The long awaited Common Property (Building & Maintenance) Bill has been passed in December 2006. Once this specific law is introduced, developers and owners are expected to form a joint management committee to manage and maintain the common properties. This will give owners a say in how the common properties will be managed. Owners will get to see more transparency in the made up of their contributions towards the management fund & reserve funds for major repairs.
Henceforth, you as a property investor are now in better position to maintain and enhance the value of your property through joint-management with the development even when the individual titles have not yet issued.
I do not want to name any here, but please be aware that many stratified properties are having lousy or poor management nowadays. This will have direct effect on the market rental and the capital value of the property you invested.
Over 30 years of experience in Iskandar Malaysia's property market, Johor Bahru -based registered estate agency, Tiram Realty, offers FREE tips and info on the selling, buying, renting and auction of properties in Iskandar Malaysia through the blog.
Showing posts with label property management. Show all posts
Showing posts with label property management. Show all posts
Thursday, May 17, 2007
Wednesday, May 9, 2007
Real Estate Tips #9: Property Investment - General Buying Guide
What are the top three most important factors in property investment? Many used to say, "location, location, location!". This is no longer true, I'm not saying otherwise, but there are actually more things to look at other than location. There are four (4) main factors which i would normally advise my client in property investment:
(1) Location
Things to look at may include accessibilty, visibility, road level, carparkings, pedestrian flows and etc.
(2) Rate of Return
You should be looking at minimum 6%p.a. as a general guide. Please refer to Real Estate Tips #8 on how to calculate Rate of Return.
(3) Tenantability
If the property become vacant, how long will it take to rent it out again?
(4) Property Management
A poor property manager will result in a decreasing in capital value and the rental of your property in long run.
I shall explore further with the above factors with you all stages by stages. Before i end here, do let me highlight to you the paramount rule on property investment, i.e.
"BUY ONLY THOSE PROPERTIES YOU ARE FAMILIAR WITH!"
(1) Location
Things to look at may include accessibilty, visibility, road level, carparkings, pedestrian flows and etc.
(2) Rate of Return
You should be looking at minimum 6%p.a. as a general guide. Please refer to Real Estate Tips #8 on how to calculate Rate of Return.
(3) Tenantability
If the property become vacant, how long will it take to rent it out again?
(4) Property Management
A poor property manager will result in a decreasing in capital value and the rental of your property in long run.
I shall explore further with the above factors with you all stages by stages. Before i end here, do let me highlight to you the paramount rule on property investment, i.e.
"BUY ONLY THOSE PROPERTIES YOU ARE FAMILIAR WITH!"
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