Rent A House or Buy Your Own Property?

Which one is the better option … economically?

Everyone of us would dream of owning a nice and comfortable house for the family. Be it just a small apartment, a luxurious condominium or just simply a place to call home. But, have you ever ponder for a moment whether to purchase your own house or just renting a home?


Well, there are certainly a whole lot more aspects to consider when buying a property. Location, pricing, amenities, accessibility and perhaps the most important of all is affordability.Many of us would like to stay in an uptown area with great addresses but ended up choosing other cheaper options due to money matters. All the more reasons why you need to punch your calculator even harder before deciding.


One good example will be buying an apartment-condo in an outskirt area. We bought this 1000 sqft condo way back in 2002. It was selling around RM138,000 at that time, which was quite affordable for a young couple like us.


And now, when we decided to upgrade to a landed property, we made a detail calculation on our home loan payments and was shocked by the findings. As of January 2008, we have paid about RM37,000 on interest alone! Plus all the lawyer fees, yearly quit rent, fire insurance etc, we had paid a total of about RM50,000 already!


Price appreciation for this area is slow and the market price for our condo now is at RM150,000 only. This means that, if we are to sell our property now in order for us to upgrade, we will incur losses of RM38,000! (Just over a 5-year period)

• Initial purchase price = RM138,000
• Interest & misc fees = RM50,000
• Selling price now = RM150,000
• Losses = (RM138,000 + RM50,000) – (RM150,000) = RM38,000

If we were to rent the same condo at market rate of about RM600 per month for 5 years, we only need to pay RM600 x 5 yrs x 12 mth = RM36,000 without having to endure all the hassles of buying your own.


So, the next time when you are buying your own property, think about this factor too. Are you planning to upgrade in the short term? If so, we would advise you to choose your property location very carefully. Make sure there are plenty of rooms for price appreciation. Otherwise, wouldn't it be much easier just to rent a house?



*It would be different if you are staying for longer term. Read more ...

Anatomy of the Engagement Ring

Know your rings and how to discover her ring size.



It may be one ring, but it's made of many distinct elements:



· The Stone will account for 75-90% of the overall cost of the ring.

· The Setting holds the centre stone. A strong precious metal is imperative in securing your investment.

· The Band will endure the most wear over time since it's in constant contact with the fingers and everything that the hand touches.

· The Hallmark indicates the type and purity of the metal. All rings must have this.


Cross checked my platinum wedding ring; found that the hallmark (PT950) is engraved at the inner ring. Pheew ... luckily we were not being cheated.





Have you ever think of surprising your love one by presenting a ring which could just fits perfectly without letting her knowing your plan? Sounds so romantic but how many of you could make it?



Here are some tips on how you could discover her ring size and turn the romantic moment in reality.I found several ways of getting ring size but these are the most easier and effective ways:

1. Find an occasion when she's not wearing her ring and take it to a jeweller for sizing. You got to make it within a short period of time to aviod her suspicous. You won't know when she will change her mind to wear her ring again.


2. Offer to take her jewellery to be cleaned and have the ring sized. If you never make this offer before, chances she might know your plan is higher. So start giving hand from now if you have planned to surprise her few months later.


3. Pressing a ring into a piece of soap, clay or other malleable substance will make an impression of it that you can then take to a jeweller to obtain a reliable measurement. Make sure you clean up the ring after doing so.


4. Perhaps the quickest way to get an idea of her ring size is to place one of her rings on your own finger and push it down as far as it will go. Mark the spot where it fits with a pen, then go to a jeweller who will be able to take a measurement. You can only do so if your love one has a smaller finger size than yours.

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Gold, White Gold or Platinum??

What will be your choice when buying jewelry?

How much do you know about Platinum? What is the purity of platinum as compare to gold or white gold? Do you know that platinum can never change in term of color, weight, & shape throughout your lifetime?

I wish to share with you the 4 elements of PLATINUM which will make you know more about it. Make you choice after reading.

Platinum - pure, rare, eternal and versatile.

Pure

Its purity about 95% (18 karat gold is 75% pure), platinum jewellery does not fade or tarnish and keeps its looks for a lifetime. Simply because of it’s purity, platinum is hypoallergenic and ideal for those with sensitive skin.

Rare

Platinum is rare. There is very little platinum on this earth and it is found in very few places around the world. In 1819 platinum deposits are discovered in the Urals in Russia. This exquisite metal is 30 times rarer than gold. Platinum's rarity makes it exclusive and distinctive.

Eternal

Platinum jewellery is the perfect choice for a lifetime of everyday wear. Its density and weight make it more durable than other jewellery metals. Like all precious metals, platinum scratches. However, the scratch on a platinum piece is merely a displacement of the metal and none of its volume is lost. So, even though wearing it each and every day may leave an impression on the surface, it remains what it was - a symbol for all things eternal.

Versatile

Platinum is so pliable, that just one gram of the metal can be drawn to produce a fine wire almost 2 km long. Platinum also plays an important role in medicine. It is not affected by the oxidizing reaction of blood, has excellent conductivity, and is compatible with living tissue.

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Car Insurance: To Claim or Not To Claim?

Have you ever been involved in a minor car accident? Do you file for claim to the insurance company immediately and lose all your “No Claim Discount” (NCD)?

Well, if you ever get into the same situation, take some time to work out a few things. Firstly, assess the damage and see if it’s only require minor repair or major overhaul. Run a few checks and calculations and you will be thanking me for saving you the money.

Let us assume that you had a collision with another car. The cost of repair is estimated at about RM3500 (change rear bumper, bonnet cover, repainting, rear lights… etc). Your current NCD is at 55%. What should you do?

Claim and start your NCD all over again from 0%?

For example, if your car is to be insured for RM50,000. Upon renewal, you will only need to pay a premium of RM849.03 (assume 55% NCD without windscreen cover).

Calculation of premiums:
Sum insured = RM50,000

Full Premium = [(50 – 1) x RM26] + RM251.50 + RM10

= RM1525.50 + RM10

Minus NCD 55% = (RM1525.50 – 55%) + RM10

Premium to be paid = RM696.48

Option A: Claim and Lose the NCD

Option B: No Claim and Save on the NCD

And thus, the total premium difference between the two options (to be paid over 5 years) is only RM1863.89 as compare to paying the RM3500 for repair. Well, you have done the math, which option do you choose?

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Blue Ocean Strategy vs Red Ocean Strategy

Understanding the differences in both concepts…

The analogy of red and blue oceans describes the market universe. Red oceans are all the industries in existence today or the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform each other to achieve a greater share of product or service demand in a world where growth is increasingly limited. As the 'ocean' gets crowded, prospects for profits and growth are reduced. Products become commodities and cut-throat competition turns the red ocean bloody. Hence, the term red oceans.

Blue oceans, on the other hand, denote all the industries not in existence today or what we called the unknown market space, untainted by competition. In blue oceans, demand is expanded or created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. Here, in blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored.

Blue Ocean Strategy is a business strategy book that promotes a systematic approach "for making the competition irrelevant." The authors, W.Chan Kim and Renée Mauborgne, are professors of Strategy and Management at INSEAD. A core idea is to create a leap in value for both the company and its buyers by breaking the differentiation/low cost trade-off and to align product value and profit propositions.

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