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….

Muslim and Non-Muslim’s shall be separated in our resort?

I don’t understand why most Malaysians like to travel abroad instead of visiting our domestic tourism destinations. They fail to realize that our places of interest have their own beauty and could be much better than overseas. There are some reasons why people like to travel “far away from Home”.

I spent a night at Maxwell Hill in Taiping last week. We rented 2 resort bungalows but eventually we squeezed in 12 people in one house as we found the other home is really “ not tenantable ” or rather livable.

I was moving in the dark alone to take an adventure trip to visit the House in the middle of the night. It was a really frightening experience. But the most uncomfortable one was the picture pasted below :

The Cupboard was tagged with “ Muslim” and “Non-Muslim”,. The Muslim cupboard was locked to avoid the non-Muslim from use.

This happens simply because the understanding between all religions has a BIG problem in communication. It will be criticized as DISCRIMINATION if this happened overseas. But, in Malaysia, many choose to ignore or rather escape from the reality.

That also explains why millions of Malaysians migrate overseas and why Malaysians choose to travel overseas…

Gavin Tee's Great Finale for Year 2009

4^th-6^th December 2009 : “Be Rich & Happy - Dealing with Investment Problems”. This is a topic that teaches us to appreciate the many other aspects in life apart from wealth; it explains that being rich alone does not guarantee happiness.

That was one of the many lessons learnt during The SwhengTee 3 Days 2 Nights Real Estate Investment Course at Cinta Sayang Resort, Sungai Petani. Gavin Tee, the prominent Real Estate Speaker took 22 participants on a special trip to Kedah, where he focused on teaching his participants in a relax free environment and away from the city.

As Gavin’s last event for the year 2009, he devoted himself to deliver his presentation wisely and with confidence, giving a combination of topics like property trends, legal frameworks, landlording knowledge, etc. He chose a mix of participants with different backgrounds to enable a unique networking platform for his participants to learn from one another.

The topics for the 3 days Property Course include “Speedy & Steady Journey to Reach Retirement, Mastering the Market Trend to determine your Investment Target, Investment Opportunities of Green Building Index, Safeguarding Your Investment” and others gave a much needed insight and knowledge towards the participants. We also received a special guest appearance from Juanita Chin to present us with her Success Story.

Our hosts, Cinta Sayang Resort and EUPE Corp Sdn Bhd, the developer for Sky Residences provided us with various activities such as a welcome dance, night city tour, horse riding, archery, golf, Sky Residence Condo tour, and much more. These activities were in line with Gavin’s teachings; where an Investor is not rich without Happiness and that work and wealth alone does not guarantee a successful lifestyle.

Overall, it was a tremendous weekend; a memorable experience as Gavin and our hosts went all out to give us the best training experience possible for year 2009.

Gavin Wows the Crowd again at KLCC

Sunday, 15th Nov 09 : It was a busy and exciting Sunday as another SwhengTee Property Talk was held. Investors and landlords were up early to register at Kuala Lumpur Convention Centre for the "Landlording" Seminar by Gavin Tee. The full day course was conducted in both English & Mandarin. Landlords & Investors alike were all eagerly awaiting for this Hot Topic, so it comes as no surprise when the venue was packed.

Participants were treated to a powerful presentation by Gavin, on topics like Understanding the Rental Business, Problem Tenants, The Significance of Rental, Preparing the Perfect Tenancy Agreement and lots more. Throughout the day, Gavin impressed with his seminar based on slides, case studies and course handouts. At the end of each session, lucky participants walked away with prizes at the Lucky Draw Session.

Overall, the attendees were lucky to have been able to gain further knowledge at this course, making them better landlords & investors. Participants left with great satisfaction, waiting for the next SwhengTee Property Talk event :

SwhengTee Real Estate Investment Program
4th-6th Dec 2009 Sg Petani, Kedah
&
SwhengTee 6 Months Investment Course
April 2010 - September 2010

Tourism-Related & Green Building Properties on the Rise

After the recently concluded Budget Talk, there was special emphasis on tourism-related properties as well as the introduction of the Green Building Index. The government is on the right track in focusing their efforts on areas like the tourism sector. During a time where the slowdown of the manufacturing & export industry is visible, the Budget 2010 does show the determination to develop the economy through tourism, where majority of foreign industries is indeed in an infant stage.

According to Gavin Tee, a Real Estate Investment Consultant, the Green Building Index will lead the way in all future developments. "The emphasis will be on environmental friendly energy savings, recycling of resources, and cost reduction for maintenance. Thus, the government's proposal for a tax & stamp duty exemption is an indicator of their determination in moving towards this new direction."

In conjunction with Gavin's 30th Property Talk in 2009, he will be offering a Free property talk on the 8th November (Sunday) in Boulevard Hotel, Mid Valley. Individuals who are eager to gain the insights on the budget updates on GBI, RPGT, and the Potential tourism-related properties should not miss this opportunity.

The 1-hour talks will be scheduled at 11am and 4pm (2pm in Mandarin) along with an exhibition from 10am to 7pm. Those interested are welcome to join.

Green Buildings and Tourism-related Properties rising to demand

The next hot investment topic and new trend in real estate development will change course to Tourism-related properties and environmental friendly Green Buildings. Gavin Tee will be sharing the above at level 8, Boulevard Hotel, Mid Valley City on Sunday ( Nov 8 ) from 10am to 7pm.

The admission is free and 3 special talks ( 2 in English and 1 in Mandarin ) will be presented.I

In conjunction with Gavin's 30th property talk in 2009, Gavin is delighted to extend the free invitation.

You may also have a coffee with Gavin face to face to receive a free personal consultancy in property investment.

We hope to see you there.

Reinstating RPGT -- A Losing Game

Reintroducing Real Property Gains Tax
A Losing Game

In times of a fragile economy, the government should adopt a strategy on stimulating the activities of the real estate market, giving much needed incentives rather than imposing taxes.

Gavin Tee, a real estate investment consultant and speaker commented, “The market was just beginning to show signs of recovery and that is a positive note for market stabilization. However, we have yet to see the influx of foreign investments and gain the full confidence from property home buyers. Thus, it is not a good time to reintroduce Real Property Gains Tax.”

“The key issue should not be on the support to big developers, mega projects and multi corporations but on building the basics – the market condition. The basic economic theory to rescue the market should be applied, which is; to create a market and not to create a product. Thus, imposing RPGT is actually against the way.”

Gavin believes that the imposing of Real Property Gains Tax would affect a loss of income for the government in stamp duty collections. “The high deductions would greatly impact the number of Sales & Purchase transactions. It will further affect the business in the construction and professional services industry. In overall, there will be lesser stamp duty and taxes received by the government.”

“For example, a property with a value of RM 1mil will yield RM 24,000 as stamp duty payments. Assuming that it can be sold at RM1.2mil and make a RM200,000 profit, a sum of RM 10,000 will be collected as Real Property Gains Tax. With this introduction, the government may not only lose the RPGT revenue but potentially also the stamp duty fees due to the worsening of the market caused by RPGT.”

“Furthermore, Real Property Gains Tax would reduce Real Estate market price, further decreasing the stamp duty collection and ultimately affecting the government income.”

The introduction of RPGT would greatly affect 2 sectors, which is the high end real estate as well as the secondary property markets, particularly to older homes. “Whatever efforts in place now to strengthen the property market will go to waste,” he said.

“Real Property Gains Tax should only be applied when the property market overheats and absolutely not during a cool market period. This move will not only heavily impact the construction, renovation, raw materials and the professional services industry but also directly affecting the people’s and government’s income.”

In conclusion, Gavin hopes the government will reconsider its proposal for Real Property Gains Tax.

Confusion in RPGT Makes Investors Worry

Last Friday Prime Minister Dato Seri Najib proposed that a tax of 5% be imposed on gains from the disposal of real property effective from Jan 1st 2010 during the Budget 2010 proposal. However, Gavin Tee, a Property Investment Consultant and Speaker interpreted otherwise. “From the official web site of MOF, 5% as a fixed rate imposed on the gains is misunderstood.”

Also as the Managing Director of real estate agency Arborland & Co, Gavin pointed out that according to the finance bill, the government proposed to reintroduce the RPGT ACT 1976, in which the taxes shall be as high as 30% if the property is being disposed in the first two years.

The proposal is to add on 5% on the sixth year onwards which was exempted by the act before it was abolished. The new tax scheme applied to the individual will be the same applied to corporate ownership, which is higher than the original.

However, the Finance Ministry reassured the governmen proposed a fixed rate of 5% imposed on gain instead of reintroducing the RPGT Act 1976. He said it is expected to come up with an exemption order on the Real Property Gains Tax (RPGT) this week to clear the confusion surrounding the RPGT proposal.

The Real Property Gain Tax Act was gazetted in 1976, under the Act, in order to curb speculation; gains on disposal of property are subject to RPGT. The tax are scheduled as high as 30% on the 1st and 2nd years of disposal, 20% on the 3rd year, 15% on the 4th year and 5% on the fifth year. It shall be exempted if the property is disposed on the sixth year onwards. The Act was abolished in April 1st, 2007. ( But it was not really abolished but exempted)

Gavin commented, “The Real Estate Market is only in its initial stage of recovery, and the proposal will definitely create a big impact to the High-end property market, particularly to the areas of newly completed projects and those that are in oversupply. If the Act is reintroduced, I believe it will stop the foreign investment and worsen the real estate market.”

Gavin Seriously recommends the Government to reconsider the proposal.

It is unfair for the OLD HOUSE OWNERS to pay RPGT

Now Every owner has to pay tax

Now , you may need to pay for Real Property Gain Tax disregarding how long you have owned the property, unless you are able to dispose it before Jan 1st , 2010.

According to the proposal of Budget 2010, the government will impose 5% tax on gains on disposal of real property despite of the tenure of ownership. Real Estate Investment Consultant Gavin Tee feels it is very unfair to the genuine property owners who have owned a property for many years and who also never have any intention on speculation.

The reason of introducing Real Property Gain Tax Act 1976 was to curb speculation, especially on short term investment. Thus a 30% of tax was imposed on the disposal during the first and second year. 20% on the 3rd year, 15% on the forth year and 5% on the fifth year. Tax will be exempted on the sixth year onwards for the individual investors but remain 5% for the corporate owner. As a result, most of the property investors only dispose their properties after 5 years of ownership. This Act slowed down the investment activities to the property industry.

Besides, if the government impose a fixed 5% tax disregards on the tenure of ownership, a house owner who purchased a house 20 or 30 years ago in Klang Valley will have to pay a “hefty” Gain Tax next year onwards for the disposal.

Gavin quotes an example, a link house purchased 20 or 30 years ago may only cost RM50,000 , and if the owner disposing it now at RM750,000, he therefore will be liable for RM35,000 of Tax. Furthermore, a property owner may never expect this abolished act can be reintroduced with amendment that a gains tax across board without allowance of any holding period. Thus, they may not keep any receipt on renovation or home improvement for tax deduction purpose.

Thus, Gavin recommends the proposal shall only apply to the property acquire on Jan 1st , 2010 or later .

Furthermore, a bungalow in Kuala Lumpur may only valued at RM200,000 years back but now maybe sold at RM 4 million and above. The proprietor thus have to incur more than RM200,000 of property gains tax next year. Whereas under the old act 1976 , if an individual house owner disposes the property after 5 years, there is no tax charged. This proposal will definitely create a big impact on the secondary market, particularly to the properties acquired at an early days and very unfair to property owners who acquired for own stay.

How to deal with difficult tenants?

how to invest in rented property?

how to deal with difficult tenants?

how to evict a bad tenant?

join me at KLCC convention on " Swhengtee Landlorlding talk" on Nov 15, make a booking now

budget 2010

Property Market to Lead the Way under New Budget
BY GAVIN TEE

The public has been heavily speculating on the upcoming Budget Talks, as concerns were focused on whether the government would adopt an aggressive approach to sustain and save the Malaysian economy after the downturn. According to Gavin Tee, a Real Estate Investment Consultant & Managing Director of Arborland & Co (Real Estate Agency), the general public should not be expect too much and neither too many surprises in the government policy compared with recent years.

“I believe that a surprising and aggressive stance by the government would not come around this time. This is because the government has already injected mini budget allocations for the past year.”

“However, one positive view is that this would be our new Prime Minister Dato Seri Najib’s first involvement in the financial budget. I believe in his determination to reform the nation’s economic condition,” he added.

He explained that the new PM is very well versed in the trends of globalization and cross border investments.
“Dato Seri Najib is well aware that these transactions are crucial and must be his first priority. Hence, he will be eager to make policy changes to meet the world standards.”

According to Gavin, the government’s focus may be on several areas. “The key area should be on the construction sectors involved in infrastructure and real estate development. However, I hope to see such mega projects develop according to the main economic principles and ensure the effectiveness of the project. In the past, failures do occur because of favoritism.”

He also commented that the property sector could be a boost towards the economy. “If you look at geographic statistics, Asia’s economic growth is led by the property and real estate market, especially China and Singapore. I believe that the Malaysian Real Estate market can easily be the leader for recovery as our market has yet to be aggressively involved in the cross border and international property ring.” He also added that the Malaysian property price is still one of the lowest in the region, hence there is a great potential for the sector to grow.

When asked for suggestions in reviving the economy, Gavin said “We should look into the government assets, whereby there are ‘white elephants’ or abandoned projects and under utilized government buildings. The government could increase income by privatizing or leasing such properties by offering the incentive to the private sectors in the budget. These sectors would then have the initiative to contribute in offsetting the deficit.”

“The government should not impose higher taxes, but to increase their spending and create an active economy in order to generate more revenue. For example, there were remarks on resuming Real Property Gains Tax (RPGT). Gavin thinks the government should not reintroduce it as it will heavily slow down the property transactions and affect the stamp duty revenue. The loss of stamp duty could be higher than the collection of RPGT. Furthermore, imposing RPGT will have a negative impact to the real estate market. The decrease in property prices will seriously yet again lower down the collection of stamp duty.”

In addition, Gavin proposed to waive the stamp duty for properties valued at RM300,000 and below, particularly in the city centre as a medium-low cost property in the city costs around that amount.

“Lastly, we should promote the tourism sector or more specifically into the tourism related properties. Malaysia is rich with resources to promote and attract international players. The government must emphasize on promoting this sector by developing resorts, tourism and hospitality related properties. This will lead ultimately to less dependence on the exports and manufacturing industries, which are more competitive in the world market.”

“We hope the government would indeed stress a key emphasis and inject a much needed stimulus to these proposed areas.”

Why Americans are Jobless .... hahaha...

A nice article while you have a cup of Tea from Richard:

John Smith started the day early
having set his alarm clock (MADE IN JAPAN) for 6 a.m.
While his coffeepot (MADE IN CHINA) was perking,
he shaved with his electric razor (MADE IN PHILIPPINES).

He put on a dress shirt (MADE IN SRI LANKA),
designer jeans (MADE IN SINGAPORE)
and tennis shoes (MADE IN VIETNAM).

After cooking his breakfast in his new electric skillet (MADE IN INDIA),
then he sat down with his calculator (MADE IN MEXICO)
to see how much he could spend today.

After setting his watch (MADE IN TAIWAN)
to the radio (MADE IN INDIA),
he got in his car (MADE IN GERMANY)
filled it with GAS (from Saudi Arabia)
and continued his search for a good paying AMERICAN JOB.

At the end of yet another discouraging and fruitless day
checking his computer (MADE IN MALAYSIA),
John decided to relax for a while.

He put on his sandals (MADE IN BRAZIL)
poured himself a glass of wine (MADE IN FRANCE)
and turned on his TV (MADE IN KOREA),

and then wondered why he can't find a good paying job in AMERICA.
AND NOW HE'S HOPING HE CAN GET HELP FROM A PRESIDENT MADE IN KENYA.