More M’sians turning to silver, rather than gold, for investment

KUALA LUMPUR: More and more Malaysians are buying silver as a cheaper alternative to the more expensive gold for investment purposes these days, a trend that began at the end of 2010 when the silver price started rallying to a 30-year high.

Two people with wide knowledge of the silver market here say that the white metal will continue to attract investor attention locally as the silver price, now hovering around the US$30 (about RM91) per ounce level, has been forecast to rise next year.

With the gold price at around US$1,650 (about RM5,030) an ounce, they say silver often referred to as the poor man’s gold is not only a cheaper alternative to gold but also one whose price has greater potential to go even higher in the future.

They agree with international analysts that investors, worried about central bank and government spending policies worldwide, will continue to turn to these precious metals as a safe haven for investment purposes.

They add that silver’s many industrial uses is another reason why its price will trend higher in the future.

Daniel Foo, who shares silver investment information on his websitehttp://silverinmalaysia.com, said jewellery shops in Malaysia were now selling investment-grade silver bars, while more and more small-time traders were importing silver coins and bars from overseas and selling them online.

“The best evidence of the growing interest in silver investment in Malaysia is Maybank starting its Silver Investment Account. More banks are expected to follow suit,” said Foo, who has an e-book titled Practical Guide for Investing in Silver in Malaysia.

He said that about three to five years ago, no one talked about silver in Malaysia.

“Now, many websites, forums and Facebook group pages are selling and discussing silver investment. The potential for physical silver investment in Malaysia is enormous,” he noted.

Foo said while the gold price had increased by about 500%, the silver price had jumped about 650% over the past 10 years.

“Since 2008 to date, (November 2008 until November 2012), among all the investment options, silver has been the best performer, providing 200% in investment return while gold came second just slightly above 100%,” he said.

He said silver was being used, among others, in the electronics industry, solar panels, medical devices and in water purification.

“China, although the third-largest silver producer in the world, does not have enough and is importing the metal from other countries. It is encouraging its citizens to buy silver, while Indian corporations even buy silver as gifts for employees,” he said.

Jonathan Quek, a gold and silver strategist, said sales of silver coins and bars at silvermalaysia.com a site which deals in physical silver besides providing education in silver investment started picking up strongly from October 2010 onwards when the price started its rally from around US$24 to a 30-year high of over US$48 in late April 2011, before plunging nearly 35% in a fortnight due to tighter margin calls.

“From January to May 2011, many people started buying silver. When the price started plunging due to tighter margin calls, some of our investors panicked and sold silver because they thought it was a bubble while some investors started to accumulate,” he said, adding that the silver price was trading at a low of US$26 in 2011.

Quek, who is the founder and chief executive officer of silvermalaysia.com, said silvermalaysia had sold an average of 2,500 ounces of silver monthly this year.

He said his clients included young investors, including students, who bought small amounts of silver coins for investment.

“We expect more investors to buy silver next year because the price is expected to move even higher,” he said in an interview at his office in Mont Kiara.

Quek, who has written a book titled Why Gold? Why Silver? Why Now?,said he was encouraging people to buy the white metal more as insurance than investment.

He strongly believes, like many others globally, in a “financial armageddon” or a global financial collapse some time between 2015 and 2019 when he says money will become worthless.

He said this was when precious metals like gold and silver, which would shoot to US$5,000 and US$500 respectively, would be used, among others, to buy “food” and “property”.

 

Source by: The Star

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Gold can still shine and analysts believe its price still has room to climb

PETALING JAYA: Industry executives say the stimulus measures brought on by the US Federal Reserve and European Central Bank (ECB) have yet to be fully priced into gold, despite the profit-taking that immediately followed the commodity’s rally on Friday when it rose to its highest in seven months.

“Gold is not overbought at all. We think it still has room to appreciate,” said Oversea-Chinese Banking Corp Ltd analyst Barnabas Gan, who has an end-2012 target of US$1,800 to US$1,850 for bullion.

“The US dollar was prior to this our safe haven pick but with the rollout of QE3 (quantitative easing) last week we have shifted our focus to gold as the preferred store of value,” he told StarBiz.

Bullion peaked at US$1,777.51 on Friday, a day after the Federal Reserve announced its third round of quantitative easing.

Both the US central bank and the ECB had since early September introduced plans for open-ended pump priming activities to rouse their economies, with the former committing to buy some US$40bil worth of mortgage-backed securities each month until its labour market improved, and the ECB saying it would purchase, without quantitative limits, sovereign bonds on the open market.

Although gold investors locked in their gains over the past two days, spot gold yesterday briefly overtook its Friday high, climbing to US$1,779.39 per ounce. As at press time, it was up US$3 to US$1,774.25.

“Everytime there is a surge, it is followed by profit-taking. This is called a correction. But the trend we see is that prices are on an uptrend,” Poh Kong Holdings Bhd executive director Ermin Seow said at a briefing.

“Overall, the environment for gold is still quite bullish. Now that QE3 is out, many analysts believe gold can reach US$1,900, if not US$2000, by the end of the year,” Seow said, adding that Poh Kong’s own forecast was a more conservative US$1,800 for this year and US$2,000 next year.

OSK Research technical analyst Mohammad Ashraf Abu Bakar also believes the underlying price trend for gold points upwards, despite some selling. “The current resistance is pegged at US$1,800, the next level being US$1,900. The rally could continue for the next one month. “The selling pressure, if you look at it, has in fact not been able to keep prices down,” he said.

However, OCBC’s Gan noted that a caveat to this was more bad news from the eurozone, which would prompt a flight to safety to the dollar. Factors such as ultra-low interest rates in the developed countries and sustained money printing by central banks have resulted in negative real returns for savers, spurring investors to turn to gold as a hedge against inflation.

Meanwhile, Poh Kong’s Seow said he expected the combined sales of the country’s three listed gold retailers, namely Poh Kong, Tomei Consolidated Bhd and DeGem Bhd, to moderate this year to the mid-teens from last year’s 32% growth on the back of a high base.

An estimated 20 tonnes of gold were sold in Malaysia in 2011 worth some RM4bil, with the three players seizing RM1.5bil of the market.

Poh Kong had the largest share at 52% versus Tomei’s 33% and DeGem’s 15%, Seow explained.

On the outlook for Poh Kong’s sales, Seow said its turnover for the first three quarters this year alone have surpassed last year’s total sales.

“On an annualised basis, our full year revenue should be 20% to 25% higher than last year, Seow said, attributing this to its new outlets, growth in same store sales as well as higher gold prices.

Poh Kong is due to report its financial results for the fourth quarter ended July 31 next week.

The company may also set up shop in neighbouring countries when the Asean Economic Community comes into fruition in 2015, which would enable the duty-free flow of products within Asean, Seow added.

“At the moment we are almost 100% domestic and export very little of our gold. We are more retail-based and do not cater for export markets.

“We could tag along with our retail partners into Indonesia and Vietnam when they venture there.”

 

Source by: The Star

Picture by: numbersleuth

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PM: Malaysia’s fiscal deficit cut on track

The government’s target for a reduction in fiscal deficit this year is on track, said Prime Minister Datuk Seri Najib Razak.

He said the details will be revealed during the presentation of the 2013 Budget in Parliament next month.

“Yes (I have briefed the council). I will give the full figures during the coming budget (presentation) but the reduction (fiscal deficit) is on track.

“It will be mentioned during the budget. I don’t want to steal the thunder from the budget,” he told reporters after the National Treasury Council’s meeting here today.

Najib said he also briefed the council members on the country’s economic and growth rate projection as well as the current global economic scenario.

Besides Barisan Nasional’s Menteris Besar and Chief Ministers, Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim and Penang Chief Minister Lim Guan Eng also attended the meeting.

The government believes that the Raya bonus for the civil servants will not expand the country’s budget deficit. Last month, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said that the bonus payout will not raise the country’s targeted fiscal deficit of 4.7 per cent for this year as the government expects to collect bigger revenue and will try to cut down on expenses.

Najib had on July 24 announced a half-month bonus with a minimum payment of RM500 for civil servants and a special payment of RM500 for pensioners to be paid on August 9. The total payout will involve some RM2.2 billion and benefit 1.27 million civil servants as well as 657,000 pensioners.

On the council meeting, he said the federal government will allocate RM287 million to the state funds for 2014, of which RM30 million will go to states facing acute shortage of management funds and the remaining RM257 million to be given to states based on the level of economic, infrastructure and livelihood of the people.

Najib, who is also Finance Minister, said the government will come out with a new improved and comprehensive guideline on management procedure and distribution of maintenance funds for state roads to ensure its full utilisation and efficiency.

In this regard, he said the Finance Ministry, with cooperation from all state governments, will convene a lab session in October to iron out the problems faced by states in managing and utilising the fund properly.

“They (state governments) have agreed on the draft of the comprehensive guideline on management procedure and utilisation of the maintenance fund for state roads,” Najib said.

He indicated that there is no timeframe for the lab to formulate the guideline, but said the government hopes to come out with the guideline by year-end.

“Thereafter, allocations for states, which fail to manage the fund efficiently and effectively will be very much reduced,” he said.

As a follow-up to the audit report on the maintenance trust fund for state roads and Malaysian road record information system, Najib said the Finance Ministry has identified several weaknesses that need to be rectified and improved.

He said although the federal government set aside a huge amount to states in the form of maintenance allocations for state roads, most states failed to fully utilise the allocations. “For instance, the government allocated RM2.6 billion in 2011 compared with RM1.1 billion in 2006, which was an increase of 138 per cent or an average of 27.6 per cent yearly.

“However, most of the states failed to fully utilise the allocations. So, we need to correct the situation,” Najib said. He also noted that the improved loan repayment by state governments to the federal government and the decline in loan applications from the state governments.

Najib said the amount of loans applied by state governments has gone down by 8.4 per cent or RM1.6 billion, from RM19.1 billion in 2010 to RM17.5 billion last year.

“The amount of loan repayment by the state governments has also improved, with the state governments paying some RM790.6 million in 2011 compared with RM434.1 million in 2010,” he said.

Najib attributed the improvement in payments to among others, the takeover of loans by Pengurusan Aset Air Bhd (PAAB) for the water supply projects in five states, namely Penang which amounted to RM655.2 million, Perlis (RM75.1 million), Negri Sembilan (RM1.1 billion), Malacca (RM764.2 million) and Johor (RM873.7 million).

 

Source by: Business Times

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French consumption down slightly, housing starts fall

French household spending fell by 0.2 percent in the second quarter but rose slightly in June, while new housing starts continued to fall sharply, official data showed Tuesday.

Household spending was up 0.1 percent in June following a 0.5 percent increase in May, the INSEE national statistics office said.”The very slight increase in spending in June was due to increased spending on foodstuffs, which offset a decline in energy spending”, it said.

Purchases of food were up 1.0 percent in June, though down 1.3 percent over the second quarter.

Energy consumption was down 1.3 percent in June, after a 2.9 percent fall in May, though it was up 2.7 percent overall in the second quarter after unseasonably cold weather kept gas and electric spending high.

Data published by France’s housing ministry meanwhile showed new housing starts were down 14 percent between April and June, after plummeting 19.9 percent between March and May.

The number of permits issued for new builds was also down 1.9 percent between April and June, after a 2.0 percent decline in the previous period.

For April to June, the number of new housing starts was 69,937 units. Over the 12 months between July 2011 and June 2012, housing starts remained slightly positive, with a gain of 2.7 percent.

 

Source by: The Star

Picture by: telegraph

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‘Scandinavian’ luxury in Puchong

Although billed as Scandinavian in style, LBS Bina Group Bhd’s latest phase of ‘Nautilus’ superlink houses does not seem to offer what most would consider as specifically Scandinavian architecture. Besides a Modernist-like cubic form that is pretty fashionable among most local developers today, anyway, there is no preponderance of pine or high-tech prefabricated parts.

It’s good that it doesn’t, actually. These homes are not set within the Scandinavian peninsular of harsh winters and high wind, after all, but the tropical lowlands of Puchong, some kilometres down from the LDP. Its exact location is on a landmass surrounded by ex-tin mining pools that is being ambitiously transformed by developer LBS Bina into the mini township christened D’Island.

Nautilus’ design in fact makes sense in the tropical climate. A central atrium runs along its three storeys, thus providing ventilation and openness. It also provides a sense of grandeur. Like Blake Carrington, you can look down upon your guests from the upper floors’ balustrades if you so wish.

In a rather Asian way, as well, Nautilus homes may easily house the elderly generation of an extended family, with a lift that runs the height of the house. It helps that that each home offers an abundance of space.

Plot sizes are generous with 95 units sized at 24′x100′, and 20 units measuring up at 24′ x 80′. These yield built-up areas which range from 4,246 to 4,791 sq ft. Prices, meanwhile, range from RM1.81 to RM1.91 million (approximately RM400 to RM425 per sq ft).

Within each home are five bedrooms, all with attached bathrooms. Three have the proportions of master bedrooms, with own balconies, and enough space to fit in walk-in wardrobes. Also included is a maid’s room with bathroom, and a powder room, cleverly tucked in beneath the ground floor staircase.

The first floor master bedroom’s balcony, in particular, is large enough to fit a dining set, garden or jacuzzi. Mirroring the indoor atrium’s vertical integration, this balcony may be looked upon by the second floor’s balcony, which in fact projects out like a cantilever encased by glass balustrades.

Like Northern European homes, this time, Nautilus shows consciousness for sustainability with provisions for solar panels, rainwater harvesting and energy efficient LED street lighting.

Nautilus’ recent launch saw visitor Kelvin Kew, admiring the show home, together with his wife and lovely brood of three daughters. “Yes I’d like to buy one unit as I like the design,” says Kew who had previously bought two of D’Island’s Phase 1 and Phase 2 houses. “It’s even more modern and the lift is a good idea, but I have to see whether my banker can lend me more money!”

D’Island is indeed slowly coming together as the township dreamed up by developers LBS Bina. The houses that make up its Apicalia first phase are taking shape while a dandelion-shaped water fountain is already splashing around on the roundabout outside. Over on the lakeside esplanade meanwhile, sculptures read on the lawn beside two special playground sets imported from Germany.

“This environment, where you see 175 acres on a 1,000 acre lake, I’ve never seen in Malaysia before,” adds Kew, who currently lives in Laman Granview, Saujana Puchong. “When we first came here, we felt like we were on a small island, surrounded by water.”

Indeed, even if D’Island doesn’t take you immediately to the Nordic highlands, it does bring you to someplace you never thought you’d be, in Puchong, and LBS Bina’s fantastic dream is slowly becoming a reality.

 

Source by: The Sun Daily

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Ipoh reaching for leisure market

Ever thought of having a retirement or vacation home in Ipoh? Most likely not.

“The whole country has underrated Ipoh,” admits Superboom Projects Sdn Bhd CEO Peter Chan. “Many people ask me what there is here and some even say it is a place to ferment!”

Superboom has confronted such skepticism ever since embarking on its luxury condominium project here called The Haven. Hugging a natural lake next to a 280 million year-old lime stone hill and virgin forest, The Haven offers 497 apartments ranging in size from 968 to 5,350 sq ft, and priced from RM600,000 to RM3 million.

“Ipoh is equidistant from Penang, KL, the highlands and Pangkor,” maintains Chan. “It’s also quiet and idyllic with lots of good, cheap food. And, believe me, people are coming to Ipoh. Try taking the electric train there, it’s always packed.”

Nearly a century after its heyday as a tin mining capital, in fact, Ipoh has seen several recent leisure developments. Besides Sunway City’s Lost World of Tambun theme park and the five-star Banjaran Hot Springs Retreat, a RM500 million animation theme park will be constructed by Australian leisure park builders Sanderson Group in northern Ipoh’s new Meru Raya technology hub.

An average price of RM600 per sq ft would more likely attract purchases from national and international buyers; such prices are rare in Ipoh. All the bells and whistles of an international destination are offered by The Haven, however, including five-level security, comprehensive fibre optic network, 10 acres of landscaping and gorgeous infinity pool which almost blends into the picturesque lake.

The Haven (pix) will also be managed by international hospitality chain, Best Western, which may market and lease out apartments on behalf of owners. This makes it convenient for investors.

“Ipoh used to be the highest per capital importer of Mercedes Benzes in the world maybe 50 years ago,” says Chan. “All that changed later.” Today, however, Chan believes that Ipoh’s misty karst hills whisper promises of recreation rather than tin, and that, as a leisure destination, this underrated town may just have some shot at regaining its old glory.

 

Source by: The Sun Daily

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Malaysia gets piece of Marina Bay glamour

After decades of political animosity between Malaysia and Singapore, the commercial real estate joint venture of both governments is on schedule with the recent groundbreaking ceremony of its maiden Marina One development in Marina South, Singapore.

Developed by M+S Pte Ltd, which is 60% owned by Malaysia’s investment holding arm, Khazanah Nasional Bhd, and 40% owned by Singapore’s investment company Temasek Holdings (Private) Ltd, Marina One is a mixed development comprising two office towers, two residential towers, and a retail component, with gross floor area of 341,000 sq m.

Besides Marina One, M+S will develop another plot of land in Ophir-Rochor, near the Bugis area of the city. Gross development value of both projects has been estimated at SGD 11 billion (about RM27.6 billion).

Both plots of land were offered by Singapore for joint development in return for the land previously belonging to KTM Bhd on the island. The two countries also set up Pulau Indah Ventures Sdn Bhd, a 50-50 joint venture company, to develop two wellness property projects in Iskandar Malaysia.

“The marketing side for this project is being done by UEM Land Holdings Bhd (owned by Khazanah Nasional), while the project management side is being done by Mapletree Investments Pte Ltd (a subsidiary of Temasek), and Capitaland (the controlling shareholder of which is Temasek) for the Ophir-Rochor project,” explained M+S chairman, Tan Sri Azman Yahya on the separation of duties among the joint venture partners. “So far, the schedule of Marina One’s development has been on time, and we are pretty happy with the progress of the development. We’ve already started the piling works.”

Reclaimed from the sea, the land at Marina South was earmarked in the 90s by Singapore’s Urban Redevelopment Authority as the city state’s new global business and financial hub. The nearby Marina Bay, meanwhile, is Singapore’s 24/7 lifestyle precinct which offers world-class leisure and cultural destinations like Marina Bay Sands, the Singapore Flyer, the ArtScience Museum and the recently opened Gardens by the Bay.

Marina One was designed by Ingenhoven Architects from Germany. Its defining feature is a green open space, termed a “green heart”, in the middle of the four towers. Although surrounded by landmark buildings, the architecture firm’s founder Christoph Ingenhoven promised at the ceremony that the development will not have a “wild design” but instead be practical and space-efficient.

Like Marina One, the Ophir-Rochor project will be unveiled before the year end, said Azman. “We’ve already submitted the design for approval, as a combination of commercial, residential and hotel, as well as a small retail component. It will be another beautiful iconic design by Ole Scheeren (who designed another UEM Land project, Angkasa Raya in Kuala Lumpur).”

Dispelling talk of the two countries’ historically stormy relationship, Azman stressed that the working relationship between both countries’ representatives has been excellent. “M+S is a very commercial organisation with a very commercial objective, so we made it quite clear that our objective is to create as much value from this land that we have,” said Azman. “It’s pretty simple.”

Both sovereign wealth funds stand to gain much value from the burgeoning Singapore property market. Marina One’s residential component alone will net 1,042 units, and with surrounding new developments reported to already command over SGD2,000 (about RM5,000) per sq ft, market watchers expect pricing for the apartments to achieve SGD2500 (about RM6,300) per sq ft or more.

Commentators also expect the properties within Marina One to be marketed to foreigners as much as to locals, given its central and cosmopolitan location, with roadshows expected throughout the region.

With optimistic perceptions of the progress so far, the two countries seem to have found a balance which satisfies their respective real estate needs. It’s all smiles indeed as the previously squabbling partners now reunite and look forward to the impending birth of their first joint creation.

 

Source by: The Sun Daily

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How Extremely Successful People Sell Their Ideas Internally

Unless you are CEO, or a member of the C-Suite at the very least, you generally can’t convince your organization to create a new structure, but you can persuade it to perhaps attack a given problem from an unusual angle. (“Hey, boss, can we think about this one differently?”) That you can do, especially if what you follow up with is a way to save the organization money, or operate more efficiently. (More on this in a minute.)

 

You can complain “I don’t have any leverage; I can’t change the cubicles, I can’t rewrite the reward system. And the answer is “No you can’t; don’t even try.”But simply through your own thinking, and getting other people to think differently as well, you can have enormous impact without changing any of that stuff even if you are not a member of the board.

The simple fact is “smart is smart,” and we’re talking about you offering up an additional way of viewing problems. You’ll never get in real trouble for doing that, especially if you do it gently by saying “can we think about this in another way?”

With that throat clearing complete, here are seven proven steps you can take in introducing new ideas in your, or any, organization:

 

 

1. Link what you want to do to a business imperative. This is just about always fatal if it is overlooked—and it generally is. That’s a shame since it is so easily addressed. Yes, of course, the idea of the rocket backpack that will allow us to fly to work is exciting, but if you work for a company that makes ball bearings it is hard to see the fit.  You want to begin the conversation by being able to say something like, “you know, the organization has thebusiness goals of A, B, and C. (You can talk about organizational goals—such as improving team work—as well, but odds are you will find a more receptive audience if you start with business goals.)  I’ve got an idea that I think will fit perfectly.”

2. Produce obvious, “local” business results.Don’t focus on organizational or cultural change. Prove the efficacy of your idea in the vocabulary and currency of your organization. Sure, it would be nice if you could change your organization into “the nextGoogle” overnight, a firm that is willing to go wherever the market takes it.  But if your boss’ goal is to have the highest performing region in the company, that (a la point number 1) is the place to focus your attention.

3. Make sure there is sufficient autonomy. The unit(s) or individuals working on the new idea must have enough freedom to be different and protected from the “restorative forces” the organization will impose (even in spite of itself.)  What this means for you and your project is this. Don’t worry about getting everyone committed. You don’t need to! There are four postures people can adopt: keep it from happening, let it happen, help it happen and make it happen. Obviously, you don’t want anyone in the “keep it from happening mode” if you can avoid it. But most people simply have to “let it happen.” You and (and maybe a few others) have to “make it happen.” Your boss (and maybe a few others) have to “help it happen” and create a buffer around you. So, rather than asking “how do I get everybody committed to my idea” keep asking yourself: “What is the least amount of commitment I need to move forward.”

4. Volunteers only, please. Only people who wantto can play.  This is another important and often over-looked point.  It’s not a good idea to compel anyone to work on an initiative.  If you do, at the first sign of push back, they are likely to start looking for excuses to go back to doing “their real jobs” (in the way they have always done them.) Changing anything is hard enough without working with people who aren’t committed.

5. No big “kick off” announcements.  Focus education, and the like, initially only on the people who need it, i.e. the people who are going to help you implement your idea.  Their boss and their boss’ boss?  Not so much.

6.  Manage expectations.  In early phases, keep it low key. Keep it relatively quiet and offer only enough public announcements to allow your sufficient autonomy. Don’t mislead people into thinking that things will change quickly or that their lives will be different (except for the people actually involved in the project.)  At all times your mantra should be “under-promise and over-deliver.”

7. Build on successes and manage pace and momentum. Learn what works and what doesn’t. Make sure you’ve got a small bonfire going before you spread the coals. Pick up a couple of small wins before trying to go any further.

 

Source by: Forbes

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Living large in a compact house

A young couple’s determination to build their own house on a small plot of land in Jakarta, led them to the office of award-winning Indonesian architect Sontang M. Siregar.

Known for his minimalistic concept and industrial chic, the celebrated architect made a name for himself after winning several awards for a “micro house” he designed and built in 2007.

In Jakarta, life generally isn’t easy even if you’re from the professional class. Despite the country’s rising economic performance in recent years – IMF reported that Indonesian GDP has reached US$3,509 in 2011 – the middle-class in Jakarta still find it difficult to buy a home.

RM100,000 house  Property owner Chairi Reza, who is also an architect, was convinced that Sontang was the right person to help design his new house for the 100sq m plot that he owned. The challenge was to build it for about RM100,000.

But it only took Sontang one week to come up with a design concept and budget allocation.

“We soon agreed on the layout, material and budget. The allocation of RM100,000 would include my fee, electronic goods and the cost of building,” explains Sontang.

The result was a cutting-edge, two-storey house with three bedrooms, three bathrooms, a kitchen and a porch big enough for two cars.

How on earth did they manage to build such a house?

Reza and his lawyer wife were lucky because their land only cost 40mil Rupiah (about RM13,000). This price is a real bargain in a city with over 28 million inhabitants sharing 740sq km.

Says Reza: “We bought this land from family members who were living here since the 1970s. They wanted to sell it fast and we wanted a bargain.”

Although there was an existing house, Reza and his wife knew that they wanted to build a new home. The couple took another two years to save enough money to build.

 

Peek-a-boo: What looks like a feature wall is actually a plywood partition. When it is opened, the space behind has a multiple-purpose function. A single guest bed can be folded into the cabinet.

 

Efficient design  Sontang designed the house with medical precision. The height of the ceiling is exactly 2.4m and the kitchen is just wide enough for two adults to walk pass each other.

 

Budget constraint: In order to save costs, the architect ensured that the height of the ceiling is exactly 2.4m which is the standard length of a plywood.

 

Sontang insists that such precise measurements were important to reduce the building cost while at the same time, allowing the limited space for better use.

“In the market, the length of a plywood sheet is 2.4 metres. If the ceiling is higher than that, I would have to buy at least two sheets to cover the wall with this material – that would be a waste of money, right?” points out Sontang.

In order to save money, Sontang also excluded conventional elements that he deemed unnecessary. There is no entranceway, hallway, inner walls nor living room.

“One of the most important things when designing a micro home is the storage space. The staircase in this house functions as drawers and wall cabinets,” says Sontang.

Concealed cabinets for storing toys, kitchen appliances and other accessories are effective in making efficient use of space. Thus, giving an airy feel to the house.

Cubic structure  The house facade features a plain, white wall with three square windows of varying sizes. Since there’s no visible door, anyone could have mistaken this part as the back of the house.

“This house looks oddly intriguing and that was my intention,” quips Sontang, “There’s a sense of mystery that keeps you wondering about the cubic structure. Normally, the first question is ‘Where’s the door?’”

 

Spacious: Concealed storage space in the hidden cabinets and cube chairs help in creating a clutter-free environment.

 

Clue  The first clue to finding the main door is a small garden and a line of lights that guide visitors to a lane, to the right side of the house. The path – 1.2m in width – leads to a sliding, glass door that also functions as a window in the family space.

“I purposely used a sliding, glass door to bring light into the house.

Aesthetically speaking, I also wanted to highlight the wall texture between the indoor and outdoor areas,” explains Sontang, pointing to the remaining structure of the old house outside the door.

 

Industrial: The architect left part of the outdoor walls unfinished. The rough space stands in contrast to the painted, white indoor surface.

 

Adds Reza, “On the other side of the house, is the kitchen and maid’s quarter. Dividing the family area from the kitchen is a flight of stairs that lead to the first floor, where the study and two bedrooms are located.”

Ingenious  What’s ingenious is the guest room, which is actually part of the family area. What looks like a feature wall here, is actually sliding plywood sheet, allowing the room to serve multiple purposes. A single bed for the guest can be folded into the cabinet.

In spite of the industrial finish, the house has proven to be cosier than Reza expected. He adds that the novelty hasn’t worn off after a year living here.

 

Source by: The Star

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Invest in Melbourne condos and enjoy great rental returns

GEORGE TOWN: Good rental returns and consistent value appreciation are among the key attractions of Melbourne’s property market.

in2money director Carlo Lorusso said foreigners were attracted to property in Melbourne because there was a consistent annual 5% rental yield from condominium property priced between AUS$400,000 (RM1.28mil) and AUS$650,000 (RM2.8mil) in strategic locations.

”After deducting the loan interest from foreign banks and building maintenance fees, you will still get a net profit of 2%, which is tax-free,” he added.

Lorusso was speaking at a talk on ‘Tax Effective Australian Property Investment’ on the third day of The Star Property Fair 2012 held at Gurney Plaza and G Hotel.

Most foreigners invest in condominium property located in the prime suburbs of Melbourne such as Carlton, Brunswick, South Yarra, and Fitzroy, he said.

These property are located about 6km from the central business district but are near amenities such as shopping malls, cinemas, schools and hospitals.

“Then there is the negligible stamp duty for new property purchased. If you buy resale property, the stamp duty is 5%, which means you pay between AUS$20,000 (RM64,000) and AUS$25,000 (RM80,000).

“But if you buy new property, the stamp duty is less than 1% about AUS$2,000 (RM6,400) to AUS$3,000 (RM9,600), he said.

Lorusso said if foreigners were to buy property approved by Australia’s National Rental Affordability Scheme (NRAS) and agree to lease the property via NRAS for 20% below the market rental value, they would get a tax-free rebate of AUS$10,000 (RM32,000) a year for 10 years.

“We have about 30 such NRAS approved property for sale which are located near the central business district of Melbourne.

“These property are priced between AUS$400,000 (RM1.28mil) and AUS$600,000 (RM1.92mil),” he said.

Meanwhile, Property Talk director Steven Cheah said Melbourne was the top investment destination for Malaysian property investment funds.

“This is because many Malaysians have relatives, who have migrated to Melbourne, where you can find a variety of Malaysian restaurants,” he said.

“According to the latest research from Australian Property Monitors, over the last five years, Melbourne had been the standout performer among the major capital cities for house price growth, with prices increasing almost 30% in just 15 months,” he added.

Investments from Malaysia into Australia’s property market were expected to grow by about 15% this year from RM125mil in 2011, Cheah said.

 

Source by: The Star

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