Gavin Tee : Talking Property – A Man for the Times

Source from : Top 10 of Malaysia

He admires Bruce Lee and Michael Jackson for their focus, dedication and professionalism. He is a marketing-man turned property-man. Trained in America, he now plies his trade in Malaysia. He used to support property developers market their products, but, with the Swhengtee Real Estate Investors Club, he and his co-investors are now very much into property dealings themselves and are looking for good properties to buy.

The Club is the first of its kind in Malaysia. What motivated Gavin Tee to form the Swhengtee Real Estate Investors Club is his passion for sharing the knowledge he has gained in the property market. But like everything else, for long term sustainability, the Club must turn a profit. Its business modus operandi is “Buying Property in Bulk”. The Club networks like-minded property investors, organizes them into a formidable buying group and leverages their considerable pooled resources into a force that usually help them transact property deals on terms that are more attractive than any one individual can achieve.

Thus, the Club recently managed to acquire a residential property in Bukit Ceylon in Kuala Lumpur and an office tower block, called the VSQ that is due to be completed in 2012, located in Petaling Jaya, Selangor.

Gavin feels that 2010 to 2020 will be a golden era for property in Malaysia. Property prices in Malaysia for the past two years have lent credence to this positive outlook of his. But like any retail business, property is all about location, location, location. Besides Kuala Lumpur, Gavin likes properties in Klang, Muar, Ipoh, Kuantan,Cyberjaya, Iskandar Johor, Melaka, Pulau Pinang and Kota Kinabalu. The Club’s property acquisitions in the Klang Valley indicate where the prime investment locations are. “Prospective investments must balance risks against benefits, and a good Return On Investment (ROI) for a property is at least 10% per year,” says Gavin.

Another area that Gavin also likes is tourismrelated properties. “It can be specific hotels and resorts, or property developments catering to foreign investors like many in Melaka. Melaka combines attractive property investments with enlightened public policies that are especially alluring to Singaporeans, and Melaka is only one to two hours drive from Singapore,” he adds. He also recommends Pulau Pinang and Kota Kinabalu in Sabah.

“The massive Mass Rapid Transport project, which is part of the Economic Transformation Program of the government in the Klang Valley will also be a major boost to the property sector in Kuala Lumpur,” says Gavin. He sees the stretch from Taman Maluri in Cheras to Kuala Lumpur Sentral to be especially beneficial to existing property owners. “Properties in the Bukit Bintang area and the stretch from Cheras to the town of Kajang will also reap the rewards from the MRT development,” he adds.

The MRT project for Gavin reflects the globalization and urbanization trend that is occurring all over the world. As countries climb the economic ladder, urbanization accelerates and the major metropolises around the world
require massive and rapid investments in transportation infrastructure to cater to the influx of workers. “Kuala Lumpur will become similar to New York City or London, where efficient and comfortable public transportation makes urban living a unique experience and makes a city exude its own cultural ambience,” says Gavin.

When asked to comment on the recent budget 2012 announced by the Prime Minister, Gavin has this to say, “It had some goodies for the property sector. One good piece of news is on the Real Property Gains Tax. Instead of
increasing this tax to 30%, the government adopted a 5% to 15% tax schedule for the disposal of properties to dampen speculation. This new formula will not adversely affect the property market too much.”

On the recent announcement by the Prime Minister that the government will play a major role in construction of affordable residential properties on government land, Gavin believes it will make housing affordable for the Rakyat, especially to first-time buyers and to those living in the urban areas, where housing can be very expensive. “Land costs which are at 20%-25% of total costs is the single biggest item for prices of properties,” says Gavin. “With lower land costs, developers can provide higher quality building materials and better-designed housing,” he adds.

Gavin also supports the increasing move by Malaysian organizations and companies recently to acquire foreign properties or develop foreign projects. “The Employee Provident Fund and companies like SP Setia, Mah Sing and UEM have taken advantage of depressed property prices and favorable exchange rates in London, for example,” he says.

Gavin also likes property investments in the United States, the country where he had obtained his university degree. “But risks, like in any foreign forays, will be especially pertinent, and further research and careful evaluation will have to be done,” says Gavin. And he thinks the United States-based investors will have advantages over foreigners because of their proximity to their investments and being indigenous to the market. “The property market is attractive over there because it is very depressed and has more room to depreciate further, and the current US Dollar exchange rate is advantageous,” he adds.

malaysia property outlook 2011

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Malaysia Real Estate Outlook 2011 by Swhengtee

By Star Property
Gavin Tee: Real estate outlook for 2011

About Gavin TeeGavin Tee is founder and president of SwhengTee International Real Estate Investors Club, and managing director of Arborland & Co. Tee has conducted many training courses for various business establishments in Malaysia. He was a professional trainer for the Continuing Education Programme (CEP) of the KLSE Directors’ Training Programme.

Presently, he is actively involved in investment consultancy, project marketing, land investment and international real estate services. Tee shares his views on expecting the best and worst for year 2011:

The real estate market had gone through a rollercoaster ride in recent years, from a soaring market in 2008 to a depressed market in 2009 and skyrocketing again this year! There will be a very special phenomenon in 2011 because the best and the worst opportunities in the real estate market will emerge. The implementation of a maximum loan-to-value (LTV) ratio of 70% will affect the investing movements in the housing market, while the Prime Minister Datuk Seri Najib Tun Razak’s Economic Transformation Programme (ETP) will create new prospects and opportunities in the real estate market.

The targeted implementation of the LTV ratio is expected to moderate the excessive investment and speculative activity in the residential property market, which has resulted in higher than average price increases. According to the government, the main objective of this policy is to encourage home ownership. This policy will not help to curb speculation. Instead, it will jeopardise the real estate market and dampen the national economy.

Property prices are still relatively low and transaction activities are stifled. For example, many
owners of high-end apartments and second-tier urban houses are facing difficulties at selling their properties and the 70% mortgage cap simply made the situation worse. In the secondary market, many houses are presently facing financing problems. The 70% mortgage cap will cause further difficulties to them in disposing the properties. Even some of the “hottest” properties in the market are affected by this policy. As the economy has not fully recovered from depression, this measure will cause a double blow to the real estate market.

.
Budget 2011 and globalisationThe development plans that Prime Minister Najib Razak announced in Budget 2011 will spur the real estate market, especially in globalised areas where economic activities are most active. Investors must be aware of the strategic plans announced by the government as the real estate market in Malaysia will move forward with globalisation.
The Greater Kuala Lumpur project will create a strong impact for the country. Strategic urban planning and development will not only enhance Malaysia’s image internationally, but also promote the development of the surrounding cities and towns. For example, the construction of the 100-storey Warisan Merdeka will attract large numbers of local and foreign investors to invest in our country as this iconic office cum commercial building will create an international identity for Malaysia in this globalised era.

Continued growth Looking into the future, I predict that the market will continue to flourish next year. Even though the market had gone through major changes in the past few years, the best and the worst deals will occur in 2011. Commercial properties with special design concepts, office buildings, green buildings, as well as commercial properties related to the tourism industry have high potential next year.

The real estate market is estimated to continue growing next year. Taking medium-cost property as an example, the price of properties near urban areas has not increased very much for the past 15 years. Even though prices of new properties launched in these areas have increased by 20% to 30%, it does not depict a bubble in the real estate market. The overall housing prices are still considered relatively low at the moment, with plenty of room for growth.
Pockets of bubbleHowever, there seems to be a very unhealthy phenomenon in the real estate market this year as many investors rushed to purchase new projects even though the selling price is comparatively high. This has resulted in small bubbles in certain areas, where some of the projects do not have high potential for investment. These investors might face difficulties in renting or disposing their property next year. I advise investors to dispose any properties even with low capital appreciation.

Innovation and interesting concepts are the factors causing new buildings to sell at higher prices compared to old buildings. However, smart investors should not just look for new properties but also old ones as the prices are much lower and investors can renovate the building with new concepts. In a nutshell, I believe that properties with great potential at low prices are available everywhere. Investors must do their homework and search for the best opportunities that come along.

an interview by Star property

By Sherry Koh Dec 17, 2010

The humble properTee investor


Over the years, real estate investment consultant Gavin Tee, 44, has helped many people through his involvement in philanthropy, politics and property consultancy. It wasn’t until recently that he decided that he should make himself rich as well, apart from just coaching people and making them rich. Today, he and members of his investment club Swhengtee International Real Estate Investors (REI) Club, which was founded in May 2010, purchase property blocks and units in bulk.

In a recent release addressing Malaysia’s real estate outlook for year 2011, Tee says, “There will be a very special phenomenon in 2011 because the best and the worst opportunities in the real estate market will emerge.”

StarProperty speaks to the humble Tee, who is also one of the partners of mYoga at his office at The Boulevard, Mid Valley City.

Tell us about yourself.Basically,
I got involved in property industry for approximately 19 years. I began my property career with MBF properties followed by working with an real estate agency and a developer as a marketing manager. I set up my own real estate agency 15 years ago. Three years ago, I changed my approach towards the real estate industry by venturing into real estate investment education . In October 2009, I transformed into an investor. Instead of just teaching people on how to invest, I am leading people to invest. So that’s how I changed myself in the last 19 years.

Were you in real estate all this while?
I stayed in the US and Canada for seven years since 1985. I majored in International marketing and I love marketing. In the US, I run my own business for two years before returning to Malaysia. The first thing I did upon returning was to apply for a job and got involved in direct selling of a slimming product. A few months later, I took the franchise and started the business on my own, sadly to say the business failed within a year. So I closed the outlets and I lost some money. I then applied for a job and accidentally jumped into property industry, which I thought it wasn’t my interest and was just for money-making purposes.

But once I stepped into the world of real estate, it was so much more different than what I had perceived. In the first month of employment, I beat all 200 sales persons nationwide and became the top sales person, making RM10,000 per month. It was huge amount of money for a fresh graduate.

That’s how I got into property, and since then I treated myself as a professional, meaning that we not only offer our services but also advisory. I wasn’t an investor then because I did not think of earning that way and I thought that I only deserved consultancy or agency fees or commission. However, all the while, my interest is in sharing. It’s my character. During that time, I also organized a lot of events for NGOs (non-governmental organisations). I was very active in NGOs for 15 years and at one time, I held 15 top positions in NGOs, politics and so on. I was spending 70% of my time in social activities of course from there I built my networks. That’s how people knew me in the first 15 years, as an NGO man. Not many knew me as a property man because I only served some personal and corporate clients. It was three years ago in May 2008 that I had my first official sharing with the public under The Swhengtee Property Talks.

After 15 years of hard work in the social scene, I found that in NGOs, no matter how hard you worked, people would still think you have a personal agenda. For us, we did not think about what we can gain.. It was so hard to raise funds. And sometimes we had to come out with our own money. You know we were quite poor because we neglected our own business. However, people still did not appreciate what we did and that was so frustrating. So instead of getting funds from friends, I aimed to make everyone in my circle wealthy so that when we wanted to raise funds, we did not have to plead with people.

Everybody was very excited. They were making money from property investments. They had no problem in contributing because they made money from our networks, my teaching and new opportunities. In October 2009, I started investing in group purchases. Every property I purchased, I advised people to buy. Now, almost every month our group purchase one project.
SwhengTee International Sdn Bhd was set up in May this year (2010), whereby we started the business as an investors’ club in June.

So, SwhengTee International is very new.
Yes, very new. But the property talks have been going on for the past three years. Initially, my students got together with me every one or two months. We organized dinner and I made presentation to update property market to them.. Until such time I think it is better for me to spend my own money to set up a physical club with facilities, ie seminar room, library, etc. .
In the last 2 years, we focus on Chinese-speaking market even I had bilingual program. However, we will put more emphasis into the English-speaking market from now onwards.
To reach the public, I came out with a TV programme broadcasted on Astro 304, and I also published a book in Landlording, as well as setting up a Real Estate Investors Club and organizing 100 investment talks in 2010. We got all these things done within 4 months, it was unbelievable.. The most important thing is that we invested in a lot of properties and so far our group have reached a total investments value of RM200 million.

The investment worth RM200 million is as a group? Initially, we purchased as a group. In the last few months, we turned into ‘en bloc purchasers’. Property investment is not just buying at lower prices but also managing and enhancing the property’s value. The most important thing is that you must be able to dispose it at the right time and good price. With ‘en bloc purchase’, we can enhance and turn RM1 cash investment into RM10 return. For example, using the space more efficiently, get the right tenancy mix, renovation and son on. We just bought the VSQ building behind Armada Hotel (Petaling Jaya). We want to be involved in both purchasing and managing. We want our investors do not only make 10% per year, but make a 100% return on their investments.

You talk about enhancements to mark up a property’s value. How do you go about it?
For example, if it is an office building, you can get quality tenants. Get the right management team, design the concept and market it. Just like a shopping mall, you can design a theme, you give the mall a life, which can determine its future and value. It sounds easy but you need to conduct a proper study and research.

We purchased the whole block of Bukit Ceylon Condo. We arranged a central management for the 40 units. We pool the rent to make sure all investors collect rental from their investment , which means that even if 30 units are rented, the remaining 10 units also share the rent and costs. Investors are busy, especially if they have 10 properties, they may not have time to manage. We have a group of professionals such as architects, lawyers, bankers, interior, feng shui masters and so on. Therefore, we are able to enhance the value. We also sell properties through our networks. If you want to sell your property to the right people at the right time and right price, it’s very difficult. There are too many properties out there.


What do you cover in your three-day course?I
cover a lot of things in the three-day course. Landlording is one of the subject. When you are rich, you have to be happy. Most of the rich people in Malaysia who own a lot of properties are not happy because they face a lot of problems, particularly dealing with tenants. I teach the property investors how to reduce or minimize the risk at all stages. We also teach them how not to make common mistakes. And, of course, what to buy and how to sell, that is, Portfolio Management.

Do you think that there’s a property bubble?We look at it differently.
There are quite some properties which are over-priced especially those so call special projects. But generally the Property price in Malaysia still low, maybe only 5% is too high. One of the principles is we do not speculate but look for the potential ones. The property market in

Malaysia is already a good opportunity. Prices of properties that are supposed to be very high somehow are maintained low for 15 years. Prices of those that are not supposed to be that high are in demand because of new concepts. When you go global or become more commercialized, there are lots of opportunities from the differences. Mont kiara is one of them.

The bubble seems to be exist only when it is overpriced and oversupplied. Malaysia is adjusting quite right. For example, high-end condos in KLCC are oversupply but not overpriced. The land in the city centre is getting scarce. It’s not a bubble but it is an inactive period. Last year, I presented a talk, “Is the worse over?” and I told them that by November last year (2009), the worst will be over and we have seen the price rose by a 10% to 20% this year. However the oversupply problem will not end. It will take at least three years to absorb. This is the thing about Malaysia; everyone builds the same thing. During the last three years, people were building high-end condos. However the current trend is that people are moving into commercial building and offices.

There are some small bubbles scattered but not in general.

So you are saying that in Mont Kiara, the prices will adjust in the next two to three years?I will say the oversupply problem will be reduced to a “comfort” level 3 years later. It may reach 80% to 90% occupancy by then. Some properties in Mont Kiara and KLCC right now have only 20% to 30% occupancy.

For those paying monthly installments, no matter how low, be quick to rent it out. But a lot of condos in KLCC and Mont Kiara are sold to foreigners, some of which were cash purchasers and they left the property as it is. That will affect the whole development. So that’s why when we buy, we buy the whole block so that we are in control. We set up the club to gather those who have the same approach, common interest, knowledge and those have capital in order to make a very fast decisions. In property, when opportunities come knocking at the door, we have to make speedy decisions and act fast to tap on the opportunities. The Malaysian market changes rapidly today, compared to the last 20 years.

Portfolio management is very important. We know when and where to buy, rather than just follow the news. We study the past and movement of every single category and area. We may not know every single thing, but we have a lot of experts and sources of information to tap into. In the long term, we want to be involved in international markets because globalisation has to take place. Since 2007/8, globalisation took place for countries such as Middle East, Korea, Singapore and Hong Kong. I am expecting Malaysia property market will soon to be globalized and expecting a super cycle in 2013.

I am very interested to be involved in studying how to transform Kuala Lumpur into a global city. That will make a big difference to the prices of property. People may think RM1 million is expensive, but that property might turn into RM10 million. I always believe that the minority, a small group of people, will own the majority of property in the prime city centre. If you don’t want to be involved, all the public listed companies, foreign companies and government institutions will occupy these prime properties. Therefore, it is good for us when we can group our club’s investors together, to get involved.

We are looking into buying prime properties in the city centre where our members can be a part of these prime areas; sit back and wait for globalisation to take place and then enjoy the multiple success. We don’t treat it as property, but as an opportunity for business. We look at property investments as a business.

How many talks do you conduct yearly?
In 2010, we conducted 100 talks, both large and small.
Do you teach specific strategies?Overall. Sometimes I have guest speakers from legal and finance, as those areas are not my expertise.

What’s your property portfolio?
We buy everything at different times. As a group, we have purchased Gated and Guarded bungalows, factory light industrial, medium-cost apartments, office tower, hotels. Almost everything, except land right for now.

Can anybody just join the club?
We want people who are passionate about property investment and treat it seriously as a business. So, it is conditional. I think next year, membership is by referral or invitation only

What if someone is really passionate but does not have the finances to invest at the moment?
I always advise people need to learn first. People can spend five to 10 years’ savings, but when you ask them to attend a one-day class, they are reluctant. They totally ignore the importance of education and simply purchase with all their life savings. It’s quite sad to say that they only follow what is hot. And most of these ventures may not make them money.

And I always said that for more than half of Malaysian properties, you don’t make money. Even if you gain 5% per year, you are losing money because of inflation and the interest factor. Through our surveys, 90% of first-time buyers are not happy or did not make money from their first purchase, including myself.

What are some of the common mistakes that you can share with our readers?
We have a course called ‘10 common mistakes’. Firstly, a lot of people are not able to verify information. So when they step into a showroom or read the a brochure, almost every project looks perfect to them and worth for investing. They only look at two or three projects and they step in to buy. The mistake is that people don’t treat it as a business and they don’t want to learn.

Today, there are changes every single second. So if you are not in the market and don’t have the knowledge or proper network to source for information, you are basically going to be a poor home buyer, not an investor. Secondly, young people don’t know how to leverage in terms of financing. They don’t know how to calculate all the expenses, they mismanage their investment and end up losing money in the end. The more ignorant you are, the less knowledge you gain. That is why I share my knowledge with the public through the media such as tv and newspaper write up and ads. As part and parcel of our seminar programs we also promote our DVDs and TV programme to increase our members and investors’ knowledge on property investment.

What do you think of Government’s ruling on the LTV ratio?
There are a lot of people complaining. When you look at the loan part, I think it’s more important for the bank to value the property properly before giving loans and not for the Bank Negara to introduce the capped margin on loan. To minimize the risk , the property we purchased must be lower than the market value, with high potential to appreciate.

Even if you take a 100% loan for a property which purchase price is under market value, then, it is safe for the bank. But if the property is worth RM1 million, speculated until RM1.5 million, hence, even if 60% loan is given, it is still unsecure for the bank. The government must educate people on how to invest and not discourage them from investing. It’s a free market. No matter what it can’t be halted. Eventually the property market has to move according to the international and regional pace.

I still think our property price is low. We pay high prices for our cars, travelling and infrastructure. Some of us pay the same installment for a car and a house. In addition to this, there are other expenses such as petrol and parking costs. The transportation costs are more than housing expenses. In some countries, housing is three times more than transport as the property prices are very high. So our property prices are relatively low.

Any advice for investors?
The best thing to do is to invest in the right property, those that have the potential to appreciate. What you are purchasing must has the potential – in terms of capital appreciation and rental. This business is very simple.

Yes, very easy to lose money as well.(Laughs) Not really. If you really spend some time (learning), it is still very easy to invest, especially in Malaysia.

Why did you decide to invest in mYoga?
Well, health is wealth. They go hand in hand.
For information on Gavin Tee’s seminars and/or Swhengtee International Real Estate Investors, visit www.swhengtee.com.my

SwhengTee Property Investment Intensive Course

Dear Property Investment Enthusiasts,

A very special 3 days 2 nights real estate investment program prepared for individuals who are going to invest in 2010, "The best year to Invest", join us by calling 03-7983 0103/016-2020 001 or visit our website www.swhengtee.com.my

CNY Property Investors Networking Dinner

CNY Property Investors Networking Dinner

3rd February 2010: Last Night was a night to remember as SwhengTee's 2010 CNY Networking Investors Dinner was held. More than a 110 participants comprising of developers, property speakers, laywers, researchers, bankers, architects and investors gathered not only for the networking opportunity but also to celebrate Gavin Tee's Birthday at Berjaya Hall, Bukit Kiara Equestrian Park.

The event started with Gavin giving a welcome speech and making the introductions of his VVIP Guests, including Dato Yap, Ho Chin Soon, Juanita Chin and Chris Tan.

Guests could be seen mingling and chatting among each other as new friends were made, not only for the potential business opportunities but also to share their investment experiences. The time came for Gavin's talk titled "2010 - Real Estate Market Forecast & Opportunities". It was conducted superbly as the prominent speaker and real estate investment consultant conversed in both Chinese and English simultaneously to cater to the mixed crowd.

"The Year of the Tiger promises great success for the property circle in Malaysia, whereby an investor can still make great returns provided the right tools are being used. These tools would include Capital, Interest, Networking and Action," he added

He emphasized on the potential of the Malaysian Property Market by doing comparisons with the neighboring countries. "Malaysia is still seen as one of the least likely places for huge investments due to several key factors. Hence our property values are still way below its potential. If we are able to solve these issues there is no doubt that Malaysia can be the new haven for local and foreign investments," he added.

Celebrations were at full swing as the cake cutting ceremony was held along with the lucky draw prizes. Overall it was a fantastic night filled with social networking & learning; and made possible by Gavin Tee and Amcity Capital Sdn Bhd.

Gavin's Presence in Penang

30^th January 2010: The Penang property market was

to be a strong force in the very near future. Thus, it

was no surprise that investors were already speculating about its market potential. Gavin Tee, the Real Estate Investment Consultant was once again traveling up north where he was invited as a speaker to participate in Juanita Chin’s ‘The Property Investment Club - 2010 Seminar Series’

Participants gathered intently as Gavin presented his speech titled 2010 – The New Property Cycle with Opportunities Begins

“The new year would definitely bring certain opportunities if you look out for them. Penang is definitely a market which I will study further as it has the potential to be a World Class Tourism Spot. By looking at its characteristics and recent property trends supported with the right developments, I believe that Penang can be a hot tourist destination,” he said.

Gavin went on with sharing his predictions and the property types that will be in demand for 2010.

“If an investor does his homework and analysis, he or she would be able to point out the High-end condos, landed and commercial properties that will give returns in the long run.”

“You must be ready to invest for the long term, as quick returns would be limited and with an estimated holding time of one year. I foresee that the property market would only adjust itself again and rise up to its natural state within 3 years,” he added.

It was a bright and sunny day in Penang, where participants were most satisfied with the sharing opportunities provided by Gavin Tee and Juanita Chin.

BACK TO BUSINESS FOR GAVIN

BACK TO BUSINESS FOR GAVIN

AT SECURITIES COMMISSION

"A New Property Cycle Begins in 2010"

Last Saturday (24^th January 2010) was an exciting one, as over 500 participants attended the one day “Where to Put Your Money in 2010” event at the Securities Commission Malaysia, Bukit Kiara. With a distinguished list of speakers from the real estate, market trading and banking industries, it was a memorable outing for any investors as wave after wave of knowledge and key facts were pointed out.

One of them was Gavin Tee Swee Heng, a Real Estate Investment Consultant and Speaker. His key notes on “2010 – The property trend and its opportunities” proved enlightening and filled with vital facts as the participants listened intently.

“The Secondary Market is a strong market force in the next few years to come. Many investors will slowly but surely turn towards these categories as they see their potential in the upcoming years,” he said. “Tourism- related properties and Green Building Concept will also start to get popular and investors shall look into it from this year,” he added.

Despite the concerns of racial issues and discrimination, the unstable and ever-changing political stance, and the huge influx of overseas migration and overseas market investments slowing down the economic growth, Gavin still thinks that these are not enough to halt our rise in the property sector. “All the above might lead to a slowdown in the property market growth and result in “Malaysia’s property value becoming the lowest in the region. However, I look at it as a good opportunity as there is bound to be changes very soon. The globalization process will definitely take place and the nation has no choice but to be more liberalized.”

Gavin also shared his experience in his property study trips to Dubai, Shanghai, Australia and analyzed the over supply problems and speculations.

The seminar was held in Mandarin and organized by Hua Zhong (The Federation of Chinese Associations Malaysia), Sin Chew Daily and Great Vision.

TAPPING THE INVESTORS’ NETWORKING CIRCLE

TAPPING THE INVESTORS’ NETWORKING CIRCLE

Gavin shares the Networking Importance for 2010 Property Outlook

There has been much speculation as to what the year 2010 would bring to the property industry. After going through a speed bump year due to the worldwide economic downturn, many were concerned as to whether the recovery of this market would be swift or slow moving.

As the New Year progresses, going back to basics seem to be the only sure way of investment success. Networking platforms are as important as ever, where gatherings for real estate investors, developers, investment consultants and bankers are crucial in building contacts and business relationships.

Gavin Tee, a prominent real estate investment consultant and speaker believes it is a good year to start your investment again, provided you have an ideal platform for the long run. “Networking platforms are so important nowadays, as social events with the right participants bring in new faces that can widen your knowledge on the current property cycle and trends. This will assist with your decision making and ultimately determine how successful your investments will potentially be this year ,” he said.

Gavin will be sharing more of his views on the outlook of the property market during this “CNY Property Investors Networking Dinner” from 7.30pm – 11pm on the 3^rd of February 2010 at Berjaya Hall, Bukit Kiara Equestrian Park. For those who are interested to join him for a Networking Dinner and Talk, please call 016 2020 001 or 03-7983 0103 for reservations.

A CNY Property Investors Networking Dinner

Gong Xi Fa Cai

A Chinese New Year Dinner organized for Real Estate Investors. You are invited to join the "property investors networking night". Let's meet the property industry experts and share their success.





A talk will be presented by Gavin in English and mandarin titled " 2010 Real Estate Market Forecast and Investment Opportunities"

Remember, Feb 3rd, 2010, 7:30pm at Bukit Kiara Equestrian Club, See you !!!!!

Call 016-2020 001 for Ticket details

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2010 – A Beginning of another Real Estate Cycle

Gavin thinks it is a year to start Investing

2010, a year whereby the world’s financial market is recovering, and believed to be a new beginning of the property investment in Malaysia. If we look into the real estate investment cycle, this year (2010) can be considered as a new start. Gavin Tee, a Real Estate Investment consultant and speaker believes it is a good year to start your real estate investment again. However, he advises that, as the way of recovering is so much different from the last Asia financial crisis (1998), investors are recommended to adjust their investment strategies accordingly.

The 2010 budget has been an upset to the property market. However, Gavin believes the government would come out with some incentives and new policies to boost the market in the month of April to July. He strongly believes that real estate transaction will be really active in second and third quarter.

Last week, Prime Minister Dato Seri Najib announced to amend the proposed RPGT to apply only for those who resell the property within their first 5 years of purchase. This is the sign that shows the government’s concerns and understands the importance of real estate towards the economic recovery to the country. This is a good start for 2010.

Gavin Tee is a registered real estate agent and also the Principle Investment Consultant of Amcity Capital Sdn Bhd. He specializes in conducting real estate investment courses and marketing research. He has been conducting or invited as a guest speaker for more than 30 real estate seminars and courses in 2009.

He said, “The real estate market will start very slowly in the first quarter as the result of the announcements of RPGT, the increase of interest rates and less favorable bank loan packages. Besides, the festive seasons will also attribute to the slow market in the first quarter.” However, Gavin thinks that investors should get prepared to invest in property after Chinese New Year.

Nevertheless, Gavin thinks investors should draw out their long term plans rather than expect a short term gain as the property market could just grow slowly in the next 2 to 3 years. It will be difficult to get FAST return investments.

Gavin believes that there is good news in 2010 for the real estate market but there wouldn’t be many surprises. The world economy is just in the beginning of the recovery stage and the key investors of the respective countries ( ie, US, Europe, Japan) shall be focused on the opportunities in their own homeland. There may only be an influx of foreign investments within the second to third year’s time. In addition, Malaysia has never been the first choice for foreign investments; therefore, the direct impact on economic recovery to our real estate market is relatively insignificant. However, the real EFFECT shall take place particularly in the High-End residential and commercial markets in the end of 2011 or 2012. We expect the cross-border investment to significantly push up the Malaysian real estate market and the country shall be on its way to become the investment haven to the world.

Basically, Malaysia is still the lowest for investments in the region and with a huge potential. The slow real estate market is mainly attributed by the earlier world economy conditions, the government policies and oversupply problems. However, investors with longer term planning would be able to get the huge profit out of it.

Gavin forecasts that the market in 2010 will turn to the secondary market. The new launching projects have hit another high price lately and most developers will no longer offer incentives. These are one of the reasons for switch of investment trend. In addition, the big number deliveries of new completion projects also attract the secondary market transaction. The strong competition in this area will create more opportunities.

High End condos in KLCC and Mont Kiara have a great number of completed units delivered within 2006-2009 and flooded the market supply. The owners are expecting a hard time in renting out their properties and therefore affecting the market price. This is a good opportunity for investors to catch up on the OVERSUPPLIED units as long as the investors have a ready plan for the next 3 years.. Gavin believes the oversupply will be absorbed by the market within 3 years time. As the supply and demand balance up, the market price should be able to go back to the level of RM1000 to RM3000psf (a 50% to 100% increase in price)

Gavin thinks it is very strange that there is currently an oversupply of residential units in the city centre and on the other hand, an oversupply of commercial units in the suburban areas (which is normally otherwise). This is the first time in the Malaysian real estate market history. And this is the reason why Gavin thinks the adjustment of prices will take place and generate a huge investment opportunity.

Shop lots and Offices in the city centre district will continue to be strong in 2010. However, there will be a huge oversupply problem in the suburban areas as well as new housing projects. The high launching prices and oversupply problem will be the main issues faced by the owner on rental. These include Puchong, Kota Damnasara areas, Subang and Bkt Tinggi, etc. However, there are still some good commercial properties in the same areas continuously enjoying good returns. Good commercial property will normally not be affected by oversupply problems anyway.

On the other hand, The Resort Properties and Green Buildings will begin to be the investment choices for investors. You will find that there is a growing interest on these properties. The world and our government will be the main forces creating the awareness on the importance of such properties. Although it may grow slowly but there is big potential in profit gains within 5 years. Thereafter it will grow rapidly. However, there are not too many choices in 2010 as there are limited buildings and projects with the above characteristics are available in the market.

With regards to the experiences from the last crisis which offered a period of 4 years to acquire goods and low property pricing, Gavin thinks 2010 is different:

1. The interest rate is so much lower compared to 1998 to 2003; we can almost say the highest to the lowest

2. The oversupply (which are mainly medium cost houses) happened in the outskirt and suburban areas in the last crisis while it currently occurs to the prime properties in the city and prime areas

3. The market will be able to absorb the oversupply much faster than the last crisis

4. There are not many auctions and bad debts (NPL) in this crisis

5. Today’s market in Malaysia is more “Globalised” and the property cycle is shorter

For the reasons stated above, WAITING is not a good strategy to apply like last time. Gavin believes we may only have ONE good year to invest.

If we are able to manage such trends and draw out a comprehensive long term plan, next year will definitely be a good year to go into the market, and 3 years later would be the harvest year where it shall be a good time to sell.

from Christmas eve to Boxing day

My Christmas Day in Gold Coast, Australia


I spent a very special christmas eve on the air. I was travelling form KL to Australia and reach Gold Coast in the early morning in the Christmas Day.


My Christmas day was a special one. i spent a day at the beach at Surfers paradise... it was really different.


Day after, i enjoy my BOXing day. I had a big shopping day in Harbour Town, Gold Coast , ha ha ha, Shop until the models all DROP ( they dont sell their last piece loooh

Millions of Malaysians Migrated Overseas

Millions of Malaysians Migrated Overseas,WHY?

On December 4th, Wong Sai Wan gave the “Reasons to leave, Why not” article in the STAR to explain why the number of Malaysians leaving to settle down in other countries is growing. This is really alarming and something the Malaysian government must study for the sake of our country’s future.

There were more than a million Malaysians who chose to leave the country for many reasons, and I believe most of them left because of “Discrimination” in educational, economic policy and treatment pointing to racial problems. Recently, there were some who migrated due to a better prospect in their career opportunities. However, this is not really an excuse to migrate as most of them can find the same opportunity in Malaysia or Asian countries years after they gained experience abroad. But they chose to apply for citizenship instead of a “temporary stay”, that is PR status.

According to former diplomat Dennis Ignatius who wrote in his column in The Star last month, there were more than 300,000 in Britain, 200,000 in the US, 95,000 in Australia and 50,000 in Canada. Of course, there are many more staying in Singapore, Taiwan and Indonesia that may not be in the statistics. Recently, it has been a migration trend to Australia. Malaysians seeking to migrate to Australia increased tremendously and it came as big surprise that that includes a big number of Malays.

I have travelled around the world and I can find Malaysians in almost all of the countries. I remember meeting some Malaysians in Venice, Mexico and even in Quebec, northern Canada who spoke very fluently in French.

Deputy Foreign Minister A. Kohilan Pillay told the Dewan Rakyat 2 weeks ago that a total of 304,358 Malaysians left the country in one and a half years between March 2008 and August 2009. I understand from friends that these are no longer just non-Bumis but also including some Bumis immigrants.

Many students who study abroad chose not to come back when they have an opportunity to; due to a comparison of the FREEDOM and DISCRIMINATION issues with our home country.
When I was studying in Canada and USA in the 80s, I found most of our Malaysian boys and girls have a view to our country at almost HOPELESS. Most of them try to convince me to stay back in the States. I remember I had an American girl friend who asked me to stay and be an ’American’, and my answer to her was , “Follow me back to Malaysia to stay or we can only be friends.” I kissed her goodbye because I loved Malaysia and she loved her country.

What is the reason of “moving out”? It is in fact understood but most of the Politicians chose not to face it or rather to ignore it. I have done much studies and I can 100% assure you that the main attributes are Racial problems, Discriminative policy and Safety and Security. Of course, there are a small number who left because of family or career opportunities.

I was once actively involved in supporting the Government’s brain gain programme to attract ex-Malaysians or those living overseas to come home 7 years ago. I was undertaking such programs in the American Universities Alumni but I was so disappointed and I name this brain gain program as a “NICE SHOW” but no action taken. There were more people going out to work instead of coming back in the same period.

In 2003, I organized a big dinner attracting 700 overseas graduates and was supported by 8 overseas universities Alumni ( including USA, UK, Japan, Taiwan, Canada, Singapore, etc.). We set up a theme ;” United, We Return, We Serve, We Succeed “. We called all Malaysian Students to COME BACK but it seems that it did not bring much attention to the government although it was published and broadcasted by all major newspapers and TV stations.

I agreed with Mr Wong that the authorities must examine the reasons why 1% of the population left in just 18 months and will this figure continue to increase. Are there any particular policies that are driving these good people away? Thus it should be the first priority of the 1 Malaysia plan.

Based on my estimation, more than 20% of Chinese and Indian Malaysians migrated, and do not include the future generations who are born overseas. It could be 30% if you take all into consideration.

If you ask me if I ever regretted coming back to serve the country, I can only reply. “I do have a lot of disappointments with our country and the policy, but I still love Malaysia.” However, for a SAFE and PEACEFUL life, I may choose to migrate when I am older and I am no longer able to contribute much to the country.

Two Hours to get your Passport? Bull Shit!

Experience in Hell aka immigration office

Heard that the immigration office is much more efficient today. You can get your passport renewed within 2 hours. After 5 years, I really thought I could get it in within the stated duration.

However, it took me 4 days to get my new passport that almost delayed my overseas trip.

On the First day, I arrived at Subang immigration office at 1pm. My friend told me I wouldn’t be able to get my passport in the same day. As Damansara Height is nearer to where I live, I therefore rushed to the Damansara office to avoid a long distance travel to Subang again.

However, after a long wait in Damansara office, I only realized the counter issuing the NOMBOR is TUTUP.

On the Second day, I rushed to Subang at 11:30am, I was lucky to be able to queue up at the numbering counter. However, the officer told me the number for that day has been all given out. He asked me to come back the next morning.

I was unhappy and complained that I have run over two places for two days and yet I was still unable to get a number. It was quite a distance to travel. What happens if I fail to get my number again tomorrow? I thought they promised 2 hours to get my passport renewed?

He didn’t really look at me and asked me to come back at 7am the next day to ensure I can secure a number. I argued that the government office is open from 8 to 4:30pm, hence why should I come in the early morning to queue? Won’t it be a better idea for you to open at 7am or 24 hours; Instead of getting people waiting outside the door?

He turned to me and realized I had a wrong form, and proceeded to pass me the RIGHT form. I questioned him on how it can be wrong as I followed the procedure from the web site and printed the form provided by the government. He acted with a “Don’t Care” attitude and told me the system has some problems to accept the internet form.

I asked if we can use the KIOSK to deposit our application. However, he replied that the Subang immigration office doesn’t have such facilities. It is only available in Damansara Height office. Thus, I quickly drove to Damansara.

When I reached Damansara office, the officer said NOMBOR SUDAH HABIS again. With regards to the kiosk, he said all the 4 machines are not functioning today. I had no choice but once again to GO HOME!

On the 3rd Day, I reached Damansara a bit earlier. It was about 10am after my busy morning work, but it took me half an hour to locate a car park. And eventually I chose to park the car illegally.

I took along my colleague for help. I asked her to line up to get a number while I went to check the machine. Fortunately, the kiosks are functioning that day. I asked my colleague to come down to help.

When it came to my turn, I realized my MyKard ( IC) has problems reading. The chip obviously has some problems. The officer got me out from the line and asked me to get a replacement of IC. Of course, it will be a temporary one, so, I couldn’t use the kiosk. I had to go back upstairs once again to line up.

I quickly asked my colleague to queue up again while I went next door to apply a new MyKard. I was fortunate that it only took me half an hour to get my temporary IC. And I finally got a number, but it was after another 250 applicants. I therefore went back to my office for a meeting as I knew it takes hours to wait.

However, I was kind of worried that the number may pass. So I got my clients to meet nearby for discussions. After 4 hours of waiting, I was finally able to submit my application. And god knows it only took 2 minutes to accept my application. Why should I wait for 4 hours while they only took 2 minutes to stamp and Acknowledge? Do they just mean to make the office look crowded ?

After my submission, I still have to queue up behind 60 applicants to make the payment. I was nervous because I did not know if I could make the payment at the same day. Even when the officer promised to get everything done for me, I was still worried as I realized only ONE cash counter was open while there were 8 counters to accept applications. And I was told one other Payment Counter has some technical problems to serve.

I finally made the payment at 5pm and got to go home. I was told to get my passport the next day after a long 7 hours of waiting

Fortunately, I got my passport renewed on the forth day.

So what is the government talking about when they announce that we can get our passports renewed in two hours? According to the officer, the two hours story only starts when you get to submit your application. That means, no matter how many days or hours you wait, it doesn’t matter and it is not counted.

And of course, it should not be considered during the peak season, ie school holiday. That simply means the 2 hours story is only applicable to the normal QUIET hours.

I really don’t understand why they can’t allow us to submit our application and get the passport the day after instead of waiting 6 to 7 hours. I really pity the senior citizens and those with a big family (kids were all looking tired there)

And eventually I realized that they did not want to give the number out because they want to fulfill their 2 hours commitment and to make sure the 2 hour policy works. And of course, to ensure the applicants get their passport in the same day.

That was the reason why we suffered. And I must say, visiting the immigration office has no difference when compared to going to hell….