Professional Real Estate Agent Guide You To Your Property Investment Dreams

Have you think about buying or investing in property or real estate. Why not try to sell or buy property by your own? It’s sound good, but are you acquainted with all the nuances of transacting a commercial real estate?

Selling or buying a commercial real estate is one of the most difficult jobs and most of us are not smart enough to handle all the details in the most economic manner. Selling your own land might save you the commission payable to professional real estate agents however; you will spend double the amount through other channels in the transaction process. You save in the beginning step but might spend more in next.

It is always advisable to get a professional real estate agent to help you with your transaction or to deal with established real estate buyers while selling your property. Choosing an expert real estate agent can make a big difference as they are most informed about all real estate investment opportunity and can ensure that you get the maximum return out of your real estate transaction. At the same time, professional real estate agents would manage all the legal issues reducing your burden.

Now, lets see the benefits of hiring an expert real estate agent. Professional real estate agents equipped with the latest and up-to date information on real estate market. The available information is always accessible to interested clients. They provide clients with information about the latest happenings in sales price data, comparative costs and other labor costs to help clients to make the best out of their property investment.

These professional real estate agents also provide access to other information, which can make big difference in your decision about choosing the perfect real estate investment opportunity. They will provide you with information like market lease trends, popularity study and a comparative report on the changing trends in different real estate markets in different states.

Professional real estate agents also look after the economic trend that affects the real estate market. These information can be used by the prospective client to study the current real estate market and choose the ideal property that fits his purpose and pocket. They are capable of handling thousands of data and handling very large transactions that involves millions of ringgit. In order to get the competitive edge, a client should get the latest information from the professional real estate agents.

A real estate transaction involves legal issues and complexities, which are very difficult to be single handedly taken care of by any layman. These professional real estate agents are trained and able to solve the complicated legal issues and thus save your valuable. Although the real estate agents will take their share from the sale proceeds as commission, but it’s worth giving that amount rather than making an improper buying investment property.

Pay to the professional to work for you and save your time and money, let your real estate venture goes smoothly. It’s advisable not to venture into a real estate transaction without the guidance and advice of professional real estate agent. They have the right training and equipment to give you proper advice and transaction services so that your money gets into the right channel. They provide a professional service.

How To Choose A Professional Property Management Companies

Many people make property investment as their long term investment to reach their financial freedom. You might be able to manage 1 or 2 unit of properties on your own, but when you are in a place where you have more rental properties to look after, you may be a little overwhelmed at the idea of doing it all by yourself.

The truth is that there are lots of property investors who hire property management companies to look after their concerns for them. This property management companies will help them to manage their properties and give them professional advices. So fell free to really consider what a professional property manager could do for you. Look for the one that suits your need, but how to choose a professional property management companies?

Let’s share about the way and how to choose a professional property management companies. Get your money worth for their effort and get the better care to your properties from property management companies.

1. Organization of property management companies
How big of the group of the property management company? When you visit their offices, are things neatly filed away and close to hand, or does it look like an explosion of paper work? If the work place isn’t tidy, you may be in a place where important paperwork gets lost or misfiled. How the office is managed, is how their attitude will be to manage your properties.

2. Property Law and Regulations
Property management companies have extensive and up-to-date knowledge of property laws and regulations and will assist you in making sure you are in compliance with your local, state and federal rules and regulations. These rules and regulations include complying with fair housing regulations, Disabilities Act and other applicable local, state and federal laws. Avoiding one law suit will more than pay for any property management fees many times over.

3. Experience of the property management companies
To what extent have the property management companies managed properties and how long have they been in this business? It is one thing to manage a few family homes, and quite a different one to manage an apartment building that holds more units. They should have experience in managing various type and size of properties.

4.Respond of the property management companies
When you get to contact them, they should give you a response in a reasonable fashion. If they don’t get back to you in a reasonable amount of time, will you expect them to get back to your tenants in a reasonable amount of time either!

5.References for the property management companies
Anyone you know about who lets this company manage their properties? Knowing the person and see what’s property management companies are good and which ones to avoid. Get anyone to know the property management companies from their clients will more proven.

6.Cultural sensitivity
When you are looking for a property management companies, be aware that they are going to deal with any one who might care to rent from, regardless of their race, sex or sexual orientation. Unless they can be civil, you do not want them working for you.

7.Procedure or Checklists
Property management companies should show you their procedure on what they are willing to do for you and what kind of duties that you are going to be taking part in? This is an important way to figure out what is actually going to be done for you. So that you can make sure your money worth for the service and property management companies get the paid.

8.Research on other properties under their management
Take a look at the other properties that they manage. Are they well maintained and does it look like the people who live there are happy with it? Take a moment to stop some tenants and see how they feel about the property management companies that runs their property. This is to get information from tenants.

9.Money Management
A professional residential property management companies have systems and strategies to improve rent collection and on-time rent payments. This allows you to ensure swift and consistent rent collection. Quick and consistent rent collection is absolutely critical in this real estate market where good cash flow can mean the difference between success and failure as a real estate investor. Not only rent collection, some other payments related as well.

10.Business Bureau Ranking in Property Investment
How good are they rate in the property industries? This can be an important step for you to take when it comes to finding professional property management companies that can help in property management.

So, do your research on the property management companies, get property management companies that you feel convenience and trusted to help you run your property investment smoothly and archive your long term financial investment goal.

Why You Should Buy Property as Your Investment

Have you ever think about buying property as one of your investment tool? There are many types of investment in the market, such as stock, trading, unit trust, own a business, gold investment …etc. More and more investors are moving over to real estate because they are tired of the ongoing flux in the stock market.

Real estate is a relatively low-risk venture and provides greater certainty than other creative investment options. It is highly unlikely that the vacillating trend of the stock market will be mirrored in real estate. Therefore, if you decide to dive in to real estate and you buy property as investment, it would serve as a profitable diversion as far as investing is concerned.

Deciding in buying investment property is one of the good decisions you will ever make for your future. However, it wasn't something you can decide to do one day and then rush out and do the next. There is a process that you have to learn and lots of information to digest. If you think you have done that and you are now prepared to go out and make your first purchase.

The real work begins once you have made the decision to buying investment property. Finding a profitable investment property is not a child’s play. It entails a comprehensive research, is a time-consuming task, and requires a lot of reliable contacts. Peruse further for a primer on how to begin with real estate investing. Look for some others tips on how to buy investment property successfully.

You must have a rough estimate of the time span for which you plan to own the property before you buying investment property. This is because the longer you plan to own the property, the more you need to spend on the upkeep of the property. Small investors usually look for long-term ownership thereby enjoying the benefit of an ongoing rental income. On the other hand, the more experienced of investors quickly flip properties.

It’s helps to have a network of people who can find profitable investment property for you. Joining a property owner’s association is also beneficial in making contacts. Almost half the battle is won if you have found a few lucrative investment properties.

To begin with, it is recommended that you leverage your initial few investments, as it’s reckless to put all your personal funds on the line at the outset. Loans can be acquired from banks, credit unions and private brokers, which often require a decent credit score. When you acquire a loan to buying investment property, you would normally have to pay higher interest and monthly payments, compared to when you purchase a property to live in.

As a advise, you should maintain a cash reserve for unforeseen repairs and a contingency plan for vacancy periods. It is also advised that you avert from entering into bidding wars or carrying out emotional purchases. You should rather look strictly at the numbers and discern if the investment is viable or not. If you overpay to acquire a property, it is unlikely that you will be able to recoup your investment.

Keep your investment in under control to make your buying investment property to sustain in positive cash flow. If everything in planning, your might think about home improvement value for your property to increase it higher than the market value.

Start your property investment at your area or the place you are familiar with. When you are experience the idea of buying investment property then only your are qualify for buying investment property abroad.

Every real estate market is different, however, and what works in one locality
may not work in another. The main thing is to ensure that the rental income
covers the operating expense of the property. Operating expense including repair
cost, monthly maintenance fee, seeking fund, and annual fee such as land, home
plate number, fire insurance….etc. If you are aware of such basics, you can very
well excel in real estate, no matter where you buying investment property.

The way someone thinks determines the actions they take throughout the day, and those actions determine their success. The primary benefit of reading property investment series is it brings you closer to new ways of thinking about stuff. When investors see how easy it is to develop new skills and acquire better knowledge, they are virtually unstoppable.

Level playing field

It’s time to have consistent bumiputra housing quota policy nationwide.

The Government’s decision to scrap the 30% bumiputra equity requirement for 27 services sub-sectors is a step in the right direction to raise Malaysia’s competitiveness in the global business front.

But in order to bring back the spotlight on the country as the place to do business and to attract more foreign direct investment (FDI), there should be proper follow through to unshackle the mantle of protectionism in the other economic sectors and create a more level playing field. One area is the property industry.

The world is certainly going through very troubled times and we have to gather all our resolve and resources to ensure the country is favourably positioned for a comeback when the global economy finally recovers.

Despite some signs of economic stability due to stimulus measures undertaken by the authorities, the International Monetary Fund sees long months of economic distress before the world economy recovers in the first half of next year.

Having lost much wealth and resources to the global financial crisis, countries worldwide will be desperately seeking to rebuild their strengths and sharpen their competitiveness to make a quick comeback when the world economy shows any signs of a recovery.

In order not to be left behind, Malaysia has much to catch up with the rest of the countries, including those in the region such as Vietnam, Thailand and Indonesia, which are making big strides in their competitive rankings.

To ensure a more competitive playing field for our local businesses and foreign investors, all the stifling rules and guidelines that affect the efficiency and competitive edge of businesses and industry groups should be removed eventually.

Given its link to the other 160 industry sub-sectors, the property industry has a huge role to play to breathe more life and activities in the local economy. But it also one of the most regulated industries and is made to fulfil various socio-economic objectives.

The local property industry is one of the most impacted by the global financial crisis as the people’s confidence in the state of the economy and their well-being nosedived since the middle of last year.

With plunging property sales and having to slow down or defer their projects, developers are bracing for tougher days ahead and do not want to be further burdened by some of these practices.

While the national housing policy should help all needy Malaysians to own their own homes, and if the bumiputra housing quota has to be continued, it should be streamlined so that there will be a consistent one across all the states in Malaysia.

Both the Federal and state governments should work together to streamline and have a consistent policy and implementation across the country.

Without clearer and more consistent implementation of the bumiputra quota policy, it will be hard for developers to continue their projects successfully and offer their best to buyers.

At present, the quota for bumiputra buyers ranges between 30% and 70% of the number of houses built, while price discounts for bumiputra buyers vary between 5% and 15%.

Although most states adhere to a 30% quota, it is 40% in Johor, while in some suburbs in Selangor such as Shah Alam, it is between 50% and 70%.

Industry players want the quota to be standardised at 30% while discounts for bumiputra buyers should be capped at 5% and should only be applicable for houses priced at RM250,000 and below. Buyers of houses that are priced higher than that are more financially secure and do not need such discounts.

An automatic bumiputra quota release mechanism that is standardised and transparent should also be in place. There should be an automatic release of the quota units after six months of a project’s launch or when a project has reached 50% of construction.

As property remains one of the most viable investment instruments around, there is huge potential to be tapped from raising Malaysia’s profile and competitiveness as a property investment hub.

To attract more foreigners to invest in Malaysian real estate, more consistent policies to attract FDIs should be implemented.

Developers lament that the policies in the various states contradict the Federal Government’s initiatives to attract foreign investors.

The abolishment of Foreign Investment Committee approval for foreigners purchasing properties priced at more than RM250,000 and the exemption of property gain tax on sale by foreigners reflect the Government’s initiative to promote FDI in real estate.

However, state governments still impose their own rules on foreign property sales and purchase. Such foreign quota restrictions make it hard for developers to sell properties to foreign buyers.

While more enabling and liberalising measures by the Federal Government are expected to be announced soon, the success of such measures, especially those pertaining to land matters that come under the purview of the state governments, is dependent on the willingness and efficient implementation by all involved.

How to invest in properties

Is property a good investment? Of course, but I know that while the answer is correct, it is not complete. Of course properties make good investments. But then, the same thing can be said about stocks, unit trusts and a couple of others as well. While they are all good investments does not mean anyone can make money from them. Buying the first house you see or the stock that takes your fancy is a sure recipe for disaster. It is a guaranteed formula for exchanging your hard earned money for a long-term headache.

So this will mean that you will still need to do your homework when investing in properties. This will include reading books, magazines, articles, observing and yes, learning from the experts. Of course, this will require time, effort and yes, even money. But all that effort is peanuts compared to the reward that awaits you. And yes, even the price is miniscule compared to the problems that can happen if you bought wrongly. (Just ask the unfortunate people who bought houses in flood prone areas. Worse, they have to bear the brunt of listening to jokes about water proof furniture and getting free boats from the developer.)

The median price of a house in Malaysia is RM160,000. That figure jumps to RM334,000 for properties in Kuala Lumpur. I don't know about you but that is a lot of money. Not too many of us can afford to invest this kind of money around. (And even if you could, you have to admit that it is not so nice to lose that money!)

Further, the house is the most expensive purchase we will make in our lifetime (for most of us anyway). And it also forms the highest amount of debt we will incur and for the longest time - often lasting 20 years or more.

That being the case, doesn't it make sense for us to do a little bit (or better, a lot) of homework before parting with our money? Doesn't it make sense to tread very carefully before buying a property? Obviously, the answer is "yes".

As an example of treading carefully, a friend of mine viewed the plot that he wanted to buy three times: one in the morning, one in the afternoon and one at night - all on different days. Mind you, it was only a plot of land at that time as the house was not up yet. Now some people may think that may be overkill, but his answer was spot on: `Before paying RM850,000 for anything, I want to be sure that everything is right and in order first,' he remarked. I totally agree.

And oh yes, he sold the house when it was completed 3 years later for RM1.1 million. Even taking into account that he had to pay Real Property Gains Tax (that was still applicable then), real estate agent's commission, legal fees and all, he still pocketed a tidy sum of money. I'd say the three trips were certainly worth the RM200,000 plus - don't you agree?

But I have seen people buying houses on the spur of the moment. I have seen people rushing to buy properties as if they were buying groceries. For their sake, I sure hope that they have done the homework beforehand though my heart tells me something else. And these are the ones that I have witnessed personally. What happens behind closed doors is anybody's guess.

Why buy properties in places no one heard of? While they may be cheap, who's going to buy them from you later on? (There's a very good reason why such properties are cheap - not too many people are buying them!) Of course, after reading that last statement, some people will rise and claim otherwise: `This is going to be the next Subang Jaya/Bangsar/ Damansara.' (The magic word in properties is "Damansara". Any property having Damansara as their address will cost a minimum of RM20,000 extra!)

While that can happen, it can just as easily wind up as the next Lembah Beringin. Anyone who is willing to risk the highest amount of money he will raise in his lifetime is welcome to jump in. If others are willing to risk their money, please go ahead. But I will not be the developers' test pilot! I want to see rows of houses (with people in them), completed roads (and not just "proposed") and shops with at least two banks in the area before I even consider the area.

Buying a property is easy. All you need is a little bit of money and just sign some papers. The question is "can you sell the property for a profit later on (hopefully not too later on)?" Or in other words, can you make money from the property in the near future? As you can see, the answer is not so easy. Furthermore, what you want is a formula to make money on a consistent basis. Making money once is no big deal; anyone can do it. But only an expert can make money consistently. Day in, day out; week in, week out. And like everything else, you need to do a lot of work to become an expert in properties. Winging it, guessing, listening to rumours, referring to friends and throwing darts in the sky will obviously not work here.