting progress february 2018
windmill upon hill genting progress february 2018

 

windmill upon hill genting progress december 2017
windmill upon hill genting progress december 2017

 

windmill upon hill genting progress october 2017
windmill upon hill genting progress october 2017

 

windmill upon hill genting progress august 2017
windmill upon hill genting progress august 2017

 

windmill upon hill genting progress july 2017
windmill upon hill genting progress july 2017

Steps for Maid Permit Renewal

This year our maid going to enter her 9th years working as a maid for us. Having her really helps our daily life. Our main concern are mainly to have someone trusted to take care of our children while we working.

We came to know that in 2018 government released new rules ~ which every odd year maid permit renewal need to do health check through Fomema. Then can proceed with permit renewal. We just knew of that rules like less than 2 months from expiry … agak panic and kelam kabut dibuatnya especially me… the wife.

fomema rules

I read lots of negative comments in fomema fb for period of Jan – Mar of year 2018. Complaints on the systems, response time and pending password. I decided to asked within my kids – parents Whatsapp group for any of other mommies experience to share. To my surprise feedback is good and some of them just knew of that rules – (credit to me for the announcements)

Step 1

  • Registered online for Fomema at https://portal.fomema.my/
  • Make sure passport expiry must exceed than next renewal permit expiry date (if not you need to renew passport first before can proceed with immigration)
  • Validity for Fomema results is within 30 days for you to proceed with immigration within the validity period.

Step 2

  • after registered i immediately received email for registration ID to proceed with registration.
  • We need to put details of maid and employer as per passport details.
  • Choose panel clinic neared to you.
  • Made payment online via FPX totaling of RM191.00 to Fomema Sdn Bhd.
  • Print check up slip (consists of slip for clinics, lab, xray and employer)

Step 3

  • Bring maid to panel clinics registered together with passport and fomema slip.
  • clinic staff informed results will come out within 3-10 working days.
  • my case Day 5 ~ fomema results released – Suitable, please proceed to immigration.

Step 4

  1. register myeg  at https://www.myeg.com.my/
  2. Been using their services for past years especially for road tax and maid permit renewal.
  3. make online payment amounting RM610 (inclusive of pass charge, visa charge, levy charge and process charge).
  4. as informed by MYEG staffs – their process will take around 2 weeks and i can choose:
  • collect at MYEG delivery services (‘named’ employer or representative with letter authorization and passport) – cause they need employer thumb print upon rendering the permit sticker.
  • delivery guy to send directly to ‘named’ employer door steps.

That’s all. Good luck guys .. mommies… bibik.

Tenant Screening Criteria

I have been  a landlord since 2008. It has been 10 years now. Based on my own experience, there are few type of tenants.

Tenants can break or make your life easy. Therefore, it is crucial to screen tenant carefully.

So I came out with my own guidelines to screen my tenants. I made mistakes at the beginning because I want so bad to have my unit occupied and money flowing in.

Based on my bad experience, I would rather leave my unit vacant till I ll get the good one.

Below are my guidelines based on my experience. Other landlords might have different views. I don’t suggest anyone to follow blindly my guidelines.

Few criteria to be considered:

  1. Household Type
  2. Attitude
  3. Appearance
  4. Financial Strength

1. Household Type

Household Type \
Factors
Family with Young KidsFamily No KidsSingle AloneTogether with Friends (Men)
Period of stay2 - 4 years2 - 4 years3 - 4 years1 - 2 years
Rental incomeSustainableSustainableSustainableAsk for discount if one of members leave and no replacement
Pay on timeYesYesYesNo if suddenly one of members leaves
House conditionsGraffiti on wallCleanCleanDirty
ComplaintsSometimesSometimesSometimesSometimes
Utilities are paid?YesYesYesNeed to monitor and inform
Person in chargeRemain the sameRemain the sameRemain the sameKeep changing
RecommendedYesYesYesNo

2. Attitude

Ensure tenants are soft spoken, not demanding or not complaining so much on the house. Example saying the house has so much dust (even in actual fact no). If not, if they become your tenants, they will make your life miserable by complaining a lot.

3. Appearance

Appearance is important to check whether the tenants will take care of your unit or no.
You can check whether their hair is well trimmed, taken care off. Their shirts are ironed. Besides, if can meet them near their car would be good. You can see whether their car is a mess or not.

4. Financial Strength

You can check this one easily by asking for deposit. If they negotiate please raise the red flag.

Please also try to dig where do they work to check sustainability of their income.

SABAH Getaway – Beautiful Nature

If you are Malaysian and never been to Sabah …. rugi wooo… you should buy ticket now.

A lot of places for you to visit there  especially pada sesiapa yang suka pada nature (alam semulajadi) – here is the right place for you to go. I’ve been to KK if not mistaken dah 6 kali.

 

so this one in 2018, i share with you a bit of photos of places that we went;

MARI-MARI CULTURAL VILLAGE – Inanam

We went there just to do sight seeing of the waterfall / river and tak bawa any extra clothes.

Bila dah sampai menyesal la pulak sebab kids nak mandi, – since they all consider not yet teenage so mandi dengan apa pakaian yang ada. We lepak for less than an hour jadilah. So kalau nak datang sini kena plan betul-betul. Bawah ni ada map so u can see what they have there;

Map Mari-Mari Cultural Village
river

 

http://marimariculturalvillage.com

NEXUS RESORT &  HOTEL KARAMBUNAI

Here the second time we stay at Karambunai, first time in year 2016 we stayed at Rasa Ria Resort & Spa (http://www.shangri-la.com/kotakinabalu/rasariaresort/) nice place to stay also (next time will share on this). Back to Nexus ya;

Road to Hotel entrance along the Golf course area
also there habitat for families of big biawak’

 

http://www.nexusresort.com/the-hotel/about-us

Invest one terrace house RM750k or three apartments of RM250k each

I want to analyze just in case if I could buy RM750k worth of property, how should I invest. Lets say I want to invest in:

1) One terrace house worth RM750k
2) 3 units Medium cost apartment worth RM250k each

Assumptions:

1) The investment is for rental play
2) No problem on Loan to value (LTV) of 70% on third property as if I could use my wife name.
3) I don’t include MRTA cost because can’t find MRTA calculator online
4) I don’t include property valuation report fee in the calculation

What Factors I need to Consider?

1) Profit – of course
2) Risks – which investment give me less risk?

Scenarios to Do the Calculations

1) Terrace house is located at Bukit Jelutong
2) Apartments are located at Kota Damansara

Terrace House at Bukit Jelutong

From mudah.my, average selling price for a standard terrace house is more or less around RM750k Assume, after negotiation I manage to purchased the property at RM750k.

Again from mudah.my, average asking rental is RM2,200 per month.

terrace bukit jelutong rm750k
terrace bukit jelutong rm750k
rental bukit jelutong terrace
rental bukit jelutong terrace

Apartments at Kota Damansara

From mudah.my average selling price is around RM270k. Assume, after negotiation with the owners, I purchased all three properties at RM250k each.

Average asking rental price is RM1,200 based on listing at mudah.my

kota damansara apartment
kota damansara apartment
kota damansara apartment rental
kota damansara apartment rental

The Calculations

calculation rm750k or rm250k x 3
calculation rm750k or rm250k x 3

Conclusions:

1) Profit – Apartments x 3 produce less loss vs one terrace house
2) Risks – put all your egg in one basket is riskier. If the terrace house is vacant, loss of income is 100%, while if only one apartment is vacant out of three, at least still can get 2/3 of rental income.

Recommendation:

To invest in RM250k apartments (3 units of them).

Of course all these analysis is based on numbers only not considering other factors, like JMB of the apartment. Sometime apartment degrade quickly if JMB doesn’t manage well the apartment.

Gugusan Mawar Kota Damansara Kitchen Table Top Renovation

This year March 2018, I did renovation on my rental Gugusan Mawar apartment at Kota Damansara. I installed new kitchen table top.

Why I did the Renovation?

1. I want to give my tenants comfort when they are cooking.
2. For future appreciation of rental and property value.

Original Kitchen

gugusan mawar original kitchen
gugusan mawar original kitchen

Work In Progress of the Kitchen Table Top

gugusan mawar kitchen work in progress
gugusan mawar kitchen work in progress
gugusan mawar kitchen cement
gugusan mawar kitchen cement
gugusan mawar kitchen table top tiles
gugusan mawar kitchen table top tiles

Completed Kitchen Table Top

gugusan mawar completed kitchen table top
gugusan mawar completed kitchen table top

My 9 Years Old Daughter Helping Me

I want her to learn from young age to know the value of work and money.

gugusan mawar daughter helping
gugusan mawar daugther helping