LATEST NEWS: We have notched a partnership with a leading real estate brokerage in Malaysia to represent our interest in the country as well as the booming Southeast Asia region. There is an increasing number of high net worth individuals in Malaysia who have contacted us about the opportunities in property investment in Charleston and also South Carolina as a whole. Ricky Ng, a seasoned property agent who has been in the Malaysia property market for about 18 years has agreed to partner with us to market our services to prospective clients in Malaysia. No stranger to Charleston, Ricky was a student in the University of South Carolina where he majored in business studies back in the 90′s. Here is an article that he penned for his Malaysian clients (through his popular Malaysia Property Watch newsletter which boasts of 12,782 subscribers).
Investing In Charleston Real Estate – Why It’s A Good Choice?
Contributed by Ricky Ng (firstname.lastname@example.org)
There are various reasons why you might want to invest in real estate in Charleston, or in Kuala Lumpur, or anywhere in between. Read on to find out what some of those reasons are.
- Financial Leverage
In a nutshell, financial leverage refers to the extent to which your debt will be used to pay for real estate. Successful investors in this field optimize their leverage instead of maximizing them. In other words, they borrow money to buy and sell real estate for cash. With the right kind of financial leverage, you can actually turn a good investment into a great investment. To do this, just make sure you look for properties with the best financing. Approach your local bank (Maybank, CIMB, Public Bank are top-of-mind choices) and get a good deal.
To optimize your leverage, though, you will also have to have a certain strategy in place that you can use to identify the best opportunities for investment for you out there. Acquisition strategies, which can minimize the necessary cash to get a project would work well here; though divestiture strategies, which look to every cash exit would work well, too.
A client of ours used this strategy to quickly flip over a posh KLCC condo unit (Marc Residence – for more information go to http://klcccondominiums.com.my/marc-residence/ for a good review) and he made a tidy sum using a quick acquisition-and-divestiture tactic. I don’t recommend this technique to every client as it can be risky, but if you can stomach it then you will make money.
- Inflation Resistance
Because of the rise of inflation, the values of Malaysian real estate tend to rise, too. As a matter of fact, real estate even beats inflation in terms of rising because its supply is much more limited compared to the supply of other services and products out there. Since the supply of real estate is also insensitive to prices, prices will go up much faster in this field whenever the demand for it increases, too.
Naturally, it would still be vital to be very careful when it comes to this since a lot of it will depend on the property’s location and its overall demand there. You should be especially careful when choosing certain Klang Valley commercial real estate properties. Here is a good article on SeekingAlpha.com on using real estate to fight inflation -
- Tax Benefits
There are two important benefits in this department. The first benefit would be the interest costs, which can be completely tax deductible for personal residences or any investment in Malaysia commercial real estate. For more information on Malaysia property tax, click here.
The second benefit would be the chance to depreciate any rented property – especially if you are in an upmarket area such as the Kuala Lumpur City Centre (KLCC), Mont Kiara, Bangsar, or Aseana Puteri Condominium. This deduction is completely legitimate and is usually used to offset any revenue that would be subject to taxes otherwise. This means that you can show that you have experienced losses in your investment and then use those losses to reduce your income and your taxes at the same time.
Considering Commercial Real Estate
A lot of Malaysians tend to decide to invest in real estate because they want to have more control in their lives. If you are like one of these people, then you might want to invest in commercial real estate because you will be able to get complete control in this department. With it, you can find various opportunities, put the financing in place, bring every element together and come up with something completely new all on your own terms.
Interestingly, in 2013 demand for office space in the Klang Valley area is going to flatten a little, but there will be growth pockets in areas like Subang Jaya, Dengkil, Damansara Uptown and Kelana Jaya.
Either way, if you join this business, start small and stay small, investing in real estate could turn out to be very profitable for you. If you want, you can even grow your business in time and turn it into a high-paying job in the end.
In my next article, I will share with you some specific techniques on how to identify the best property investment opportunities that will give you the best bang for the buck, so stay put!
Sometimes, ignorance coupled with overexcitement and lack of proper guidance from commercial real estate experts are what lead business owners to make mistakes in their commercial property leasing. And when it comes to making mistakes in these areas, the stakes are always high and hardly anyone escapes these pitfalls unharmed. The price for experience is always high and will hurt your business finances; unfortunately for others, the price was way too high it proved fatal to their businesses.
So if you’re a new business owner looking for the perfect place to set up your dream business, read on to know the most common mistakes business owners make when renting a commercial space. Hopefully, this bit of information can help you avoid the same fate that others had to go through:
- Getting into a contract right away.
In business, timing is almost everything. Just because your clientele is good in a certain area does not mean you should sign the contract spot on. Just because the rental fee is within your budget does not mean you sign your first cheque. Never underestimate the power of ‘shopping around’ and comparing your options. Weigh the odds of getting a particular space over the other. Find alternatives and give yourself enough time to decide. And before signing anything, try to bargain with the contract to make it agreeable for you and your landlord.
- Renting sans a written contract.
This is a top mistake that, whilst obviously wrong, business owners still commit frequently. You cannot take your friendship to court neither can you fully prove one person’s utterance of something. Your contract papers are a physical evidence of whatever you have agreed on with the landlord. In case of disputes, you can each take out your copies of your contract and use whatever is stipulated in it to prove your case. It should also be said that you should not get into a commercial lease without a lawyer to represent you, explain things to you and make the agreement legal on your side.
- Getting into a contract without seeing the necessary legal papers of the landlord and the property.
The last thing you want to do is get in between the landlord’s dispute with the lender. Sometimes, owners rent out their properties that are in danger of being foreclosed to get as much money from it. Other times they open their properties for lease even without holding the necessary documents to prove ownership. Any internal dispute that the landlord has with anybody regarding the property can be a hassle and detrimental to your business. So make sure you check and inspect all the documents on it. Do not trust a landlord who refuses to have the papers inspected.
- Getting into a contract without checking for damages in your unit.
Just as we do when getting a residential property, physical inspection on the building is essential. You would never want to put your business in a commercial space that is full of damages that can either be bad for your products or ruin your service, or the landlord can accuse to have been your doing. The property may come advertised as “Enjoy the magnificent view from this apartment” but what if it’s obstructed? Advertisements may be deceiving, so it’s always important to conduct a building inspection in the presence of the landlord with a certified building inspector.
If you are thinking about investing in real estate in Malaysia(specifically luxury apartments in KLCC), then you are probably wondering what you should look for in these apartments to begin with. Well, for starters, you need to remember that every apartment will be different from the next and will have different amenities available, as well.
Kuala Lumpur has a lot to offer, especially in the real estate department. From a nice townhouse in Bangsar, to a posh residential unit in Mont Kiara, I’m sure you’ve got just the right property to fit your lifestyle and needs.
As such, finding the right luxury apartments to invest in may require you to consider their building quality, unit features and overall location before you make a final decision. It would also be important to note that, a lot of the time, people tend to go on several tours of each luxury apartment before they decide that they really want it.
While regular apartments usually refer to small complexes that only have several floors to them, luxury apartments in KLCC usually refer to tall high-rise buildings. On that note, a lot of smaller apartments don’t even have any elevators, so people may have trouble going up the stairs and down them. Fortunately, luxury apartments in KLCC always have elevators in them. Plus, they tend to provide a great view the higher you get, as well. So, when thinking about the apartment’s size and overall build, you might want to take these particular points into consideration.
When it comes to a luxury apartment’s units, on the other hand, you should know that they might have different options for you to consider, such as a fireplace, a full-sized designer kitchen that has granite countertops or a built-in place for your laundry.
If you need a doorman, then you will be happy to hear that a lot of KLCC luxury apartments have them in their lobbies. The job of a doorman is to basically supervise the building and make sure it is always looked after. They also tend to check who comes into the building and who leaves it. They might also ask who every guest is visiting.
Luxury apartments also come with various amenities, but they may differ from one apartment to the next, as well. Some amenities that you might want to look for include a swimming pool, a gym, a sauna, a tennis court or a whirlpool. Extra features like this can be exactly what you or your tenants might need to enjoy the experience in KLCC for as long as possible.
You might want to check if the apartment’s grounds have polished landscaping and gardens, too. You should also check how the property management team runs the entire building, including the pool maintenance, the garden maintenance, and the overall cleaning of the apartment. If you deem it important for a garden to be well-groomed at all times, then you might want to look for a luxury apartment that has a full staff on-hand to take care of the garden.
As you can see, there are a lot of things you might want to look for when investing in luxury apartments in KLCC. If you need help narrowing your options down in the end, then you can hire a real estate agent for help, as we
If you want to invest in real estate, then you definitely have to put a lot of thought into the matter because it will involve a lot of money in the long run. Aside from that, you will also have to do a lot of research in the field. This would hold especially true if you want to make a lot of money off of the properties that you invest in.
There are various methods that you can look into in order to make money through real estate. For one, you can resell a house that you buy today for more than you originally bought it for in the future. Secondly, you can rent out the house that you buy if you don’t plan on using it anytime soon. Either way, the secret to making a lot of money out of your investment would be to choose a prime location for it to begin with.
In terms of locations for real estate, there really is hardly any place out there that can beat Malaysia nowadays. My dream condo in Mont Kiara is top of the charts– I mean I write this now and think about the luxurious pool, the sky terrace, etc.. Phew. Anyway, the best part is that investing in properties in Malaysia is currently a great choice due to economic reasons and entertainment purposes. In terms of value, Malaysian properties are steadily rising, as well. Although there are a lot of reasons behind this, the main reason would be their strategic location. Properties in Malaysia always tend to be near a lot of business and tourist destinations. The same way that Bali, Australia and Singapore are currently attracting investors, so does Malaysia. It shouldn’t be forgotten that Malaysia is currently rated as one of the best places to retire in Asia due to the place’s utmost beauty, either.
It should also be noted that properties in Malaysia are a great investment because their growth ranges between 15 and 30 percent every year. This is mostly due to the economic activities within the country, though it can also be attributed to the amount of expatriates that are starting to take notice of the country due to its quality commercial and residential properties overall. Here is a quick list of hot property investments which I previously wrote. The government has also made incentives for the foreigners who want to invest in Malaysian real estate. Some of these incentives include a relaxation of laws in terms of foreign investor ownership and tax breaks.
A lot of people find Malaysia, in general, quite addictive because of the warmth of its people and its exotic culture. The warm climate and peaceful society match the smiles and warmth of the people who reside there, as well. For this reason alone, people already choose to invest in properties there.
There are a lot of other benefits that come with investing in real state in Malaysia. All of the contacts are written in English since the country was colonized by the British, for example, and it won’t be hard for Westerners to get mortgages, either.
If you want to find out more about the different properties in Malaysia, do some research in the matter. Ideally, you should visit property forums for this, so you can get the latest information and news on Malaysian real estate whenever you want to.
I’ve been receiving property reviews from left to right– definitely a busy, busy time for the folks here at Charleston!
A lot of developments in the Charleston area have been making waves so far, the local paper has pointed out how real estate in our area is set to rise, even when the economy isn’t faring well. But there’s always hope! I won’t give up on it, and besides, there are always great property developments to look out for, especially in Asia– particularly in Malaysia. Click here for more details– who knows, your next golden opportunity is just around the corner!(well technically, on the other side of the world– but yes, it’s still golden.
More property investments can be found here. Check back for more, and will continue to update you soon.
What you need to know immediately:
Property investments in Malaysia have risen up in numbers for the second quarter of 2013! If residential real estate is your cup of tea(like ours), it’s time to seek this golden opportunity because it’s all looking up from our view when it comes to real estate and property investment in Kuala Lumpur.
Mighty Developments You Should Consider:
- The Troika. High-end, top class, elegant, chic. All adjectives associated with “luxury” go in here.
- Mont Kiara 10- Exclusive condominium located in the posh Mont Kiara enclave.
- The Four Seasons- Great investment opportunity. Read the Four Seasons review and know why.
Those are just property investments on the top of our head. More to come and to follow in future Show Me Charlestown Homes posts. Interested? Email Ricky at email@example.com.
Mortgage assumption is one of the less popular mortgage options out there. One good reason this is so is because a lot of lenders write a clause that prohibits this. Banks and mortgage financing companies hardly ever allow this, and when they do, there’s always a lot of hassle to get it done. Assuming a real estate property is something that is more common (and more easily available) on government-backed mortgage loans.
What is Mortgage Assumption
It may take a little close to forever to fully cover and explain down to the nitty-gritty what a mortgage assumption is. Our offices in Kuala Lumpur, Malaysia are lucky enough not to have this term in their vocabulary a lot of times– but let’s try to get as close to that I a concise way for you. A mortgage assumption is when a potential buyer opts to continue a homeowner’s mortgage contract instead of getting a mortgage of his/her own. When investing in real estate then assuming a mortgage, the potential buyer pays for the remaining amount on the mortgage loan plus the equity of the current owner.
The equity is the amount that the current owner has put on the property as down payment plus the amount that’s already been paid by the owner for the house (vis a vis the inflation rate) and the current market value of the house.
How To Assume a Home
There are many things to do and consider when getting a house via mortgage assumption. For one, you would have to make sure the mortgage lender allows the assumption. Otherwise, doing so behind the back of the lender/bank will cause both buyer and the seller a lot of trouble if the lender finds out.
When the part of the lender is cleared, the buyer and the seller should have a written contract and the presence of their respective lawyers when getting into this kind of mortgage deal. This is to seal everything and both parties will have something in the form of legal documentation as proof when something alone the way goes awry.
As buyer, you should also make sure to make a move on transferring the house title in your name early on. This will prevent title-related problems in the future and other problems that may arise whenever one invests in residential real estate.
Why You Should Do It
Many financing and mortgage experts advise against mortgage assumption but some people still opt to do it. One, you should do it if the house you want to get is put up only on assumption. Mortgage assumption saves you the costs of closing a deal. And also, depending on how much the house still has to go as per years in payment, most assumed mortgages take less than 15 to 30 years for payment. This is a common practice in the United States.
Why You Should Not Do It
The main reason that financial experts do not advise getting an assumption is that you might end up getting shortchanged. Remember, getting this kind of mortgage means you’d have to go back to the original value of the house, the downpayments, sum already paid for it, plus the current market value of the house. On a bad deal, this amount could be higher than getting a brand new home. SO unless the odds are in your favor, get a new house or condominium instead. For our readers in Malaysia, I heard from our Damansara offices that the condominium 10 Mont Kiara is a golden choice.
Hello, readers! It’s always a pleasure to share with you everything that I’ve been learning for the past few weeks. I’ve been to a lot of seminars and conferences that truly helped me learn a lot about real estate investment and property management, and I feel like it’s my duty to share everything that I’ve learned with you so you can utilise them someday.
Charleston has a lot of real estate investment opportunities, as this article explains. However last week, I found myself sitting with fellow real estate newbies who are interested in finding more about residential real estate investing, specifically in Southeast Asia. Property management, as a whole, always provides a ton of benefits and investment opportunities. In Kuala Lumpur, there are a lot of demand for property, especially after the building of the district’s latest residential condominium, the KLCC apartments. Dabbling in residential real estate investment is one golden opportunity that you shouldn’t pass up. Not now—when the housing market has been on a boom for the past 5 years, and with our economic structure, as a whole, is experiencing a healthy turnaround.
What to Consider When Investing in Residential Real Estate
Becoming a property owner is a huge step. There are a lot of factors to consider and a lot of decisions to make in investing and buying residential property. Are you ready to invest in residential real estate? Here are some things to consider first:
- Your property: Rent it out or live in it? One important thing to know about residential real estate is the probable imposition and application of taxes when you decide to rent it out to potential renters. Think of your budget from a long-term perspective. When you’ve managed to sort it out, you can then decide on which option will work out for you.
- Seek financing options. Ask yourself: How much am I willing to shell out on mortgage alone? Financing also helps you set a specific budget in purchasing property. Remember, all good investments come with the right budget and price.
- Location. Location always matters. Do not forget to look out for communities that are in the process of development, so the chances of your investment reaching its full potential will be high.
- Amenities matter. We have to admit it—everyone wants to experience convenience and will be willing to pay for it no matter how pricey it can be. Therefore, investing in a location that offers amenities is a good plus. It may add up to your list of expenses, but it’s going to pay off for sure in the future.
Now is the best time to go ahead and look for golden opportunities. If you are interested in learning more about KL’s bright real estate investment potential, click here to find more information. Invest in residential real estate and watch success grow right before your eyes!
OK, so I have just got back from Charleston where I attended a small gathering of real estate agents (a mastermind group which we call the Land Grabbers – pardon the cheesy name). Investing in Charleston real estate is always a good choice – I have stated my case previously and I still stand behind my assertion. However, looking beyond the horizon there are ample opportunities out there to invest in property – sometimes in overlooked countries such as Malaysia. I have always been bullish about this country in Southeast Asia – having been in the country a couple of times. I have also been a speaker and panelist for some of its real estate events, namely the Malaysia Property Showcase back in 1992 (yes, that was a long time ago!) and also the Klang Valley Real Estate Investment Seminar series as organized by REHDA and a couple of real estate agencies (can’t remember their names except for Hartanah). That is also where we met Ricky, but that’s another story.
Malaysia Real Estate – A Diamond In The Rough
Much of the real estate action in Malaysia focuses in the Klang Valley – this is where the capital city Kuala Lumpur is. Also, KLCC (Kuala Lumpur City Centre) has got a slew of upmarket developments and condominiums which has got a good view of the Petronas Twin Towers – once the tallest buildings in the world. I once had the pleasure of staying for a week at the exquisite Stonor Park and I cherished my very own KLCC apartment ever since. It’s not as prestigious or luxurious as the Trump Tower build by Donald Trump the real estate mogul that’s for sure, but no complaints from me. I love KLCC.
There has been some concerns about the Malaysia real estate market since that this is a general election year, and as any seasoned real estate investor will tell you, political stability is important for the property market to flourish! USA, for example, is stable politically, and for this reason the prices of real estate skyrocket in most places over the years. Compare this to places like Somalia or Zaire… it’s no comparison at all.
Researching Malaysia Properties – A Short Guide
Now if you are not a Malaysian resident then it might be difficult for you to know about the country. Local knowledge is always important when it comes to property investments. That is why we hooked up with Ricky who will share with you, our dear clients, his expertise in the Malaysia real estate market. There are also sites like PropertyReviews.my which is essentially a database of properties in Malaysia, written by everyday Joe’s. I like it a lot.
We will also be conducting tours to specific places in Malaysia where we reckon that there are good opportunities for property investments, namely -
- Mont Kiara – expatriate hub; there are ample opportunities to invest in luxury condominiums and apartments
- Bangsar – a little “elitist” but there are nice bungalows for sale or rent
- Sentul – something akin to Bangsar but has got some cheaper properties
- Penang – a little island up north with rather expensive properties
- Dengkil – a rather quiet town in Selangor with some cheap and cheerful townhouses
If you are interested to join these tours, email firstname.lastname@example.org and we will get back to you ASAP.