theSun Property September 2015

2 / 5

WE ARE
living in
rather
interesting
and challenging times,
with almost everything
heading south. The
stockmarket, the
ringgit, gold,
commodities (oil and
palmoil) have all
dropped tremendously
over the past few
months. This situation
is not just peculiar to
Malaysia. Several of our
neighbouring
countries/markets,
including Thailand,
Indonesia and even
Australia are badly
affected.
Unfortunately for
Malaysia, inflation in
2015 can be expected to
reflect a painfully
noticeable increase of
at least 5% to 10%,
largely influenced by
the implementation of
the 6%Goods and
Services Tax (GST)
fromApril 1, 2015.
The dilemma we are facing:
1. Are we in a crisis-like situation like what
we went through during the 2008/09 Global
Financial Crisis or the 1997/98 Asian
Financial Crisis?
2. Are we seeingmore opportunities around
us and capitalising on them?
3. If you do not do anything to protect your
investment portfolio, youmight end up
losing.
4. Try to diversify in these volatile climes and
uncertainmarkets, and youmight end up
losing.
5. Would it be best to do nothing, just sit tight
and ride out the financial storms?
6. Finally, is it time to thrive or time to just
survive?
Eco-livingwonders
BANDAR Seri Botani celebrates eco-friendly
lifestyles with an integrated township located
close to Ipoh city.
The strategic township is complemented
with Eco Park 1 and Eco Park 2, making up a
total of 56.6 acres of space for play and serene
relaxation. Residents can enjoy a leisurely
walk to the Eco Parks through available
park connectors. Other noted features of the
property include:
VIEWING DECK
Featuring rustic structures and a strategic
location on top of the hill, residents can enjoy
amajestic viewof the entire park.
OUTDOOR GYM
Complete with colourful, multipurpose gym
equipment for residents to enjoy a balanced
and healthy lifestyle.
FISH POND
Complementedwith a gazebo that
overlooks the fish pond as youwhile away
your time.
CHILDREN’S PLAYGROUND
Specially created for the young ones, with
shaded areas for parents and family
members to relax as well.
JOGGING PATH
Navigate through themany terrains and
surrounding water bodies of the parkwhile
enjoying the panoramic viewof lush
greenery dotting Eco Park.
FISH FEEDING STATION
Visitors and residents alike can spend quality
family time through feeding the various
species of fishes available.
Eco Park 2 will also feature a 2400m
bicycle track, walking track, and ornamental
gardens dottedwith a variety of plants
species, decks, and aqua plants. It is the
perfect venue for family outings, birthday
parties, nature photography or pre-wedding
photography.
Taiko Group recently launched Phase
6.1A[1], consisting of 40’x90’ double-storey
semi-detached homes. These Seri Teratai
homes are adjacent to both Eco Parks, with
several units offering breathtaking views of
the lush greens of Eco Park 1.
For more information, visit the official
Bander Seri Botani website.
Let us analyse how these factors affect the
real estatemarket and investors in particular.
Most property investors havemade tonnes of
money in the last five years when prices rose
by 30% to 50%depending on the property
type and location. Is it time to brace for a
price correction and losses?
Whilemany people are focused on prices,
what is equally, if not more important, is
the cash-flowaspect of property
investments. Property investors, who had
bought fromdevelopers a fewyears ago and
are expecting to receive their keys within
the next six to 12 months, are going to be in for
a nasty shock.
Upon completion, newdevelopments will
need some time for themarket to absorb,
whether it is for the purpose of sale or rental/
leasing.
InMalaysia, it’s very common for new
properties to remain vacant for at least 12
months as most tenants would be
reluctant to be the first few tomove into
an empty block of apartments.
It is also not easy to sell as prospective
buyers would have plenty of choice from
among the empty units. Further, he will
probably be fishing for the best available
deal froma desperate seller.
Even if you are lucky enough to find a
buyer, hemay not be able to qualify for a
bank loan due tomore stringent credit
requirements.
During this time, the bank instalments
and service charges would have started
while the vacant property you nowown
remains unproductive.
Onemiddle-aged couple I knowhave
been sitting on two empty bungalows in a
gated and guarded development in Cheras
for the past 12 months. Even though prices
have appreciated by 30% and they have
“paper profits” of RM700,000, their
combined negative cash-flow is close to
RM15,000 per month. They are ...
unable to rent it out as the area has no
ready pool of expat tenants willing to pay
rents of more than RM5,000 per month.
finding it difficult to sell due to the
economic slowdown and difficulty for
newbuyers to obtain loans.
When asked howmuch savings they had
to cover the negative cash-flow, I was
informed that they had just enough to
last for another two years maximum.
Clearly for this couple andmany others
in their shoes, it is now a question of
survival.
For those who have the cash and the
borrowing ability, now is clearly a time to
thrive by taking action. There aremany
great deals out there waiting for you to
uncover. Start with places you are familiar
with such as your neighbourhood, your
office area or places you go to frequently.
Anytime a good deal comes up, you can
grab it quicklywithout much hesitation.
X
X
X
X
X
X
MilanDoshi
Financial trainer, Milan Doshi, is also the
best-selling author of How You Can
Become a Multi-Millionaire Real Estate
Investor!
He will be conducting a three-hour talk
on “Property Investment” this Saturday
from 7pm to 10.30pm. Venue: WMA
Training Centre, Block 41, 7th Floor,
Boulevard Mid Valley City, Kuala Lumpur
(Opposite the police station.)
FREE ENTRY for readers of theSun , if
they bring this article or copy of theSun
newspaper dated Friday, Sept 11, 2015
containing this article. (Save ticket price:
RM198)
To register kindly call/contact
Ms Karol (Hp: 017-966 6178 or email
)
Time to thrive or time to
survive > Exploring the best opportunities and capitalising on them
ON FRIDAY SEPTEMBER 11, 2015
Email your feedback and queries to: X