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posted on January 5, 2016, 12:00 am
Property Investment Tips in 2016

After the introduction of GST in April, Malaysia economy is deteriorating due to decreasing of oil prices, depreciation of Ringgit value and 1MDB scandal. By doing more researches, it is not difficult to realize that nobody has any positive prediction on the real estate market in 2016.

Real estate experts expect prices of properties to drop and developers will begin to offer discounts in order to attract home buyers. Property investors are also expected to be less active in the coming quarter of 2016. The heat wave of BBB mode (buy x3) is cooling down and many people begin to realize it is time to get back to work.

In 2015, many experts predicted the property prices will increase after the implementation of GST, however, this has not happened in reality. Investing in property is very risky if you are not doing enough researches. One cannot buy a property based on emotion and guess work as buying a property is one of the largest spending and decisions of people in a lifetime. The first tips for investing is to beware of flipping because you might be competing with unsold units by the developers. This happens mostly on high density condominium development. Just imagine if the developers are having a hard time to sell their units even with negotiable discounts and so on, how difficult it is for investors to look for buyers? However, flipping could still be working under certain circumstances. For example, some good landed property projects with very limited units are suitable for flipping. It would be even better if the projects have no more available unit from the developer. So investors have to be well prepared and do researches properly before deciding. If you find that not many buyers are interested, then it is better to not flip this project.

The quality of the project, whether it can successfully attract buyers to willingly buy from you, will therefore affect the outcome. If you are planning to flip landed properties which cost over a million, most probably you will have to wait for months or even years to make the deal. Next is to buy a quality property. This is very important to decrease the property investment risks because the property will still be marketable even during the bad times. You cannot just buy a property and hoping that you will get passive income from it by depending fully on tenants. Even the best tenant could be leaving one day after the contract ends. And what if you cannot find a new one immediately? So, make sure you buy a property which you can afford the repayment even there is not tenant in it for at least half a year. But how are you going to judge whether the property is a right one?

Here are some indicators for you:
1) The units have good sales record by the developer.
2) The track record or review of the developer is very good.
3) If your property can be easily rented out within 1 to 2 months.
4) Your property occupancy rate is high with at least 85% or to some extent you are confident that it will be within 1 year after handover by developer.
5) You are confident that you can find potential buyers for your property within reasonable time frame, for example, 3 to 12 months.
6) Your property has strategic location. Amenities, highways, shop lots, public transport system, etc are within short driving distance from your property.

If you can get positive answers from the above indicators, then your investment risk is relatively low, but not zero. If the location is not very strategic or with not enough amenities, then it will still be very risky to invest. For example, houses in Nilai, Rawang and Port Dickson ended up in failure because they are not marketable due to bad locations, and many buyers were caught up. Occupancy rate is also very important to determine whether the unit can be easily rent out or sell.

Before investing in real estate, you need to make sure you have a sustainable income source. Many investors have successfully earned a lot if they invested in the properties in year 2007-2012. However, 2016 is expected to be the worst year for property. Therefore, you need to go back to the basics of life and upgrade yourself with knowledge and skill continuously in order to secure a sustainable income source which is valuable for your career growth. By focusing on earning good and righteous money, you will be able to buy your own dream house in future and avoid any economy crisis or property bubble.

In a nutshell, investing in properties is still a right thing to do, but before doing that, you need to know your risk tolerance level to avoid major loss. You need to be really careful when making any decision on property purchase, especially for new investors. To decrease the risk, you may consider share the risk with a trustworthy partner, however, sharing the risk will also lead to a lower reward. Buying a good property for long term investment plan is still a satisfying and correct thing to do. To do that, you need to know your own risk tolerance level (or most of you don’t know yet but will get the lesson learned soon). So my advice is really you need to be careful making any decision on property purchase, especially for new investors. To cut down the risk, you may consider share the risk with a partner whom you can really trust.

Sharing the risk will mean less commitment but also less reward. When it is say that the real estate market is down in 2016, it does not mean all of us should stop investing. When the market is down, we, as buyers, will get the bargaining power back to get the best deal. Equip yourself with right attitude, think long term, and decide carefully. Most importantly is to assess your risk tolerance level and financial power. Buying a property in 2016 is still a possible thing to do.

At the same time, Real Estate License holders and estate agents are encouraged to explain the properties to their clients wisely. Point out the pros and cons of each of them instead of just selling based on price. If the customers can see the benefit and potential of the property, the transaction will be easier.

Besides that, real estate license holders should not reduce their professional fees as they conduct their busiensses. Instead of reducing their commission because times are tough, they should realise that their services become even more important during such a time. Sellers want a quick transaction before the market turns sour and besides, price wars are never beneficial to anyone and it is ultimately counter productive on the long run. 

All-in all, real estate agents, negotiators and license holders should also use this period to retool, recalibrate and relaunch their efforts to improve themselves and get their qualification done be it via the Board Diploma or Executive Diploma so that they may be better equipped and perform better in their business in 2016.

Original website: propchat.org http://propchat.org/2015/12/28/no-nonsense-property-investment-tips-in-malaysia-for-2016/
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posted on January 5, 2016, 12:00 am
The Golden GST Opportunity in Real Estate Markets



What Real Estate License Agents should Expect in the Real Estate Market
The property market in Malaysia was hit hard by the Asian financial crisis about 20 years ago. The economy was severely impacted and the real estate agency industry felt its impact too. Property prices dropped between 8 to 9.5%. The government took action to recover the market. From 2006 onwards, the residential market is growing rapidly. However, the property market began to weaken since 2009 due to an increase in base lending rate. There was also signs showing that office space and retail properties were oversupply. Now, there is an oversupply in luxury properties and condominiums as times have been very good causing developers to overbuild and outstripping demand.
The property market is believed to be heading for a period of correction. How serious will this be? Factors causing this are the cooling measures put in place in 2013 by Bank Negara Malaysia and the implementation of 6% GST in April 2015. Research shown that the decrease in demand after GST could last for at least 6 month and we have seen that the property market is still reeling from its effects.
Another major problem is affordability. Statistics show that sales volume is decreasing drastically. This is because property prices have increased by 72% in the past decade, or about 6.7% on average yearly. Household debts stand at almost 87% of Malaysia GDP, to solve this problem, Bank Negara came up with policies to tighten housing loan approvals. Without any doubts, this has affected the real estate market in Malaysia. In 2014, 90% of the survey respondents agreed there was a slowdown in sales. Real estate agents mentioned that owners are getting jittery and starting to sell below market value set by the bank.
Although residential properties are exempted from GST, but people are worried that developers will find ways to transfer the rise in production cost to the buyers. Production cost of building will definitely hike up because there is GST imposed on building materials and services, and developers are supposed to absorb this additional cost.
There are many construction works going on recently, and labour shortage is becoming a major issue in the construction industry. However, all these projects building new office space, retail shops and residential areas are already oversupply. The Rehda survey shows there are up to 31% of properties left unsold in 2014, most of them are in Selangor and Johor. At the same time the other locations may face even more severe oversupply.. For residential properties, there are still high demands from consumers, but the prices have to be less than RM500,000, and they prefer it to be located in hot areas. Expensive land and building costs have prompted developers to focus more on the high end market. They need to resolve this supply-demand mismatch in the real estate market in Malaysia in order to secure sustainable growth. The government might want to intervene and help solving this problem by tightening some of the rules and regulations. The fundamentals are believe to be strong because of the expected growth in population, earning capacity, and low unemployment. These factors are strong enough to keep the property market in Malaysia growing in long term.
The government has taken actions to attract foreigners to invest in Malaysian properties. They are targeting mainly on Japan, Korea, China, Singapore and Indonesia. 
Real estate negotiators who are selling properties now must know that the market competition will always be there. It is not a matter of whether there is property demand, it is about whether you are the most highly sought after licensed real estate agent. A professional real estate agent will be able to add much value to the real estate market and its customers. After qualifying and getting their diploma, they should have done probation in a firm and learned all that they need to advise clients. Real estate agents must take this opportunity to attend more training, classes and obtain recognition so that they may be more qualified and informed to assist their clients.
 

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posted on January 14, 2016, 12:00 am

09.07.2015 06:25 AM  
leong tp :When will be exams held this year, 2015 ?

09.07.2015 21:00 PM  
Admin :Dear Leong, You may like and check our Facebook page for the brief details on the year 2015 examination schedule for estate agents. Thank you for your support!

26.07.2015 19:50 PM  
CLARE CHIN YEE SEON :Hi, I would like to know do u conduct any classes in Kota Kinabalu, if yes may i know where is the location? kindly email me at clare_william@ymail.com

29.07.2015 08:20 AM  
Admin :Dear Clare, we are not conducting classes there but we will be in contact with you shortly for more info. Thank you

20.08.2015 19:20 PM  
Joseph Phang Joon Foong :Dear Sir We are interested to attend the course but we are much appreciated if the preview and class could be arrange at Kuching Sarawak as well. This may cater for students from East Malaysia Region. TQ. Regards

20.08.2015 20:03 PM  
Admin :Dear Joseph, thank you for your support. Could you please provide us with your phone number and email address? We will advise you further from there. TQ

20.08.2015 20:38 PM  
Sharon :Hi. I would like to know hope much for the 1st course and the susewuent courses leading to Registered Agent Licence. Thanks.

20.08.2015 20:40 PM  
Admin :Hi Sharon, please call us at 03-56219671 so we may assist you as we have a few different courses. You may check them out at http://goodinstitute.my/real-estate-license-malaysia-and-courses.php?id=1

20.09.2015 23:00 PM  
Terence Goh :Interested in real estate agency diploma course

20.09.2015 23:07 PM  
Admin :Dear Terence, thank you for your query. You may call us at 03-56119671 or give us your contact details here. Hope to hear from you soon.

26.09.2015 03:41 AM  
Omar :How to apply for this programme and when is it ?

30.09.2015 01:37 AM  
Admin :Dear Omar, we have a few different programs, do give us your contact details so we can provide you the details. Alternatively, pls contact us at 03-56219671 and we can explain further. Thanks

10.10.2015 07:57 AM  
Lim :Can I purchase Notes/ Studying material , past years exam questions and answers for all subjects-Part 1 for self study? If Yes, what price?

12.10.2015 01:13 AM  
Admin :Hi Lim! Based on our experience we find that all students who pass all six subjects at one go for Part 1 do so with the aid of lecturers. Hence we encourage you to come for class as much as possible. We have revision classes available for those who are busy too. Please do call us at 03-56119671 or email admin@goodinstitute.my to find out more. Thank you.

04.11.2015 21:09 PM  
Soo :Hi ,I couldnot make it in time for November intake , will there be any December intake? Or is it possible for me to join the November intake class half way in mid December ?

08.11.2015 21:08 PM  
Bernard Tan :Hi there, is the Executive Diploma for REA still open for registration? When does the class commenced? Im from Penang. Thank you.

12.11.2015 20:44 PM  
Admin :Hi Soo, the next intake will be in January, you will however only be able to finish 3 subjects for the May exam if you join that time so we highly encourage you to join now. Alternatively, you can join half way in december, you will only miss about 3 lessons for each subject but best is still to join now

12.11.2015 20:45 PM  
Admin :Hi Bernard, yes there is. Could you please contact us at 04-2612299 or call 012-5582400 or email penang@goodinstitute.my , our colleagues over there will assist you with the registration process. Class begins on 21 November 2015, do join us!

13.12.2015 07:03 AM  
Harjay :Hi, I want to know if it is possible to get a real estate license here in malaysia. I am working here, from Philippines, and I want to be in real estate business. Thank you for your response.

13.12.2015 22:35 PM  
Admin :Hi Harjay, sorry the license is only open to Malaysians. You can join existing agencies and become a negotiator if you are interested. For that you need to register online and attend the 2-Day negotiator course that we conduct. Thank you.

14.12.2015 04:47 AM  
rixen tan :Hello sir,i am from penang would like to register for real estate licence courses. Can anyone assist me to register myself for the course? My hp : 016 717 7881 Email: rixen7881@gmail.com

04.01.2016 01:45 AM  
Tiffanny Tee :May i know when will be the next exam date?

05.01.2016 05:22 AM  
Admin :Dear Tiffany, the next exam date will be in May. We will announce to all of our students when it is confirmed. TQ

12.01.2016 05:50 AM  
Kelly :When will the board release the exam result?

13.01.2016 21:54 PM  
Admin :Dear Kelly, it will be released by end of January

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