Brokerage Fee in Malaysia

Broker	Fee
Alliance Share	0.7% or RM28
APEXeTrade	0.60% or RM28 (less RM100k)
	0.3% or RM28 (above RM100k)
CIMB i*trade	0.42% or RM28
CIMB ClickTrader	RM8.88
ecmmoney.com	0.35% or RM12 (Non-Cash, below RM100k)
	0.2% or RM12 (Non-Cash, above RM100k)
	0.08% or RM12 (Cash)
HLeBroking	0.42% or RM12 (below RM100k)
	0.21% or RM12 (above RM100k)
HWangDBS	0.7% or RM28 (below RM100k)
	0.5% or RM28 (above RM100k)
Jupiter	0.2% or RM12 (Non-Cash)
	0.1% or RM10 (Cash, below RM50k)
	0.05% or RM10 (Cash, above RM50k)
Kenanga	0.7% or RM28 (below RM100k)
	Negotiatabe for above RM100k)
Maybank	0.42% or RM12
OSK188	0.42% or RM12
Public Invest	0.42% or RM28
RHB Invest	0.42% or RM12
SJ Securities	0.42% or RM28 (below RM100k)

klse top 10 stock pick of 2011

top 10 malaysian companies that you should seriously look into for your 2011 stock portfolio.

1. airasia (hold)
2. cimb (hold)
3. coastal (buy)
4. ytl (hold)
5. shell (buy)
6. public bank (buy)
7. ytlpower (buy)
8. berjaya toto (buy)
9. aeon (buy)
10. plus (hold)

invest like warren buffett

for those of you who is wondering what investing strategies practised by warren buffett, here are the summary

1. always buy good company at discount. you can buy when the company valued lower than 2/3 of it value.
2. buy at low p/e. p/e under 15 is good enough.
3. buy company which is honest and good management team
4. buy company which sales are growing each year.
5. buy company which has strong cash flow consistanly over 10 years
6. buy company which has product that with high profit margin.
7. hold a few companys. less than 10 is good but try to make less than 5 company which represent 75% of your portfolio
8. hold good company as long as possible such as you treat it as your own company. you wont close down your business if they is micro distraster.
9. never look at information technology stock.
10. only buy company that you understand the most. for example, it operations, business and etc.

Here are the 10 golden rules that you can learn to become a great investor like warren buffet. Always make sure you don't lose money in stock market.

how do I know this property investment is right for me?

How do I know this property investment is right for me? Sounds like you are asking this question when you are buying a property?

Well to answer this question, firstly you have to ask yourself. Do I afford to own this property as my investment? Do I have enough cash to begin with this investment? A very simple way u can determine whether your affordability is by using your income must be more than 3 times of the monthly repayment to the bank.

Assuming that you are repaying the bank RM1000 every month, your income must at least RM3000 with no commitment at all. Another example is let say your income is RM3000, your monthly commitment to your car and credit card are total RM1000, and this means you can only afford to buy a property which requires you to make installment of around RM650 monthly to your home loan.

If RM650 monthly loan installment, how much is the property I am able to afford having BLR – 1.6 and BLR = 5.8? You can roughly calculate it by using formula 650 x 12 months x 30 years * (60% – (BLR-1.6%-2.4%)) = 650 x 12 x 30 * 58.2% = RM136,188. Means RM136,188 is your financing. If taken 85% financing, therefore RM136,188 + 15% = RM156,616 or the property that you are buying must below RM157K.

If you are buying condo/apartment, there is a magic simple formula to get a fair rental return. RM157,000 x BLR / 1000 = RM157,000 x 5.8 / 10000 = RM910. Therefore the condo has to be rent out around RM910 to be fair and cost justified. RM910 – RM650 (installment) = RM260 positive return to pay your monthly maintenance and related cost. Does the average rental of the unit type can able to give you average RM910 monthly?

After the minus the maintenance cost which is RM160 monthly, you will left RM260-RM160 = RM100 per month. The RM100 to be reinvested over 30 years with yield 2.4% at fixed deposit yearly means you will accumulate to RM50,000 (RM100 x 12 months / 2.4%) .

After 30 years, what is the wealth I have accumulated? RM150,000 x 2 = RM300,000 + RM50,000 = RM350,000. As the result, I invested RM23,555 (15% of RM150K) and rent it for RM910 monthly for 30 years, I would have generated RM350K. Simply you must make sure the amount you have invested RM23,555 will able to give you at least 7x of return of today value after 30 years, then your investment will worth your effort and time. RM350K equals RM175K of today value (RM350K / 2) > 23,555 x 7. #Solved#

My question to you is, what is the value of effort per month? If I sell the property and assuming no deposal cost, it will be RM486 (RM175K /360 months) as your monthly income. Does it worth your time and effort having to manage this property? The answer always remains to you.

But wait, let’s think the opposite, if the property value appreciated then I would have earned more than RM486. What if the value depreciated and I have problem finding a tenant? I will lost RM810 per month at least if I am not able to find a tenant and the property value not appreciating. How long I am able to handle it? This is the risk that a property investor must be taken into serious consideration before investing to any of the property market. The worst thing is that you had bought the worst property and you don’t like it. And you are force to paying RM10K per year for the property that you don’t generate income. Sound scary? Well, always think of cash flow when you are committed to your long term investment. Can you survive if this happened to you? If the answer is yes and a good rental yield then just move ahead to buy it!

my blog introduction

My goal is to make an extra cash for myself and hopefully i can be one of the richest guy among my friends.

This year i am 28years old and have been working for 5 years after I graduated from my university. I study in UTAR, Petaling Jaya. I graduated with a bachelor of Computer Science (Hons) minoring in financial mathematics.

Currently i am working with a .com company which is quite popular in Malaysia. I am happy as I am working together with my passion in information technology. I have learnt a lot on how Internet advertising works and gained much experience in developing Internet portal.

I come out with this blog because I had set a goal for myself - to make extra money. I have thousands of things to do if i have the extra cash. Without extra cash I cannot do most of the things. Don't you think so?

this blog is my written journey of how I make the thousands extra cash from my planning investments and business.