Real Estate Investing In Malaysia

imoloq · PJNet Newbie Joined: Jun 22, 2006 Posts: 13

Anyone into real estate investing here? I'm keen to know more about the atmosphere of real estate in Malaysia. Seems like the prices of houses are never going to come down.

tanti · Posted: Mon Sep 17, 2007 2:37 am Post subject:

Good thread.

I think it is a good idea to buy a property, make some renovation and turn it around. What do you think?
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yipck2003 · PJNet Senior Joined: Jun 30, 2005 Posts: 1311

freefree · PJNet Starter Joined: Sep 26, 2007 Posts: 77

Everyone has different appetite and risk profile.

All investment come with risk, and I have never heard of a successful person never take a risk in his/her life.

I like property because I can leverage on bank loan. I only need 20% of the investment amount. On top of that, I can use the property to hedge against inflation. One of the reason why the house prices go up is because of increase of building material cost.

Case Study :

let say a kid is going to college/University 15 years from now, and you might need RM200K by that time. What you can do is purchase a property worth RM150K now with RM30K down payment and loan for 15 years. In most cases the rental will be able to cover the loan installment. 15 years later, the property will surely worth RM200K of more and your kid education fund is ready.

The above is just an scenario, provided you buy the right property. How to buy the right property ? Have to learn lor... : )

regards

tanti · Posted: Fri Sep 28, 2007 9:18 pm Post subject:

I agree with freefree. It is always wise to study the location and the approximate value of the house itself. You can get an independant valuers to value the property 1st before buying (if it is 2nd hand).

Since I am in stone finishes industry, I will always stress to my client if they can afford it to install marble instead of tiles. Eg if the client install a Botticino marble (beige colour from Italy), 10 years down the line it will still be Botticino. But if the client decide to use homogeneous tiles, say Yura series from Niro, in 10 years people will know that this was the tile launched in 2005/6.

I know some will claims that marble is expensive but if only Malaysian knows how to appreciate nature... I hardly have problems selling marble/granite to foreigner for they do not expect it to be perfect. You dont have to use marble on all 4 walls in the bathroom but only 1 as a feature. This is when the whole piece of marble will be used include imperfections and all. And it will definitely add value to the property.

Eg. I did a marble works for main living & powder room for a client's house in Country Heights Kajang. I use a rejected material for living and not very expensive limestone for powder room, both totalling not more than RM30k which is cheap consideraing the living area alone is approximately 1200FS.

I would suggest whoever wants to buy marble, go to warehouse sales. Dry lay the marble 1st, then only start installing. It doesnt have to be nice/pretty, even odd size is workable.
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Goodbye my lover, goodbye my friend...