More Magic of Property Investment
iProperty.com contributor Chan Ai Cheng continues her Q & A with Asia’s Queen of Property, Ms. Renesial Leong on her latest start-up guide to making millions in property entitled “The Magic of Property Investment”
Q : Please share with us your property investment strategies
To me, it can be summed up in 5 elements. The strategies that are used are universal and are applicable anywhere in the world for property investment. Wiith this knowledge, you can not only make a successful property investment once but many times over. It is my motto that I will not give you a fish but be assured that I will teach you how to fish.
Q: Could you elaborate on these five elements?
A: The first element is getting the right knowledge.
Your job as an investor is to ensure that you invest in yourself first. Don’t go about reinventing the wheel; it’s too tough and not much fun, along the way you may simply feel overwhelmed. Choose to learn from someone who has been through the mill and has been burnt even. Learning through another’s experience is by far the cheapest and fastest way to learn, and it is especially true for property investment. You will also learn how to avoid pitfalls and invest right each and every time. Seminars is an arena that provides a platform for participants, for open sharing, live case studies, exchange of information, learning from each other, sharing many crucial elements and invaluable experiences, which are beneficial and enriching to all. Look for a mentor who could impart his/her knowledge to you. Be wary though of free advice. It is wise to always verify the facts.
The second element is to reduce your risks to a manageable level
Do not take unnecessary shortcuts. For starters, always buy within your range and don’t stretch yourself too thin. Do your homework and more importantly, legwork. One common pitfall is spending too much on renovations. Do not overspend on remodeling and renovations. Unless you are investing in high-end condos and bungalows, it is advisable to rent out unfurnished. Otherwise keep furnishing to the bare minimum, to avoid overspending and having to take a long time to recover money spent. Spend wisely. Simple updating of paint colours at the main entrance, living room, master, kitchen and bathrooms can be of great benefit without costing you a fortune. Use light neutral colours for flooring and walls to make the place look brighter , bigger and more attractive. Use mirrors and energy-saving devices to get extra mileage for the dollar invested. Keep remodeling and renovations simple. Do not go overboard.
The third element is to buy one at a time
Try your hand on being a landlord with your first property. Get to know and understand the game. When you are ready, preferably 6 months later, when the dust has settled, you may then set sight on your next investment property. Remember there are loads of good deals out there and if you miss one, there is always another one just around the corner. It is an active game. Having said that, when you have done your homework, don’t forget to take action!
The fourth element is to understand that property is better than good
It is a mid to long-term proposition. You should not expect to make a killing in a very short period of time though occasionally you might experience a hike in price much faster than anticipated. If this happens, congratulations, take it as a bonus. But you should never get in expecting this to happen or you might be in for some major disappointments.
The fifth and final element is to believe that it can be magical
When you believe it, it will be. At the end of the day, the quality of your life and your family’s life is determined by the actions that you did or did not take.
Q: Are there any other things to look out for?
Point is, as with anything else, the only thing constant is change. Throughout my 20 years in property investment, I have experienced numerous legislative changes, taxation changes, investment climate changes etc. Successful investors will quickly adapt to such changes and build on them to benefit from them. There are always New and Different Opportunities. Your job as an investor is to be on the lookout for these changes and rise above them, to make the changes work for you and in your favour.
Investing is by definition a pretty conservative game. If you are taking crazy chances with your money, then you are not investing but purely speculating. Do not go about looking for thrills from your investments; you want safety and growth.
Do not stop your education. Continue attending seminars, competent trainers will teach investment strategies which are relevant at the point of time and to read good investment books.
And don’t forget the magic of visualization. You don’t have to buy your dream house with your first purchase, however, your first purchase can someday help you buy your dream house.
Chan Ai Cheng
General Manager, S. K. Brothers Realty (M) Sdn Bhd Registered Estate Agent with the Board of Valuers, Appraisers and Estate Agents Malaysia (LPPEH), Member of the Institution of Surveyors Malaysia (ISM), and the Malaysian Institute of Estate Agents (MIEA), Registered Financial Consultant with the International Association of Registered Financial Consultants (IARFC), For any feedback on this article, please email http://aicheng@skbrothers.com
