Individuals seeking to invest in the real estate market have been advised not to put all their eggs in one basket but to spread their risk among several different investments.
According to founder and chief executive officer of Capital Management Group Max Shangkar, they must also consider three main things before investing – how safe, how sure, and how long it takes to secure the returns from the investment.
“If you want to maximise your returns, perhaps it is a good time to invest outside of Malaysia’s portfolio using stronger currencies, as the ringgit is weaker and less competitive in the global arena.
“For example if you buy land as a short-term strategy, it could take you a longer time to realise the profit,” Max, who is also an international real estate investor, told reporters recently.
He was speaking after launching his book titled ‘Investment Strategies for Global Real Estate-How to Make Big Money with Small Capital’.
Meanwhile, the book covers land acquisition, construction, management and restoration, and proven investment strategies in Hong Kong, New Zealand, the United Kingdom, Germany, the US and Malaysia.
The 195-page book is sold for RM100 in Malaysia where part of the proceeds will be donated to charity homes.
Asked about the impact of the Goods and Services Tax (GST), Max said there would be a slowdown in the property market as more time is needed to adjust to the new tax regime.
“Although residential properties are not affected, construction materials and supporting expenses will be affected in the input tax.
“At the end, developers may not have a choice but to increase property prices,” said Max.
He added that developers should realise that higher prices would lead to banks tightening their lending, and with buyers adopting a wait-and-see attitude, this would result in a stagnant real estate sector.
He however expressed optimism about the Malaysian real estate market, saying he expects it to improve in three years as the GST effect dissipates.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
