December 16, 2009

Property launches pick up at end of year

The property market is suddenly picking up at the end of the year as I have been asked professionally and also as an investor to sale launches which see various types of properties being offered. There are those which are the choice of low income group as their first property, which is the low cost apartments unit and these are also the choice of the middle income as investment. How they managed to get their name on the list of those who are eligible for low cost housing unit is a Malaysian mystery which most know the answer to but never bother to pursue.

There are also high-end property launches which are the choice of those who can really afford it and those who think they can afford it. I am actually looking at these type of properties as I have been realigning my property portfolio since October when I see that I have too many properties to maintain that it is not financial viable to have them. Since the middle of the year, I have been looking for buyer for a few properties and is now refinancing the house which I am currently living in.

When I do all these transactions, I am not looking to gain that much money out of them as some of the transactions were done just to lower down the monthly repayment that I am currently paying to the banks. The time is ripe for these transactions as the rate of interest is low and the financial landscape has change. Financial institutions do not offer any perks anymore in giving out loans and are actually looking for more quality borrowers than just looking for any borrowers.

So, you have the choice of shifting your property investment portfolio from your current banker to the one which can give you a more favourable terms. You can even sign a new arrangement with your current banker as they may be able to give you a better term. All of my properties have been held at least between 3 to 5 years and these are justified durations for property portfolio realignment.

As for the high-end property that I am thinking of investment, I am still incline to believe in the prospect of making money through property investment and maintaining one good high-end property is way much better than a few mid-level properties which may attract unattractive tenants or even buyers.

However, the key is to find one which can make a return. And that is where you must hunt carefully...

Just one of the property that I held before but already disposed of

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