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.
2 bedrooms with balcony windmill genting highlands
Iklan

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

Save in ASB or Settle Property Loan

This week I use my EPF to have monthly withdrawal to reduce my loan principal.

I have a question whether to use the extra fund to save in ASB or reduce my loan principal.

So which one will give me higher return?

To do the analysis I need to know what will be:

1) Effective return of saving in ASB vs reduce principal loan.
2) How long it takes to settle the loan

What I meant by Effective Return?

For me it is the amount of dividend / saving from interest that I get by year end.

Example: ASB dividend rate is 7.42% and I make a monthly saving of RM1,074 per month.

So usually, we calculate the dividend by end year we get is:

RM1,074 x 7.42% x 12 months = RM956.

But ASB will calculate based on monthly minimum amount. Based on that calculation the dividend we will get is RM519.

So effective return is RM519 / (RM1,074 x 12) = 4.03%

Background

1) Property Loan

  • Outstanding amount as of 1st August 2018: RM48,152
  • Monthly installment: RM630.96
  • Interest rate: 4% fixed

2) ASB Dividend Calculations

  • I take only last 3 years ASB dividends from 2015 to 2017.
  • So average dividend within those 3 years: 7.42%

Analysis Results

Results

invest in asb vs reduce housing loan principal
invest in asb vs reduce housing loan principal

Comparing the Results

  • In 1 year, ASB gives better return vs settle off my loan principal.
  • In 1 year, ASB effective return is 1.42% extra vs settle loan principal
  • 2nd year,  settle loan principal effective return is 13.34% extra vs ASB.
  • By 3rd year, settle loan principal effective return is 14.30% extra vs ASB and it gives available fund of RM25,560 as the loan is fully settled off.

Why settle off property loan gives higher effective return in the long run?

  • Interest amount over monthly installment getting less and less when the principal is reduced. This helps accelerate the principal reduction.
  • Hence, better effective return from the interest saving.

Conclusion

At first thought without deep analysis, I thought I want to put the money in ASB as ASB gives 7.42% dividend vs loan interest rate of 4%.

However, based on the analysis, I will pay off my loan principal instead of putting the money in. ASB.

Furthermore, by 33rd month, I have fund from monthly EPF withdrawal of RM1,074 + loan monthly installment of RM630 which I don’t need to pay anymore.

So total extra cash flow is RM1,704.

 

Reference:

Excel analysis file Invest in ASB vs Settle of property loan

Genting Rooms Occupancy Rate Estimation

Background

I invested one unit in a condominium at Genting which is Windmills Upon Hill.

I would like to estimate what would be the occupancy rate in Genting knowing that there are lots of hotels room available and few condominiums under construction such as Vista Residences, Midhills and Geo 38.

To estimate I need 2 major information
1) Number of visitors who going to stay at Genting
2) Number of rooms available either from hotels and short rental rooms like AirBnb or homestay.

From those 2 information, I calculated the occupancy rate for all rooms available at Genting.

1) Number of visitors who going to stay at Genting

To estimate number of staying visitors, few assumptions need to be made

1.1) Percentage of visitors who going to stay
1.2) How many visitors will stay together. Example family of 4 will stay in one room. They won’t stay in 4 rooms.
1.3) How many nights they going to stay

Then from there, I calculated the numbers of rooms required in a year.

To ensure that I have a baseline for the expected number of staying visitors, I took Year 2013 figure as I assume it is the actual visitors for the year but I use number of rooms as if all condominiums are all available to be rented out. While Year 2017, 2018, 2019 and Year 2020 are based on forecast number of visitors.

 

I calculated numbers of staying visitors based on the forecast figures to estimate whether the forecast staying figures can increase or not occupancy rate.

2) Number of Rooms Available

For number of rooms available I made few assumptions
2.1) All rooms or units will have capacity as same number of visitors stay together (refer to 1.2)
2.2) Only 60% of condominium units available will be rented out
2.3) Some missing number of rooms considered negligible.

total number of rooms at genting
total number of rooms at genting

So total of numbers of rooms available for short term renting are: 11,419.

Occupancy Rate

I calculated occupancy rate by dividing number of staying visitors by total rooms available. I distributed it equally through out the year. I don’t consider the peak and non peak seasons as it is hard to come out the estimation.

Based on 40% visitors will stay on average one night and with 3 visitors staying together, the occupancy rate produced as below.

occupancy rooms rate at genting
occupancy rooms rate at genting

If based on actual figures in Year 2013 and assuming all condominiums are all ready the occupancy rate is 61%.

If Genting able to attract 30M visitors by 2020, the occupancy rate would reach 96%.

Of course this assume that all units/rooms are equal in features. We all know that most visitors prefer going to First World hotel, hence high occupancy of the said hotel.

Control Figures

TODO section, to check occupany rate from AirBnB of Midhills and other completed condo

Reference:

Excel file to do the estimation

IKEA Just Made My Day!

Before we purchased anything big, we will do our market survey and compare in term of;

  1. pricing,
  2. benefits,
  3. features of products
  4. the company and its representatives (hospitality and response time)

so that is, we decided to take up IKEA kitchen cabinet after touring few other companies selling its designs and cabinets.

From our rental property we choose IKEA cabinet and same to our own stay. My experience with IKEA so great that i am mostly satisfied with the ‘pick and choose’ concept. While the kitchen designer can easily design on spot of your desired cabinet.

Most important part is they offered me 25 years warranty. I bet if you purchased with other company within less than a 2 years sure got defect (my two other friends real experienced) and the saddest part is .. you are with you own trouble and the sales job are done. But not IKEA!

I installed my cabinet in year 2013

But somehow there was really small defect that made me come to them for a minor replacement (year 2016). I was informed that the model no more in selling list and the sizes are all different. After few times meet up the customer service representatives they really made my day. I managed to changed whole set without any hassle …cost and i later decide to extend my cabinet.

See from good service lead to another new sales and off course i did and will recommend to my friends. Adios!

changing process

walllaaa….. new cabinet!