True Cost of Owning A Car

Beside the car value and installment amount, there are a  lot more cost which is not seen directly.

1) Depreciation Cost
That is where most people talk about owning a typical japanese car or a used car. Although not seen directly, there is depreciation cost involved in owning a car. For example, you could buy a new car and realized that the price is down by 10 thousand a year later. Which effectively translate into an implicit cost of RM833 per month which is potentially as high as the installment amount. Typically used car and japanese car has less depreciation cost compare to the rest.

2) Maintenance Cost
Why continental car has lower second hand car value? As the car aging, there are parts which needs to be repair/replace. In Malaysia its typically more difficult to find used or "imitation" parts for continental car. Owner need to opt for expensive new parts. That the reason why cost conscious owner are more reluctant towards continental car

3) Borrowing/Refinance Cost
Generally borrowing cost ranking by most expensive is local car, Korean car, Japanese car and continental car. Note also for used car, certain make has more expensive refinancing cost such as Nissan has more expensive financing cost compare to Toyota. According to banker, this is because bank is taking more risk to finance less popular car (eg Nissan) comparing to Toyota thus the financing cost is higher. Its also related to perceived risk, such as Proton/Perodua owner are perceived as higher risk compare to other car driver which requires more cost of financing. However this is not always correct because some maker will offer "incentive" on the borrowing cost which effectively lower the financing cost.

4) Fuel consumption and road tax
In long run, you may also want to look into cost of owning a car from the fuel consumption perspective. Hybrid cars are more fuel efficient which translate in long run of saving for owner. Secondly your car performance power also translates to higher road tax. However I would say road tax is a small consideration unless you are considering car above 3000 cc else its relatively a small cost comparing to others.

5) "Image" Cost
This is crazy but i decided to put in this one. Its still those days which your new girl friend's friend will ask... "what car is your boyfriend driving" ? or when you join a new company, new colleague are actively guessing the type of car you are driving. This cost is not real but its true. Oh materialistic world! Does it impact your social cycle potentially also your social positioning? Example opportunity for new friendship also impression created to your future employer and customers? Well this can goes into huge argument however nonetheless,     car main objective is bringing you from point to point, anything that goes luxury; wont it because of trying to impress someone?

All About Credit Cards

Knowing your cards > http://www.bankinginfo.com.my
1. Visa
2. Mastercard
3. JCB
4. AMEX - Charge or Credit Card
5. Diners Club
6. China Union Pay (中国银联)
7. Etc.

1. Annual fee
Annual fee free credit cards :
- CIMB Direct Access
- CIMB Bank
- American Express Green charge card & American Express Gold credit card
- Public Bank (**minimum swipes apply)
- Alliance Bank (**minimum swipes apply)
- UOB Bank (**minimum swipes apply)
- Maybank (**certain cards only)
- EON Bank (**minimum swipes apply)
- Citibank Choice (**minimum swipes apply)
- Hong Leong Bank Essential VISA (**swipe at least twice a month OR spend RM8,000/year)
- AmBank (**certain cards only)
- OCBC (**minimum swipes apply)


2. Tap and Go - no signature required
VISA payWave
**Payment made via Visa Wave is limited to RM150
MAYBANK
- Maybank Islamic PETRONAS Ikhwan Visa Platinum
- Maybank Islamic PETRONAS Ikhwan Visa Gold
- Maybank PETRONAS Platinum Visa
- Maybank PETRONAS VISA Gold
- Maybank VISA Platinum
- Maybank VISA Wave

EON Bank
- GSC-EON Bank VISA Wave
- VISA Wave 'n Go
- Berinda Homes VISA Wave
- Johor Bahru City Square VISA Wave
- Penderosa Gold & Country Club VISA Wave

UOB Bank
- UOB ONE Card

MasterCard Paypass
**Payment made via MasterCard Paypass is limited to RM120
CIMB Bank
- all MasterCard

CIMB Islamic Bank
- all MasterCard

Direct Access
- all MasterCard

Touch n Go
CIMB Touch 'n Go Visa (This is the first credit card with Touch and Go embedded)


3. Credit Card linked to Petrol
- OCBC Titanium MasterCard <> all petrol stations = 5% cash back
- Citibank Cash Back VISA Platinum <> all petrol stations = 5% cash back
- UOB <> BHP Petrol = 2% cash back (UOB One only), 1% cash back (others)
- Citibank <> SHELL (This only applicable for Citibank Shell, Citibank Cashback Plat applies to all petrol stations)
- Maybank/Maybank Islamic <> PETRONAS = 5x Treatpoints
- CIMB Bank/CIMB Islamic <> PETRONAS = 2% cash back
- Public Bank ESSO/Mobil VISA <> ESSO/MOBIL = 0.5 - 5% (tier-based)
- RHB Travel Money <> all petrol stations = 2% cash back (5% cash back every first weekend)
- AMBank Carz <> all petrol stations = 2% cash back (3% for Gold and 5% for Platinum, provided there is an outstanding)

**All range of American Express charge & credit cards give 2x MR/TP on petrol purchases whilst AMEX Gold credit card and Maybankard 2 AMEX give 5x MR/TP. This applies to all petrol brands.


4. Standard financial charge (interest rate)
Tier 1 > 13.5% p.a.
Tier 2 > 16% p.a.
Tier 3 > 17.5% p.a.

Cash advance: 18% p.a from the date of withdrawal.
Late payment: 1% of outstanding or RM 5 whichever is higher.
Minimum payment amount: 5% of outstanding or RM 25/RM 50 whichever is higher.


5. Complimentary Cards
1) HSBC Premier - deposit and maintain RM200k
2) Citibank Citigold - deposit and maintain RM200k
3) Standard Chartered Priority Banking - deposit and maintain RM250k
4) UOB Privilege Banking - Opening deposit of RM300k with maintenance of RM200k
5) OCBC Premier Banking - Opening deposit of RM300k with maintenance of RM200k
6) CIMB Bank Preferred Banking - deposit and maintain RM150k
7) Hong Leong Bank Priority Banking - deposit and maintain RM200k
8) Alliance Bank Privilege Banking - deposit and maintain RM200k
9) RHB Bank Premier Banking - deposit and maintain RM200k
10) Public Bank Red Carpet Banking - deposit and maintain RM500k or a Mutual Gold customer with a total combined deposits of RM200k in savings/current/fixed deposits.


6. American Express
Charge card
AMEX charge card gives 2x Membership Rewards Points for all petrol purchases. This applies to all petrol brands. All other spending will also earn you 2x Membership Rewards points.

Credit card
AMEX Gold credit card
5x Membership Rewards Points for every Ringgit spent on groceries, petrol, bookstores - Kinokuniya, Borders, Times and MPH - and telco charges via Express Autopay - Celcom, Digi, Maxis and TM. 2x Membership Rewards points for all other retail transactions.

AMEX Platinum credit card
10x Membership Rewards Points for every Ringgit charged to your card at Platinum partners. Please refer to American Express MY for the latest list of Platinum partners. All other retail spending earns you 2x Membership Rewards Points.

Maybank Islamic Ikhwan AMEX
5x TP on petrols.
2x on all other retail swipes.

Link to AMEX thread: http://forum.lowyat.net/topic/547867


7. International Transactions
Transactions incurred will be converted to Ringgit Malaysia using US Dollars as the base currency on the date the item is received and/or processed at such exchange and at such time as may be determined by VISA International/MasterCard Worldwide at its absolute discretion plus administration cost which is to be imposed by the card issuing bank. The exchange may differ from the rate in effect on the date of the transaction due to market fluctuations. Such rate imposed shall be final and conclusive and the Cardmember shall bear all exchange risks, losses, commission and other bank charges which may thereby be incurred.
- Maybank VISA/MasterCard : 0.5%
- Maybank American Express with Maybank logo on top : 1.5%
- American Express : 2.5%
- CIMB Bank : 1%
- Hong Leong Bank VISA/MasterCard: 1%
- Public Bank : 1.25%
- Citibank : 1%
- HSBC : 1.25%
- EON Bank : 1%
- UOB Bank : 1%
- Standard Chartered : 1%
- OCBC bank : 1%
- Alliance : 1% (verified by hebe87)

Exchange rate estimator : http://corporate.visa.com/pd/consumer_serv...er_ex_rates.jsp


8. Credit Card Cancellation Letter
QUOTE
Credit Card Cancellation Letter

[Your name]
[Your address]
[Date]

Dear Sir or Madam:

Please let this letter serve as notice that I am terminating my credit card account effective immediately. Please close the following account:

Credit Card Company: ____________
Account Number: ________________

Please send me written confirmation that my account has been closed. Also, please confirm that you have notified all appropriate credit card bureaus that this account was closed at my request.

Thank you for your prompt attention to this matter.

Sincerely,
[Your Signature]


9. Cash Advance fees
Citibank: 5% of cash amount (min RM20), and 18% p.a. daily interest (N/A for Ready Cash)

UOB: The cash advance fee is charged to any withdrawal of cash made. This is imposed for each cash advance transaction. 5% or RM20, whichever is higher.

Maybank: VISA/Mastercard (Both Classic and Gold) | Flat rate of 5.00% of the total amount of cash advance | Min: RM10

CIMB DA: 5% of the amount drawn, subject to a minimum of RM15, whichever is higher.

CIMB: 5% of the amount drawn, subject to a minimum of RM15, whichever is higher.

HSBC:
The cash advance fee is 5% of the amount advanced or a minimum of RM15. Whichever is higher. This is imposed for each cash advance transaction
For HSBC Amanah Charge Card, cash advance is capped at RM1,000 per transaction and a fee of RM60 per transaction will be levied
For cash advances made over the HSBC banking counter, there will be an additional charge of the following:-
- RM50 on credit cards issued by local banks other than HSBC - RM20 on credit cards issued by non-Malaysian card issuers (including JCB)
- Cards issued by HSBC Bank Malaysia and the HSBC Groupare exempted from this charge

OCBC: The cash advance fee is 5% of the amount advanced or a minimum of RM15, whichever is higher. This is imposed for each cash advance/casino chips transaction.

HLB Essential: 2% of the amount advanced or a minimum of RM5, whichever is higher. This is imposed for each cash advance transaction. Minimum withdrawal for each cash advance is RM200.


10. Verified by Visa and Mastercard Securecode
Verified by Visa ---> http://www.visa-asia.com/ap/sea/merchants/...vbv_intro.shtml
Participating banks :
- HSBC
- Standard Chartered
- Maybank (MSOS)
- CIMB Bank
- Public Bank
- RHB Bank
- AmBank
- Hong Leong Bank
- EON Bank
- Alliance Bank
- MBF Cards

MasterCard SecureCode ---> http://www.mastercard.com/au/personal/en/c...code/index.html
Participating banks :
- HSBC
- Standard Chartered
- Maybank (MSOS)
- CIMB Bank
- Public Bank
- RHB Bank
- AmBank
- Hong Leong Bank
- EON Bank
- Alliance Bank
- MBF Cards


11. Balance Transfer: http://forum.lowyat.net/topic/1123346


12. RM50 Government Service Tax - Currently STILL IN FORCE
With effect from 1 January 2010, there will be service tax imposed on credit card as follows :
i. RM50 per annum on each Principal Card; and
ii. RM25 per annum on each Supplementary Card
The service tax will be collected on the date the card is issued, or on the completion of each year or on the date of renewal of the card (except HSBC which will be billed 1 month later). This means that the above mentioned service tax shall be levied on new credit card issued effective from 1 January 2010. For existing credit cards issued before 1 January 2010, the service tax shall be levied upon anniversary of card issuance.



13. Airport Lounge Access
Alliance Plat - UNLIMITED access to Plaza Premium Lounge KLIA
Citibank Premier Miles - worldwide airport lounge twice a year (saw thier website need to apply before hand). Access to Plaza Premium Lounge KLIA 12 times a year PLUS the Priority Pass with 2 free admissions worldwide (subsequent need to pay). PP is for principal ONLY
Citibank Plat - Free access to Plaza Premium Lounge KLIA with a limit of 12 times a year
SCB VI - gives Priority Pass membership with UNLIMITED free admissions for principal ONLY
SCB Platinum - UNLIMITED entries to Plaza Premium Lounge KLIA for principal ONLY
HSBC Premier - don't even have access to Plaza Premium Lounge KLIA
EON Bank Visa Signature - free priority pass membership for limited free lounge visits worldwide
EON Bank (certain platinum cards) - Free access to Plaza Premium Lounge KLIA, LCCT, Senai & Changi (monthly quota applicable)
UOB Privilege Banking Platinum - UNLIMITED access to Plaza Premium Lounge KLIA, LCCT & Senai
UOB Midas & Preferred Platinum - Free access to Plaza Premium Lounge KLIA, LCCT & Senai (subject to monthly access quota of first 400)
RHB Plat - 4X a year at Plaza Premium Lounge KLIA, LCCT and Senai. 4X access shared with supp card (i.e. supp card also can enter free)

Remark: Most of the Platinum cards issued in Malaysia can only grant free access to KLIA Plaza Premium Lounge only, not the lounges in LCCT and JB.
SCB VI through Priority Pass and Amex Platinum charge card at most of the lounges worldwide.


14. Previous versions
See site.

15. Useful information
BNM issued guidelines in 2003 that limits consumer liability in cases of fraud to only RM250. See the actual document here. (Courtesy of tishaban) (thanks awaynoway for the updated link)

Credit information:
CCRIS: http://creditbureau.bnm.gov.my/
CCRIS report - go to Bank Negara yourself and use self-service terminal to get report with MyKard (you need to go as need thumb print).
CTOS: http://www.ctos.com.my/
BRIS: http://bris.com.my/index.html

Swipe Smart with 6E:
http://www.abm.org.my/Swipe_Smart_with_6E_...ffectively.aspx


16. FMB - Financial Mediation Bureau
http://www.fmb.org.my/index.htm


17. AKPK
- An agency set up to provide financial education, financial counseling and debt management
http://www.akpk.org.my/Home/tabid/36/Default.aspx

Link to AKPK thread : http://forum.lowyat.net/topic/876712


18. Other Links By Users
A blog about credit cards > My Credit Cards


19. Credit Card/Charge Card Reward Points
Validity of numerous credit card/charge card reward points
1) HSBC - up to 3 years
2) Citibank - reward points are evergreen
3) Maybank - reward points are evergreen
4) CIMB Bank - 3 years
5) Alliance Bank - reward points are evergreen
6) Standard Chartered - 3 years (**SCB VI Choice Points are evergreen)
7) American Express - Membership Rewards Points are evergreen
8) Hong Leong Bank - up to 3 years
9) AmBank - up to 3 years
10) RHB Bank - 3 years for Platinum and 2 years for all cards ranked lower than Platinum
11) UOB - 3 years
12) EON Bank - 3 years


20. Premium Credit Cards and its requirements
1) CIMB & DA World Mastercard/Visa Infinite - Min Income Requirement : RM 200k
Existing HSBC Cardholder with CL RM30k and above OR Citibank CL RM50k and above OR Other banks RM70k and above MIGHT also be accepted, limited time promotion only
2) CIMB Enrich World Mastercard - Strictly by Invitation (those with card usage above RM 500k per annum may be considered)
3) CIMB VISA Signature - Min Income Requirement : RM100k
4) Maybank World Mastercard - Min Income Requirement : RM 240k
5) MBF World Mastercard - Min Income Requirement : RM 200k (By Invitation)
6) Standard Chartered Visa Infinite - Only for Priority Banking customer (RM 250k in deposits)
7) RHB Visa Infinite - Strictly by Invitation Only
8) HSBC Premier Mastercard - Only for HSBC Premier customer (RM 200k in deposits)
9) EON Bank VISA Signature - Min Income Requirement : RM180k


21. Best Credit Cards and its categories
Please note these are just recommendations based on normal spending. High spending or specific usage individuals might want to look at other cards.
1) Classic Card = Hong Leong Essential
2) Gold Card = Alliance Younique, Maybankard 2 AMEX
3) Titanium Card = OCBC Titanium / Standard Chartered Titanium (**product withdrawn from sale)
4) Platinum Card = Alliance Platinum / SCB Business Platinum / Citibank Cash Back Platinum / AMEX Platinum Charge Card (assuming AF is waiveable)
5) Visa Signature = EON VS
6) Visa Infinite = SCB VI
7) World MasterCard = Maybank WMC (assuming AF is waiveable)


22. Credit Cards with Complimentary Travel & Accident Insurance
1) All HSBC/HSBC Amanah credit cards
2) All Citibank credit cards (except all co-brand cards, cash back)
3) All Public Bank generic credit cards
4) All Maybank generic credit cards
5) All AMEX charge card & AMEX Platinum credit card
This post has been edited by MilesAndMore: Feb 1 2011, 10:26 AM

Outlook on Middle Range Rental Property Prices

Reasons Middle Range Property Prices Going Up
1) Increase in commodity prices
2) Low financing cost
3) Relatively high margin financing (compare to other region in SEA)
4) Economy growth spur increase in purchasing power
5) Investor rush in to lock in low installment on rising interest rate environment
6) Increase on overall price from inflationary pressure
7) Extension of MRT link across greater KL
8) Increase of middle income earner to stay in middle range property

Reasons Property Prices To Go Down
1) Oversupply in property
2) Less speculator in the market (70% margin financing on 3rd property loan)
3) Reintroduction of RPGT

Suggestion:-
Focus on middle range rental property. On increasing property prices, its more difficult for young exec to own a property thus demand for property rental will increase. On the expansion plan of Greater KL MRT project, target properties which are within the "radar" of proposed LRT location. Rental price will appreciate along with property price and also installment thus on the environment of rising interest rates and commodity prices, rental price shall continue to appreciate. There is potentially flat time on property prices however i dont think there shall be any major correction in rental based property as rental income is downward sticky thus property price is always a function of the rental yield from property (or vice versa which conservatively is 5% of property price). If economy continue to do well, low income will move low range property to middle range property while if economy turn the another way, high income will move from high range property to middle range property thus ensuring demand on such rental market at any time. Any capital gain shall be attribution of a new township plan. For value buy, look at Kajang or Sungai Buloh.