Leaving a legacy by buying a house first before a luxury car …


 

DURING big festive celebrations such as Hari Raya Aidilfitri, Deepavali and the recently celebrated Chinese New Year, it is common to see families with a few generations gathered together.

Our grandparents, parents, uncles and aunties would talk about the legacies left by our ancestors, and the stories often attract a lot of attention whether from the young or old.

Perhaps, the topic of leaving a legacy is something worth sharing as we embark on a brand new year.

For years, I have been touched by the catchy tagline of a renowned Swiss watch advertisement, “You never actually own a (the watch brand), you merely look after it for the next generation”.

While most of us can relate to the thought, not all of us can indulge in such luxurious watches or be interested in buying one. However, at some point in time, we may be looking at buying a property to pass down to our younger generations.

Whenever the topic of leaving a legacy is brought up, I would recall the lesson that I learnt from my late father. My father embarked on a long journey from China to Malaysia at the age of 16. With years of hard work and frugality at his peak, he managed to own a bus company, the Kuala Selangor Omnibus Co.

Other than his bus transport business, he only invested in his children’s education and real estate. He financed seven of his eight sons to have an overseas university education, and when he passed away, he also left four small plots of land in Klang and a company which had 34 buses.

As I look back now, what my late father invested in unintentionally was very beneficial to me when I came back from my studies as an architect. With the land he handed down and the knowledge he equipped me with, I intuitionally got myself involved in small real estate development, and later founded my property development company, Sunrise, in 1968.

Many people have thought of leaving a legacy. The crucial questions often asked are, when should we start planning for it, and how should we go about it?

For financial planning and investment, I always believe that the earlier we start, the better off we are. The same goes to leaving a legacy.

If you plan to buy a property, it is advisable to start earlier as it is more affordable to buy it now as compared to 10 or 20 years down the line especially with rising costs and inflation in mind. You can start with what you can afford first and focus on long-term investment.

It is proven that property prices appreciate over a period of time, especially when we plan to hand over assets to the next generation that easily involves a 20- to 30-year timeline.

As a developing nation which enjoys high growth rate, Malaysia’s property values will also appreciate in tandem with the economic growth in the long run.

Nowadays, we often hear youngsters comment on the challenges of owning a house due to the rising cost of living. I believe that besides starting with what you can afford, it is also important to plan your financial position wisely and to differentiate between investment and spending.

Investing in properties, commodities, shares, etc. is also a form of savings which can help to grow your wealth and to leave a legacy. On the other hand, money spent on luxury items may depreciate over time from the day you buy them. If we can prioritise investment over expenditure, it is easier and faster to achieve our financial goals.

So, if you haven’t already started to plan, do consider leaving a legacy by buying a house first before a luxury car, branded bags or expensive gadgets, as the latter are considered ‘luxury’, not necessity.

Even if you may not have a spouse or children at this point in time, it’s better to start now than later, as our financial commitments tend to grow bigger as we progress into the next stages of our lives.

Most of us hope our lives matter in some way that can make an impact on our loved ones. The idea of leaving a legacy can take many forms, such as equipping the younger generations with knowledge and values, or leaving them fond memories.

Those are all important to work on and they leave a footprint to those lives you touch. If you are also planning to hand over physical gifts, always remember to start earlier with what you can afford, and focus on long term investment.

By Food for Thought Alan Tong

Datuk Alan Tong has over 50 years of experience in property development. He was the world president of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

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The Zika virus spreading to Malaysia and Singapore


Zika virus was first identified in Uganda in 1947 in rhesus monkeys by researchers monitoring yellow fever. The virus got its name from the Zika Forest in Uganda where it was first discovered. It is classified as a flavivirus, which puts it in the same family as yellow fever, West Nile, Japanese encephalitis viruses and dengue. According to the Brazilian Ministry of Health, Brazil saw 20 times more microcephaly cases in 2015 than usual, following the outbreak of Zika in the country that year.

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The Zika virus, explained 

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First Zika patient getting better

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Video: http://www.thestar.com.my/news/nation/2016/09/02/first-zika-patient-getting-better-doc-womans-last-blood-test-turned-out-negative-but-we-will-retest/

The first Zika patient in the country is recuperating well at the Sungai Buloh Hospital.

The hospital’s infectious disease head Datuk Dr Christopher Lee said the symptoms that the 58-year-old woman suffered from, including rashes, had also cleared up.

“We will be doing a blood test on her today and if it turns out to be negative, we can let her go home in a few days’ time,” he said yesterday.

He said her mild rashes cleared up in two or three days and the last blood test was negative but the hospital decided to keep her for a little longer just to ensure there would be no transmission to other people.

The blood test today was to reconfirm that she was free of Zika, he said.

The woman and her husband had visited their daughter in Singapore on Aug 19 and returned on Aug 21.

A week later, the woman developed rashes and fever, and sought medical attention at a private clinic in Klang.

She was referred to the Sungai Buloh Hospital, and on Aug 31, her urine sample tested positive for the Zika virus.

Her daughter, who works and lives in Paya Lebar, Singapore, has also been infected.

The woman’s husband and other family members who lived in the same house in Ambang Botanic have yet to show any symptoms of the infection.

Dr Lee said the most common symptoms of Zika were fever, body aches, rashes and red eyes which would normally clear up within a few days.

He said that if a woman was infected by Zika, the vaginal fluids might contain the virus for up to two months after she had recovered.

“So, if she has sex with a man within the two months, the man can be infected with Zika.

“The virus can also stay in a man’s semen for up to six months after he has recovered.”

Infected pregnant women face the risk of delivering a child with microcephaly, while others might suffer from Guillain-Barre syndrome, a neurological condition.

According to the American National Institute of Neurological Disorder’s fact sheet, Guillain-Barre syndrome is a disorder in which the body’s immune system attacks part of the peripheral nervous system.

These symptoms can increase in intensity until certain muscles cannot be used at all and, when severe, the person is almost totally paralysed.

Dr Lee recommended that pregnant women who have travelled to affected countries like Brazil and Singapore go for check-ups at nearby hospitals.

By Loh foon fong, wani muthiah, joseph kaos, tho xin yi, shazni ong, christopher tan, neville spykerman, dina murad, victoria brown, mohd farhaan shah, norbaiti phaharoradzi, nabila ahmad, rebecca rajaendram, edward rajendra The Star/ANN

Take precautions when in Singapore 

 

Personal measure: Bus passenger Naizatul Takiah Ali, 21, spraying mosquito repellent on herself at the Larkin bus terminal in Johor Baru.

It is unrealistic to stop Malaysians from travelling to Singapore, but people must take precautions against mosquito bites, says Health Minister Datuk Seri Dr S. Subramaniam.

There are about 200,000 Malaysians working in Singapore, with some travelling to and fro on a daily basis, so it would be difficult to block people from going to the republic, he said.

“We have to be realistic. The more practical way to prevent the spread of the Zika virus is to take precautions against mosquito bites.

“Apply an adequate amount of mosquito repellent and wear long-sleeved shirts and long pants to avoid being bitten.

“If you can avoid visiting Singapore, then avoid.

“But this is only voluntary and not an instruction from Malaysia. Malaysians visiting the republic should take preventive measures against mosquito bites,” he said at a press conference here yesterday.

He said Malaysians who have visited Singapore and have symptoms of the virus such as fever and rashes should seek immediate attention.

Dr Subramaniam also said vehicles coming into Malaysia from Singapore, especially buses, would be sprayed with insecticide as an additional measure.

“We know this does not prevent the spread of the virus 100%, but is an additional precautionary measure on top of other methods that we have carried out throughout the country,” he added.

The minister also said pregnant women or those planning to have a child should seek advice from their doctors, as there has been a reported link between the Zika virus with microcephaly, which causes deformity in babies.

Those who are infected should abstain from having sex, or use protection, as the virus can be spread through sexual activities.

“The virus can stay in an infected man’s body for six months and for two months inside a woman’s body,” he said.

Singapore battling outbreak of Zika virus

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Foreigners account for half of Singapore cases

SINGAPORE: Half of the Zika cases in Singapore are foreigners who live or work here, and six of them are Malaysians.

According to a report in TODAYonline.com which quoted the Singapore Ministry of Health, the news portal said that out of 115 cases, 57 are foreigners.

The largest group is 23 people from China, followed by 15 from India and 10 from Bangladesh.

Six cases are Malaysians, and one case each from Indonesia, Myanmar and Taiwan.

“All had mild illnesses. Most have recovered while the rest are recovering well,” a ministry spokesperson was quoted as saying.

On Saturday, it was reported that a Malaysian woman is believed to be the first patient infected by locally-transmitted Zika virus in Singapore.

As the 47-year-old had not travelled to Zika-affected areas recently, she was likely to have been infected in the republic. She resides at Block 102, Aljunied Crescent and works in Singapore. — Bernama

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Penang low cost housing gone awry?


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Probe into housing bribery case

MACC investigating Penang rep’s father for allegedly soliciting money

GEORGE TOWN: The father of Sungai Pinang DAP assemblyman Lim Siew Khim is being investigated by the Malaysian Anti-Corruption Commission for allegedly soliciting money from applicants for low-cost and affordable housing.

It is learnt that MACC has begun calling up several people after a video clip purportedly showing Lim’s father, Keat Seong, was posted on social media on Sunday explaining to some people how to “cut queue” in the state’s housing schemes by paying RM260 for the application form and a few thousand ringgit to one “Uncle Lim”.

Penang MACC director Datuk Abd Aziz Aban could not be reached for comment but it is learnt that the commission had begun gathering information yesterday from the so-called victims, those featured in the video and several Gerakan leaders who held a Monday press conference on this.

Penang MCA deputy chairman Tan Teik Cheng said the case may just be the tip of the iceberg.

He said the Penang government should take action over the alleged soliciting of bribes by Lim’s father, a 68-year-old retiree.

“The state government proudly proclaims its ‘ Competent, Accountable and Transparent’ (CAT) policy, hence it should address the case instead of playing up the drama to divert public attention.

“After all, the demand by Penangites for low-cost housing is still high in view of the exorbitant property prices,” he said in a statement yesterday.

State DAP chairman Chow Kon Yeow has also posted on Facebook the photograph of headlines in three Chinese dailies and The Star, which all referred to Lim’s father.

The caption read: “We are politicians and public figures. What we do matters. Unfortunately, what our parents, spouses, in-laws, and even distant cousins do, also matters.”

Penang Gerakan Anti-Corruption and Land spokesman H’ng Khoon Leng said the party would be seeking an audience with the Penang Yang diPertua to ask for the setting up of a Commission of Inquiry into the matter.

State Housing Committee chairman Jagdeep Singh Deo said there was no need to form a commission as it came under the purview of the police.

By  Arnold Loh Tan Sin Chow The Star

Lim clarifies video comment

DAP rep forced to explain alleged bribery video statement

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http://www.thestartv.com/episode/lim-clarifies-video-comment/

GEORGE TOWN: Sungai Pinang DAP assemblyman Lim Siew Khim has been forced to clarify her earlier comments on her father’s alleged corruption case involving affordable housing units after the release of a second video clip on the issue.

“I did receive a call from a youth leader from another party sometime last year but when I confronted my father, he denied any involvement,” she said after opening a Youth Empowerment programme in Sungai Pinang yesterday.

Last Sunday, a video clip purportedly showing Lim’s father, Lim Keat Seong, soliciting bribes to help obtain low-cost housing units in the state as early as June 2015 went viral after being posted on social media.

Siew Khim was then quoted as saying: “All this (in the video) was without my knowledge and I only knew about it on Sunday night.”

Now, a second video clip, which lasted about three minutes, was released yesterday.

This time it shows a screen-grab of a Whatsapp conversation between a mediator and a victim.

“I contacted her and gave her (Siew Khim) one day to reply and find ways for her father to return the money,” the mediator was heard as saying to the victim.

In another conversation, a man, who is said to be Siew Khim’s stepbrother Ong Hock Hin, was heard saying that his sister (Siew Khim) had asked for a meeting to be arranged with the aggrieved parties.

Siew Khim refused to comment on the contents of the second video, urging the person who released it to lodge a police report.

“Why release bits and pieces? They should report it to the police with their evidence,” she said.

Siew Khim also denied asking her stepbrother Ong to arrange for a meeting with any of the victims.

Asked why she only confirmed she had confronted her father when the second video surfaced, she said she could not remember it.

While her father has been remanded for seven days, Siew Khim was grilled for two hours by the Malaysian Anti Corruption Commission (MACC) on Friday.

When contacted, Penang MACC director Datuk Abdul Aziz Aban said he was not aware of the second video but would direct his officers to investigate it.

Siew Khim’s counsel Ram Karpal said it was an offence to withhold information on the case as it was now investigated by the MACC.

“I urge anyone with information on the matter to pass it to MACC,” he said in Air Itam yesterday.

Penang DAP chairman Chow Kon Yeow said the uploading of the two videos showed it was a politically motivated move against Siew Khim, the state government and DAP.

Source: The Star Malaysia 4 Sep 2016By R. SEKARAN rsekaran@thestar.com.my

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Ti: DAP must live up to its own CAT tagline

Penang MCA: Address issue of alleged graft linking rep’s father

icon videoPenang Gerakan wants probe on alleged graft involving low-cost housing

 

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Be an entrepreneur or a politician?


Let your children decide on their employment choice

Most parents in their fifties are looking at retirement options when their children starts looking for employment after their studies. There is this transition moment in our family circle of life where the baton of employment, career or business is being passed to the next generation.

The older generation after 30 years of slogging, looks forward to easier passing of days without the responsibilities and worries whilst the younger generation looks forward with optimism and high hopes of securing a good career ahead.

As an entrepreneur with businesses and investments, my natural instinct is to rope them into the family business, if any, as any typical old generation Chinese businessman will do. But I made up my mind some 7 years ago when my first born started his A Level, that my children will make their own choice whether they will prefer to seek employment elsewhere or participate in the family business. It will be their choice and decision and I will support whole heartedly whatever decisions they will make. 7 years later, I still have the same conviction.

I had this feeling that the business world and environment will be much different with all these globalization and technological advancement and the businesses that I was in will be operating in a much more competitive and disruptive world order. This has proven to be true.

The traditional brick and mortar businesses are under tremendous stress to keep up with new disruptive technologies and new business ideas.

My children will have to learn new skills and insights and they definitely will not be able to learn from my traditional family business unless I had instituted changes to my existing business to join the new business order. But I did not know how.

So it is better that they decide on their choice of employment in whatever industries they choose as long as they are working for a forward looking company who is able to embrace the new technological changes that is changing the business order across the global markets. And if they do decide later after some years of working experience to venture out as an entrepreneur, I will also support them wholeheartedly.

Assuming they are up to it, with the right attitude and skill sets.

Not everyone is capable of being a ‘successful’ entrepreneur. It is easy to start a business, call yourself a founder and entrepreneur but chances of being successful is limited to the capable few. For most cases, you are better off building a good career in a good organization rather than struggling in a small scale business for the rest of your life.

If you planned to be an entrepreneur, just make sure your business potential is scalable to a size that will earned you nett, double what you would be earning in a good job. Or else it will be a waste of time. The thrill of being your own boss wears thin over time when you are not doing well financially.

I have many friends who have done very well in their corporate careers and they seem very happy when we do meet up. They definitely look younger than me, with less stressful lines, a radiant and happy face. Compared to my aged face filled with worried lines and scars of agony suffered through the years. Was it worth it?

With the wisdom of hindsight, I am now able to advise my children on their decision making process on whether they should be a corporate suit or to go on their own. My only guidance to them is whatever choice they make, just ensure their actions are productive and contribute towards the well being of the economy. Don’t be lazy, do good where you can and be as good as you can be. Then start a family. Circle of life starts again.

The only career that I totally discouraged my children from is the job of a politician. Good politicians are hard to find nowadays. Since integrity left the politicians, good virtues and honesty followed. What is left is a shell of a conniving and corrupted politician using whatever means they can to stay in power supposedly representing the people’s interest.

All over the world, the politicians together with religious and racist bigots have caused total mayhem to our daily lives. People are divided by race, religion and skin colour. Nothing makes sense anymore. Throw in lots of money into a politician’s hands and we have absolute corruption across the ranks. Cash is king. Everybody can be bought. And I mean everybody.

What is really sad is the complete breakdown of morality and integrity of the human politician. Where he suffers no shame when he is openly corrupted. When he can sleep well even though he has done many evil things destroying the moral fabric of the society which he swore to protect. I have nothing but despise for these toxic politicians.

The few genuine politicians who stand up their grounds to all are few and far between. Eventually, they too will engulfed by the all pervasive influence of corruption.

To the younger generation joining the working community, my only advice is to pick a job that fits your personality and your skill sets. Make sure you enjoy the job. Get some proper working experience under your belt and you can evaluate your options in a more leisurely way.

You will know when there is a calling for you to become an entrepreneur. You will be unhappy with your job, your bosses irritates you, there is a burning desire that has just lighted up in your belly, a brilliant idea suddenly appeared and you feel that you are now ready to be an entrepreneur. Are you?

From experience, it takes a long time for an entrepreneur to make big fortune. If you do not have the patience, I recommend you a job that makes money faster than an entrepreneur.

Be a politician.

Source: Tan Thiam Hock, On Your Own/Starbizweek

The writer is an entrepreneur who hopes to share his experience and
insights with readers who want to take that giant leap into business but
are not sure if they should.

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Young adults in developed countries rent, we buy houses for good


While young adults all over the world are renting homes, successful Malaysians and Singaporeans prefer to own homes instead of cars, as soon as they get their first pay cheque.Instead of blowing their cash on pricey gadgets, young Malaysians are saving up for their first home.

While most Gen Y shy away from owning property in developed countries and big cities, demand from millennials here is still holding, especially with parents assisting them with the downpayment, Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri F.D. Iskandar said.

(Gen Y, also known as millennials, are commonly referred to those who are born in the early 1980s to 2000s. They are sometimes referred to as the strawberry generation).

Demand from first-time buyers, including the younger generation, remains strong although housing affordability is a challenge, said Bank Negara.

The central bank added that they accounted for 75% of 1.47 million borrowers.

Owning and investing in a house remains a priority for many Malaysians.

This is reflected in the household borrowing trend where the buying of homes continues to be the fastest growing segment of household lending, with annual growth sustained at double-digit levels (11% as at end-March 2016), said Bank Negara in a statement.

Those who cannot afford it themselves, and do not have parents to help, turn to their friends.

In his 30s, Daryl Toh, and two of his college mates own a condominium in Penang; they pooled their resources to purchase the unit five years ago.

“It’s in a premium area and since we couldn’t afford a place on our own – at least not prime property, we became joint owners.”

Financial adviser Yap Ming Hui said it makes perfect sense to own.

“Of course the Gen Y here are still keen on buying. You pay the instalments and eventually own a home. Only those who can’t afford to buy are forced to rent.”

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia adviser Wong Kok Soo said property prices in Hong Kong have escalated beyond the purchasing power of the Gen Y but the trend hasn’t caught on here – yet.

Wong, who is also a consultant with the National House Buyers Association, however, said there were signs that the Gen Y could no longer afford to live in big cities like Kuala Lumpur, Penang Island, Johor Baru and Sabah.

“Parents are chipping in for the downpayment. And, commuting from the suburbs to the city centre is still an option.

“But when prices get inflated far beyond their means, the same will happen here (as in Hong Kong),” said Wong, who, however, felt that even if demand dropped, it would not be substantial.

Iskandar agreed, saying that although the property market was slow now, the drop was manageable. “Like everything else, it’s cyclical. “The property market goes up for years and after some time, begins falling before rising again.”

He said the market would pick up with the completion of infrastructure development and public transportation facilities.

Rehda, he said, was working closely with the Government to find ways to facilitate home acquisition especially among first-time buyers.

“We proposed a review of the financing guidelines that have negatively impacted buyers’ ability to secure financing,” he said. – The Star/Asia News Network

Demand from first-time buyers still strong despite affordability challenge

PETALING JAYA: Instead of blowing their cash on pricey gadgets, young Malaysians are saving up for their first home.

While most Gen Y shy away from owning property in developed countries and big cities, demand from millennials here is still holding, especially with parents assisting them with the downpayment, Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri F.D. Iskandar said.

(Gen Y, also known as millennials, are commonly referred to those who are born in the early 1980s to 2000s. They are sometimes referred to as the strawberry generation).

Demand from first-time buyers, including the younger generation, remains strong although housing affordability is a challenge, said Bank Negara.

The central bank added that they accounted for 75% of 1.47 million borrowers.

Owning and investing in a house remains a priority for many Malay­sians.

This is reflected in the household borrowing trend where the buying of homes continues to be the fastest growing segment of household lending, with annual growth sustained at double-digit levels (11% as at end-March 2016), said Bank Negara in a statement.

Those who cannot afford it themselves, and do not have parents to help, turn to their friends.

In his 30s, Daryl Toh, and two of his college mates own a condominium in Penang; they pooled their resources to purchase the unit five years ago.

“It’s in a premium area and since we couldn’t afford a place on our own – at least not prime property, we became joint owners.”

Financial adviser Yap Ming Hui said it makes perfect sense to own.

“Of course the Gen Y here are still keen on buying. You pay the instalments and eventually own a home. Only those who can’t afford to buy are forced to rent.”

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia adviser Wong Kok Soo said property prices in Hong Kong have escalated beyond the purchasing power of the Gen Y but the trend hasn’t caught on here – yet.

Wong, who is also a consultant with the National House Buyers Association, however, said there were signs that the Gen Y could no longer afford to live in big cities like Kuala Lumpur, Penang Island, Johor Baru and Sabah.

“Parents are chipping in for the downpayment. And, commuting from the suburbs to the city centre is still an option.

“But when prices get inflated far beyond their means, the same will happen here (as in Hong Kong),” said Wong, who, however, felt that even if demand dropped, it would not be substantial.

Iskandar agreed, saying that although the property market was slow now, the drop was manageable.

“Like everything else, it’s cyclical.

“The property market goes up for years and after some time, begins falling before rising again.”

He said the market would pick up with the completion of infrastructure development and public tran­sportation facilities.

Rehda, he said, was working closely with the Government to find ways to facilitate home acquisition especially among first-time buyers.

“We proposed a review of the financing guidelines that have negatively impacted buyers’ ability to secure financing,” he said. – By Christina Chin The Star

A pricey priority

 

Wary of big, life-changing purchases, the ‘Strawberry Generation’ – those ‘easily bruised’, coddled young people in their 30s – prefers to rent, global reports say. Malaysians, however, are bucking the trend despite steep property prices. Mainly thanks to supportive parents, it seems.

BEST friends Leh Mon Soo, 38, and Brandy Yu, 39, are finally buying their first home.

After months of serious scouting, the two managers found units that matched their budget and needs, coincidentally, in the same condominium in Petaling Jaya. Leh is getting a three-bedroom unit while Yu is happy with a 48sqm studio apartment.

Yu feels that the RM365,000 she’s paying is affordable as she can still save about RM1,700 monthly after paying the loan instalment.

“I’m only paying RM400 more a month than what I’ve been forking out for rent. And unlike the rental, this unit will be mine one day,” she says.

Leh ended up forking out a whopping RM690,000 even though she dreads the long-term commitment. While “not a bargain, and at the upper limit of what I can afford”, she says that it’s still a pretty good price, as other, smaller, units were going for higher prices.

“I was only willing to pay RM500,000 initially. Then I saw a two-bedroom in the same condominium going for RM680,000. So I bit the bullet and got this. Property prices won’t be dropping any time soon and our ringgit’s shrinking. It’s now or never. I’ll have to cough up even more later if I don’t get a place now,” she says pragmatically.

The soon-to-be neighbours think property is still in demand, even among Gen Y-ers, aka Millennials (those born in the 1980s and 1990s, typically perceived as brought up and very familiar with digital and electronic technology).

But they’re more privileged because their parents have either already invested in property for them or are helping them buy it, Leh offers. Renting is not for the long-term, she says firmly, and even the younger ones know that.

The Malaysian mindset, Yu quips, is that everyone must own at least one property.

Gym owner Chip Ang, 26, agrees. He got the keys to his new 78sqm unit in Shah Alam last week.

Although it was his parents who suggested he get the RM168,000 place under the Selangor Government’s affordable housing scheme, Ang says property ownership is always a hot topic between him and his friends. Young professionals want to own property. The issue is affordability, he thinks.

“Many are unrealistic. They want their ideal home in the ideal place. Of course that’s unaffordable. Most affordable homes are in up and coming townships, not prime locations.”

The experience of getting his own place was a “blur” because it happened so fast, he says, though he does recall that, “because it’s affordable housing, I had to fulfil a number of requirements including proving that I’m a bachelor”. While the RM700 monthly mortgage payment is doable, he’s still nervous about being “tied down”.

Writer Teddy Gomez, 29, doesn’t think people have given up on owning property but sees a new trend emerging.

“Buying property is still big here but I see more renters because it’s cheaper and more flexible,” says Gomez, who got “a little help” from his dad buying a 83sqm apartment in Kuala Lumpur last year. Although the cosy RM400,000 unit is “not really affordable”, he says it’s time to leave the nest.

Like Gomez, a blogger who only wants to be known as Robyn, 24, thinks it’s nice to have your own space. She’s moving into an apartment in Petaling Jaya soon. The fresh graduate admits being lucky because her dad’s the owner. She’s getting the three-room unit for less than RM140,000 although it’s valued at over RM750,000.

“For the next three years, I’ll pay the RM3,800 monthly loan instalments. Now, I’m only contributing RM2,000 because I just started working. Dad’s helping until I can afford to take on the full amount myself.”

She knows she’s better off than most her age and is thankful for her family’s support – many of her friends are also looking for properties to buy but are resigned to living outside the city in places like Bangi and Kajang in Selangor. Still, with a RM200,000 budget, they’re willing to travel and own property rather than pay rent indefinitely.

Federation of Malaysian Consumers Association (Fomca) secretary-general Datuk Paul Selvaraj says it’s unfair to tell consumers to live on the outskirts of city centres because public transportation is still a problem in the Klang Valley. Unless the homes are accessible, living far away from the workplace isn’t practical.

National House Buyers Association (HBA) honorary secretary-general Chang Kim Loong sees a very strong demand for affordable properties in Malaysia because of our young population and urban migration.

For instance, the Government’s First House Deposit Financing (MyDeposit) scheme that was launched on April 6 received more than 6,000 online registrations within a week, a sure sign that Malaysians are still keen on owning property.

Fomca’s Selvaraj says property is a priority for most Malaysians because it’s a sound investment. They just can’t afford it in most urban areas.

“If you’re living on bread and water after paying your loan, then the house is unaffordable. For most young families, RM300,000-plus is affordable but it’s RM600,000 homes that are being built.”

Property is the best hedge against inflation so demand will always be strong, says HBA’s Chang. But there’s a “serious mismatch” between what’s classified as affordable by developers and the rakyat’s definition. To developers, an affordable property for first-time buyers is RM500,000. For upgraders, it’s up to RM1mil. Definitions on the ground are much lower. First-time buyers deem RM150,000 to RM300,000 affordable while those looking to upgrade can only pay between RM300,000 and RM600,000.

But if you can afford it – with family help, perhaps – M. Rajendran, 53, says invest early. The air traffic controller got his double-storey home in Kajang 21, Selangor, years ago for RM146,000. It’s worth at least RM600,000 now.

“If I hadn’t bought it then, I definitely wouldn’t be able to afford it now with the financial commitments I have. And at my age, no bank is going to give me a loan. Buy when you’re young because it’s cheaper and you can settle your loan faster.”

However, he warns that current economic challenges could result in a rise in the number of abandoned projects, so those looking at new properties should be cautious and do their homework.

“Scout around. Choose locations with infrastructure and amenities so that the potential for property prices to appreciate is higher.” – By Christina Chin The Star

Don’t bank on the banks

 Chang Kim LoongRELAXING lending conditions won’t help more people buy their own homes. It will only worsen the situation as developers increase prices further to match the lending surge, predicts Chang Kim Loong, honorary secretary-general of the National House Buyers Association (HBA).

Datuk Paul Selvaraj also doesn’t think it’s a good idea. The Federation of Malaysian Consumers Association secretary-general says home ownership is a right, and it’s the Government’s responsibility to make it a reality. The Government, he stresses, must either build more affordable housing or force developers to cater to the neglected market. It’s wrong to force banks to take bigger lending risks by calling on them to relax lending conditions, he feels.

“Banks will only lend money if they can get it back. It’s unfair to expect them to do otherwise. Also, if the borrowers cannot pay, they themselves will end up with a big headache.”

Banks are rightly stringent as times are uncertain, says Wong Kok Soo, an adviser to the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector of Malaysia and consultant to the HBA.

Lenient policies encourage purchases that are beyond one’s means and are not a good idea; instead, the margin of financing should be increased or the loan tenure extended, for first home buyers. For existing loans, there should be some flexibility in extending tenures and adjusting debt servicing ratio, he feels.

Last year, housing in Kelantan, Penang, Sabah, Sarawak and Selangor, as well as Kuala Lumpur, were listed as severely unaffordable by market experts. Nationwide, only Malacca made the affordable category with housing in the other states deemed either seriously or moderately unaffordable.

Bank Negara’s “Financial Stability and Payment Systems Report 2015” showed an increasing supply of homes above RM500,000 while those priced below RM250,000 accounted for less than 30% of the total launches in the first nine months of last year.

Deputy Urban Wellbeing, Housing and Local Government Minister Datuk Halimah Mohamed Sadique has since called on developers to build more houses priced at RM300,000 for Malaysians.

The next generation won’t be able to own property without financial help from their parents unless concrete measures are taken to increase the supply of properties costing between RM150,000 and RM300,000 and to stem the steep rise in existing property prices due to excessive speculation, says HBA’s Chang.

A Khazanah Research Institute report reveals that Malaysia’s housing market is considered to be “seriously unaffordable”, with a median house price of more than four times the median annual household income. This problem, Chang notes, surfaced a little under a decade ago but if prices continue to soar, the situation could worsen.

Not that there aren’t affordable schemes and funding plans in place to help – in the last 50 years, scores have been introduced but information on them is scarce, he observes. Details of projects by developers, state agencies and federal bodies must be available in a public database, he suggests. And a single umbrella body under the Federal Government must coordinate the distribution and availability of such units.

Chang stresses also that there’s no place for racial profiling when it comes to housing. Whoever deserves a house must get a house, he insists.

There’s never a wrong time to buy property but one must balance the risk of buying with renting, he advices. Owning a house is riskier as buyers take on enormous debts, sign multi-year loan agreements and become responsible for homeowner costs, he cautions.

“Flip through the newspapers – you’ll see many proclamations of sales of units for public auction that are below RM50,000. Some even dip below RM10,000. On bank websites, you’ll find property foreclosure cases.”

A list of properties put up for auction by CIMB bank showed 35 units in Selangor at reserved prices of less than RM42,000 – that’s the price of a new low-cost unit, notes Chang.

Low-cost units auctioned off for half of the purchase price is an alarming trend, he says. Unfortunately, there aren’t any official statistics on how many low income earners have lost their homes or are struggling with their monthly loan commitment. Where do these homeowners and their families end up living, Chang wonders.

Foreclosures can devastate a family’s economic and social standing, possibly leaving them poorer than before they bought the property. Financiers, local authorities and communities benefit from homeowners being better informed of their rights and responsibilities as borrowers. Ensuring that lower income households have sufficient personal financial management skills and support is crucial.

It’s not enough just to provide homes for the low- and medium-income group. Chang recommends that a homeownership education programme be set up to raise financial literacy and prepare households for the responsibilities of owning a home.

“Manuals, advice or information given via telephone, workshops or counselling to help households maintain their homes and manage their finances must be given before first-time buyers sign the sale and purchase agreement. Public housing schemes are only successful if buyers can hold on to their property.”

Specifically, Chang says education should cover:

> Pre-purchase period – understanding the various types of available housing, the process of buying a house, loan process, and financial preparation needed; and evaluating household needs.

> Post-purchase period – budgeting monthly expenses; making payments promptly; avoiding loan defaults; living within a community; social responsibility; property taxes, assessments, insurance, service charges and sinking fund; home maintenance; and handling problems with the property.

Educate yourself and learn from the mistakes of others to avoid being disappointed or, worse, becoming “house poor” (when most of your income goes towards home ownership), Chang advises. Aspiring buyers must get something that’s within their budget. It could be an older or smaller unit but start small and slowly increase your property portfolio, he says.

“Don’t let friends or family influence you into getting something that’s above your budget, as home ownership is a long term investment. You must be able to service the loan while maintaining an acceptable standard of living.”

The majority may prefer to rent while waiting for the market to soften but it’s better to have your own shelter, says HBA consultant Wong.

The average Malaysian, he insists, can still own property. Consider buying at auctions. Research is a must, though, as inspections aren’t allowed at auctions. It’s an “as is, where is” bid, he stresses. Find out about the surrounding units and the neighbourhood, he suggests.

Better to own but…

PROPERTY investment helps maintain our socioeconomic well-being and must be encouraged, says Datuk Seri F.D. Iskandar, president of the Real Estate and Housing Developers Association Malaysia (Rehda).

Property – a wealth-creation instrument without the volatility of stock markets – has consistently out-performed traditional investment options like bonds, he points out.

But to invest, one must study the property and its market potential. With the right location and strategy, property can be a very profitable investment. The value will appreciate over time, he says.

To many, the most important aspect of owning property is to secure a home. In current conditions, most developers are coming up with attractive packages to close the deal, so it’s a good time to buy. Securing a bank loan now, though, is one of the biggest barriers, he says.

Rehda’s recommendations to the Government and Bank Negara are:

> Encourage innovative home financing packages like the developers interest bearing scheme (better known as DIBS).

> Allow flexible or accelerated tiered payments (longer loan tenure so you pay less now but more later when your salary has increased).

> Relax loan approval criteria with higher financing margins (up to 100%).

Also, banks, he says, shouldn’t just focus on a loan applicant’s current net income; future prospects of higher salaries and other incomes and bonuses must be taken into account.

He dismisses talk that the average Malaysian has been priced out of owning his or her first home.

There’s still a range of prices and options in both the primary and secondary property markets, he says.

With new launches, developers usually offer special incentives, rebates or discounts that will help buyers reduce their initial payment. In the secondary market, however, what you see is what you get. Depending on what you’re looking for, factors like location, surroundings, facilities, transportation and infrastructure will help you decide.

“Property prices in city centres are high because of land value but there are many cheaper options in less-urbanised areas. There are many affordable houses, including those by PR1MA (the 1Malaysia People’s Housing Scheme). The average Malaysian can definitely afford these.

“With an improving transportation system and connectivity, these places are now easily accessible from city centres.”

We are paid enough

Property price and value to Income per country in SEA 20014

WAGES are rising in tandem with the country’s consumer price index (CPI), which is a broad measure of inflation and our productivity.

Both criteria are used to determine wages here, says Datuk Shamsuddin Bardan, executive director of the Malaysian Employers Federation.

While Malaysians lament how their salaries aren’t enough to cope with soaring costs of products and services, their grouses aren’t reflected in the low CPI numbers, he says.

“Measured against the CPI, our average salary growth isn’t lagging. In the region, our salaries are second only to Singapore. Of course, you must consider the currency exchange. Singaporeans earn an average of S$3,000 (RM9,000) while Malaysians take home RM2,800 monthly.

“But bear in mind that the productivity of Singaporeans is 3.8 times higher than ours. Their per unit cost of production per employee is lower than us. In the United States, the productivity level is seven times higher than ours. So when you say we aren’t earning enough, you have to consider our productivity level too,” he states, pointing to how in some of our neighbouring countries, the average salary is less than US$100 (RM400).

However, he acknowledges that houses are beyond the reach of most – and fresh graduates in particular – and adds that even when both husband and wife work, they still may not have enough for the down payment and are forced to rent.

It’s tough, he admits, even for those who have already been working for a decade, to own a house now without financial support from parents.

Related: Renting is OK too

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Paedophiles’ predators using apps in phone to find and groom potential victims


https://www.youtube-nocookie.com/embed/nu_WnaEzw-E

Hunters hunted: R.AGE journalists went undercover as 15-year-old girls to meet up with online sex predators who target teenagers. Watch the videos at rage.com.my/predator:

This was among the material gathered by The Star’s R.AGE journalists who went undercover for these meetings.

Six months before paedophile Huckle made global headlines, the R.AGE team had already started its undercover sting operation against sex predators.

During the period, R.AGE compiled material that included obscene images, inappropriate messages and hidden camera footage of the undercover journalists at work.

Malaysia does not have laws against “sexual grooming”, which refers to the process of gaining a child’s trust for future sexual exploitation, even though statistics show it has been on the rise.

Mobile chat apps (WhatsApp, WeChat, BeeTalk, Facebook Messenger, etc.) seem to
have become the most popular tools for sex predators in Malaysia, based on Bukit Aman’s statistics.

Since 2015, a whopping 80% of reported rape cases involved sex predators who started out online.

During a sting, R.AGE confronted one such predator, who was propositioning the undercover journalist on WeChat and sending photos of his penis.

“It’s a numbers game,” said the 28-year-old postgraduate student who is a self-confessed sex addict.

“On WeChat and BeeTalk, you can search for people nearby, and filter them based on gender. After I filter out all the men, I just send messages to as many girls as possible.”

The predators then start grooming those who reply to them. They would earn the trust of these children and gradually introduce sex into the conversations.

Another man claimed he is “an expert in massages” and that he had done it on at least two other girls below 15.

The situation has long weighed on Assistant Commissioner Ong Chin Lan, the Bukit Aman Sexual, Women and Child Investigation Division (D11) assistant principal director.

“If we had grooming laws, the authorities might be able to arrest predators like Huckle early on,” said Ong.

“We need to empower our law enforcement agencies.”

Sources: The Star http://rage.com.my/Predator/; http://rage.com.my/catching-sex-predators/

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PEDOPHILIA is not a new sex crime. What is new is the attention that it is getting in the public arena in Malaysia especially after the cas…

The affliction that feeds on children


PEDOPHILIA is not a new sex crime. What is new is the attention that it is getting in the public arena in Malaysia especially after the case of Huckle (pic). In fact pedophilia has developed into the hot topic in Criminology.

A pedophile is an individual who prefers to have sex with children. They have an abnormal and an unnatural desire and attraction for sexual relations only with children.

Sexual abuse of the children can begin without people recognizing it because it can be a small act in everyday life.

Pedophiles come from a variety of socioeconomic backgrounds. They are normally male, from any race, educated or uneducated, young or old, rich or poor, employed or unemployed. They can be religious or non-religious, a father, family member or trusted coworker or professional.

Just as Huckle used” wealth and status as Westerner” to exploit children, pedophiles hide behind the cloak of normality, morality and respectability within the community. Research revealed that nine out of ten are close to their mothers.

One of the most popular criminological theories is the notion that criminal behavior is learned in association with those who have criminal attitudes and values.

The majority of criminologists believe that the behavior of a pedophile is caused by environmental factors (nurture), involving upbringing and life experience of the individual. Furthermore, perpetrators confess that they themselves were child victims of sexual abuse.

However, recent studies revealed that individuals suffering from pedophilia are also fostered by genetic or biological traits which eventually lead to criminal behavior.

Colleen Berryessa, a Criminologist, stated that a 2014 Korean report on monozygotic twins with pedophilia, concluded that genetic influences appeared to be more important to the causes and development of pedophilia than environmental factors, including childhood abuse.

But there seems to be little or no agreement about what conclusively makes an individual cause pedophilia.

Experts also believe that there is no permanent treatment to cure pedophiles but some claim therapy treatment can work but is a challenge. Since pedophiles are sociopaths whose behavior is antisocial, lack sense of empathy and moral responsibility for their victims, the disorder is chronic and lifelong.

Studies show that pedophiles are repeat offenders after imprisonment or treatment.

The criminogenic asymmetries factor such as relaxed atmosphere, weaknesses in laws and enforcement produce criminal opportunity, motive for foreign pedophiles like Huckle himself to took advantage of the weak internal controls in a country to find victims. The penalty in their home country is normally more severe.

To fight this crime we need legislative changes, more effective laws, intelligence gathering and sharing, technology such as facial recognition and enhance investigation capabilities by training specialists.

Huckle operates a website called The Love Zone (TLZ) on the Dark Web, a hidden network used to maintain anonymity. His site consisted of photos of the children he abused and shared with other members.

The web is accessible only with specialized software or conducting deep web analysis. To make it more complicated; cybercriminals are often using encryption to protect their malicious data and communications.

There should also be increased focus on proper enforcement and skill level in conducting cybercrime investigations in order to reduce the use of the Dark Web in committing child sexual activities.

Crime prevention should be the priority for police but that should not be their sole responsibility. To prevent crime is the obligation of everyone in society and parents, schools and families have responsibility to ensure children are safe.

They must also instill in children a strong appreciation of right and wrong.

Parents, being the most important people in their children’s lives, must make sure children are not exposed to situations where irresponsible people can take advantage of them.

They must pay attention and respond when any adult seems overly focused on befriending a child, make a spot check on child nurseries and babysitters and do not allow a child to go alone on vacation or spend the night with someone other than those proven to be trustworthy and reliable.

Certainly do not assume that a person is reliable because of position, status, title or working in a place where children commonly gather.

At this point, our country still does not have a central registry for child abusers and pedophiles. The data is very important as it would contain the particulars of sex offenders, allowing law enforcement agencies to keep track and monitor the child sexual activities in our community. We need to protect our children.

By DATUK AKHBAR SATAR

Institute of Crime & Criminology, HELP University

Related:

Cops to identify other victims

NGO: Hard to catch predators

Preying on the faithful – Watching The World

Protect our children from sex offenders 

http://www.thestar.com.my/metro/focus/2016/06/10/protect-our-children-from-sex-offenders-malaysia-cannot-be-perceived-as-a-paradise-for-child-abusers/


The dynamics of elder abuse is different from child or domestic abuse. There needs to be specific laws that protect the elderly and safeguard their interests.

Change needs to happen to protect seniors from being abused

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