Tips For Thoughts



Five tips for selling your home in a tough market

  1. Be realistic with the selling price: Accept reality and not expect to sell your property at prices that were projected two or three years earlier. Get your property occupied, even if at lower-than-usual rental rates.
  2. Spruce it up: Repair what needs fixing and it will be more attractive to potential buyers. Start with kitchen and bathrooms
  3. Proper marketing: Marketing is crucial, get a certified estate agent who is registered with the Board of Valuers, Appraisers and Estate Agents Malaysia.
  4. More buyer incentives: Buyers love to feel like they are receiving something for free such as free home inspection, or a more favourable terms such as a lower downpayment or a longer period to complete the sale.
  5. Rent it out: Get it occupied, even if at lower-than-usual rental rates. If you’re still paying off your mortgage, the money coming in will still help you service the loan.


5 Factors To Consider For Your Buy-to-let Property Investment

If you are considering investing in property or improving your returns on a buy-to-let you already own — it’s important to do things right.

  1. Choosing the right property - Different types of property can help you achieve different goals. So, first you have to decide which objective takes precedent — is it high rental yield or is it capital gain that you are looking for? The general rule of thumb is that a high-rise usually will yield better rental, while a landed property has a higher rate of capital gain.
  2. Do your math - Once you have done your research and have made a decision on what property to buy and where, then you need to ensure that you will get the rental yield that makes the investment worthwhile. Cost that may be incurred in a year are the maintenance fee, assessment tax, quit rent, home loan interest and mortgage insurance. Therefore it's important to calculate the rental yield before taking the plunge to ensure your money is working as hard as it should in the investment.
  3. Manage your investments - Property investment is not something that you can just dump your money into and leave alone. There’s a lot of work involved, especially bearing in mind that it is a relatively illiquid investment. You could either set aside time for it or get a real estate agent to do it for you at a fee.
  4. Know your target market - Identifying your target market will help you decide the kind of property you should be buying and the locations you should consider. Should you target single expatriates, expatriates with family, students, young professionals or corporate tenants? Deciding on your target market can help you narrow down your investment and fine tune your strategy.
  5. Tax implications - Being a buy-to-let property owner will bring new tax implications and you should fully understand them (property tax, income tax and capital gain tax) by seeking the appropriate professional advice.

Being a property owner is not as easy as just paying the monthly repayment. You will have to consider these hidden costs too!



Top 5 Things to Remember When Buying a Property

  1. Research the property - unique needs & lifestyle which fit your budget, purpose of purchase (own stay / for investment)
  2. Finding the right agent / developer - background check on the agent & company or developer with good track record
  3. Financing with EPF - Malaysian or PR under 55 years old could use money from Account 2 to finance a residential property
  4. Getting a loan - normally up to 90% loan margin, maximum 35 years of loan tenure with different interest rate, loan repayment & other benefits. It's good to compare a few to get the best deal that suit you.
  5. Legal procedure - find a reputable lawyer, sign LOI with 2% earnest deposit after you & seller agreed on price, your lawyer will then proceed to prepare SPA & loan agreement. Legal fee & stamp duty are calculated based on the property purchase price.


Top 5 Property Types to Consider

  1. Low to medium range condominium - for those who look for recreational facilities & security services, usually built as high density development with price ranging from RM100psf to over RM1000psf.
  2. Luxury condominium - same concept of low to medium range condominium but offers more prestige & comfort, often created with a low-density development to provide more space & privacy with much larger units featuring modern interior design & decor. Besides state-of-art facilities, most of them come with grand lobby & concierge, thus these units come with a high price of RM2000 psf or more. 
  3. Terraced house - usually features rows of identically designed houses which share their side walls, could be 2 or 3-storey high, each unit has a small plot of land in front or at the back of the house, end units will have extra lands at one of their sides. This type of property does not come with facilities or security & prices depend on the location & built-up area.
  4. Town house - similar to the terraced house concept except each building block consistsof 2 residential units - lower unit usually takes up ground floor & part of first floor whereas upper unit takes up part of first floor & second floor. Each unit has a separate entrance with a small plot of land on the ground floor. This type of property is normally lower density than terraced type & positioned to be more exclusive & expensive.
  5. Semi-detached - consists of 2 houses built side by side sharing a wall, each unit features small plot of land at the side, front & back, they are larger than terraced & town houses which make them more expensive, they typically feature gated & guarded community for added exclusivity & security.


Top 5 Locations in Malaysia

  1. Kuala Lumpur City Centre (KLCC) - hosts both prime commercial & high end luxury residential properties top with well-developed road networks & transportation system, which are high value & very much sought after.
  2. Petaling Jaya & Damansara - Petaling Jaya is a city serves as one of the central hub for Klang Valley for industrial development, consists of mature neighbourhood housing a wide variety of residential properties which are in high demand which fetch good price. Damansara is Golden Triangle of Petaling Jaya, house both commercial & residential properties with excellent connectivity & amenities, property prices on the rise & demand remains high.
  3. Outskirt of Kuala Lumpur - one of these upcoming areas is Kepong with excellent connectivity to the city & the rest of the state via major roads & highways
  4. Penang Island - combination of old world charm & modern developments, offers a wide variety of industrial, commercial & residential properties on the eastern side. Georgetown was inscribed as a UNESCO World Heritage since 2008. Its beautiful beaches and famous food street draw many tourists & attracting many foreigners to settle here pushes up the demand & value of the properties in the island.
  5. Ipoh - a city that has seen many industrialisation & commercialisation after the tin mine closed down. It features old architecture admist modern structures.


Top 5 Considerations For a Mortgage Loan

  1. Down payment - Using own saving or 10% from the EPF, the higher the down payment, the lesser you borrow
  2. Monthly payment = Amount of loan x (Monthly interest / (1 - (1 + Monthly interest) ^ - Number of months of amortization))  
  3. Type of mortgage loan - Conventional term loan, Flexi home loan, Semi-flexi loan, Low interest loan, Islamic home loan
  4. Other expenses - Mortgage insurance, legal fees & valuation fees incurred for taking loan
  5. Choosing the right loan - Choosing the one gives you best deal in terms of value & ease of financing


Top 5 Considerations Buying Your First Property

  1. Why do you buy a property? People buy property for many reasons, these reasons influence the type of property that would be suitable for you, i.e studio is ideal for single working adult.
  2. Who can buy a property? Malaysian aged 21 & above could buy any property except property reserved for Bumiputera.
  3. How to find a property? Browsing though 'Classified' in newspapers or online property portals.
  4. Picking the right property - Location! Location! Location! Ease of public transportation for those who do not own transport. Nearby amenities and on-going developments in the surrounding area as demand & supply that can potentially affect the price of your property.
  5. When to buy? Plan properly as new developments take at least 2 years to complete, existing property might take time for renovation or refurbishing. Age of purchase is another factor as it will affect the tenure of loan, it's best to purchase first property before age 30 years old.


Choosing property for investment

  1. Return on investment (ROI)
  2. Supply and demand for the units at the locations
  3. Access to facilities
  4. Which floor, view and sunlight direction
  5. Management standards in the development
  6. Number of units in the development

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Factors affecting property prices

  1. Location
  2. The country’s economic growth
  3. Duration of developing the infrastructure
  4. Would the traffic condition be better or worse for the residents?
  5. Demand and supply of property in that area
  6. Market sentiments

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Ten ways to raise the value of your home

  1. A fresh coat of paint or a re-varnished floor.
  2. Get rid of any unpleasant or unusual odors before showing a home.
  3. Use colors or scents put prospect in the mood to buy.
  4. Give the property a cosmetic changes rather than major renovations.
  5. Make a repair when it is first disclosed.
  6. Redecorate and make repairs once the house has been on the market for a period of time.
  7. A small investment can offer a large economic return, such as investment in new carpet.
  8. Remodeling jobs,  such as bathroom additions and second-story additions.
  9. Present the house in such a way it is for the comfort of prospect.
  10. Put in a swimming pool or tennis court.


Factors to consider when buying a property

For Own Stay

  1. Convenience - near work place and parents. Saves time, money and avoid stress from KL's traffic jams while helping to maintain a closer family relationship.
  2. Near facilities and amenities which Nicholas frequents such the supermarket, laundry services, food outlets, banks, parks, etc.
  3. Quiet, clean and safe location.
  4. Neighbourhood, sun direction and view.
  5. Feng shui factors.

For Investment

  1. Preferably ready-built so that you can collect rental income to offset the bank loan.
  2. The return on investment or yield, should preferably be more than 8% for high-rise residential property or more than 5% for landed residential property.
  3. For rental income to be sustainable, the occupancy rate is preferably more than 90%.
  4. Quality of tenants in the area.

For Own Stay & Investment

  • All the above factors.

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Tips on selling your home

  1. Get a registered estate agent: Always go to a registered estate agent and not to one that is not so that you can be assured that you're protected by law. Have just one estate agent to handle the deal for you so that there would be better accountability.
  2. Publicize your sale: You need to ensure everyone knows that you want to sell and this can be done via newspaper ads or on web portals. One of the simplest and most effective methods to let people know your intention of selling your house is to simply place a sign on your gate or in front of your property.
  3. Clean it up: Make your property ready for viewing by sprucing up the place to make it look more appealing. A simple thing like giving it a fresh coat of paint would help to do wonders and can command higher value. Turn on the air-conditioning, spray a little air freshener during viewing to make it a pleasant experience is vital to get the property sold.
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