Developed in conjunction with Ext-Joom.com

Select language / 语言选择
English中文
A+ A A-

Steps to be a Property Millionaire!

HOW TO BE A PROPERTY MILLIONAIRE?

1. Plan your basic funding strategy

The two essential foundations of property investment are to create the basic money and build the ability to borrow. There are many ways to obtain the basic funding—you don’t necessarily need to have cash in hand to purchase.

One of the ways is to look for a property that is selling below market value and to purchase it with a partner that has the credit eligibility to obtain a loan. That way, you don’t have to worry about trying to shell out the downpayment.

The other way is to form a company (Sdn Bhd) or partnership, and purchase through your company. Remember, you have to establish your credit. Banks are only comfortable lending to people with the ability to repay.

2. Learn how to identify a good property

In order to identify the right property, you have to know how to identify the following:

(1.) timing

(2.) location and

(3.) product.

The best properties can be found in any country, at any time and in any situation so it’s not a question of whether we should buy during a boom or a bust.

Timing is the most important factor although it is usually harder to identify; location on the other hand is easier to identify. But both of these factors are not absolute — any best location may not give you the best return and no one place stays a good investment forever.

Another thing to consider is the type of property you’re purchasing. As our living habit or preference changes, the commercial value of a product will also change. And when the demand for a certain type of property shifts (too much supply or too little demand), it loses the ability appreciate. Changes in business model, lifestyle or infrastructure will always create a demand for certain types of property.

Therefore, your portfolio should be diversified. Then you need to be able to read the market and predict the impending changes in order catch hold of the opportunity at the perfect timing—the point where the product and its location are at the highest point of appreciation. That’s how you get the highest return.

3. Avoid making mistakes

Property Investment does not guarantee that you’ll make money. Many in fact suffer losses in property investment. Given inflation, interest rates hike and opportunity costs, many people have in some ways suffered losses. In fact, very few people make good money in property while many make mistakes.

Hence, a smart investor needs to know the market very well and not follow the herd. They are smart enough to know mistakes are made by the majority which open up opportunities for them. Most importantly, always do the right things because one mistake made can cost a five-year delay in your journey to becoming a property millionaire.

4. Build a solid portfolio

Having a diverse portfolio is important because then you can acquire and dispose at different timing, thus reducing risk substantially. You should treat property as a financial product—this will involve cost, risk and revenue.

Different types of properties at a different location and different timing will have different up and down cycles. So, with a diversified portfolio, we can sell when the demand is high to maximise profit; we can hold when the price is low but rental is high; and lastly we acquire when the price is low and is expected to improve in a period of time that can be anticipated.

A good example would be the area within KLCC. It was oversupplied back in 2000—we knew the location was good but the price was low and no one was investing. In 2009, the property prices there were performing poorly, but it was the perfect time to buy. At that time, Tee predicted that prices were at their lowest and that there would be a boom within three years which was exactly what happened.

5. Treat property investment as a professional job or business

It is important to administer well your property portfolio. Treat it like a business—to run a business you have to have good knowledge and resources to conduct research in order to manage your portfolio well. The knowledge of property management is vital to enhance the value of your property.

6. You need to know ‘how to be a good landlord’

The final leg of the race before considering yourself an investor is knowing how to rent out your property. Once you treat property investment as a business, rental will form a major part of your income.

For that reason, ‘landlording’ is very important—a property’s value can only be enhanced if there is demand for rental or for the space, therefore you have to have tenants. To profit from your property investment, you basically need to be a smart landlord.

 

Want to attend Gavin Tee's next Live Event? Click the below link:

Gavin Tee's Property Forecast Talk + Investment Course: http://www.swhengtee.com.my/2019forecasteng

November 08, 2018

Steps to be a Property Millionaire!

in Swhengtee Article by marketing
HOW TO BE A PROPERTY MILLIONAIRE? 1. Plan your basic funding strategy The two essential foundations of property investment are to create the basic money and build the ability to borrow. There are many ways to obtain the basic funding—you don’t necessarily need to have cash in hand to purchase. One…
Sep 06, 2018 486

THE BRANDED FACTOR IN KL’S GLOBALISATION

As an emerging market, Malaysia has seen a steady uptick in branded residences taking root particularly in its capital city, Kuala Lumpur. Dato’ Sri…
Sep 06, 2018 753

POST-GE14 FORECAST – RESETTING THE ECONOMY

Property expert Dato Sri Gavin Tee predicts that megaprojects will thrive again following an adjustment period where the old inefficiencies are…
Mar 07, 2018 2593

‘V-SHAPED RECOVERY FOR MALAYSIA FROM 2018’, SAYS EXPERT

Most experts are optimistic on prospects for Malaysia during this critical general election year – with many convinced that KL will lead the…
Sep 22, 2015 6704

RETAIL REVOLUTION IN HISTORIC MALACCA

Malacca’s biggest tourist ‘Village’, Freeport A’Famosa Outlet Village (FAOV) is set to provide the very best retail experience in an exceptional…
Sep 22, 2015 10125

TIPS FOR BUYING RESIDENTIAL PROPERTY IN VIETNAM

The Vietnamese property market is enticing more and more investors since its liberalisation in July. We zero in on several aspects that the foreigner…
Aug 21, 2015 5793

PART 2: RELATIONSHIP IS KEY TO BEST DEALS

Building and maintaining a relationship with Japanese realtors is key to getting the best dealsCongratulations – you’ve followed the advice laid out…
Aug 21, 2015 4602

CONSERVATIVE WIN SPELLS GOOD NEWS FOR UK MARKETS

UK property market sees upsurge following decisive Conservative win On May 9th, the British electorate delivered a wholly unexpected majority to the…
Aug 20, 2015 4717

THE SUN RISES – AGAIN

There is a seismic change in investors’ attitude towards Japan as ‘Abenomics’ takes hold and this is reflected in the rising foreign appetite for…
Aug 20, 2015 2550

PART 1: INVESTING IN JAPAN FOR FOREIGNERS

Local native representation is essential to penetrate the Japanese market As mentioned in our article in the inaugural issue of Asian Property Review…
May 26, 2015 3000

Property consultant: Market to see upturn in 2016

Property consultant: Market to see upturn in 2016 A lot of negativities have already been factored in this year; at some point, pent-up demand will…
May 21, 2015 2692

Asian Property Review magazine debuts

Asian Property Review, a new regional property magazine has a mission to highlight the best of Asia in terms of places and people, says the founder…
Aug 07, 2013 2748

RM5,000 per sq ft for a KLCC penthouse?

19 April 2013| last updated at 04:08PM FOCUS: RM5,000 per sq ft for a KLCC penthouse? By KHAIRUL KHALID SKYROCKETING PRICES: Prices of high-end…
Aug 07, 2013 2568

Upward momentum after general election

07 March 2013| last updated at 06:11PM FOCUS: Upward momentum after general election By KHAIRUL KHALID MORE ACTIVE: Although a period of adjustment…
Aug 07, 2013 2773

The international factor in property hotspots

FOCUS: The international factor in property hotspots By KHAIRIE HISYAM ALIMAN CROSS-BORDER LINKS: Gavin Tee talks to NST RED about his top 10 choices…
Aug 07, 2013 2590

Greater KL tipped to be world’s rising star within 3 years

FOCUS: Greater KL tipped to be world’s rising star within 3 years By JAN YONG INVESTMENT MAGNET: Many favourable factors will converge to push…
Aug 07, 2013 2866

‘Southeast Asia property market to surge within 10 years’

Part 2 – ‘Southeast Asia property market to surge within 10 years’ By JAN YONG HUGE UPSIDE: Many factors lead to the ascendancy of SEA in the world’s…
Feb 04, 2013 4033

A Tougher Year for Property Investors with Abundant…

Gavin Tee: 2013 – A Tougher Year for Property Investors with Abundant Opportunities Across the globe, both developed and emerging countries are…
Jan 29, 2013 4005

Golden age for property investment

Source: PropertyGuru Malaysia By Farah Wahida:Malaysia’s real estate sector is rife with opportunities for investors, although the government is…
Jan 25, 2013 3829

‘Golden Decade’ for property investors

MAJOR SHIFTS: Despite the credit crunch and economic uncertainties worldwide, most experts during a recent seminar see a silver lining in the third…
Jul 02, 2011 4447

Malaysia, An Attractive Asian Property Market

Highly Attractive City Centres, mega projects and tourism areas are poised to become investment hotspots in Malaysia, aided by resilient Asia's…
Feb 18, 2011 8301

New MRT in Kuala Lumpur augments properties

The new MRT in Kuala Lumpur offers a great opportunity to property investors, particularly through the 9-km underground stretch, around Bukit…
Jan 13, 2011 5941

Malaysia Real Estate Outlook for 2011

Gavin Tee: The Best and the Worst, All in 2011 Kuala Lumpur - The real estate market had gone through a roller coaster ride in the recent years, from…
Aug 18, 2010 3840

Oil price rockets high

Best Time to invest in Property The sharp increase of petrol and power prices is expected to have a great impact on the real estate market with…
Aug 18, 2010 5277

Kuala Lumpur in the Forbes Top 10 List of Emerging Markets

Forbes recently released a list of top emerging world real estate markets that is based on in depth studies. By looking at inflation rates, access to…

post ge-14 forecast by gavin tee

Feature Video

Our Media Partner

 
 

© 2015 Swhengtee International Investment Alliance. All rights reserved.

29-7, The Boulevard, Lingkaran Syed Putra,
Mid Valley City, 59200 Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur

Phone: 603-2288 8588
Email: info@swhengtee.com.my