Getting your CCRIS Report

Scenario
It’s good to know your credit history.
Especially for some of you “defaulters”!!!….
I am sure a credit report will shed some light on your current situation. :-)

It‘s one of the main evaluation method for banks/financiers in deciding
whether to offer a loan (mortgage, credit cards, personal, etc…).
Yes, they peak into our credit report….

Good news is that we can obtain such a report fairly easy and convenient as well.
It’s call the CCRISS report.

Solution
It’s all done at Bank Negara.

Having no idea how to get there… I rely on the good old Google map for direction.
Found out that KTM has a station call “Bank Negara”. And no doubt… that station is just
right next to the destination named.

Klang Valley Transit Map
So I drove to Mid-Valley and took the KTM from there. 2 stops and I arrived.
Of course, other folks may have other means of getting there…

The moment you step out of the station, you should see police officers on your right.
That’s the road you should follow.
You’re on a higher ground while SOGO, KWSP building, etc… is below.

Do not walk straight down the staircase… which I did…
since I mistaken the KWSP logo on the building below as the Bank Negara logo.
(Alright…how embarrassing).

Bank Negara Map

Anyway, just turn right once you’re out and walk towards the police officers.
They will stop you and ask questions, just tell them you’re here for your CRISS report and they will direct you how to get there.

Walk straight ahead… you should pass a “coffee shop” on your left. Just continue walking down the road.
It’s quite a walk… because the building is all the way the other side.

You will notice lots of police! Even the counter person in some buildings is police officers.
Shouldn’t be surprise really…. This is Bank Negara…

Once you reach the end of the road, you will notice 2 buildings (and more police).
The building on your right is where you should head to.

Once inside, just go to the counter and ask how to get your CCRISS. They will point you
to a KIOSK nearby. There’s 2 KIOSK from what I can see.

Line up for your turn…. Took me around 15-20 min before I sat down at the computer.
All you need is your MyKard IC.
Just slot your IC into the scanner and put your thumb for a scan.

I guess the time it takes to print out the report depend on how much Loan you took.
An uncle in front of me waited like 5 min before his 3-page report is printed.
I guess he’s got lots of lending going on there…. ;-)
It took me just 1-2 min and my 2-page report is out.

This is how an example report looks like….

CCRIS Report

I was told we can only print it once every 6 months. And sorry, no Internet print-out yet.

What’s great about the report is that it list down every credit loan you have in detail.
The load credit amount, how much you still owe, your history payment (pass 1 year), which bank branch, etc..

There’s also a portion which states the pending and approved loan you apply for, when it was submitted and for how much.

So, if you happen to approach like…. 10 banks for 1 home mortgage!!!…
And a loan officer asked if you have approach other banks…. Say 10… because they will know. ;-)

July 20th, 2009 | 3 comments

Property Purchase – Rhythm Avenue USJ19

Scenario
Invest in a residential property to gain positive rental income and capital appreciation… hopefully.
First step … picking the right property

Solution
Rhythm Avenue at USJ 19 is the first choice I made.
Kind of funny since it is this same property that went abandon about 7 years ago which got me into trouble.
but…Here’s why I made the decision.

The revival was done up pretty well just like most newly completed condo… by Malaysian standard.

Rhythm Avenue Pool

The property is sitting on prime commercial land at USJ 19.

Rhythm Avenue Map

It would be better if it’s on residential land since that would save me on bills, fees and others.
But it does have it’s benefits if they have key tenants taking up the retail lots.
Which they have!

Rhythm Avenue Digital Mall

Carrefour & Digital Mall which of course consist of many mini-tenants.

I believe this the only condo in USJ having such key anchor tenants right below it.
It’s also just minutes away from Taipan and near the LDP & Utara-Selatan highway.

Of course… being in a prime location and having good anchor tenants would mean nothing
if the “price is not right”.

So, is the “Price Right”? Does it bring in positive cash-flow?
Here’s a basic calculation base on my purchase

USJ Rhythm Avenue Price

Base on a similar unit I rented out for RM 850 per month.
I consider it partial furnish.
Didn’t do much…. just the grills, lights & fans.
Furnish with fridge, wash-machine, bed-room set, sofa & portable kitchen cabinet.

USJ Rhythm Avenue Gross Income

Principle paid is average out within 5 years loan period

USJ Rhythm Avenue Net Income

That’s RM 3840 per year from an initial investment of

USJ Rhythm Avenue ROI

For the lawyer’s fee, I receive a 50% discount for Stamping (Thx to budget 2009)

So, that’s a ROI of 16.3% per year.
I didn’t even calculate property appreciation.

Anyway… the bottom-line is, the price definitely is right base on the rental it can bring in.
It’s pretty obvious actually… a decent condo in USJ at RM 145k is a steal.

The disadvantage is that it’s pretty hard to get a decent loan from the banks.
Decent meaning…  good rates, term period & margin of finance
Probable due to it’s abandon history, hence you must shop around.

Oh yah… did I mention it’s Freehold.

Property Purchase – Rhythm Avenue USJ19
July 16th, 2009 | 1,067 comments

Booking Fee for a Tenancy Agreement

You see… this is the 1st time I am actually getting a tenant.

After reading a couple of “Get rich & become millionaire real-estate” books, which constantly warn about the horrors of getting the wrong tenant…it kinda freak me out.  Hence, I became really careful on picking the right tenant, which ended up my property being empty for a good 6-7 months….
It may have been the rental rate… I don’t know.

I try to follow their “teachings & theories” pretty diligently. Some are pretty interesting.

An example, is requesting for a “standing-instruction” from potential tenants in monthly rental income.  IMO…. It doesn’t work. Well, at least for me.
The dealings end up feeling “picky” and demanding.  This is one example of good in theory bad in practice. Sure… biz is biz…better be safe than sorry… but I will skip this step.

Another theory is giving a rent discount, say RM 50, if rental is paid early…
I get the idea of using incentive to ensure tenants pay. But IMO it’s added process and subjected to create confusion. I say the simpler the better.

Anyway… good news is I manage to get a good tenant (so far).
But… made a major mistake with a rather unscrupulous Agent and here’s what went wrong.

Scenario
Property dormant for 6-7 months even though engaged several agents.
Desperation sets in. Mom finally found Agent whom found tenant who’s interested.

Significant rental price reduction due to desperation & realization that my “fully furnish” property ain’t exactly “fully” after all, compare to the market. It’s more like “partial furnish”.

I requested for a “meet-up” before any offer is accepted.
Met up with Tenant & Agent…. Good vibe with the Tenant.

Here’s where the mistake is made.
Agent requested for a booking fee from Tenant.  About 90% of monthly rental…
Tenant paid… we both sign “booking” papers. The tenant requested to move in asap like next 2 days,
which is fine by me.

The next day, Tenant “bank in” the 2 month deposit + ½ month utilities to me
and 10% of the remaining monthly rental to the Agent to cover the agent fees.
Agent gave keys to Tenant. The End.

Find the problem with this process?
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Problem -> there’s NO Tenancy Agreement sign at all and yet the Agent is fully paid and Tenant having keys to the house.

Here’s what happened.

Tenancy Step Wrong

It didn’t help that the Tenant just handed me the money with no document sign for Tenant’s own protection and mine. Besides….. the Tenant shouldn’t be passing the 10% remaining amount to settle the agent fees.

Although it’s the job of the Agent to prepare and ensure a proper & fair Tenancy Agreement is in place and sign before handing out any money or keys….. it wasn’t done.

There’s now no incentive for the Agent to “finish up the agreement” since she’s gotten the money.
Basically she could just walk away.

When I confronted the agent on the process…. she has the guts to tell me it’s a normal process
and she’s been doing this for the past 13 years as an “experience” agent.
I just told her…. “You should change your process”.

Later I found out she wasn’t even from the “well-known” real-estate agency she claims to be in.
She quit 3 months back but was still using the name card and “booking” papers with the company letter head. I was really tempted to report her….. but ….

Solution
Just constantly pressuring the agent to get the Tenancy Agreement ready & stamped.
I now do more “running around” to minimize delay since I want the Tenancy Agreement ready, stamp and sign asap.

Remember…  The agent has no incentive any longer for serving me.
(besides reputation, long-term client prospect, etc… which I believe she didn’t care)
She got the money.

Lucky thing the Tenant is good and the Agent is “manageable” hence no serious damage was done but a possibility nevertheless.

I definitely no longer want to the same mistake again!

Tenancy Step X

Key Learning
-    There’s no need to sign “booking” papers for tenancy deals. This isn’t buying a property dealing. If Landlord is comfortable with the Tenant and vice versa… all money and keys exchanges can be done once Tenancy agreement is ready to be signed.  No need the extra “booking” step.

Tenancy Step Correct

July 10th, 2009 | 5 comments
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