Tenancy Agreement

I was very frustrating when for the first time I was able to let out my property without introduction by agent but couldn't find a good format of tenancy agreement to refer to. Because of that, I have to ask the renter to deal with my property agent. I'm not indicating that property agent is not important, in fact they are very useful for one to find potential renters in the shortest time. However, when luck strikes by, you definitely want to save the 1 month agent fee and do it all by yourself.

Also, I learnt that it was almost impossible for one that doesn't have any legal knowledge to draft out a proper tenancy agreement which is legally sounds and covers every aspects. Furthermore, many of the tenancy agreements found from Internet are not very relevant with common practices in Malaysia. As such, I hereby share a sample document of tenancy agreement that I have for reference.

Again, this document is strictly for reference purpose. By downloading this document, I presume that you have accepted and understood the disclaimer as below:

Disclaimer: This document is only for reference purpose. Please use it wisely base on your own judgment. I am not responsible for any legal dispute arises due to misuse of this document.

You can download the protected pdf version of the document from link http://www.rapidsharing.com/download.php?id=541089C8
You are able to view and print but not allowed to copy or extract directly from the document.

The above link will only be available for another 30 days if there is no request for downloading. In case you are not able to obtain the document from the link, you are welcome to leave your email address in the comment section, chatbox or directly send me an email. I will be very happy to send it to you.


This blog is best viewed with Firefox browser. Download link at side bar.

Portfolio 28-July-2006

There was no new trading done this week. My portfolio value has registered a loss of 0.19% (or -RM149) despite KLCI has gained ~1.1%. The main loss is due to the price retreat of Magnum, from RM2.00 to RM1.96, which translates to -RM400. However, I have bigger appetite on Magnum, which I believe that the recent share buy back, disposal of non-core business resulting high pile up of cash indicates something is in cooking....

The main gainer of my portfolio for this week is YTLPOWR-w. Although the price increase was just merely 1 sen, with 20 lots I have, this translates to +RM200. To-date, investment in YTLPOWR-w has so far resulting a gross loss of -RM2050, which includes -RM1000 in my past trading (before I set up this blog). I have sold out once 10 lots of YTLPOWR-w at RM0.70 which I acquired at RM0.80. Later, I used this money to buy back the 10 lots at RM0.58, which I believe this counter has reached its bottom.

Looking at the recent development in CPO price, and the gaining fame of palm oil related counters, I hope I'm able to dispose BKAWAN at price >RM9.00. Otherwise, I will keep this counter for long term, as a dividen yielding counter, just like AXREIT.

Overall, the slight drop of my portfolio value doesn't really concern me. And my short term investment strategy in stock still remains the same, that is to continue reduce my share holding. With about RM60,000 cash in hand (from sale of Genting and my other foreign investment recently), I'm searching for an alternative investment vehicle to park this money. I hope I have time to do some research on bond fund and post my findings not too long from now.


This blog is best viewed with Firefox browser. Download link at side bar.

Rental Yield Calculation

The intention of this blog is to share my personal way of calculating rental yield. Through forum discussion, I found that there are a number of ways to derive this figure, where there is no absolute true or false. As such, it is difficult to compare the acceptable yield rate from one person to another.

My way of calculation rental yield is rather simple, which is the nett % return based on all the cost + capital that have been invested into the property. It can later be used to directly compare with inflation or % return of other investment vehicles such as fixed deposit, stock market...etc.

Below is an example to illustrate my idea:

a) Property Price = RM200,000

b) Loan Balance = RM170,000 (this is the amount of out-standing loan to bank, a-b will give you the amount of capital paid so far to bank)

c) Renovation Cost = RM10,000

d) Legal fee = RM2000 (covers both S&P and bank loan legal charges)

e) VP Payment = RM2000 (this is the total payments such as sinking fund, all types of deposit paid to developer during Vacant Possession)

f) Total Interest = RM2500 (cumulative interest that you have paid to bank so far, inclusive of interest paid during construction period)

g) Months per year with renter = 10 months

h) Monthly Maintenance fee = RM150

i) Monthly Bank Interest = RM400 (since it will reduces by month as instalment progresses, an average figure in a year will be good)

j) Yearly Tax = RM500 (this includes rental income tax, tax from Majlis Perbandaran..etc)

k) Agent fee = RM500 (for tenancy agreement of 2 years, it equals to agent fee of RM500 per year)

l) Monthly Rental = RM1000

Finally, here's the calculation:

Capital Investment = (a - b) + c + d + e + f
Yearly Nett Return = (l * g) - (h * 12) - (i * 12) - j - k
Annual Rental Yield = Yearly Nett Return / Capital Investment * 100%

I have made a javascript calculator at the sidebar for easier calculation. With example as above, the rental yield derived is 5.16%.

This may not be the perfect way for rental yield calculation as I may have overlooked certain aspects. Thus, please feel free to give me your opinion / suggestion. Please kindly use the blog comment rather than chat box as your comment can stays with this blog and this way I feel like your contribution is credited better ! Hahaa.....


This blog is best viewed with Firefox browser. Download link at side bar.

Gold Investment

Maybank offers 2 types of gold investment. They are Kijang Emas Gold Coins and Gold Savings Passbook. As can be seen from the daily price quoted beside, the margins between buying and selling price are very different for each type of investments, and sizes (oz). For Kijang Emas Gold Coins, the margins for 1oz, 0.5oz and 0.25oz are 3.31%, 5.26% and 7.30% respectively. For Gold Savings Passbook, its margin is even higher, at a costly 7.90%! I guess this is because Gold Savings allow the smallest trade size (5g), thus it comes with a hefty buying/selling price difference.

Obviously, the most "economic" choice to invest in Gold is to buy the 1oz Kijang Emas Gold Coins. However, there are few drawbacks which I personally do not like. First, the gold coins is only sold at specific branches, which means inconvinient to trade. Secondly, they are physically gold coin, you have to carry them around during buying or selling, and even have to find a place to save keep them. Gold Savings Passbook is a more convinient way, but the 7.90% margin is hard to swallow. Unless you can forsee that the future gold price will rise >12%, otherwise it is not any better than FD.

I made a chart as below of the price movement of Gold for Y2006 (until 21-July-2006), quoted from www.usagold.com. Hope this gives some hints.....

Related links:
http://gilatekano.blogsome.com/2006/07/15/why-gold/

This blog is best viewed with Firefox browser. Download link at side bar.

Fixed Deposit Rate of Malaysia Commercial Banks

I am searching the best interest rate offered by various M'sia commercial banks to park my money temporarily and this is what I've found. I'm only interested in 3-months fixed deposit and sadly, despite increased of BLR, I still find they all unattractive. The highest rate offered by BCB and AmBank is merely 3.40%. At this rate, the current inflation level is probably higher!

Look likes I have to find another better investment vehicle to place my money. Unit trust (bond fund) and Maybank Gold Savings are under my consideration. However, need to do some homeworks on both of these options before I can decide. Otherwise, can someone recommend me any "real" defensive stock that can still generate reasonable return (from dividen and capital preservation) during bad time? I really doubt there is any.....

P.S: If one does not mind the miserly low interest rate of FD, I find that AmBank is the best Bank which offers the highest rate regardless of tenure. A thumb up to AmBank for beating all other banks flatly!

This blog is best viewed with Firefox browser. Download link at side bar.

Portfolio 22-July-2006

This is my first post. I made this blog with the intention to keep track of my own investment and also to share my investment experience with many retail investors like me out there. Appreciate comment / suggestion from everyone.

This week, I have sold out 500 units Genting @ RM23.70, which I bought at RM22.20 earlier on 16-Jun, making a small profit of ~5% (after deducting broker's comission). The reason I sold Genting is I am pessimistic on the overall economy, both local and global. I am expecting a recession to come very soon (in 6-12 months time). Hence, I will continue to sell down my portfolio whenever there is oppurtunity to make profit, even it is small. My target is to reduce my current share holding to only ~10%, with >90% cash in hand to invest later when market is low.

This blog is best viewed with Firefox browser. Download link at side bar.