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A mortgage loan is probably the biggest and longest debt you’d have to carry your entire life. For some, making a mortgage is just a manner of getting a loan and moving to another house and another loan in a matter of few years time. To others, the mortgage loan is final and they settle in the house that they have learned to love and the community they decide to live in.

In Malaysia, it is highly important that you get the right mortgage whether you are in it for the long haul or on a transition period. This is one thing to consider to avoid a property investment pitfalls. After all, this loan will only stick with your name if you have a bad record so you had better be making it a clean deal through and through. AND you would have to achieve that at ideally the least expense possible or at the most convenient way possible for you financially.

So we’ve gathered a list of things you should and should not do when you’re applying for a mortgage.

DO’S:

• Consult a mortgage expert. They may be a mortgage lawyer or a mortgage consultant. They are people who are in the know of the ins and outs of the trade and are likely to give you unbiased advice and opinion on all your queries that concern getting a mortgage loan. Going to your mortgage lender/ broker/ real estate agent may not be the right thing to do since they are more likely to give you advice that will benefit them. They can absolutely help you make the right choice on the type of mortgage to get.
• Go to different mortgage lenders. Shop around for the best mortgage lender in the area. Consult their representatives to know what’s in their offer for you and compare. You are more likely to make a better choice if you know what you’re getting and missing from the other lenders.
• Read, read, read. Ask if there’s something you don’t understand. Read a condo review. Read the business news. Read your community outpost. Your mortgage lender will give you a good view of how your mortgage contract is going to look like. Make sure you understand every bit of it and ask about whatever you don’t understand. Do not let your ignorance be used against you.

DON’TS:

• Overestimate your capacity. This is where a lot of homeowners fail. Always make sure you know how much you are capable of – for the long term. Even when the initial pre-approved loan says you can, only you can actually tell if you can or cannot pay for it.
• Forget to save up. You’ll never know when you’ll be in a bad financial situation and it is always advisable to have some sort of savings to turn to for your mortgage and other bills should you find yourself in this kind of situation. This is one mistake most first-time investors make, so don’t fall for it.
• Disregard your other credits. Your personal credits and loans should still be taken into consideration. They will not only affect your credit score and history but will greatly affect your overall capacity to pay for your mortgage loan. Don’t let your credit card shopping put you at risk of foreclosure!

Phone. Electricity. Water. Gas. Heating. Internet. With all these utilities that come with bills every month to come on top of my monthly mortgage fees :-O In a tight economy such as this, it is hard not to make some cost cutting measures. But how do you make cuts without hurting your comforts at home and that of your family’s?

The rising number of condominiums and real estate property in the Kuala Lumpur district has a lot of homeowners wondering how to save on bills as much as they can. Times are hard, and we need all the help we can get! Here are some very helpful tips.

Check your appliances and electronics for energy efficiency and for damages. Older models of television, refrigerators, dishwashers and even fluorescent lights are more energy consuming than newer models. To save up on electric bills, make sure they are working in great condition or invest in more energy-efficient models.

Check your air ducts. Air ducts decide how much of your heating and air conditioning goes around your unit. To enjoy the most out of your heating and air conditioning at the least costs on energy possible, insulate your ducts. Some units, like Lumina Kiara condo, are lucky enough to have a sustainable air-conditioning solution.

Maintain your water systems. Leaking pipes and faucets as well as busted toilets will keep your water bills high. Stop paying for water that you never get to use and that’s a total waste. If done right, you could cut about a quarter to almost half of your current water bills.

Teach your kids discipline. All your cost-cutting efforts will be useless if everyone isn’t in on the responsibility. Get everyone involved – close the faucets properly, do not waste water, turn off the lights when not in use, do not leave the laptops and computers on standby but shut it off when not in use, unplug electronics when not in use, etc. Discipline is and has always been the first and most effective step in reducing costs at home.

Like what you’ve read? Property4buyers would like to hear from you! Email us at contact@property4buyers.com for suggestions and questions!

Buying a home is one thing. Selling your home is another. Apart from having to let go of all your emotional attachments on the house, you would have to worry about having to prep up the papers, the technical stuff, and most of all, how to make it look more attractive to your prospect buyers.

How you present your home to buyers is equally as important as the price you put on your home. So here are simple and doable suggestions on how to prep up your home before it meets its new owner.

• Get a good broker. Your real estate broker is the primary person that your prospect buyers would face every single day. How this person ‘sweet talks’ the buyer about your house will do most of the work. Get one with a good sales reputation (but remember that the more popular and more attractive their sales track is, the bigger the commission they would likely get).
• Clean, clean, clean. Keep the house clean every single day. Clean every nook and cranny of the house whether or not you’re expecting a visit from your prospective buyer. A clean house is always better than a good looking house. Clean it like the house is getting sold that day.
• Repair what needs repairing. This is very crucial when selling a house. Buyers will look into the ‘readiness’ of the house. Busted ceilings, chipped painting, or exposed wiring will always be a turn off. Existing damages will mean they will have to pay for its repairs and is a huge turn off in any way.
• Decorate. Get your copies of Martha Stewart Living and Good Housekeeping ready for they will come in handy for when you are dressing up the house. Put accents, bring out your best china, put up your grandest drapes and other home decor. Give your home a makeover like you’ve never done before. (But don’t overdo it; it might end up looking like the Moulin Rouge stage).
• Go online. Everyone is online. Most first time real estate buyers look to Google for ideas on where to look for houses up on sale and majority of the bigger real estate brokers have taken to the internet for easier marketing. Research online so you’ll know what your buyers want– click here to know the latest trends about real estate. This will make it easier for you to make the necessary changes in order for your property to become more attractive to potential buyers.So, give your home that online-ready look. The secret to looking good online? A combination of great pictures and even better description.
• Be a great host. Give your broker a helping hand. No one wants to make business with a grumpy homeowner. Be ready with snacks and drinks. Don’t go overboard with a whole luncheon; some take-away stuff will do. Be friendly. Tell your prospective buyers good things about the house; after all – you know your house more than any expert broker does.

Selling your house is but a bittersweet affair, every time. But give your house some good lovin’ by making sure it gets sold to people who will love it and take care of it the way you did. By following these simple steps, I’m sure that the future owner of your property would avoid property investment pitfalls–thanks to you. Good luck!

I’m not Malaysian, but I invest heavily in Malaysia real estate because I think that this country has got a bright future – at least as far as the property market is concerned. Let me tell you why.

This country is a beacon for political stability. The general election (the 13th) is coming, and is expected to be closely fought between the incumbent Barisan Nasional and the challenger, Pakatan Rakyat. Still, there are no jitters in the stock market, and prices of property remained fairly constant even when the political situation remains in a state of flux.

There are a couple of hot spots that has superior returns on property investment. I like the Mont Kiara area because the prices are good – especially developments like 28 Mont Kiara, Park Seven KLCC, and Lumina Kiara. I have also invested in a couple of units at Mont Kiara Banyan.

On the other hand, I am bearish about Petaling Jaya. This township is aging, and prices of properties in the town centre have been rather stagnant. There are some developments such as PJ8 by IJM Land which is pretty successful, but in general the property market in Petaling Jaya is rather dead. That’s just my opinion, of course.

Therefore, it’s a pitfall to avoid when it comes to investing in real estate in Malaysia. You have got to be careful to check if the particular area is appreciating in value. I have got friends who invested in shop lots in Pusat Bandar Puchong and they were having problems finding tenants for their shops. You have got to keep your ear to the ground as far as identifying opportunities for property investments are concerned.

To do this, it is best to engage a local realtor who is well versed in choosing properties – whether if you are in for the long term (i.e. maximizing capital gains) or if you are primarily interested in property flipping. Both require a different set of skills, and if you make mistakes then you might lose money.

In this day and age, the Internet is a wealth of information and knowledge, and as they say, knowledge is power. This is true for real estate investments. Search your local (Malaysian) property portals (sites like MetroSherpa.com.my come to mind) and you will be able to get a feel of what’s out there in property investments. Experts say that 2013 will be a rather quiet year for Malaysia property(you can read more about The Star’s report on this here.) – and so there will be bargains to be had. You just need to look for them.

Also, go to seminars and learn as much as you can from Malaysia real estate gurus. They are there to help you.

Finally, always go for reputable developers. I personally like Mah Sing because I really like the people who runs the company. Tan & Tan is also good. In short, look for real estate developers with a good track record in developing and launching properties in Malaysia.

Today’s guest post is from John Lee, one of my clients who have just started out in property investment. He has got an interesting story to share with you, in the most colourful way possible:

Hello, John here. I am a beginner at real estate investment, having started investing only a year ago after attending the famous Malaysia Property Investment Seminar back in May 2012. It has been an interesting journey for me so far, and I have been asked to share my experiences here with the readers of this blog. So here I am.

One of my favorite picks when it comes to choosing an area to invest in is the Kuala Lumpur City Centre (or better known as the KLCC enclave). Originally I planned on hunting for property bargains in Kuala Lumpur but I figured I can do better than that. It is anchored by the famous Petronas Twin Towers, which are once the tallest buildings in the world. It is definitely prime real estate, and definitely not for the faint hearted. I am a risk taker, but you may not, so do not take my advice for what it’s worth…

Here’s a brief review of the developments in the KLCC area which I especially like.

Dua Residency – this is on Jalan Tun Razak, and is the host of the famous Delicious cafe. I am a fan of Delicious ever since it was set up by Benjamin Yong (who then sold it to the E&O group), and I really wanted to live near a Delicious cafe! Dua Residency comprises of two blocks of towers, tastefully designed and artfully decorated.

Troika – a famous landmark in the KLCC area, designed by the famous Foster + Partners architecturial firm. There are some rather affordable units here, but the penthouses cost well over 10 million. Again, there’s a nice cafe downstairs – the famous Acme Coffee Bar which serves rather nice jackfruit cake with premium coffee. I came here with Jessica my girlfriend last weekend and we bumped into a few local celebrities! Awesome place to throw birthday parties, too.

The Binjai On The Park – possibly one of the most expensive condominiums in the KLCC area, nay Malaysia. Very nicely decorated, and manned by very nicely mannered security guards. I have been thinking of getting a unit here for the longest time. Wait until I sell off all my other properties in Kajang, Segambut and Sentul to afford just ONE unit here…

OneKL – famous for having a swimming pool for each unit. Perfect stomping ground for the playboy(I really had to underline that one).

Marc Residences – again, the host of a Delicious cafe. It’s also near the clubbing area of Jalan Sultan Ismail, so it’s strategic if you’re the clubbing kind. If you’re a 90 year old grandparent then, well, what the hell are you doing in KLCC?

Finally, you may be wondering where I got the money to invest in real estate properties in a prime area such as KLCC. Well, if you happen to read magazines like the Tatler, you’ll find people like me there. We inherited all our monies from our parents. I won’t even have to use property portals to sell all my property in the future like Pratchett said in his previous article, haha! You really think that we are all self-made men? Are you kidding me? Even Donald Trump had a rich father. Bow, peasants!!

Indeed, we shall bow, Lee. Indeed, we shall.

[dc]H[/dc]ello, John here again. Many of my clients ask about investing in properties in the Kuala Lumpur area, and so this is my standard answer to them. In Kuala Lumpur, it can be a bit hard to determine what a real estate bargain consists of. Experts generally agree that real estate bargains should bring together a good financial program, a good price and a good location. When it comes to properties in Kuala Lumpur (especially in the Kuala Lumpur City Center or KLCC), bargains are also only considered a bargain if they are sold at market price or lower. I will teach you how to spot these opportunities

Defining a real estate bargain in Kuala Lumpur isn’t necessarily a science. However, there are still several criteria that a property has to meet in order to be considered a bargain, as follows:

• The selling price of a bargain has to be lower compared to the selling prices of other properties within the area that are being sold at the same time.
• Kuala Lumpur properties need to be well-situated, so be careful of properties that are badly situated. No matter how nice the property specifications or building layout may be, the property itself has to balance out with its location. Ideally, you should find a place that is near or in a good area and has good amenities and services at the same time. It would be a bonus for it to be near public transportation links, as well.
• If required, the loan to value or the mortgage value has to be from 70% to 100% – a great rate for the property industry in Kuala Lumpur. However, it would be important to note that an apartment in the area with a 100% loan to value isn’t necessarily a good bargain.

There are also three things that you will have to keep in mind prior to looking for a real estate bargain:

1. Before settling on a property, make sure you look at a ton of other properties first. Although some buyers may be content with visiting five properties or so at a time, most buyers in today’s day and age would prefer to look at fifty different properties before making a decision.
2. Naturally, you have to be perfectly clear about what you are looking for in terms of Kuala Lumpur properties. Do you plan on living there permanently, for example? If so, then you have to be ready to deal with all of the expenses that comes with that kind of commitment. Conversely, if you are only buying it as a temporary residence, then you will have to decide whether you will be able to sustain its expenses whenever you aren’t there. You may be eyeing that posh unit at the St Mary Residences in KLCC but if you can’t afford it, settle with a unit down the road (Stonor Park or Marc Residences for example).
3. Some buyers turn to Kuala Lumpur for buy-to-let investments. If you are doing the same, then you should look for a rental yield above 4.8% (call that the John Pratchett rule). In some cases, this yield may reach up to 8% in some areas. If you are looking for buy-to-resell investments, on the other hand, then you should look into a mid-term or long-term thing because it could take some time for the property price to go up.

Now, if you aren’t confident in real estate investments yet, you have to make sure you hire a legal adviser to help you out. Otherwise, you could find yourself in a messy situation and lose a lot of money in the end. If you need help, just contact me. You can also do research at a site like PropertyReviews.my – it’s really informative when it comes to property market data.

Hello, John Pratchett here. Quick note that I am traveling to some outskirts of Malaysia for the next month to check out some property investment opportunities, and if you are an existing client of mine then be aware that I might not be responsive to phone calls and emails. I will be going to the Penang property trade show as well as to some rural areas in Kedah to look at commercial land acquisition.

In my next blog post, I will share some data from the field, and also some exclusive data on asking and transacted prices for properties in Mont Kiara – particularly 1MontKiara (office lots), Mont Kiara Bayu and Solaris Dutamas. Be right back!

Contributed by John Pratchett, Uxbridge, London UK

The iconinc Battersea Power Station in London has been acquired by SP Setia, a premier property developer from Malaysia

In this debut issue of the nine-installment of the Property4Buyers Guide To Property, Mr John Pratchett, a UK- and Malaysia-based property agent shares some tips on how to sell your house and make a  nice profit. Mr Pratchett now resides in Kuala Lumpur, Malaysia.

There are different methods that you can turn to when you decide that you want to sell your house, but selling it online seems to be the biggest trend at the moment – both in the UK and also in Malaysia (where I am living now). This is mostly because the real estate market took a real nosedive because of the recession recently, so people are more than open to more efficient and more affordable ways of doing things, in general.

Since real estate agents (in Malaysia, especially!) are currently notorious for the expensive fees that they charge vendors in exchange for selling their houses and properties, it really isn’t any surprise that they aren’t very popular nowadays, especially due to the aforementioned slump of the real estate market. This is an honest opinion coming from a practicing real estate agent based here in Kuala Lumpur

Online Property Portals – The Natural Progression For Real Estate

Things are quite different when you look at the World Wide Web, though. On the Internet, vendors tend to have much more control over their properties’ sales, so they can cut down on costs altogether. Thanks to the many property portals that seem to be popping up everywhere on the World Wide Web, things have become even easier now. The best part is that more and more of them are showing up as each day goes by.

Some good property portals in the UK – RightMove, Zoopla. In Malaysia, I recommend PropertyForSale, MetroSherpa.com.my,  HomeGuru.com.my, i-property.com. These are all splendid choices which will give you enough information to make good investments.

Pictures Are Worth A Thousand Words

Regardless of which property portal in Malaysia you choose to use, you can easily sell your house online – and without any help, for that matter. You just have to make sure that you take good photographs of your house and come up with good and attractive descriptions of the house that you want to sell, as well. In fact, you can even decide on your own asking price if you want, but it would be advisable for you to get your house evaluated by a professional instead. This way, you can be sure that you will end up with an asking price that is fair and acceptable in the eyes of potential buyers. This is true especially for properties in areas like Kota Kemuning, Puchong, Cheras and Kajang.

If you decide to sell your house online and on your own, you will be happy to hear that you won’t incur any additional charges that usually go to middlemen, either. Usually, if you hire a real estate agent to sell your property for you, you will have to pay them a large fee for doing so. By using a property portal, on the other hand, all that you will have to pay for is a one-off fee to list your property on the website. If you are lucky, you might even find a property portal that comes with a bonus, where you won’t have to pay them any commission in case you end up selling your property through them.

The best part is that online real estate portals (such as MetroSherpa.com) are very easy to use. A lot of the time, these portals will even have instructions and guides available for you, so that you will know exactly how they work and how to use them. Ideally, though, you should try to find a site with advisers that are available to talk to you 24/7, as well, so that you can contact them for advice and help whenever you need to.

Watch out for the next installment of the Propery4Buyers guide!