SP Setia buying Melbourne site for RM92mil


Australia property is creating lots of news (see my previous posts)… Even our local neighbourhood developer SP Setia Bhd is acquiring land in Melbourne Australia. SP Setia is a well established Property Developer in Malaysia and has Home Developments in Vietnam. Now they are gunning Australia. See excerpt below:

PETALING JAYA: SP Setia Bhd is buying a 0.42ha site in Melbourne’s Central Business District for A$30mil (RM92.4mil) to undertake a high-density inner-city integrated residential and commercial project.

In a statement to Bursa Malaysia yesterday, SP Setia said its unit Setia International Ltd would acquire the land from S.L. Nominees Pty Ltd and Jonquil Pty Ltd.

We will update this when more information is available. Meanwhile, anyone else to join the bandwagon??


Updated on 13 April 2010:

The leading property property developer in Malaysia, S P Setia announced the purchase of a 46,715 sq ft piece of land in the heart of the Central Business District (CBD) in Melbourne for RM92.4 million (AUD30 million) today.
The land enjoys dual street frontages with A' Beckett Street on its southern and Franklin Street on its northern boundaries, and is located between Elizabeth and Queen Streets. The largest remaining undeveloped site in the central spine of Melbourne's CBD, the land is a short walking distance to Melbourne Central Shopping Centre and Railway Station, and is close to the Queen Victoria Market. It is also close to RMIT University, University of Melbourne and La Trobe University and the beautiful Flagstaff Gardens.



See Full Press Release here

http://www.spsetia.com.my/corporate/news/attachments/melb.pdf

Homemade Tiramisu

Over the weekend, Agnes and sister Sue have combined their skills and made this famous Italian dessert... Tiramisu.







Visit HubPages for Agnes' simple Tiramisu recipe. Anyone can try.. baking not required.



My glass of Tiramisu :)

Return on Investment: Calculating gross yield

How do property investors know which property to purchase? One of the assessment methods used regularly is termed as Return on Investment (ROI). It is not the only method that investors use to calculate returns; however, it is the most widely used.

ROI, also known as Yield, is calculated to determine the feasibility of a property investment. It is designed to assist the investor to answer, ‘Is this investment worth it?’, ‘What will I get back in return?’ and ‘Which investment options are more attractive?’

It indicates cash flow of an investment over a specific period of time, usually a year. Therefore, the higher the percentage of ROI/Yield, the better rated the property investment opportunity is. As with any investment, before you put your time, energy, effort and money into it, you must have an indication of the kind of returns, including an indication of when it is expected. In this article, “Yield” indicates an annual rate of return, unless otherwise noted.

Note: Investment property refers to a property purchased for the sole purpose of earning a return on the investment, either in the form of rent or capital gain. The owner does not live in the property.

How to calculate yield?

In its simplest form, the profit of an investment is divided by the cost of the investment (Yield is usually shown in percentage). Often, it is best to determine each investment over the course of a year to find out the yearly Yield.

Gross yield

For example:

Investment property RM500,000

Renovations RM80,000

Rental RM3,000 per month / RM36,000 per year

Gross Yield = Annual Rent / Total Cost of Investment

RM36,000 / RM580,000 = 0.062 = 6.2%

However, to arrive at a more accurate Yield (actual returns), you must deduct other costs such as Maintenance Charges, Sinking Fund, Management Fees, Insurance, Quit Rent, Assessment, Estate Agent and Legal Fees (where relevant) and other expenses.

Calculating the Yield for each property investment will aid in comparing, shortlisting and selecting investments that bring the best returns to you. However, at present we base our returns on the yearly rental and not the ultimate returns you will get when you sell the property. Yield and expected Capital Appreciation must be considered together, in order to make better decisions on the investment option. Some properties might be lower on yearly Yields but over a shorter period of time, it can double in property value.

The preferred Yield percentage

As a general rule of thumb, seasoned investors would go for a property investment which has a nett yield that is twice the fixed deposit rates, which in this case would have to touch no less than 5%.

How can this be achieved? There are only two ways, as per the formula – either rental can improve or reduction in purchase price. For example, if the seller is willing to consider RM450,000 and a more reflective rental is RM4,000 per month. The gross yield now hits 9.1%.

By Chan Ai Cheng - StarProperty

More Trouble at Klang Sentral

TRANSIT: an update on the mostly forgotten Klang Sentral bus terminal.

KLANG: Barely a year after the controversial Klang Sentral bus terminal was opened, many retail outlets there are vacant as shopkeepers have packed up and left due to poor business and high rentals.

There are 38 retail outlets in Terminal A and of these, 11 outlets are vacant, with most retailers closing shop after only a few months.

The food court, or “food station”, which is located on the first floor of Terminal A, also closed down after operating for only seven months.

The food station operator was only given a day’s notice to vacate.

A notice dated July 24 last year, which was pasted on the main glass door by NPO Management, the operator of Klang Sentral bus terminal, stated that the food station would be closed the next day, July 25.

The notice stated that NPO Management had decided to close down the food station as the operator had refused to sign a tenancy agreement with them.

The notice added that NPO Management could not afford to suffer further financial losses.

Charmaine Lim, director of the Titijaya Group of Companies of which NPO Management is a subsidiary, said the company was considering other plans for the food station.

“We have other plans for the place allocated for the food court. We may not reopen the outlet for the sale of food and beverages but we are seriously considering other businesses so that the public can have a variety when they patronise these outlets,” she said.

Most of the traders at Terminal A complained that business was bad and it was hard for them to earn enough to pay for the rental of their outlets.

“Very few people patronise our shop which sells various kinds of souvenir items. We only see a crowd on weekends and public holidays,” said Mohd Izwan Marjan, 29, an employee at one of the outlets.

Izwan said the operator should lower the rentals as the outlets were finding it hard to make a profit, resulting in many of them being forced to close down.

Another retailer, who wished to remain anonymous, said although the operator had given some discounts in the rentals, they were not enough.

“There is insufficient business. The operator should reduce the rental. They can always review it when more passengers make use of the terminal and there is more business for us,” he said.

He is also unhappy as traders near the passengers waiting area are now selling the same type of food and drinks although they were earlier told that each trader would only sell a particular type of food or drink.

Lim, meanwhile, said the management empathised with the plight of the retailers and had reduced the rental by 40 per cent.

“When the number of passengers at the terminal picks up, the traders should be able to overcome their problems,” she said.

[TRANSIT: And what plans exist to make this happen? Using the 'power' of the CVLB?]

The RM12 million Klang Sentral complex in Jalan Meru is located 10km away from Klang town.

It is a build-operate-transfer project and the developer was given a 30-year concession to operate the bus and taxi terminals after which it will be handed over to the Klang Municipal Council.

It is part of a RM300 million commercial hub developed by NPO Development on a 33.2ha freehold land.

The little-used Klang Sentral opened its doors in November 2008 and has been the subject of controversy as many residents in Klang complained it was too far from the town centre.

Most bus operators have refused to use Klang Sentral because of its poor location and the lack of passengers. Many said the location of the terminal had added to their operational costs.

TRANSIT Says:

What is truly sad here is that no one is coming up with any solutions to improve the current situation. The customers are in Klang, specifically in North Klang, not Bandar Meru Raya (which is where Klang Sentral is).

Even the massive congestion in the town because of the construction of the flyover has not deterred the bus companies or the customers.

It is truly sad that no one in the government has come up with any solutions for the Klang Sentral problem. Where is the NKRA in the face of this sad and disappointing example of how not to plan public transport?

TRANSIT has suggested that a bus-rapid transit (BRT) system be introduced to Klang, with a north-south corridor that would quickly link Klang town to Klang Sentral in the north and Bukit Tinggi in the south, with 3 east-west corridors linking Klang to KL (along the NKVE, Federal Highway and KESAS).

Implementing the BRT for Klang would bring life back to Klang Sentral, turning it into a popular hub for intercity express buses and rural mini-buses and outstation taxies.

But if the governments do not start working together, Klang Sentral will become a permanent white elephant and the traders will lose the most.

by transitmy

Property Investment in South Australia

Another positive developement in Australia.

South Australian Property Council calls for `live in the city' bonus.


BIGGER grants should be available for first-home buyers who choose city apartments, the Property Council says.
In its pre-election platform, released today, the group has called for efforts to make city apartments more attractive to help the state meet its goal of 70 per cent urban infill.
Executive director Nathan Paine said changes to the State Government's affordability measures and more marketing support for high-rise buildings would benefit the entire city.
"I don't think there is any question that Adelaide is going through the same process Melbourne went through a few years ago," he said.
"Young people want to be in the city, they want to be close to the city, they want to walk to work, they want the lifestyle.
"More people living in the city means we will have a more vibrant and safer city, which will improve Adelaide for every South Australian."
The council's vision also calls for renewed investment in "thinking industries" such as renewable energy and biosciences and a renewed focus on making SA the destination of choice for migration.
"We are on the path to prosperity, and we will have population growth, regardless of what some people think. This is about making SA the best the state can be," he said.
The policy is aimed at three key areas - people, productivity and place - and calls on political parties for support or commitment in the lead-up to the March 20 state election.
It recommends greater focus on the attraction and retention of international students through a new taskforce to identify work and housing needs, but also pushes a new "student accommodation" planning definition against which councils should assess proposals. Another major thrust lies in boosting the attraction of multi-level residential developments through added marketing, changes to the concept of affordable housing to apply to transport-rich areas, and the consideration of first-home buyer stamp duty reductions.
"As our population booms, we will need to provide multi-level residential accommodation," Mr Paine said.

Source: http://www.adelaidenow.com.au/property

Brighton Beach - Adelaide

The question is WHEN? How soon?

Baby - Speech and Language Development


Understanding Normal Speech and Language Development
It's important to discuss early speech and language development, as well as other developmental concerns, with your doctor at every routine well-child visit. It can be difficult to tell whether a child is just immature in his or her ability to communicate or has a problem that requires professional attention. These developmental norms may provide clues:

Before 12 Months
It's important for kids this age to be watched for signs that they're using their voices to relate to their environment. Cooing and babbling are early stages of speech development. As babies get older (often around 9 months), they begin to string sounds together, incorporate the different tones of speech, and say words like "mama" and "dada" (without really understanding what those words mean). Before 12 months, children should also be attentive to sound. Babies who watch intently but don't react to sound may be showing signs of hearing loss.

By 12 to 15 Months
Kids this age should have a wide range of speech sounds in their babbling and at least one or more true words (not including "mama" and "dada"). Nouns usually come first, like "baby" and "ball." Your child should also be able to understand and follow single directions ("Please give me the toy," for example).

From 18 to 24 Months
Kids should have a vocabulary of about 20 words by 18 months and 50 or more partial words by the time they turn 2. By age 2, kids should be learning to combine two words, such as "baby crying" or "Daddy big." A 2-year-old should also be able to follow two-step commands (such as "Please pick up the toy and bring me your cup").

From 2 to 3 Years
Parents often witness an "explosion" in their child's speech. Your toddler's vocabulary should increase (to too many words to count) and he or she should routinely combine three or more words into sentences.

Comprehension also should increase — by 3 years of age, a child should begin to understand what it means to "put it on the table" or "put it under the bed." Your child also should begin to identify colors and comprehend descriptive concepts (big versus little, for example).

Warning Signs of a Possible Problem
If you're concerned about your child's speech and language development, there are some things to watch for.
An infant who isn't responding to sound or who isn't vocalizing is of particular concern.

Between 12 and 24 months, reasons for concern include a child who:
-isn't using gestures, such as pointing or waving bye-bye by 12 months
-prefers gestures over vocalizations to communicate by 18 months
-has trouble imitating sounds by 18 months
-has difficulty understanding simple verbal requests

Seek an evaluation if a child over 2 years old:
-can only imitate speech or actions and doesn't produce words or phrases spontaneously
-says only certain sounds or words repeatedly and can't use oral language to communicate more than his or her immediate needs
-can't follow simple directions
-has an unusual tone of voice (such as raspy or nasal sounding)
-is more difficult to understand than expected for his or her age.
Parents and regular caregivers should understand about half of a child's speech at 2 years and about three quarters at 3 years. By 4 years old, a child should be mostly understood, even by people who don't know the child.

What you can do
Reading to your child is a great way to boost speech skills. Books help a child add words to her vocabulary, make sense of grammar, and link meanings to pictures. Ordinary conversation with your 2-year-old helps in similar ways. Mealtimes and bedtime provide nice opportunities to sit and chat in the course of a busy day. Researchers have found that the more words a child hears, the greater her vocabulary will be.

Spend a lot of time communicating with your child, even during infancy — talk, sing, and encourage imitation of sounds and gestures.

Read to your child, starting as early as 6 months. You don't have to finish a whole book, but look for age-appropriate soft or board books or picture books that encourage kids to look while you name the pictures. Try starting with a classic book such as Pat the Bunny, in which the child imitates the patting motion, or books with textures that kids can touch. Later, let your child point to recognizable pictures and try to name them. Then move on to nursery rhymes, which have rhythmic appeal. Progress to predictable books, such as Eric Carle's Brown Bear, Brown Bear, in which your child can anticipate what happens. Your little one may even start to memorize favorite stories.

Use everyday situations to reinforce your child's speech and language. In other words, talk your way through the day. For example, name foods at the grocery store, explain what you're doing as you cook a meal or clean a room, point out objects around the house, and as you drive, point out sounds you hear. Ask questions and acknowledge your child's responses (even when they're hard to understand). Keep things simple, but never use "baby talk."

When to seek help
If by age 2 your child rarely attempts to speak or imitate others, doesn't react when you call her name, or seems uninterested in talking, seek help. If by the end of this year she still says only single words instead of two-to-four-word sentences, uses new words once and then doesn't repeat them frequently, or doesn't ask or respond to simple questions ("What's this?" or "Where's your hat?") then she may also have a speech problem.

Read some more on Hubpages.

Property Investment in Australia


Thinking of investing abroad? Australia may be a good option. Many of us have relatives and friends in this prosperous developed country. Australia has a multicultural society and is quoted as the second best place to live in the world. U.S. publication International Living has published its 2010 Quality of Life Index, which ranks 194 countries based on their quality of life. The index looks at nine categories: cost of living; culture and leisure; economy; environment; freedom; health; infrastructure; safety and risk; and climate.

Australia ranks No.2 : Countrywide access to an active and healthy lifestyle. Urban dwellers enjoy plenty of great culture, excellent food and a favorable cost of living.

For investment purpose, more importantly is the performance of Australia’s property market.

Australia property sales hit record
____________________________________________

1 March 2010 - Australian real estate prices are rising strongly and show no signs of abating, analysts said Monday, after weekly sales in one state hit a record 1.025 billion dollars (920 million US).
The Real Estate Institute of Victoria said last week saw "the largest dollar volume of transactions ever recorded" amid growing confidence in the economy as people took advantage of low interest rates.
"We've seen more physical sales in a week period, but never have they passed the billion dollar mark," research manager Robert Larocca told AFP.
"So that's partly a sign of how strong the market is and it's also a sign that people are spending more than they have in the past."
Larocca said the surge in sales was the result of historically low interest rates following the global financial crisis and the growing population in Melbourne, Australia's second largest city, outstripping available housing.
"People are confident, they are confident because the economy is going much better than they expected it to," he added. David Airey, president of the Real Estate Institute of Australia (REIA), said Melbourne was one of the country's strongest markets but noted that Australian property prices were in general very strong and rising.
"The property market in all Australian capital cities has had a rapid recovery from mid-2009 on, and noticeably in Melbourne and Sydney with property prices rising quite significantly over that six month period," he said.
"I think that will be reflected again this quarter with further growth in all capital cities." Airey said Australians felt property was a safe investment, with median house prices rising by 18.5 percent in Melbourne and around the country by more than 12 percent in 2009.
"And it's difficult to see this current period of growth stalling, unless it's caused by external factors and significant higher interest rates," he said. The average Australian house cost 334,100 dollars in 2005 and the REIA estimate for 2010 is 481,310 dollars.

By AFP – StarProperty

However, we still need to be careful when investing in property (all the more for oversea property). Read more on property investments – the leverage factor here.


SP Setia revises upward sales target


SHAH ALAM: Property developer SP Setia Bhd has increased its sales target for the financial year ending Oct 31, 2010 (FY10) to RM2bil from RM1.65bil announced earlier, backed by a jump in sales of RM608mil recorded for the first quarter. The group achieved its highest ever sales of RM1.65bil in FY09 despite challenging market conditions last year.
President and chief executive officer Tan Sri Liew Kee Sin said he was upbeat about the sales target after the group recorded a six-fold increase in sales for the first quarter compared with RM101mil achieved in the same quarter of FY09. “The group’s sales have continued to hold up higher than pre-crisis levels due to strong branding and adoption of innovative marketing strategies,” he said after SP Setia’s AGM yesterday.
He added that the sustained sales performance, despite a price increase of at least 10% for the group’s entire product range, would underpin its targeted return to growth this year. “Of the RM2bil sales target, almost all will come from the local market and 10% from our project in Vietnam. “The market in Vietnam is not so stable at the moment and we are taking it slow and steady there,” he said.
Liew said the group’s main focus would be its projects in the Klang Valley, Penang and Johor Baru. “We have about 10 ongoing projects in Malaysia with a total gross development value of RM26bil that would last for 10 to 12 years on our 3,900 acres of land,” he said.

By Edy Sarif - StarProperty


Look at the way they are pricing their property. It's no wonder they can afford to revise their sales target. For example, their previous launch of double storey terrace 20'x70' with built up of 2,188sq ft is priced from RM405,000 onwards. What amazes me is that their properties are selling like hot cakes. For more information please visit SP Setia's website : http://www.spsetia.com.my/