Diversify Property Investments to Reduce Risk, Says Expert

Posted on: 2015-04-08

KUALA LUMPUR: 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.


Founder and chief executive officer of Capital Management Group Max Shangkar said 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.


"For example if you buy land as a short-term strategy, it could take you a longer time to realise the profit.


"So 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," Max, who is also an international real estate investor, told Bernama yesterday.


He was speaking after launching his book titled '˜Investment Strategies For Global Real Estate-How To Make Big Money With Small Capital'.


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 said 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. - Bernama


Share:

Source From: TheBorneoPost

Other News & Articles


Pasaran Hartanah Meningkat Separuh Pertama 2021

Pasaran hartanah Malaysia mencatatkan sebanyak 139,754 transaksi bernilai RM62.01 bilion pada separuh pertama 2021, menunjukkan peningkatan jumlah sebanyak 21.0 peratus dan nilai 32.1 peratus...

Posted on: 2021-10-01

Permintaan Pembiayaan Perumahan Pulih Melepasi Paras Prapandemik -BNM

Permintaan pembiayaan perumahan pulih melepasi paras prapandemik, menurut Tinjauan Kestabilan Kewangan Separuh Pertama 2021 Bank Negara Malaysia (BNM)....

Posted on: 2021-10-01

Home Buying For Newlyweds

Newly married couples usually dream of purchasing a home together. In fact, buying a home may often be a first-time experience for both husband and wife and one of the most expensive purchases a new couple will ever make....

Posted on: 2021-09-02