OCBC’s Ideal Mortgage

Posted on | June 30, 2009 | 1 Comment

Yesterday, OCBC launched a new home loan package called Ideal Mortgage. It is supposedly different because it uses its own unique Mortgage Lending Rate (MLR) instead of the typical Base Lending Rate (BLR).

Apparently, the MLR is developed exclusively for home loans and is calculated based on the mortgage business whereas BLR takes into consideration the overall bank costs.

One of the first benefit is that its MLR is currently set at 4.70%, while its BLR is currently 5.55%. The first-year rate of 2.5%. Thereafter, the interest rate is set at MLR – 1.3%. As far as I know, this is one of the lowest in the market today.

Other benefits include shorter lock-in period of 3 years, instead of the typical 5 years. Its exit cost, if you choose to pay off sooner, is apparently lower too although they did not state how much. All this will mean more flexibility for the consumer who are inteding to invest in properties with a shorter time frame.

What do you think? Is this a good home loan package? Have you encountered other home loan packages which are better?

Interpretation of Financial Statements the Warren Buffet Way

Posted on | June 23, 2009 | No Comments

For the longest time, I have been reading business and investment books, I have always been fascinated by how successful people pick stocks. However, it all boils down to whether you are using fundamental analysis or technical analysis.

I lean towards fundamental analysis since this is less prone to market manipulation (I think) and also, it is more sustaining. One of the measures of a company lies in its financial statements (which you will see in their annual report) which will contain all the information which makes up the ratios, e.g. PE ratios, NTA, price-to-book ratios etc.

But I have always been horrible in understanding financial statements. I could never make head or tail of it and it is quite frustrating sometimes. Imagine my delight when I got hold of this book - Warren Buffet and the Interpretation of Financial Statements.

I just started reading this book and would like to share it with you as I attempt to understand this mysterious document call chapter by chapter each day.

Come check out this site periodically as I share my journey in learning about how to read financial statements, like Warren Buffet!

Investor Sentiment Chart

Posted on | June 22, 2009 | No Comments

I got this from REIT blogger and I was really tickled by how true this is to our actual investment self!

The green line actually shows the share market line which will also typically draws the type of emotions as stated above.

I have also been guilty about this at some point of my life, actually even now at times! There is always the thinking of “buy, buy, buy” when the market is going up despite knowing that it is extremely dangerous to jump onto the bandwagon.

And then when the market tapers off, we say, “aiya, slight correction only, let me see how tomorrow”. And when the market really corrects and head south, the usual line would be “never mind, I hold, else I just buylo”

And at the real bottom, we decide to sell, only to see the market rebound the next day! And then, feeling really pissed (with ourselves, the market, the neighbour etc.), we will go “Stupid market, I think next time I won’t invest anymore la”.

And then the CI hits 1,000 points and the whole cycle goes again! What about you? Do you see any resemblance between this chart and how you feel?

American Express® Gold Credit Card

Posted on | June 19, 2009 | 2 Comments

Today, Maybank launched its AMEX Gold credit card. I know some people say that all Gold cards look the same, but I think this one looks a little different. For one, the gold colour is not as gaudy.

Although it has many benefits, one of the more interesting one is the 0% finance charge from now till December 2009. This is great for people who like me, are looking to buy big ticket items and do not want to participate in an installement plan. This way, I can stretch my Ringgit further! However, as with all spend, it pays to be prudent.

The other interesting feature is that once 2009 is over, the finance charge will be 9% as opposed to the highest in the market at 18%. Although there is a tiered pricing for credit cards now, it still does not beat this 9% mark. Previously, Affin Bank claimed to be the lowest in the market with charges of 9.9%. Now, Maybank has overtaken them. However, you need to promptly settle your minimum payment of 5% or a minimum of RM25to enjoy this.

And if you are a rewards points person, this card provides you 5X reward points for every Ringgit spent on groceries, petrol, bookstores - Kinokuniya, Borders, Times and MPH - and telco charges via Express Autopay - Celcom, Digi, Maxis and Telekom. Please refer to its website for a list of grocery stores. For all spend elsewhere, you will only get 2x reward points.

To top it all off, it is free for life!! Isn’t that great? I just faxed my application form for it. So excited about the offer.

And look, even the advertisement is great!

 Are you going to apply for it?

Taxes for businesses

Posted on | June 18, 2009 | No Comments

Once again, it is that time of year when business men and business women are rushing to get their taxes done by 30th June. For us employees, it is 30th April.

For my other half, this is the time he will be scratching his head wondering why on earth he needs to pay taxes, and that is only the current year’s amount. Imagine us employees, who sometimes have to pay back taxes when our employers under deducts! Ouch!

And I really hate it when I know I have tax debt hovering around. Firstly, I do not like to know I owe anybody and secondly, I do not like not knowing whether whatever IRB claims I owe them is correct or not.

Sigh, I wish the government would give us tax payers a break and declare tax relief for the year or something. The current economic condition sure warrants it to be so!

What about you? Are you paying taxes by 30th April or 30th June? How do you feel when you pay taxes?