Buying a new car

I just bought a car over the weekend, with the delivery finalised today. I have now bought a total of 4 cars from dealers over a period of 6 years since moving to Australia. Each time I learn something new and this recent purchase had the highest learning curve.

A few tips if you are looking to buy a car (these are not new but based on my personal experience which can also be found elsewhere on the net):

a) When buying from a dealer, avoid purchasing other products or services apart from the car itself from the dealer. The dealer will try to sell you the car plus other added services including financing, insurance, accessories, extended warranty etc. As I wanted to develop relationships with the dealer/ service providers I spread my purchases from a few of them, thus giving each one of them a part of my deal. In this way, none of them made a lot of money (I hope) directly from me, but all of them made something from me.

b) Get an indicative pre-approved finance even before shopping for a car. You can do all your homework in terms of repayment, deposit, balloon payment and interest rates before you even buy the car provided, you have set a budget based on your capacity to pay. There are many financing brokers who can also sell you all the required services including insurance, extended warranty etc. as well. Always check the actual cash outflows rather than relying on the interest rates provided. I got a lower repayment despite having a higher interest rate quoted as the methodology used in computing interest differs from different financiers.

c) Sell your car directly yourself rather than trading in, through the dealer, the price could be as much as 50-100% of what the trade in value is as given by the car dealer. The internet is a useful tool to reach out to other used car buyers nowadays.

d) There is a lot of margin in all the products and services sold regardless what the dealer or sales person tells you. For e.g. when I bought a "gap" insurance for my car, the premium for this insurance policy was around $950, but the agent received 42% commission from the premium. In terms of price of the car, there are also car brokers who can source cars from you. Some of their websites even provide indicative prices which is way below the recommended retail price and could guide you as to how low you can go.

e) When negotiating financing, try to get as much flexibility in the repayment terms i.e. ensure there is low or no penalties for early repayment or cancellation of the loan

f) Do not be afraid to walk away or try a new dealer or service provider. Competition is very keen and as buyer, you have the power to make sure your money is working for you. Don't be afraid to ask, ask and ask for more.

g) When buying a new car, always shop towards the end of the month or better still, end of a calendar quarter or financial periods. Dealers have quotas, targets, incentives etc. which are set at the end of a period and, try to buy cars off their stocks, sitting at the car yards. They have more financial interest to get rid of them quickly as car sitting on the yard, does not earn them income. Ordering a car will not give you the leverage needed to negotiate a good deal as they are customised to your specific requirement.

I do hope the above are useful for those shopping for a car. Good luck.

Regional NSW

It has been closed to six months since my move to a regional city in NSW. It has a population of about 20,000 and it takes 5-10 minutes by car, from one corner to the other corner, in this city.

Traffic jams means 3 cars ahead of you at the traffic lights or roundabouts.

Everything you need (as oppose to want) is available although the price may be higher due to lower demand, higher transport costs and lower purchasing power (either in monetary terms or volume). Delivery by mail takes about the same time as in greater Sydney but courier may take an extra days.

All the major supermarkets or retailers are represented with the exception of one, which is under construction.

What do I miss? Family and friends who are still in Sydney.

What do I not miss? Traffic, daily stress in dealing with the crowd in Sydney as well as a high density living, working and commuting.

Would I be able to live her for the rest of my working life? Possibly if the family is here.

Ahh..and the price of real estate is at least half of Sydney prices and quarter acres real estate is still the norm.

Welcome to regional NSW.

Malaysian in NSW

The Malaysian in Sydney has been busy looking for new role in the past few months. It is tough out there, but as the going gets tough, the tough gets going.

Many Malaysians who have moved to Sydney or Australia in general will know how difficult it is to get and keep a real job; and those who have a job will also know how easy it is to lose it or be made redundant. The new economy does not favour job security, loyalty nor life time employment any longer. Change, move or retrain is the new mantra.

For those who are experiencing this situation at this moment, all I can say is just don't give up. I know is it easier said, but this is of utmost importance.

A brief of what I have undergone the past 2-3 months in my quest for a new job/ role and what I did or experienced/ observed:

a) Submitted in total, an excess of 160 applications, many were very close fit, others were just a stab in the dark although I must say all were relevant to my background/training/ experience

b) All my submissions were for roles in Sydney (and greater Sydney) initially but eventually expanded to include regional NSW as well

c) All positions applied for, were for experienced roles with probably no less than 5 years, with many  seeking 10-20 years, and to give you some back ground, I have over 20 years experience

d) I've read numerous books, articles, web sites, linked in postings etc, on job search with mixed conclusions e.g. some ask you to copy extracts of the job requirements onto your CV to enable the software to pick up/ filter a good match whilst others ask you to be more creative/ different

e) Recruiters work mainly for the client/employers' interest not the job seekers, very few actually work towards the job seekers' interest; so if you fail to get any response or frequently get rejected, it is not you. I had better response rate from employers directly although better here means a few as well

f) The job market is running on two speed; with the lower level roles/ position i.e. those below $100K  p.a. having a slightly better chance in favour of the employee and those at the higher level roles/ position i.e. those above $100K p.a, still very much an employers' market possibly due to over supply of qualified/experience candidates

g) Don't be afraid to try new things and/ or meet people in whatever that is relevant; career change, business opportunities, volunteering etc.

h) Try to be away from your home i.e. as if you're working everyday, by going out to meet people, attend free talks, network, meet up, start up, forums etc. Exchanging ideas/ view points with others helps to keep your sanity

i) Rejection increases the more you apply, but apply you must, whether it is in response to a job ad, unsolicited letters/application to a potential employer, news article highlighting expansion of a company, ASX announcement on some resignation or by word of mouth etc.

j) Review all your contacts and try to communicate with them on your intention to assist, help or support them in any relevant role/function; not just to look for a job. It does not matter even if it is not a paid role, the idea is to keep your mind working and making yourself useful

Based on the above experience, I finally received a handful (one hand only), of response (i.e. phone calls from the recruiter/ employer/ advertiser for some queries and/or phone interview), with two coming from regional roles. Most (close to above 80%) never reply, around 15-20% will send you a rejection; and hopefully one or two interviews with the potential employer (you only need one job).

From there, I manage to secure a role in regional NSW which means relocating myself.

The journey has been tough and stressful, but it is a journey in life.

I will now begin my journey from a regional NSW perspective next week and hopefully will be able to continue posting.

Again, best of luck to job seekers out there and feel free to share or ask me any question.

Careers and Job Prospect

Many migrants from Malaysia who have arrived in recent times are usually skilled professionals with permanent residency status, allowing them work rights in many if not most places. Some are graduates from Australia who had previously returned to Malaysia or work elsewhere and build their initial careers outside Australia. Some are non-Australian professionals trained outside Australia during their initial working careers.

I met a Malaysian who works in Sydney yesterday at lunch who lamented the fact that her brother who graduated from an Australian university had not been able to get a job after moving to Australia about six months ago. Upon further enquiry, she told me her brother had moved to Malaysia upon his graduation and started his career there. He then moved to a few countries including the Middle East as his last posting, where he was also able to get a job shortly upon his arrival given his qualification and experience.

Thinking that he was an Australian graduate with some global experience, he predicted that a permanent move back to Australia would be an easy transition. The six months of job search in Sydney proved how challenging it was to secure a job here.

I am sure many Malaysians in Sydney or other first generation migrant can relate to this. I know of several people from Malaysia who have settled here for the last few years are still struggling to get their careers restarted. Many of them are here to give their children a better start and are willing to sacrifice their own careers in the process. They have sold all their possessions back in Malaysia and have uprooted themselves from all their connections, families, network etc. with the hope that the next generation will be able to start with a better life.


If one looks back at how many first generation migrants started in Europe, America or Australia, it is not uncommon to observe that the traditional stereotype still exists. You can still see many Asians migrants running fish & chips shops, laundry, news agent, grocery store etc. Even the popular TV series Simpsons, depicts a PhD holder of Indian origin, Dr. Apu Nahasapeemapetilon, Ph.D. Jr. as running a mini-mart in the USA.



Having worked in Australia for more than five years, I really do not find significant differences in the work ethics and requirements in Asia and in Australia. Many will say that you'll need 3-5 years of local Australian experience before you can even get any decent job here. Even entry level jobs or jobs many of us take from granted, kitchen hand, waiting jobs at restaurant, cashiering seems to be rare and equally challenging to secure as well.

I am in the process of looking for a new role and I find the whole process of job hunting to be challenging as well and you get knocked down one after another attempt. It can be psychological draining on the soul but  it is something many of us will have to overcome. Many have done it and many will continue to.

Home- To buy or Rent?

In the past week, the Reserve Bank of Australia released a statement saying that it would be better to remain a home renter than to be a home owner.

When I first came to Australia about five years ago, I noticed that Australians like Malaysians (or Asians) in general, are home owner obsessed. As a kid growing up in Malaysia, I always hear my dad saying we must always own a home regardless of our situation. Even a small roof would suffice as it will always protect us, come rain or shine.

Being new to the Australian market, I decided to do some research and I came to the following conclusion:

1) Renting a similar home in the same suburb will generally cost less than home ownership in terms of cash outflow

2) Renting means not having to deal with the challenges of home ownership including repairs, maintenance, strata fees, neighbours (in a strata property) etc.

3) Renting provides flexibility to the tenant, they can move in or out easily or on the opposite site, less certainty as well as the landlord may sell, increase the rent or give notice to vacate for whatever reason

4) Not having your own home, means not being able to renovate, expand or change the configuration of the house or even put nails or change the colour of the walls

Most people have the notion that paying rent is "dead" cash outflow as compared to mortgage repayment which goes towards reducing the loan. I tend to compare rent payments no different from interest repayments, both are "dead" cash outflow. Only the payment of the principal loan amount reduces the loan and as we all know during the early part of any long term loan, most the payment goes towards interest rather than principal unless one borrows little.

I did read similar essays back then which provided some evidence under certain assumptions, renting was better than buying/owning financial wise. I won't be discussing about the non-financial or intangible benefits of owing vs renting and limit myself to the main assumption what I believe then, was the main reason why renting was financially better than buying/ owning.

As stated in (1) above, one will generally be expected to have some "surplus" cashflow arising from renting compared to buying using a mortgage i.e. paying off the loan. The only situation where one will not be in this situation is when one has a small or no loan from buying a home i.e. a cash buyer having 100% equity or near to 100%, say 80% or so. Most home buyers will generally be geared up to at least 80-90% when buying a home in the form of a mortgage.

The main reason or assumption why renting can be better than buying a home financial wise is when one invests the surplus cash which then provides a positive return in excess of the rise in the capital value of your home.

For e.g. if renting costs one $500/ week but mortgage repayment will costs one say $700/ week, the renter will financially be better off than a home owner IF, the $200/ week surplus is:

i) Invested wisely and properly
ii) Grows and reinvested wisely and properly
iii) Invested over a long term period similar to a home mortgage, i.e. 20-30 years which is a typical mortgage period

The challenge however in reality is most renters, will not however be investing the surplus $200 cash wisely and diligently each week. I can probably bet my last $, that the surplus funds will be going somewhere else rather than being invested.

Hence if one is unable to invest diligently, properly and wisely whatever surplus one may obtain from renting vs paying a home mortgage, having a home mortgage forces one to save for the old age with a certain level of security in terms of investment assets.

Optometrist and the price of glasses

In Australia unlike Malaysia, most healthcare insurance provides an option for prescription glasses (spectacles) every calendar year. As my healthcare insurance includes this cover, I visit an optometrist every 1 or 2 years.

This time round due to my age, multi focal lenses were prescribed to me for the first time. Due to the price of multi focal lenses, it appears that I would have to pay i.e. top up beyond what is covered by my healthcare insurance provider.

In Australia it is not unusual for one to see advertisement that says you only pay say $199 for two pair of glasses including lenses. As insurance cover is usually around $200/year, one would assume that one would not be required to top up any extra costs i.e. no gap, as it is called in Australia.

This visit however I decided to ask more question (unlike the past when I was not out of pocket i.e. no gap).

Firstly, $199 (sticker list price) for two pairs usually cover a limited range of frames and only include the "standard vision" lenses. If you wish to buy one pair, this retailer I went to will only deduct 25% off the $199 i.e, a cost of $199 less 25% or about $150. Looks like my maths have failed me here where if you take 1 pair instead of 2, you pay 75% off the two pairs sticker price.

My prescribed multi focal lenses were also priced on a two pairs basis, so if I choose only one pair, I get penalised by getting only 25% off the pricing for two pairs.

Secondly, there is also the other lens option which is then priced on a per pair basis by usually "recommended" including ultra clear, sun protection, thinner & lighter lenses etc. The price for this ranges from $50 to as high as $280 per pair where I shopped.

In total my 1 pair of glasses cost me around $500 before my insurance or around $300 after insurance coverage.

In future if I ever were to start my business venture, I  may consider pricing my products or services on a two or more quantity basis and if anyone wishes to buy one, it will be only less 25% or something else.

I wonder where ACCC is, on this issue?

Underemployment & Unemployment

Ahh statistics, underemployment and unemployment...what does it mean?

As a relatively new migrant it is not often that I get queries from people outside Australia seeking to know about employment opportunities in Australia. I was fortunate enough to move to Australia with a job in hand, but I know of several people who are still struggling to find permanent employment or a stable career.

The fact that Australia regularly reports its unemployment at around 6% does not seem to be reflected to those on the ground especially those seeking employment or those seeking to move jobs. I recalled my personal experience in changing job where I sent close to 200 applications over a period of 1 year without much success several years ago which some, would attribute to the economic condition prevailing then.

Lets us first understand what the official statistics of unemployment of 5.8% means, as the job market remains extremely difficult for job seekers and new migrants to Australia. To put in perspective, 5.8% unemployment rate is considered "fairly low", somewhere in the lower mid range by developed economies standard.

As comparison the unemployment rate (www.tradingeconomics.com/country-list/unemployment-rate) in the US 6.3%, UK 6.9%, Japan 3.4%, Singapore 2.1%, France 10.2%, Italy 12.7%, Germany 5.1%, Netherlands 8.7%. It appears that Asia is still the growth area, with the US and UK improving in recent times followed by Continental Western Europe, South Europe and lastly East Europe generally speaking.

To fall under the existing definition of "EMPLOYMENT", it is relatively easy, as defined by the OECD:

Persons in employment comprise all persons above a specified age who during a specified brief period, either one week or one day, were in the following categories: 

- paid employment; 
- self employment.
Source: http://stats.oecd.org/glossary/detail.asp?ID=778

So it appears that if one is employed for just one day, one would therefore be considered "employed" and by definition, no longer unemployed.

To boost employment i.e. reduce unemployment, one could therefore give every single person of working age, paid employment of just one day!

Which brings me to the next point.

In today's work environment due to the availability of information technology capabilities and, changes in legislation, many are no longer in full time employment unlike during our grandparents' era. In those days, one either works full time or remain unemployed. There was little part time or casual employment roles (with exceptions of course). This is where underemployment comes in.

We now have a relatively large work force who are underemployed i.e. able to work more than the hours they are currently in employment e.g. working 2 day weeks, or 20 hours week etc. Some choose the shorter works but many are only able to secure employment for this shorter period compared to the 40 hours standard work week most of us know of. Governments may for example decide to pass a law prohibiting work beyond say 25 hours work week, and presto, we have full employment immediately.

I'm sure that when the legislation was pass to allow for casual and part time employment, the intention was to allow workers with other commitments e.g. child caring responsibility, the possibility of seeking flexible hours around their personal or family duties. The unintended consequences however, companies now seek to just hire workers to "fit-in-time" their work routine and pay them those few hours of employment. It is also extremely difficult for people to seek other employment to fill up those few hours of their non-working time, if they are underemployment, due to to travel time and/ or other commitments which may not fit the work schedules of both parties, employer and employee.

I am worried about the consequences of all this for the future generation and the way moving forward appears to be self-employed contractors who are hired purely for their services on a need to basis. This however comes at a higher rate of wages per hour but with less hours in place, an overall lower fixed costs.