Seal of Good Local Governance (SGLG) 2024Final.pptx
Eco world 14 Sept 2014-Renesial Leong asia's Queen of Property
1. Is it STILL
A Good Time
For Properties ?
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2. What are the Challenges ?
Where are the Opportunities ?
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3. Where are we
TODAY ?
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4. Where are we TODAY?
• Witnessing Subsidies Reduction
By the Government
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5. Where are we TODAY?
• Sept 2013
Fuel price hike
• Oct 2013
Abolishment of sugar subsidy
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6. Where are we TODAY?
• Jan 2014
Electricity tariff hike
• May 2014
Industrial gas price hike
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7. Where are we TODAY?
• 2020
Withdrawal of all subsidies?
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8. What are the
CHALLENGES ?
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9. What are the
CHALLENGES ?
• GST
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10. What are the CHALLENGES?
GST
• 1st April 2015
• Take off rate of 6%
(Govt assured rate stays
for min. 5 years)
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11. What are the CHALLENGES?
GST
Part of reformed tax system
• Generate a more stable
source of revenue
• Should bring more benefits to
ALL
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12. What are the CHALLENGES?
GST
Broad based Consumption Tax
• Burden of GST falls
Onto the FINAL consumer
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13. What are the CHALLENGES?
GST
• Generally Everyone
• Will Directly affect the
Real Estate Industry
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14. What are the CHALLENGES?
GST
Residential Property
• Tax Exempt
• Meaning GST is NOT Charged
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15. What are the CHALLENGES?
GST - Not subjected to GST
• Sale & Rental
of ALL Residential Properties
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16. What are the CHALLENGES?
GST - Not subjected to GST
• Sale & rental of land
used for Agriculture
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17. What are the CHALLENGES?
GST - Not subjected to GST
• Sale & rental of land
used for Burial
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18. What are the CHALLENGES?
GST - subjected to GST
• Sale & rental
of ALL commercial properties
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19. What are the CHALLENGES?
Impacts of GST / Residential Prop
For Developers
• No entitlement to recover GST
• Hence an added cost
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20. What are the CHALLENGES?
Impacts of GST / Residential Property
Supply of materials & services
(Absorbed by Developers)
• By Contractors
• Building materials
• Professional services
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21. What are the CHALLENGES?
Impacts of GST / Landlord
Important to take note
Include vital clause on GST
• For all NEW tenancies
• Tenancies renewal
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22. What are the CHALLENGES?
Impacts of GST / Landlord
GST is payable
• When billed or incurred
Not when collected
• i.e. if tenant pays up late
Landlord has to pay up first
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23. What are the CHALLENGES?
Impacts of GST
For Commercial / Industrial Prop
• Purchased off the plan
• Or under construction
From 1st April 2015
• GST will be imposed on
Next billing till completion
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24. What are the CHALLENGES?
Impacts of GST
• Interest shift more towards
Residential properties
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25. What are the
CHALLENGES ?
• Escalating Property Prices
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26. What are the CHALLENGES?
House Price Index
• In 2013 the Price Index
Stood at 192.9 point!
• Compound annual growth rate
For 2011 to 2013 at 11.7%!
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27. What are the
CHALLENGES ?
• Inflation
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28. What are the CHALLENGES?
Due to Inflation
• COST OF LIVING is
Going to be much HIGHER
ALL over the WORLD!
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29. What are the CHALLENGES?
Pretty obvious
All of us need
• MORE ringgit
• JUST to MAINTAIN our current
lifestyle
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30. Where
are the
OPPORTUNITIES?
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31. Where are the Opportunities?
• Politically stable
• Employment Rate @ 96.9%
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32. Where are the Opportunities?
• Population Growth @ 1.54%
Malaysia’s population
30Mil in Feb 2014
• Greater KL Population Growth
From 6Mil to 10Mil
By 2020
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33. Where are the Opportunities?
Steady population growth
• 2009 – 28.1Mil
• 2010 – 28.6Mil
• 2011 – 29.0Mil
• 2012 – 29.3Mil
• 2013 – 29.7Mil
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34. Where are the Opportunities?
• Interest Rates for mortgage
Residential BLR -2.5%
6.85 – 2.5 = 4.35%
Commercial BLR -2.35%
6.85 – 2.35 = 4.5%
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35. Where are the Opportunities?
Economic Drivers
• Malaysia is Strategically
Located in the Region
Within 2 to 5 hours flight to
Many Important International
destinations
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36. Where are the Opportunities?
Economic Drivers
• Malaysia has the BEST
Expressway networks
• Within Klang Valley & KL
15 Expressways & Highways
in operation
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37. Where are the Opportunities?
Economic Drivers
• Economic Transformation
Projects, under the Economic
Transformation Programme (ETP)
• Target to achieve USD444Bil!
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38. Where are the Opportunities?
Economic Drivers
ETP
• To bring Malaysia to
fully developed nation status
By 2020
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39. Where are the Opportunities?
Economic Drivers
ETP
• Government to move
Per capital income
From USD7K to USD15K
by 2020
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40. Where are the Opportunities?
Economic Drivers
High Speed Rail (RM40Bil)
• KL – Spore in 90 minutes
• Take off 2015
• Target completion 2020
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41. Where are the Opportunities?
Economic Drivers
Private Sector average wage
growth
• 6% in 2012
• 6.6% in 2013
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42. Where are the Opportunities?
Economic Drivers
• Average Mean household
income growth 7.7%
(2009 – 2012)
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43. Where are the Opportunities?
Economic Drivers
Banking Industry
• Expected to grow btw 8% to 10%
On expansion of economy
Fuelled by private consumption
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44. Where are the Opportunities?
Economic Drivers
• Healthy no. of Marriages
(Demand of housing)
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45. Why you
MUST
INVEST?
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46. Why you must invest?
• The longer we hold on
To currency, the less valuable
It will become
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47. Why you must invest?
• Real value is found in
Assets, NOT currency
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48. Why you must invest?
• Key to WEALTH
Invest in ASSETS!
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49. Why you must invest?
• One of the best ASSET
Your money can buy is
PROPERTY
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50. What can PROPERTY
do for YOU?
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51. What can property do for you?
• Has potential to create
VAST amounts of wealth
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52. What can property do for you?
• Property is the BEST hedge
against inflation
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53. What can property do for you?
2 other huge benefits
• Leverage
• Cash Flow
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54. What can property do for you?
• 10% of Billionaires on Forbes list
made their wealth
from properties!
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