Iskandar Malaysia

Friday 16 August 2013

How much will the raised BLR impact your pocket?

Once the BLR (Base Lending Rate) is raised, how much does it impact you?

Just take an example as below, 500,000 loan, BLR-2.4%, loan tenure 35 years, and BLR as 6.6%.

Following the example below, for every 1% of BLR increase, there is an increment of 13% in monthly installment. However, the increment magnitude of the monthly installment is also subject to the loan tenure that you have taken.

Secondly, many folks are thinking that even if the BLR is raised, the bank still will maintain its monthly installment by extending the loan repayment period. Yes, the bank may allow that, provided the new monthly interest charge (after BLR raised) is still lower than your original monthly installment, and the extended period shall not exceed the maximum loan period allowed by Bank Negara Malaysia (BNM). Looking at the example below, with 2% of BLR raised, the new monthly interest charge has exceeded the original monthly installment, hence the bank will have to revise the loan monthly installment accordingly to ensure there is sufficient portion to pay off the loan principle.

How much will the raised BLR impact your pocket? Check it out using the link below for your own case.

House Loan Calculator

Wednesday 26 June 2013

Property Price Iskandar Malaysia VS Singapore

Many people always ask "what is the reasonable property price for Iskandar Malaysia compared Singapore?"

Below is a simple calculation that will consider some major factors which may affect the property price. We take Singapore as benchmark which all factors are indicated as 1, while IM will be given a relative factor by "benchmarking" to Singapore.

The assumptions of calculation are quite straight forward as indicated in the formula below.

The default values below are my personal inputs, if you think the values are inappropriate, you may key in your own values, the outcomes will provide you a revised calculated property price of IM based on your inputs, then you can judge if the property price at IM is reasonable or unreasonable to you.

Please note, the actual property price is hardly for prediction due to speculation, natural disaster, politic instability, economy performance and etc, however the calculation below is meant to compare the various "values" or factors from both locations, excluding the unpredictable factors.

For example below, if the Singapore private property price is SGD1200 psf averagely, based on the calculation , IM shall have RM 689 psf in average value.

Have fun!!! Take the outcomes with pinch of salt.

Disclaimer: Do not use the outcomes as your investment guides, the demonstration above is just provide a rough comparison between property price in IM and Singapore.

What is your reasonable property price (psf) of IM?

Click here to see if you hit the bull eye

Wednesday 19 June 2013

Population Growth of Iskandar Malaysia

Based on IRDA and CIMB Research, the population of Iskandar Malaysia will reach 3 millions by 2025.

Year	2010	2015	2020	2025
IM Projected Population (mil)	1.60	2.07	2.53	3.00

Average growth (yearly)	93,333
Average member per household	4

Estimated house unit required (yearly)	23,333
Average unit per condo / apartment Project	500
Estimated Condo Projects required (yearly)	47

Based on the rough estimation above, IM needs to build approximate 23,000 house units yearly to fulfill the population growth.

If we translate the number of house unit into the number of condo / apartment to be built, it will be about 47 condo projects are required at yearly basis, assuming each condo project consist 500 units averagely.

Of course, there are a lot of other factors need to be taken into account to forecast the actual demand of house units in IM. At least the estimation above provide you a rough idea of the property demand / supply in IM, so that you may be able to see deeper of the aspects and prospects of IM.

In short terms, the population growth may not be a linear trend as assumed by the population projection, it is expected to be lower than the projected growth, considering IM will have about 100 condo projects being completed in coming years, some areas we may observe oversupply cases.

In long run, the population is expected to catch up with the projected growth, considering growths contributed from tourism, migrations, investments, job creations (for local and foreigners), increase of daily travelers (those who work in Singapore but choose to stay at IM). Subsequently, the demand of house unit will increase significantly in long terms, if the population is able to catch up.