SM Magazine September 2014

1

SEPTEMBER 2014

magazine

SEPTEMBER 2014

Property Edition

Top 5 Tips when Buying Your 1st Property How to Insure Your Home Loan?

Size Matters - Beware of Property Square Feet Mismatches

2

SEPTEMBER 2014

y p p Ha

y a D a i s y a Mal

16 September 1963

From:

SEPTEMBER 2014

Contents & Editor’s Note

CONTENTS 4 FINANCE • Best Junior Savings Accounts in Malaysia Publisher Saving Plus Sdn. Bhd. Redberry City, Lot 2A, Jalan 13/2, 46200 Petaling Jaya Selangor D.E., Malaysia.

7 TECHNOLOGY • Best Budget Phones Under RM1,000

Editorial Hann Liew Balkish Rosly Eugene Chua Diana Chai Winnie Wu Nadia Asha Chester John

9 LIFESTYLE • How to Get Your Loan Application Rejected in 15 “Easy” Steps

Design Komalah Sithamparam Tag Teoh

11 SM PROPERTY EDITION • Size Matters - Beware of Property Square Feet Mismatches

Advertising Lucas Ooi For more information on products and services, please feel free to contact us.

• Click www.savemoney.my © Copyright. Saving Plus Sdn. Bhd. (Company 1081989-D) 2014.

All rights reserved.

• How to Insure Your Home Loan?

• Top 5 Tips when Buying Your 1st Property • Buying a Property Near a Cemetery Yay or Nay?

19 JIMATCERMAT.MY

www.facebook.com/SaveMoneyMy www.twitter.com/SaveMoneyMy

• Kami Tidak Kedekut! Perbelanjaan Penting Menurut Rakyat Malaysia

www.savemoney.my theeditor@savemoney.my

20 SAVEMONEY TRAVELLER

1

SEPTEMBER

2014

magazine

• 5 Cities with the Cheapest Luxury Hotels

ER 2014

SEPTEMB

Property Edition

22 SAVEMONEY TOP PRODUCT TABLES g when Buyin Top 5 Tips perty Your 1st Pro ure Your How to Ins ?

Home Loan

Editor’s Note Hey folks!

perty

of Pro rs - Beware s Size Matte he et Mismatc Square Fe

We welcome any comments or feedback.

Tweet, e-mail, or Facebook us to share your Money Saving experiences!

Thinking of purchasing a property? For those who are nodding vigorously, the SaveMoney Magazine team welcomes you! Look no further, because this month’s issue is packed with plenty of information and tips for property newbies and connoiseurs alike.

Disclaimer

Since we are the SaveMoney team, our first concern when it comes to property (and everything else, really!) is the price tag. We can’t help it, we are trained to ask “this one, how much?” for everything under the sun. Purchasing a property is no laughing matter, which is why YOU have to make sure that you’re not forking out more than you should on that dream home of yours - do take a closer look at the “Size Matters - Beware of Property Square Feet Mismatches” article.

Whilst SaveMoney uses a journalistic approach to deliver the best consumer guides, tips, tools and tricks, we cannot guarantee everything to be perfect. Therefore in using our site, you are agreeing to peruse all information at your own risk, and you acknowledge us for who we are and accept that we are not perfect. We are unable to assume the responsibility, nor do we accept any liability if things go wrong.

Let’s talk about the taboo surrounding properties near cemeteries - would you dare to build a life in a house that’s in close proximity to those who have passed on? Don’t be too quick to say no! There are quite a few advantages in purchasing a property near a graveyard - our writer has written down both sides of the argument in her “Buying a Property Near a Cemetery - Yay or Nay?” article.

The content we produce are general in nature and should not be construed as financial advice. Always do your own additional research to meet your own specific goals and requirements. Any action that you take as a result of information, analysis or commentary in the magazine is ultimately your own responsibility.

Property talk bores you? Not to worry, we have plenty of other articles that will surely grab your attention. Just keep flipping these pages, MoneySavers!

We may link you to other sources, but we are not, and cannot be responsible for their content.

Balkish Rosly

3

4

SEPTEMBER 2014

Finance

Best Junior Savings Accounts in Malaysia

By Hann Liew

K

ids have it best, don’t they? After all, they get free money all the time! As parents, it is your duty to start educating your children on the importance of saving money for the future.

Why not start by opening a child or junior savings account for your little ones? Banks in Malaysia offer high rates on these accounts, yet plenty of parents are underutilising the high interest rates available to them.

Once your children see that funds can indeed grow, they will be more than encouraged to save up more and more. Wouldn’t that be a great life lesson for your young ones?

A child or junior savings account is much like your average savings account, but with a key difference: Only those aged below less 18 (or 12) years can open a junior savings account.

Typical features that you will find in a child savings account includes: 1.

High interest rates on the first RM100,000 or RM50,000 saved

2.

Limited OTC / ATM withdrawals per month (usually once)

3.

Rewards / Freebies / Incentives for account opening or passing Government Examinations (UPSR / PMR / SPM)

Why Open a Child / Junior Savings Accounts?

Three words; High interest rates! “Regular” savings accounts might give you up to 2.90% p.a., while interest rates on junior savings accounts could go as high as 3.38% p.a.

SEPTEMBER 2014

Finance

Top Child Savings Accounts in Malaysia All junior savings account provide interests to your child’s savings, but which is the right one for you? To help you make the decision, take note of the amount that you’re planning to deposit. Here, we split the categories into two types.

1st Account Type: Below RM250,000 SM Tip: To get higher interest rates, combine accounts if you have less than RM250,000 in deposit.

Parents who want to deposit less than RM250,000 into a junior savings account have plenty of options to choose from. Prepare to be amazed; there are plenty of banks that offer up to 3.15% p.a. for your child’s savings! However, most top players have a similar pattern of offering a stunning ~3.00% p.a. for the first RM50,000 or RM100,000 and a pitiful 0.30% p.a. to 1.50% p.a. for the remaining amount - so be smart! Even if you have more than RM50,000 savings for your child, consider splitting the amount between the top banks.

RHB Bank Junior Savings Account – Top rate at 3.17% p.a. on balances up to RM100,000 + Free PA Insurance for your child Interest Rate: Below RM100,000 : 3.17% p.a.

Above RM100,000 : 0.70% p.a.

Interest Credited: Bi-annually Age of Child: Under 18 years (trust accounts available for kids under 12 years old) Minimum Amount: RM1 (save >RM500 to qualify for PA insurance!)

Withdrawal Restrictions: 1x per month Account Closing Fees: RM20 if account is closed within 6 months Bonus Features: 1. Free Child’s Personal Accident insurance on balances above RM500 2. Insurance coverage is 5x of balance amount up to RM50,000 (so balances of RM10,000).

Freebies: None Drawback: Very low rate of 0.7% p.a. on balances above RM100k

Maybank Yippie / Yippie-i Savings Account – Good rate at 3.15% p.a. on balances up to RM50,000 + Free PA insurance + Exam Performance Awards Interest Rate: Below RM50,000 : 3.15% p.a.

Above RM50,000 : 1.45% p.a. (Yippie) / 1.55% p.a. (Yippie-i) Interest Credited: Bi-annually Age of Child: Under 18 years Minimum Amount: RM1 (but save > RM1,000 to earn the Bonus Features!)

Withdrawal Restrictions: 1x per month Account Closing Fees: RM20 if account is closed within 3 months Bonus Features: 1. Free Personal Accident insurance on balances above RM500, insurance coverage is 7x of balance amount up to RM70,000 (so RM10,000) 2. Cash rewards for exam performance (PMR/SPM/STPM/Degree): Exam performance criteria: Maintain RM1,000 in account during exam year 1. PMR: 7As or more gets your child a RM100 cash award 2. SPM: 8As/A+ or more gets your child a RM200 cash award 3. STPM / A-levels: 5As / 4As and MUET Grade 6 gets your child a RM300 cash award 4. University Degree: 1st Class Honours gets your child a RM500 cash award Freebies: Coin box (with minimum RM250 deposit) Drawback: Low rate of 1.55% p.a. on balances above RM50k

5

6

SEPTEMBER 2014

Finance

AmBank AmGenius – Good rate at 3.15% p.a. on balances up to RM50,000 + Free PA Insurance for your child Interest Rate: Below RM50,000 : 3.15% p.a.

Above RM50,000 : 1.00% p.a.

Interest Credited: Monthly Age of Child: Under 18 years Minimum Amount: RM1 (but save > RM300 for coin box) Withdrawal Restrictions: 1x per month Account Closing Fees: RM20 if closed within 6 months of opening Bonus Features: Free Personal Accident insurance Freebies: Coin box (with minimum RM300 deposit) Drawback: Limited branch network, low rate of 1.00% p.a. on balances above RM50k

2nd Account Type: Above RM250,000 (SM Tip: Great if you have more than RM250,000 for your child’s savings, or if you don’t want to open multiple accounts) For those who wish to save over RM250,000 but don’t want the hassle of making multiple trips to different banks, than these accounts might suit your need.

Affin Bank Junior Saver / Junior Saver-i – Up to 3.38% on VERY large balances + Free PA insurance for your child In-credit Interest Rates: 0.50% p.a. : Balance < RM1,000 1.00% p.a. : RM1,000 < Balance < RM5,000 1.90% p.a. : RM5,000 < Balance < RM20,000 2.80% p.a. : RM20,000 < Balance < RM100,000 2.85% p.a. : RM100,000 < Balance < RM500,000 3.10% p.a. : RM500,000 < Balance < RM1,000,000 3.38% p.a. : RM1,000,000 < Balance Interest Credited: monthly Age of Child: 14 days - 18 years Minimum Amount: RM1 (but if you have less than RM50,000 go for the 1st account type!)

Withdrawal Restrictions: 1x per month Account Closing Fees: RM20 if closed within 6 months of opening Bonus Features: Free Child’s Personal Accident insurance, insurance coverage is 5x of balance amount up to RM50,000 (so balances of RM10,000).

Freebies: None Good for: People who have a lot of money for their children and don’t mind storing a large sum in one bank Drawback: limited branches, only high interest (higher than 1st account types) on balances above RM500,000

Other Options While we do not give any investment advice, if you are saving for the long term it might be worth thinking about investing rather than saving.

With investments, you may be able to earn higher returns but suffer risk of loss of your capital. If you don’t want the additional risk but still want to save long term for your children, why not consider putting your child’s money in a long term Fixed Deposit?

SEPTEMBER 2014

Best Mid-Range Budget Phones under RM1,000

T

Technology

7

By Balkish Rosly

he smartphone marketplace is booming more so then ever, thanks to flagship models like the Apple iPhone 5, Samsung Galaxy S5, and Goole Nexus 5. Take Samsung, for example; the company’s mobile business provided an operating profit of close to 4.42 trillion Won in the second quarter of 2014!

It is easy to see why; smartphones these days are equipped with plenty of benefits other than just good ‘ol text, call, and photo snapping features – and these features are marketed heavily to encourage tech geeks to purchase a newer model every time. However, all of these arguably handy innovations do not come cheap - a peep at the hefty price tags confirms the theory. So, is there such a thing as a good smartphone on the cheap? You bet!

Our top sleuths went on a smartphone hunt to compare the top budget phone (under RM1,000) currently available in the market. Of course, we are talking about budget phones here, so comparison between these mid-range devices and top-notch hotties from Apple or Samsung is, you guessed it, impractical. These devices are not up to par with superior phones like the Apple iPhone 5 or Samsung S5, but for their midrange level, these models top the market.

Note: If an Apple iPhone is what your heart desires, then look away now! Apple doesn’t make budget devices, so it’s best to try your luck at searching for a second hand iPhone model instead.

Nokia Lumia 625 LTE 8GB (around RM572) vs. Nokia Lumia 620 (RM482 and above) Specification

Nokia Lumia 625 LTE 8GB

Nokia Lumia 620 8GB

Display

4.7-inch display 480 x 800 pixel resolution (201 ppi pixel density)

3.8-inch display 480 x 800 pixel resolution (245 ppi pixel density)

Camera

5MP autofocus primary camera and VGA secondary camera

5MP autofocus primary camera and VGA secondary camera

CPU

Dual-core 1GHz

Dual-core 1.2GHz

Chipset

Qualcomm Snapdragon

Qualcomm Snapdragon

OS

Microsoft Windows Phone 8, upgradeable to x8.1

Microsoft Windows Phone 8, upgradeable to x8.1

Release date

August 2013

January 2013

First of all, Windows have fewer apps than Android or Apple. According to Digital Trends, Android and Apple (iOS) have around 1.2million apps while Windows offer around 245,000 apps. That does not mean that Windows phones are all that bad, though. Under the RM700 range is the Nokia Lumia 625 and its predecessor Nokia Lumia 620 – the 625 has a bigger screen and packs 4G connectivity, but the older 620 has a better pixel density. In conclusion, Nokia added the size and faster connectivity while sacrificing the screen quality to make way for a lower price tag.

Based on the reviews that we’ve seen, Nokia Lumia 620 is better that its successor. Despite that, make your own decision by fiddling around both models before making a purchase!

Motorola Moto G Non-LTE (RM599)

: Release Date

013

November 2

Specification Display: 4.5-inch display / 720 x 1280 pixel resolution (326 ppi pixel density) Camera: 5MP autofocus primary camera and 1.3MP secondary camera LTE enabled: No CPU: Quad-core 1.2GHz Chipset: Qualcomm Snapdragon 400 (LTE) OS: Android KitKat 4.4 operating system Yes, it’s “Hello Moto” rola! Back in those days when phones weren’t so smart, Motorola and its oh-so sophisticated flip phones dominated the mobile market (you could take a selfie with the “flip” part of the phone!). These days, Motorola may look like it is drowning in the dominating sea of Samsung and Apple phones, but the highly underrated Motorola G shows that this mobile Giant still got game. First things first, the price; the non-LTE version of Motorola G is priced at RM569 to RM599 minimum, but the upgraded LTE version is more costly at RM700 and above – which is still within our price range.

The Moto G comes with a 4.5-inch, 1280 x 720 display and boasts a 329ppi pixel density. To put that in some perspective that’s a bigger, higher resolution and more defined display than the iPhone 5S (4.0inch with 640 x 1136 pixels) - not bad for a handset which is a third of the price.

Of course a HD display isn’t the only key factor in a smartphone, but Motorola has managed to equip the Moto G 4G and G with a 1.2GHz quad-core Snapdragon 400 processor and 1GB of RAM.

8

SEPTEMBER 2014

Technology

Samsung Galaxy Ace 3 LTE (around RM570 to RM660) ne 2013

Release Date: Ju

Specification Display: 4.0-inch display / 480 x 800 pixel resolution (233 ppi pixel density) Camera: 5MP autofocus primary camera and VGA secondary camera LTE enabled: Yes CPU: Dual-core 1.2GHz Chipset: Qualcomm Snapdragon 400 (LTE) OS: Android Jelly Bean 4.2 operating system

This Samsung phone’s specifications are nowhere near that of the “S” and “S Mini” family, but it definitely fares better for your pocket. In the literal sense too, because it is smaller than those superior Samsung models! Unlike the original Galaxy Ace, this one comes with 4G connectivity. That’s faster internet, everyone. With its dual-core 1.2GHz and low pixel resolution, this model pales in comparison to the likes of Motorola G – which comes with quad-core 1.2GHz.

Sony Experia SP (around RM670)

Release Date: April

2013

Specification Display: 4.6-inch HD display / 1280 x 720 pixel resolution (319 ppi pixel resolution) Camera: 8MP autofocus primary camera and VGA secondary camera LTE Enabled: Yes CPU: Dual-core 1.7GHz Chipset: Qualcomm Snapdragon S4 Pro OS: Android Jelly Bean 4.1 and can be upgraded to Android KitKat 4.4 For a mid-range smartphone at ~RM700, the Sony Experia SP is not bad, not bad at all.

We expect what draw users on a smartphone budget to this nifty gadget is the 8MP back camera – perfect for those Instagram addicts who crave for better quality pictures. It is also packing 4G connectivity on the go that works well with its dual-core Snapdragon (Note: Most flagship phones are built with quad-core CPU).

Xiaomi Mi3 (RM769)

Release Date: May

2014

Specification Display: 5.0-inch display / 1080 x 1920 pixel resolution (441 ppi pixel density) Camera: 13MP autofocus primary camera and 2MP secondary camera LTE enabled: No CPU: Quad-core 2.3GHz Chipset: Qualcomm Snapdragon OS: Android Jelly Bean 4.3 Xiaomi Mi3, at RM769, is a handy gadget for those who is looking for a smartphone on a budget - but this baby is not equipped with the fast 4G LTE network. No matter, 3G can still give you fast internet!

Already a hot item amongst Malaysians, the Xiaomi Mi3 is the latest smartphone to burst its way into the growing Malaysian market via Beijing based tech company Xiaomi Inc.

Samsung Galaxy S3 LTE (RM849) Specification

012

ptember 2

ate: Se Release D

Display: 4.8-inch display / Super AMOLED capacitive touchscreen / 720 x 1280 pixel resolution (306 ppi pixel density) Camera: 13.1MP autofocus primary camera and 2.1MP secondary camera LTE enabled: Yes CPU: Quad-core 1.4GHz Chipset: Exynos 4412 Quad OS: Android Jelly Bean 4.1 The only one hi-spec gadget in our list, the Samsung Galaxy S3 LTE has been available in the market for over two years now, but with the recent update to Android 4.3 Jelly Bean and further price reductions thanks to the recent introduction of the Galaxy S5, there’s still a lot going for the ageing handset. It may have been two years ago but Samsung made a big deal about this phone at launch and it is easy to see why. Sales topped 30 million in November 2012, and given the amount of people seen rocking the handset, those number seem to bear a hallmark of truth. *Prices taken from PricePanda.com.my

SEPTEMBER 2014

Lifestyle

9

How to Get Your Loan Application Rejected in 15 “Easy” Steps

By Balkish Rosly

T

here are whispers on the street that bank credit officers consume nothing but cute kittens for breakfast. But fret not, our experts have proven that to be a mere myth.

You see, the banks’ loan officers are not big bad wolves who rip your loan application into a million tiny pieces (they delegate that task to the paper shredder instead!). If you’re looking for something to blame for your loan application rejection, look no further than your credit report created by the bank.

Uh-oh, here comes the crunch: Different banks have their own policies and internal method of measuring your credit score when it comes to loan approvals, but your own melange of poor banking habits and credit history could be your own avada-kedavra; that’s the death spell, in case you don’t know.

But let’s not worry ourselves silly, MoneySavers! If you haven’t committed any of these missteps, then you are in the clear! So how do you get loan application denied? Easy-peasy, just follow these no-no’s ahead.

But first, what is a credit report?

A credit report is a menu that serves up your past financial information; in Malaysia, the two main authorities that collect your financial footprints are the Credit Bureau (under Bank Negara Malaysia) and CTOS (a private entity), among others. These pesky reports are often used as by banks as references towards loan applicants that have come their way.

The five sections in

CTOS:

Identity verification Full name and company or business registration number. This section helps to prevent fraud and identity theft.

Internal list / group exposure A company’s own information and reference regarding on a customer. No one has access to this section aside from their own internal personnel.

What is stored in CCRIS: Outstanding credit facilities Current loans and other debts like credit cards Applications for credit facilities All applications approved in the previous 12 months (minus those that have been rejected, deleted or cancelled) Special attention accounts Accounts with several late payments or any outstanding accounts that are under close supervision by financial institutions.

Directorships and business interests A record of directorship and shareholdings; banks use this section to help verify applicant’s actual income.

Legal Actions Bankruptcy information, legal actions, and case statuses.

Trade Referees Companies that may want to share their business experience; for example, telcos and utility companies might referenced you if you have multiple unpaid bills and so forth.

So, feeling like getting your loan application denied in 15 “easy” steps? Read on!

10

Lifestyle

SEPTEMBER 2014

u o y t e G o t s p e t S ” y s a 15 “E d e i n e D n a Lo 1.

Pay your bills later than the due date! In fact, do this multiple times! A 60-day late payment is good, but a 90-day late payment is better; the banks will probably say no faster than you can say “please”.

2.

Apply for more than you can reasonably pay off.

3.

Ensure your debt-to-income ratio (the amount of your monthly debt owing compared to your monthly income) is way high. To make it even better, make your monthly debt totals more than your monthly income; that will surely get the bank personnel to vigorously shake their heads.

4.

Have zero collateral. No cars? No house? No expensive shoes? Sorry ladies and gents, no loan for you.

5.

No credit history. This doesn’t necessarily mean you’ll get denied for your loan request, but it might be harder for you to prove you can pay off a loan with no problems if you have no history to evidence it.

6.

Have you been a terrible customer to that particular bank? Good, that will surely sway them to the “no loan” direction!

7.

Keep your account in overdraft constantly without going back.

8.

Make sure all of your credit cards are used up to the maximum level.

9.

Don’t bother saving any money. Even if evidence shows that you have been using your savings to pay down debt, the bank might still cast doubt on you.

10.

Have no permanent address. Also, change jobs 20 times in a year.

Most banks hate inconsistency.

11.

If you’re self-employed, make sure to claim as little income as possible - which some people do to evade taxes. Ergo, that income will be insufficient for the credit you’re seeking. Denial confirmed!

12.

Show proof of fluctuating (sometimes negative) monthly income. It’s a cruel world out there, but it is harder for a self-employed or a parttime worker to get loan approvals. So flaunt that fluctuating income and make it clear that you have no idea how much you’ll be paid next month!

13.

Have a bankruptcy under your belt. After filing for bankruptcy, there’s a certain amount of time and the matter of paying it all back, before you can seek other credit.

14.

Constantly miss payments on your credit card with high balances.

15.

Have your home foreclosed, or your car repossessed.

So how do you get your loan approved? By doing the exact opposite of the above! On another note, one tiny financial mistake does not mean that the bank will issue a code-red against you. Now that we know what NOT to do when it comes to managing our finances, let’s aim for that perfect credit score for each bank!

SEPTEMBER 2014

SM Property Edition

Property Edition

Size Matters: Beware of Property Square Feet Mismatches

by Shaun Lee

I

magine this, it’s a Saturday afternoon and you have arranged for a viewing of a condo unit in a development that you have had your eyes (and heart) on for a while. The development has good security, lush mature gardens, with gorgeous water features along with tranquil plants to match.

This particular unit that you have arranged to view was advertised in The Star Classifieds as a 2,000sf duplex unit for sale at RM650k negotiable. Even before you step foot into the unit, you know the feeling is right. And lo and behold after viewing the inside of the unit, you decide to make an offer for the place.

The agent was quick to reduce the price to RM600k but the figure you had in mind was closer to RM580k so you negotiated further, but after rounds of lengthy negotiations the final price was agreed at RM590k (though you did ask for ALL the furniture in the house, white goods and LCD TV! at that price).

Now you proceed to request for a copy of the original Sale & Purchase Agreement from the seller to confirm the square footage of the unit (It’s best practice to do so before paying the 2% earnest/booking deposit as it safeguards you from potential disputes with the seller.

Alternatively, you can do a manual insertion on the booking receipt that the offer is subject to confirmation of the actual square footage of the unit). When you finally get hold of the original Sale & Purchase Agreement, it comes to your attention that the unit is only 1,926sf in size! So you asked the agent, “What happened to the other 74sf?”

Size Matters • At RM590,000 for 2,000sf, the price per sq foot is RM295.00 • At RM590,000 for 1,926sf, the price per sq foot is RM306.33 • Difference in price per sq foot is RM11.33 • At the original agreed price of RM295 psf, you should only be paying RM568,170 (RM295 x 1,926sf) for the unit i.e. RM21,830 less than the agreed price.

The sale falls through as both parties could not agree on the price. You were left high and dry. So was the agent who failed to seal the deal.

So when making an offer for a place, confirm all that you need to know with the seller before paying your earnest/booking deposit. It’s only right (and fair) to know what you are actually getting before you could begin negotiations. Otherwise, it will end up being a guessing game that is to your clear disadvantage!

Real estate agents, if you are reading this, please ensure you confirm the unit size of the properties that you are marketing so you are not left high and dry when you are so close to closing a sale. It’s only in everybody’s interest for you to do so!

11

12

SEPTEMBER 2014

SM Property Edition

Property Edition

How To Insure Your Home Loan?

or You can insure anything these days, from your car or bike to your home contents or holiday, but did you know you can insure your mortgage too? Read our basic guide to MRTA and MLTA and find out which option is best for you.

There are definitely plenty of insurance plans out there. You can insure anything from your car to your pancreas and lately even your pet cat. But more commonly, you can also opt to insure your mortgage or as it’s widely known; home loan.

What is the point of insuring your home loan? Well, typically it’s to pay off your loan in the unfortunate event that you can’t. Usually, death and permanent disability are the events that these insurance policies cater to so you can’t use it if you’re simply down on your luck and out of work. Or just lazy.

But we digress. If you’d like to insure your mortgage and protect your family from losing their home to credit collectors when you pass on; this is the product for you. But as with any kind of insurance; mortgage insurance also come in different types. At present, there are two: the Mortgage Reducing Term Assurance (MRTA) and the other one is the Mortgage Level Term Assurance (MLTA).

MRTA vs MLTA Here's the lowdown on the two. To start you off; we made a super simple chart to show you the differences between the two insurance types. Though the purpose is the same; you’ll notice they are quite different creatures.

MRTA

MLTA

Purpose: Protection

Purpose: Protection, Savings and/ or Cash Value

Coverage: Covers the outstanding housing loan on a decreasing sum assured basis

Coverage: Covers the outstanding housing loan on a fixed level sum assured basis

Payment: Lump sum payment by cash or financed onto housing loan

Payment: Paid periodically on a monthly, quarterly, semi- annually or annual basis

Total Premium: Lower

Total Premium: Higher

Nomination: Bank is the beneficiary

Nomination: Anyone can be the beneficiary

Transferability: No

Transferability: Yes

Suitable for*: Where buyer aims to own the house in a longer term

Suitable for*: Where buyer is expected to sell the house in short-term

*The line on suitability is just a suggestion. As always, you’re welcome to choose whichever makes you comfortable. After all, insurance is supposed to make you feel comfortable in the event of a calamity.

SEPTEMBER 2014

SM Property Edition

Property Edition

Do I even need mortgage insurance?

This is a tricky question for sure. Do you need life insurance? Do you need personal accident insurance? For the many of us viewing the glass half-full; these events are either very remote (permanent disability) or really far off (death) so there is truly no need for mortgage insurance. When we have passed on; loved ones can either continue paying the loan or sell the house to repay if necessary. In the best of situations; we would have paid the house loan in full by the time we meet our maker.

But as the realists know; life hardly ever works according to plan. Who knows what tomorrow holds? The very premise of insurance depends on us not knowing when disaster will strike and if you are the kind to feel antsy – you could definitely do with such a policy.

Property agents will of course encourage you to take it. It’s a great policy for them too as it ensures they will get paid no matter what happens to you. But even during a hard sell on the benefits of the policy and the guilt trip about leaving your loved ones peace of mind: always remember that the sole decision rests with you.

Do I have to decide when I buy my house?

The simple answer is No. Insurance agents and banks will always be happy to sell you a policy later in your mortgage if you didn’t buy one on the outset.

Why would they turn away a paying customer? But there are of course things to remember when putting off purchasing a mortgage insurance policy: 1. MRTA requires lump sum payment – can you afford this?

Many who take MRTA upon application of their home loan will add the additional premium lump sum into their loan amount to help pay for it.

Since you can’t do that later on – you must have the full amount on-hand.

2. Does not having mortgage insurance make you squeamish?

Some people just like having insurance and not having a policy even for a short time makes them nervous. If you’re such a person – can you stand having a mortgage but not a mortgage insurance policy?

Once you’ve made a decision; it’s on to the next question – which one should you choose?

Which one is better?

MRTA • The MRTA will pay out based on the amount still owed to the bank.

• MRTA requires only a single lump sum premium payment.

• MRTA is non-transferable - meaning it is tied to this house during this financing period. Should you choose to sell; you cannot take your policy with you to the next property you purchase.

When it comes down to it, which is better will depend on you. If you want a bare minimum policy just to secure your house this time around – the MRTA is the choice for you but if you want something a little extra; the MLTA will be a better option.

In truth, the policies have so many important distinctions that it’s not really possible to say either one is better than the other. As always, after informing you of the distinction; the best thing you can do is make the decision based on your needs.

MLTA • The MLTA will pay the exect amount agreed in the policy no matter how much you owe (this is usually more than the amount owned and based on the value or purchase prices of the property).

• The MLTA will be recurring yearly.

• The MLTA is a policy that follows you (if you so want it to!).

Credit Cards + Personal Loans + Home Loans + Car Loans + Insurance + Internet.

This was brought you by Michelle Brohier from RinggitPlus.com RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Disclaimer: This article is for information only. Nothing in this article is an endorsement, recommendation or suggestion of any banking, monetary or financial institution, product, service or security, in any form whatsoever. It is not, and shall not be construed as, an offer (that is capable of being accepted) of any credit card, or a solicitation or invitation to purchase or otherwise deal with any credit card issuer. The reader must obtain independent and appropriate financial, legal and other advice before dealing with any credit card issuer. This article does not constitute financial, legal or other advice. The views expressed are the writer's own, and do not reflect or incorporate the views of any entity within the Ascension Lab or Saving Experts Sdn. Bhd entities. Nothing in this article binds or incorporates the views of any Entity, or creates legal relationships between the reader and any Entity.

13

14

SEPTEMBER 2014

SM Property Edition

Property Edition

Top 5 Tips

when Buying Your First Property

By Chester John

B

uying your first property? Read this guide to make sure you don’t end up paying more than you need!

There are more factors to consider when purchasing a property other than the location, location, location! Acquiring your first property can be very intimidating yet exciting at the same time. After all, a house will probably be one of the single largest purchases you will make in your lifetime! Aside from scoring a low interest rate on your mortgage, getting the whole process right will be one of the biggest ways to Save Money on your home.

In this guide, we will look at ways to save money on securing your first property.

For this, we want to share with you the Top 5 Tips that you ABSOLUTELY need to be aware of when buying your first property!

Tip 1

Defining Objectives One must be crystal clear of your objectives when buying your property. The two main objectives are:

Own Stay When it comes to buying your first home, it’s very easy to get carried away with finding the perfect home. Sorry to burst your bubble, but perfection does not exist. So be prepared to compromise. You need to be realistic with what you can afford given your budget. So make sure you have a BUDGET and STICK TO IT.

Investment Property investment can be lucrative, but first, are you investing for Capital Appreciation or for Rental Returns?

Generally, the “younger crowd” with high future earnings potential should focus on properties which are likely to provide the highest Capital Appreciation. On the contrary, if you are approaching retirement, then you might want to consider propertis which will preserve its value yet give good Rental Returns to fund your retirement.

If you are buying for Capital Appreciation, you could try peeking at off-plan properties (properties which are sold before they are complete). However, things have changed in the past few years, especially in the Klang Valley, where there is currently an oversupply situation therefore making it very tricky to ‘flip’ properties (flipping is a common term used to describe buying a property on a short-term speculative basis) immediately on completion.

An advantage of buying properties off-plan is that developers usually have very attractive Developer Interest Bearing Schemes (DIBS), making it very affordable for buyers. Under the DIBS, the buyer only has to pay the 10% downpayment upon signing of the Sale & Purchase Agreement (or 30% if you already have 2 outstanding loans), and nothing else until you get the keys to your unit. That’s right, you don’t have to make any progressive payments during the construction period (progressive payments are payments made to finance a housing loan during the course of construction). Typically, you only pay the interest element of your loan during the construction period.

The public should be aware that although this scheme seems to be very attractive, never forget that the developer would have factored in their finance cost during the construction period into the pricing of the property. Other advantages of buying off-plan is that

SEPTEMBER 2014

SM Property Edition

Property Edition developers will usually give away plenty of ‘freebies’ such as free legal cost for your Sale & Purchase Agreement and sometimes even for your Loan Agreements too, which will help reduce your initial capital outlay.

If you are aiming for good Rental Returns, the best plan is to seek properties from the secondary market where the rental yield is likely to have stabilised. Imagine this, if you have bought an off-plan unit which takes 2 years to complete, you won’t be able to collect any rent during the the construction period. Also, competition will be fierce - half of the owners might be looking for tenants as well!

Historically, condominiums and apartments have given superior rental yields* as compared to landed properties. The numbers are decreasing though, probably due to the endless supply of apartments and condominiums. 10 years ago, it was possible to find properties giving yields of 8 – 10% a year. In the current market conditions, you would be lucky to get 7% a year!

Given the current property market, SaveMoney reckons there are two strategies that one can pursue in search of high rental returns. The first being LRT, LRT, LRT. Properties located close to an LRT station have historically enjoyed better capital appreciation AND better rental returns. This doesn’t just hold true in Malaysia, as it’s a trend that is obvious in other countries too. Being within walking distance to an LRT station also gives you a higher chance of finding a tenant sooner.

The second strategy is to go for properties catered to the masses i.e. properties priced below RM300,000 in reasonably central locations. Such properties have a real rental demand and finding a tenant will be relatively easy - in fact, yields of about 8% is easily achievable. The only real risk with this strategy is collection of rent from your tenants, since lower priced properties may come with a higher risk of non-collection of rent, possibly due to the lower income level of tenants.. *Rental yield is calculated as Annual Rental / Market Value of Property in percentage terms. So for example, if the monthly rent for your property is RM2,000 per month, the Annual Rental is RM24,000. If the market property is RM400,000, the rental yield on this property is 6% (ie 24,000/400,000 x 100%).

Warning! Don’t forget to deduct items such as service charges, yearly repairs and maintenance costs and letting agent fees if you are calculating your net rental yield calculations!

Tip 2

Loan Application

Which comes first, the house or the financing? Most of us tend to sprint to the classified section and worry about the bank later. According to the experts, this is a major NO NO! To avoid tears and disappointments, you should always find out how much you are able to borrow from the bank BEFORE you go fishing in the vast sea of properties.

This B to A steps are pretty logical; once you know your spending limit, it is much, much easier to narrow down your property choices! A quick trip to several banks will affirm your budget - yes, several banks. We highly recommend that you build a relationship with several loan officers as they will come in handy when you need to check the valuation of your property (see below).

Don’t be afraid to let your Loan Officers know what rates the other banks are offering you, because this keeps them competitive too. Some banks are known to undercut others but this has to be done before the formal Offer Letter is being issued.

Tip 3

Valuation

When you have found the property of your choice, you are usually required to pay a holding deposit of 2 – 3% of the purchase price to take the property off the market. However, making an offer and paying the holding deposit does not necessarily equate to acceptance. Until the Seller signs the Letter of Offer, nothing is confirmed. Usual conditions on the Booking Deposit receipts (sometimes also known as the Letter of Offer to Purchase) include: The Sale and Purchase Agreement (SPA) to be signed within 14 working days from the date of acceptance by the Seller. Extensions on SPA signing are usually granted at the Seller’s discretion.

You, as the Buyer shall bear your own portion of the Stamp duty and legal fees incurred in relation to the execution of the Sale and Purchase Agreement whilst the Seller will also bear his or her own legal fees.

The Offer to Purchase is subject to the acceptance of the Seller and if and when it is not accepted, the holding/earnest deposit shall be refunded in full to the Buyer without any interest and legal recourse.

As the Buyer, you should always add in a clause to say ‘Offer is subject to the confirmation of the actual square footage of the unit’ in the Offer Letter. Reason being you don’t want to be caught out in a situation whereby the agent tells you it is 1,200sf when it is actually only 1,000sf, which would mean you would be paying much more per square feet. Your lawyers will then be able to confirm this for you whilst in the process of drafting the SPA. Before you pay the holding deposit (also known as Earnest Deposit), make sure you do the following two checks.

15

16

SEPTEMBER 2014

SM Property Edition

Property Edition (a) Valuation of Property If boths parties have agreed upon a price of RM400,000, and you are looking for a 90% loan from your bank, you need to check with your bank that the valuation is ‘up to mark’. Here’s why: If the banks’ valuers only value your property at RM350,000, the bank will approve a loan for 90% of RM350,000 and NOT RM400,000.

What this basically means is that if you really wanted to buy the property, you will need to fork out the difference from your own pocket i.e. RM85,000 [RM400,000 – (RM350,000 x 90%)] rather than RM40,000 that you thought you would need.

One way to mitigate this risk is by ensuring that there’s a clause written in your Booking Receipt which states that you are entitled to get your Holding Deposit in the event you are unable to obtain a loan. This is not a standard clause in the Booking Receipt, but don’t be afraid to insist even if it means penning it yourself on the Booking Receipt.

Also, don’t rely on just one valuation. Ask a few Loan Officers to get a more accurate reading of the valuation of the property. This will reduce the risk of losing that dream house!

(b) Check up on your Estate Agent Before paying your Earnest Deposit, be sure to also check on the legitimacy of your Estate Agent. You can do a search to see if the company that they work for is registered with the Board of Valuers, Appraisers, and Estate Agents of Malaysia at www.lppeh.gov.my Also, only issue cheques to the Realtor’s Company and never to an individual name.

Tip 4

Secondary Market – Getting a Deal!

Here’s a nifty little trick that you can utilise to find undervalued properties: If you have been following the property market i.e the Classifieds be it online or on print, avoid buying from real estate agents who regularly advertise a specific area or development. These experts are most likely to be working with a lot of owners in that area and are more inclined to want to maintain high selling prices to protect the interest of all of these owners.

SaveMoney recommends finding the ‘one hit wonders’ of the real estate agents / negotiators where they have little to no experience in selling properties in that area or development.

These type of agents are more likely to go for a quick sale and convince the owners to sell at a lower price.

TheStar Property, Mudah Classifieds, iProperty and HomeGuru are good ways of finding ‘Urgent’ and ‘Below Market’ properties. These are simple keywords which you can use on these online property aggregators to find great deals.

Tip 5

Transaction Cost When budgeting, be sure to factor in the transaction cost for your purchase (between 3 – 5% of purchase price) as you will need to have cash in hand to pay for these things. Some banks allow you to include your legal fees and the Mortgage Reducing Term Assurance (MRTA) premium (MRTA is an insurance to protect against a borrower’s untimely death or total permanent disability as it settles the outstanding loan amount so your family won’t have to worry about the outstanding home loan with the bank) in your loan amount which helps ease the burden as you won’t have to pay these potentially huge amounts upfront in cash. So be sure to ask your Loan Officer at time of application if this is what you prefer.

SEPTEMBER 2014

SM Property Edition

Property Edition

Buying a Property Near a Cemetery:

Yay or Nay?

by Caitlyn Ng

S

omething creepy this way comes! Any property that abuts or views a cemetery, no matter how small it may be, will often have a stigma attached to it. There will be some people who feel that a cemetery nearby will be against their social/cultural preferences, therefore causing them to be particularly averse to cemeteries and it prevents them from even going near that very piece of property for viewing purposes. So, should you invest in one?

g Benefits of Buyin a a Property Near Cemetery:

1.

No Future Developments, No Noisy Bothersome Neighbours Some people would rather buy or sell a property that’s next to a cemetery as compared to a major highway, rail road, airport or industrial land. There will be no need to worry about the traffic or future developments that could be built on that plot of land and best of all, no pesky neighbours to deal with (they’d be “dead quiet”, pun intended). Unless you were to look at the Ladang Batu Pekaka Hindu cemetery that was cleared for relocation to make way for the Kolej Universiti Insaniah (KUIN), there are very few such cases of such similarity.

2.

A Daily Lesson

Dose

History

Some of the older cemeteries can be regarded as historical as they date back to a hundred or so years ago and are therefore considered an important part of our nation’s history. A good example would be the Northam Road Cemetery located in Georgetown, Penang. Just a short walk away from the E&O Hotel, its first burial took place in 1789, 224 years ago! For those which are not as old, it does not mean that they are any less interesting. Some of the more recent ones are well-maintained and contain beautifully carved headstones with fine engravings, all worth looking at while one quietly meditates on the impermanence of life.

17

18

SEPTEMBER 2014

SM Property Edition

Property Edition

3.

Ask All the Important Questions If you do not believe in the afterlife, some of the questions that need to be asked would be: Do you like the property very much? Is this a good value to buy in? Is the location of the property desirable?

If you answer yes to at least two of the three questions, the property is already good enough for some serious consideration. Seeing as to how the prices of properties are sky-rocketing due to a steadily decreasing supply of land, it should come as no surprise that more and more people are willing to at least look at properties near cemeteries.

ng i y u B f o s k c a b Draw ra a e N y t r e p o r P a Cemetery:

1.

“Your Property Has WHAT in it?”

You could be dealing with some pretty negative resell backlash. This is because you will be having quite a few people who will vehemently oppose to living near a cemetery, so that will eliminate some future buyers. Practitioners of “Feng Shui”, and indeed from other superstitions as well, would argue that such a property is considered bad luck for personal life/businesses/etc. Some would even go so far as to say that cemeteries are rife with hauntings, thereby being an open invitation for trouble.

2.

“Location, Location, Location”

That is the name of the game in real estate. The better the location of the property is, the higher the percentage of people who could see themselves living there; the worse the location, the lower that percentage becomes. This will tie into the supply and demand economics which will have a direct impact on the price which you will be getting should you either be deciding to buy or sell. If a property, let’s say a house, were to fall under the “stigmatised properties” (that is to say they are haunted/ near haunted areas), they typically sell for 10% to 20% less than comparable homes (those that aren’t near cemeteries/haunted), according to Reuters.

3.

Things That Go Bump In The Night If your imagination is on the over-active side, then be prepared for some little scares each time you hear creaks, whispers or otherworldly noises. Letting your imagination get away with the situation may end up in you having sleepless nights, which in turn will lead to an increasing sense of anxiety. This isn’t something that will be helping with your perception of cemeteries being all eerie and menacing; best if you find something that is out in the openness of the city, surrounded with the hustle and bustle of living people.

All in all, it boils down to perspective, knowing what you want and not letting detractors tell you otherwise. Besides, it usually isn’t the deceased people whom you have to worry about nowadays anymore, it’s the living ones!

16

OCTOBER 2013 Jimat Cermat

SEPTEMBER 2014

Haruskah Anda Mendapatkan Kami Tidak Kedekut!

Kad Kredit?

Perbelanjaan Penting Menurut A Rakyat Malaysia nda teringin untuk membuat permohonan kad kredit, tapi risau akan mengalami masalah hutang yang banyak? Ramai menganggap bahawa berhutang merupakan sesuatu yang tidak baik, tetapi sebenarnya

S

atau penyebab kejatuhan seseorang. iapa tidak suka barangan murah?

Mengikut HUTANG YANG TIDAK TERURUS ialah punca sebenar masalah kitagemar semua. pandangan kami, kebanyakan rakyat Malaysia Hutang pada asasnya adalah sesuatu yang baik jika diuruskan dengan bijak.

Tapi membelanjakan wang mereka pada musim jualan murah jika kita tidak mengambil peduli tentang hal kewangan sendiri, maka kesemua –hutang dan menjadi haji bakhil pada hari-hari lain. Para pembaca, ini akan bertukar menjadi hutang “buruk” (dan mimpi ngeri anda!). jangan terasa pula ya! Kami di JimatCermat juga begitu.

Jadi, baca tips-tips berikut untuk untuk mengelakkan diri anda daripada selain daripada terjebak ke dalam femonenaNamun “hutang kami kelilingtertanya-tanya, pinggang”! barangan yang ada logo “SALE”, sanggupkah rakyat Malaysia mengeluarkan wang untuk tujuan lain?

Peringatan Sebelum Memilih Kad Kredit Mungkin sesetengah anda akan berkompromi apabila membeli kereta, rumah, keluarga (atau apabila sedang mengurat cinta hati!)?

Kad kredit bukan pendapatan tambahan anda! Jadi jangan menambahkan perbelanjaan harian jawapannya, hanya kerana anda Untuk mendapatkan kami memulakan mempunyai kad kredit. kaji selidik secara online di laman Facebook kami.

1 2

Selepas satu kajian yang panjang, berikut merupakan maklum balas yang kami terima.

Cuba untuk menggunakan kad kredit anda secara minima dan segera langsaikan bil kad kredit bulanan anda untuk mengelakkan kadar faedah berganda.

Pendidikan “Saya tidak akan berjimat untuk pendidikan. Pendidikan Berhati-hati dengan hutang bulanan kad kredit anda. Jika anda membentuk seseorang” gagal untuk membayar secara penuh setiap bulan, anda kena

3

membayar faedah tinggi 13% p.a.

18% p.a.universiti sebulan! kerajaan atau swasta Pendidikan di peringkat di –sebuah bukanlah murah, tetapi rakyat Malaysia rela menghabiskan duit yang banyak asalkan menjamin masa depan yang lebih baik untuk anak mereka. Di Malaysia, perbelanjaan seseorang pelajar adalah sekurang-kurangnya RM30,000 dan ke pembayaran lewat kerana ia mungkin mengakibatkan atas bagiElakkan ijazah yang didambakan. kehilang tawaran kadar faedah rendah, pembayaran denda penalti dan/atau menjejaskan penilaian kredit anda dan permohonan Cara untuk menyimpan Wang: Menggalakkan anak-anak untuk melakukan kad kredit anda dimasa hadapan. yang terbaik dalam peperiksaan SPM mereka dan menggilap kemahiran temuduga mereka. Terdapat banyak biasiswa yang terdapat di Malaysia yang boleh membantu membayar yuran pengajian yang membebankan untuk pelajar cemerlang di negara ini.

Tidak pasti kad kredit yang sesuai untuk anda?

4

Ragu-ragu tentang jenis kad kredit yang mana harus anda pilih? Cuba kad Cara untuk menyimpan Wang: Menggalakkan anak-anak anda kuiz untuk kredit kami di bawah!

Kami akan melakukan sebaik mungkin untuk mencadangkan melakukan yang terbaik dalam peperiksaan SPM mereka dan menggilap kad kredit terbaik untuk mereka. anda: kemahiran temuduga Terdapat banyak biasiswa yang terdapat di Malaysia yang boleh membantu membayar yuran pengajian yang membebankan untuk pelajar1: cemerlang di negara ini.

Soalan Adakah anda mampu melangsaikan hutang kad kredit sepenuhnya setiap bulan?

Fesyen YA

Pergi ke Soalan 2 untuk mengetahui cara untuk mengurangkan kadar bayaran faedah – dan seterusnya menjimatkan wang anda!

“Fesyen, sebab saya mahu menarik perhatian si dia” Tahniah! Oleh kerana anda mampu melangsaikan hutang

TIDAK

kad kredit setiap bulan, anda tidak perlu risau dengan kadar faedah Fashionista dan Diva-Diva tidak ragu-ragu apabila membeli-belah pakaian. dikenakan Sebaliknya, patut mencari kad kredit Negara kita pulayang bukan saja kayabank. dengan flora dananda fauna; tempat membeli-belah yang boleh ganjaran untuk perbelanjaan juga banyak! JPO, KLCC dan menawarkan Pavilion – Malaysia adalah syurga berbelanja anda. besar Misalnya, jikaLupakan anda seorang penggemar wayang,membeli-belah maka carilah untuk fesyen yang bergaya. marathon atau gimnasium; kad kredit yang memberikan andayang ganjaran di panggung wayang. selama 6 jam berturut-turut memberikan latihan lengkap untuk badan (dan dompet) anda.

Soalan RM500 untuk 2: akaun deposit tetap? Hanya jika bank itu adalah Marc Jacobs.

Adakah anda mampu melangsaikan hutang kad kredit sepenuhnya Cara untuk menyimpan Wang: Jangan pergi shopping! Penggemar membelisetiap bulan? belah juga boleh cuba melawat kedai-kedai vintaj untuk mengurangkan bajet Cuba soalan 3. kali anda ingin membeli barangan yang tidak TIDAK bulanan. perbelanjaan Setiap perlu, tanya diri anda terlebih dahulu: “Bolehkah saya makan barangan tersebut Cari kad kredit yang mempunyai promosi faedah 0% dengan YA saya lapar” apabila Majoritinya jawapan adalah “Tidak”. tempoh yang lama!

Diterjemah oleh: Balkish Rosly

Nadia Asha Patutkah Saya MendapatkanTerjemahan: Kad Kredit (Walaupun risiko pemilikannya tinggi?)

Buku Seperti yang kami katakan di atas, kad kredit bukan punca masalah anda. Dengan sedikit disiplin, pemilikan kredit boleh memberi manfaat kepada “Buku!

Kerana ilmu kad pengetahuan sangat banyak berharga” anda. Ia boleh membantu anda mengawasi perbelanjaan bulanan, menolong Zaman kanak-kanak tidak pengembaraan anda membuat bayaran kita sebelum gaji akan masuk,lengkap memberitanpa pelbagai ganjaran dan si Peter Jane. anda Tanpamenyimpan buku-bukuwang seperti “How to Avoid Huge juga boleh dan menolong jika digunakan dengan bijak.Ships”, bagaimana kita akan tahu cara untuk mengelak kapal-kapal besar semasa belayar di laut? Demi cinta kepada Jalaluddin Rumi, Ahadiat Akashah, dan Leo Tolstoy, penggemar buku sanggup menukar bajet bulanan mereka dan berbelanja Memiliki sehingga beratus-ratus ringgit di kedai buku. Ssetengah orang Kad Kredit: mungkin terasa seperti ini satu pembaziran; tapi jika anda fikirkan, Apple iPhone bulanan dan pastikan langsaikan 5S (dijual pada harga mempunyai jangka hayatanda kira-kira 3 tahun (yang Ikut bajet 1.RM2,699) hutang kredit setiap bulan! pada masa tersebut anda sudahkad bosan dan mahu upgrade ke Apple iPhone 7S).

Sementara itu, buku dan pengetahuan boleh bertahan selama-lamanya. Itulah 1. yang membuatkannya tidak ternilai. kad kredit untuk mendapat 2. Jika anda menggunakan baki 0%, pastikan anda tidak terlepas Kerajaan Malaysia pemindahan telah pun melancarkan “Kempen Membaca Buku”bayaran untuk minima yang perlu dibayar sepanjang tempoh 0% itu. 3. menggalakkan anak muda Malaysia membuka buku dan bukan PlayStation

Tips

Membelanjakan wang untuk buku-buku untuk anda dan anak-anak anda adalah • Cuba membuka akaun direct jauh lebih murah daripada membeli alat permainandebit untuk atau gajet. bayaran minima setiap bulan. Dengan cara ini anda boleh mengelakkan penalti Wang: lewat bayaran faedah pembelian 0% Cara untuk menyimpan Terdapat/ kehilang banyak kedai-kedai buku terpakai

yang anda boleh lawati pada masa lapang. Ulat buku juga boleh meihat e-buku • Pada anda bayaran lewat,mencari kurang percuma, atau Semak Jualan saat Buku Big Badmembuat Wolfatau BookXcess untuk daripada bayaran minima atau terlupa untuk membuat buku-buku baru pada harga diskaun. bayaran, anda akan terus hilang bonus kadar 0% dan akan dikenakan kadar faedah tertinggi untuk kad kredit jenis ini.

Makanan Untuk pelan pembayaran mudah 0% selama 12 atau 24 bulan 3. yang selalusangat digunakan untuk pembelian telefon bimbit, “Hidup singkat jika tidakseperti menikmati makanan. perkakas rumah, dan lain-lain, sentiasa membuat bayaran tepat Makanan memberikan kita tenaga untuk mencari pada masa pada setiap bulan.

untuk membolehkan kita makan lebih banyak”

rezeki

• JIka tidak, anda akan kehilangan kadar 0% yang ditawarkan itu.

Suasana restoran Malaysia sentiasa sibuk tidak kiralah sama ada di gerai tepi jalan atau tempat mewah. Sebagai manusia, kita memang tertarik terhadap semua Pilih apalah hairankan sangat bil restoran RM150 sekalikadlazat; kredit yang nak boleh memberikan ganjaran kepada setiap 4. benda sekala?perbelanjaan Err..betul tak?anda.

Sama seperti Maria Tunkuberbelanja Sabri, rakyat Malaysia tidak kisah “jalan-jalan • Jika anda banyak di tempat tertentu (contoh : anda cari makan”selalu dan berbelanja untuk bayaran – Ipoh, ),Penang, melancongbesar / anda suka tengoktolwayang carilahJohor, kad KL? Sebut saja “makanan sedap”, dan tentunya makanan akan datang! kredit yang memberikan ganjaranpenggemar dan keuntungan mengikut

perbelanjaan anda.

Malangnya, cinta mendalam terhadap Char Kuey Teow tidak menghentikan harga makan daripada meningkat tahun demi tahun. Di KL, RM10 hingga RM20 untuk makan tengah hari dianggap sebagai normal; maksudnya anda harus berbelanja sehingga RM50 atau RM100 seminggu!

Soalan 3:

Adakah anda mempunyai disiplin menukar Cara untuk menyimpan Wang: Untuk untuk makan tengah hari,kad apa untuk kata anda mendapatbekal kadarsendiri faedah selalunya 3 hingga 6 bulan? membawa ke0%, pejabat (atausetiap sekurang-kurangnya bungkus nasi kosong dan minuman anda sendiri untuk menjimatkan wang)? Untuk makan Cuba soalan 4.

TIDAK malam, jangan membazir dan elakkan makan di restoran mahal setiap hari!

Cuba untuk mendapatkan kad kredit yang memberi kadar YA faedah 0% paling lama. Selepas itu, tukar kad kredit anda dan dapatkan pindahan baki 0% (tempoh 0% selalunya 3 hingga Isteri 6 bulan) untuk memindahkan hutang anda ke kad yang baru tanpa dikenakan caj faedah langsung.

“Isteri anda – Penjimatan di sini akan memberi kesan buruk seumur hidup!”

Soalan 4:

“Isteri gembira, hidup pun gembira”. Tiada penjelasan lanjut diperlukan.

Anda perlu menggunakan kad kredit namun tidak mampu membuat bayaran penuh dan tidak mampu kad baru setiap tempoh Cara untuk menyimpan Wang: memohon Alamak! Tetapkan bajet isi kali rumah bulanan promosi faedah 0% tamat? bersama isteri anda dan terangkan secara baik mengapa anda tidak boleh

Pilihan terbaik diri anda adalah untuk memohon membeli kasut untuk baru jenama Charles & Keith setiap bulan –kad andakredit perlu dengan menabung kadar paling rendah, dan elakkan kad kredit 0% .Ini keranaRM300 setelah untukfaedah hari tua, dan kasut Charles & Keith RM250 / tudung Fareeda / Bag tempoh 0% , kadar faedahsatu akan meningkat lebih berbanding kadar faedah Coach RM1,500 bukanlah pelaburan yang menguntungkan! paling rendah kad kredit yang tersedia.

JimatCermat.my laman penjimatan kewangan di Malaysia, kami sentiasa berusaha menyelidik cara-cara untuk anda menjimatkan wang tanpa mengubah cara hidupcara anda dan anda! berjimat JimatCermat.myialah merupakan laman penjimatan kewangan di Malaysia yang boleh menolong anda menjimatkan sekurang-kurangnya RM1,000 setahun tanpa mengubah hidup sekurang-kurangnya RM1,000 setahun!

19

20

SEPTEMBER 2014

SaveMoney Traveller

5 Cities with the Cheapest

Luxury Hotels

By Balkish Rosly

G

one are the days when luxury travel was a thing only the rich and famous could partake of: Just as the demise of Sweat Club in the 90s (that sought to make gyms a purview of the Malaysian elite) showed us; more businesses are now seeing the lure of ‘accessibility’ on their coffers. As the country club set cry tears of bitterness at the loss of exclusivity; the rest of us are now able to enjoy thousand thread count Egyption Cotton sheets without having to part with an organ or blood relative for the privilege.

Yes, dear SaveMoney travellers; it would appear that with a little know-how; you too can holiday like a Beckham without the millions (well, almost!). It’s just a matter of where you go! Take a look at some of the cities with the cheapest luxury hotels.

Top 5 Best Value International Cities Source: Tripadvisor TripIndex Survey, May 2014.

5

Prague, Czech Republic (Hotel rate + room service cost: RM479.91) If you like living the good life for less; a trip to Prague might be just the ticket. In this Gothic city, a club sandwich ordered through room service will only cost RM25.70, and a traveller could spend a night in Prague at a 4-star hotel for less than RM500. The city of Prague exists in almost everyone’s bucket list and we understand why; Prague offers both the quaint and modern attractions to those who set foot on her cobbled lanes.

But then again, my fellow Kiam Siap friends, hotel fare and room service are just the tip of the iceberg. To get to this coveted destination in Europe, expect to fork out close to RM4,000 for your flight ticket. Maybe not such a frugal idea?

4

Cape Town, South Africa

(Hotel rate + room service cost: RM452.68) Next in the list is Cape Town, South Africa. According to the report, the average hotel room rate is about RM378.88. Quite similar to the fancy 4-star hotels lined up in Bukit Bintang; but unlike our beloved city, Cape Town offers more diverse activities than shopping and clubs. When in Cape Town, one could try diving into shark-infested waters or visit the jackass penguins (no, they are not actual jerks), or consume some of the world’s finest tuna.

But how do we get there? Since budget airlines like AirAsia do not have a route to Cape Town, frugal travellers can expect to fork out RM4,500 to RM5,000 for their flight which, again doesn’t work out to a cheap holiday.

SaveMoney Traveller

SEPTEMBER 2014

3

Budapest, Hungary (Hotel rate + room service cost: RM428.01) Budapest is the capital and the largest city of Hungary and one of the largest cities in the European Union. Now, it is also one of the top five best value international cities in the world. According to TripIndex, the average hotel rate in this city is RM347.31 while the room service cost is RM80.70; only a tad more expensive than a one night hotel stay in Hanoi!

Similar to Cape Town, Tony Fernandes and his budget carrier are no use to your budget travelling plans. A flight to Hungary can cost between RM3,500 to RM4,800.

2

1

Jakarta, Indonesia (Hotel rate + room service cost: RM376.89) For those who want to live large at a lower cost (most Malaysians, then?), Jakarta is the city for you! Crowned as the best value international city in the world, travellers could live like Justin Bieber for less than RM376.89 per night. The capital city of Indonesia is bursting with shopping malls and fabric bazaars for shopaholics to attack. At a lower currency rate, attack they will.

Though the list started off less than stellar with countries much too far for Malaysians to really take advantage of luxury stays; the last two are an almost perfect fit. Do you fancy living on the lap of luxury without taking out a second mortgage? Well, now you know where to go!

Hanoi, Vietnam

(Hotel rate + room service cost: RM403.03) Finally, a destination where frugal travellers could visit via AirAsia! Hanoi is a fascinating blend of East and West, and largely unscathed from the decades of war. Although, it is considered as a rapidly developing city in the Southeast Asia, the prices are still generally more affordable when compared to most ASEAN countries. The room service cost in Hanoi is actually more expensive than Tunis (Tunis offers the cheapest total room service cost in the world), but due to the affordable hotel rate, Hanoi comes in second in the list.

21

22

SEPTEMBER 2014

SaveMoney Top Product Tables

Top Product Tables

Finance

Top Personal Loans in Malaysia for Government/Government Linked Company Employees (assuming amount borrowed=RM10,000) Tenure: 1 Year Bank

Product Name

Min. Income

Interest Rate

Effective Rate

Monthly Repayment

Interest Paid Over 1 year

Type

Bank Rakyat

Bank Rakyat Personal Financing-i Aslah Public with Takaful

RM1,000

3.30% p.a.

6.03% p.a.

RM861

RM330

Unsecured Islamic Loan

CIMB

CIMB Pembiayaan Peribadi Sektor Awam-i

RM3,000

5.25% p.a.

9.55% p.a.

RM877

RM525

Unsecured Islamic Loan

Citibank

Citibank Ready Credit PayLite

RM2,000

5.90% p.a.

10.71% p.a.

RM883

RM590

Unsecured Loan

AmBank

AmBank AmMoneyLine

RM2,000

8.00% p.a.

14.44% p.a.

RM900

RM800

Unsecured Loan

Alliance Bank

Alliance Bank CashVantage Personal Financing-i

RM3,000

8.88% p.a.

15.99% p.a.

RM907

RM888

Unsecured Islamic Loan

Tenure: 3 Years Bank

Product Name

Min. Income

Interest Rate

Effective Rate

Monthly Repayment

Interest Paid Over 3 years

Type

Bank Rakyat

Bank Rakyat Personal Financing-i Aslah Public with Takaful

RM1,000

3.30% p.a.

6.23% p.a.

RM305

RM990

Unsecured Islamic Loan

MBSB

MBSB Exec-i

RM2,667

3.50% p.a.

6.59% p.a.

RM307

RM1,050

Unsecured Islamic Loan

AmBank

AmBank AmMoneyLine Facility-i with non-Biro Perkhidmatan Angkasa

RM1,500

3.65% p.a.

6.86% p.a.

RM308

RM1,095

Unsecured Islamic Loan

Public Bank

Public Bank BAE Personal Financing-i

RM1,000

4.99% p.a.

9.28% p.a.

RM319

RM1,497

Unsecured Islamic Loan

CIMB Bank

CIMB Pembiayaan Peribadi Sektor Awam-i

RM3,000

5.25% p.a.

9.74% p.a.

RM322

RM1,575

Unsecured Islamic Loan

Min. Income

Interest Rate

Effective Rate

Monthly Repayment

Interest Paid Over 5 years

Tenure: 5 Years Bank

Product Name

Type

Bank Rakyat

Bank Rakyat Personal Financing-i Rakan Pintar

RM1,000

3.41% p.a.

6.36% p.a.

RM195

RM1,705

Unsecured Islamic Loan

MBSB

MBSB Pembiayaan Peribadi-i Ekspres

RM1,500

3.99% p.a.

7.39% p.a.

RM200

RM1,995

Unsecured Islamic Loan

AmBank

AmBank AmMoneyLine Facility-i with non-Biro Perkhidmatan Angkasa

RM1,500

3.99% p.a.

7.39% p.a.

RM200

RM1,995

Unsecured Islamic Loan

Public Bank

Public Bank BAE Personal Financing-i

RM1,000

4.99% p.a.

9.11% p.a.

RM208

RM2,495

Unsecured Islamic Loan

CIMB

CIMB Pembiayaan Peribadi Sektor Awam-i

RM3,000

5.25% p.a.

9.56% p.a.

RM210

RM2,625

Unsecured Islamic Loan

Top Personal Loans in Malaysia for Self Employed/Salaried Employees (assuming amount borrowed=RM10,000) Tenure: 1 Year Product Name

Min. Income

Interest Rate

Effective Rate

Monthly Repayment

Interest Paid Over 1 year

Citibank

Citibank Ready Credit PayLite

RM2,000

5.90% p.a.

10.71% p.a.

RM883

RM590

Unsecured Loan

Bank Rakyat

Bank Rakyat Personal Financing-i Private with Takaful

RM2,000

7.30% p.a.

13.20% p.a.

RM894

RM730

Unsecured Islamic Loan

AmBank

AmBank AmMoneyLine

RM2,000

8.00% p.a.

14.44% p.a.

RM900

RM800

Unsecured Loan

Alliance Bank

Alliance Bank CashVantage Personal Financing-i

RM3,000

8.88% p.a.

15.99% p.a.

RM907

RM888

Unsecured Islamic Loan

Aeon

AEON iCash for AEON Credit Card holders

RM1,000

9.60% p.a.

17.25% p.a.

RM960

Unsecured Loan

Bank

Tenure: 3 Years Bank

Product Name

RM913

Min. Income

Interest Rate

Effective Rate

Monthly Repayment

Interest Paid Over 3 years

Type

Type

AmBank

AmBank AmMoneyLine Facility-i with Non-Biro Perkhidmatan Angkasa

RM1,500

3.65% p.a

6.86% p.a.

RM308

RM1,095

Unsecured Islamic Loan

Citibank

Citibank Ready Credit PayLite

RM2,000

5.90% p.a.

10.88% p.a.

RM327

RM1,770

Unsecured Loan

Bank Rakyat

Bank Rakyat Personal Financing-i Private with Takaful

RM2,000

7.30% p.a.

13.32% p.a.

RM339

RM2,190

Unsecured Islamic Loan

Maybank

Maybank Personal Loan

RM2,500

8.00% p.a.

14.51% p.a.

RM344

RM2,400

Unsecured Loan

Alliance Bank

Alliance Bank CashVantage Personal Financing-i

RM3,000

8.88% p.a.

16.00% p.a.

RM352

RM2,664

Unsecured Islamic Loan

Min. Income

Interest Rate

Effective Rate

Monthly Repayment

Interest Paid Over 5 years

Tenure: 5 Years Bank

Product Name

Type

AmBank

AmBank AmMoneyLine Facility-i with Non-Biro Perkhidmatan Angkasa

RM1,500

3.99% p.a.

7.39% p.a.

RM200

RM1,995

Unsecured Islamic Loan

Maybank

Maybank Personal Loan

RM2,500

8.00% p.a.

14.07% p.a.

RM233

RM4,000

Unsecured Loan

Bank Rakyat

Bank Rakyat Personal Financing-i Private with Takaful

RM2,000

8.34% p.a.

14.62% p.a.

RM236

RM4,170

Unsecured Islamic Loan

Citibank

Citibank Personal Loans

RM4,000

9.00% p.a.

15.65% p.a.

RM242

RM4,500

Unsecured Loan

AEON

AEON i-Cash for AEON Credit Card holders

RM2,000

9.60% p.a.

16.59% p.a.

RM247

RM4,800

Unsecured Loan Source: SaveMoney.my, Banks (As of 3rd September 2014)

SEPTEMBER 2014

SaveMoney Top Product Tables

23

Top Product Tables Fixed Deposit Top 1-month FD rates in Malaysia Bank Name

Product Name

FD Type

Minimum Deposit

Advertised Interest Rates

Effective Interest Rates

Interest on RM50,000

Depositor’s Insurance?

MBSB

MBSB Fantastic Returns “Individual Rate”

Standard

RM1,000

3.30%

3.30%

RM135

DAFIA

Affin Bank

Affin Bank Fixed Deposit

Standard

RM5,000

3.25%

3.25%

RM133

PIDM

Affin Islamic Bank

Term Deposit-i

Standard

RM5,000

3.25%

3.25%

RM133

PIDM

Bank Islam

Term Deposit-i

Standard

RM1,000

3.25%

3.25%

RM133

PIDM

CIMB Bank

CIMB Fixed Deposit

Standard

RM5,000

3.25%

3.25%

RM133

PIDM

Top 3-month FD rates in Malaysia Bank Name

Product Name

FD Type

Minimum Deposit

Advertised Interest Rates

Effective Interest Rates

Interest on RM50,000

Depositor’s Insurance?

Bank Rakyat

Deposits Account-i

Standard

RM500

3.60%

3.60%

RM444

DAFIA

MBSB

MBSB Fantastic Returns “Individual Rate”

Standard

RM1,000

3.35%

3.35%

RM414

DAFIA

Affin Bank

Affin Bank Fixed Deposit

Standard

RM500

3.30%

3.30%

RM407

PIDM

Affin Islamic Bank

Term Deposit-i

Standard

RM500

3.30%

3.30%

RM407

PIDM

Bank Islam

Term Deposit-i

Standard

RM500

3.30%

3.30%

RM407

PIDM

Top 6-month FD Rates in Malaysia Bank Name

Product Name

FD Type

Minimum Deposit

Advertised Interest Rates

Effective Interest Rates

Interest on RM50,000

Depositor’s Insurance?

Bank Rakyat

Deposits Account-i

Standard

RM500

3.65%

3.65%

RM904

DAFIA

Mach by Hong Leong Bank

Mach FD

Standard

RM1,000

3.50%

3.50%

RM867

PIDM

MBSB

MBSB Fantastic Returns “Individual Rate”

Standard

RM1,000

3.45%

3.45%

RM855

DAFIA

Affin Bank

Affin Bank Fixed Deposit

Standard

RM500

3.40%

3.40%

RM843

PIDM

Affin Islamic Bank

Term Deposit-i

Standard

RM500

3.40%

3.40%

RM843

PIDM

Top 9-month FD rates in Malaysia Bank Name

Product Name

FD Type

Minimum Deposit

Advertised Interest Rates

Effective Interest Rates

Interest on RM50,000

Depositor’s Insurance?

Bank Rakyat

Deposits Account-i

Standard

RM500

3.75%

3.75%

RM1,400

DAFIA

MBSB

MBSB Fantastic Returns “Individual Rate”

Standard

RM1,000

3.55%

3.55%

RM1,325

DAFIA

Affin Bank

Affin Fixed Deposit

Standard

RM500

3.50%

3.50%

RM1,307

PIDM

Affin Islamic Bank

Term Deposit-i

Standard

RM500

3.50%

3.50%

RM1,307

PIDM

Hong Leong Bank

Mach FD

Standard

RM1,000

3.50%

3.50%

RM1,307

PIDM

Top 12-month FD rates in Malaysia Bank Name

Product Name

FD Type

Minimum Deposit

Advertised Interest Rates

Effective Interest Rates

Interest on RM50,000

Depositor’s Insurance?

Bank Rakyat

Deposits Account-i

Standard

RM500

3.90%

3.90%

RM1,950

DAFIA

Affin Bank

Affin Fixed Deposit

Standard

RM500

3.70%

3.70%

RM1,850

PIDM

Affin Islamic Bank

Term Deposit-i

Standard

RM500

3.70%

3.70%

RM1,850

PIDM

Mach by Hong Leong Bank

Mach FD

Standard

RM1000

3.60%

3.60%

RM1800

PIDM

MBSB

MBSB Fantastic Returns “ Individual Rate”

Standard

RM1000

3.60%

3.60%

RM1800

DAFIA

Source: SaveMoney.my, Finance (As of 3rd September, 2014)

24

SEPTEMBER 2014