theSun Property June 2015

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ON FRIDAY JUNE 5, 2015
WE constantly hear about
thosemaking it big
investing in real estate
and land. Property
prices never drop some claim. Yet
there are cases of abandoned
projects ... partially completed
developments left deserted and
dilapidatedwith their purchasers
having towait, some for years,
othersmore than a decade, with
their life savings tied up in “bad
investments”.
Thismoots us to examine the
characteristics of what some call
“landwith potential” or as property
guruTanHwa Chuan refers to as
“good landDNA”.
SEEK
Beforewe discusswhat makes for
landwith goodDNAand uncover
the hot spots in themarket, let us
ruminate the factors that cause a
certain parcel of real estate to soar
or dip/drop in value. Factors to
consider include components
already in or around the location, as
well as those on the drawing board
or in the pipeline. As a safety
precaution, one should not discount
the previous “components that were
sure things”. As an example, the
Proton plant mega-deal whichwas
approved, signed and sealed but
(somewhere along the lines)
abolished. Many speculated
property prices in nearby
Lembah Beringin to soar once
the project took off. Instead,
manywho bought into this
development did not get to see
the light of day on their
investment.
Fromamacro view, we first
need to seek out the regions and
areas that are thriving. Those
with positivemigration numbers
and a healthy population growth.
Generally, thesewould point to
the big/bigger cities or those that
have been specifically selected for
development i.e. government’s
national development framework
andmega-corporations’ plans.
With theMalaysian population at
the 30millionmark, we need to
determine:
1) where themajority are settled in;
2) we need to be clued-in to the
country’s infrastructure
development plans (newmajor
highways, transportation links/
hubs, etc.);
3) wemust study the areas the big
boy developers are exploiting
(new townships, communities,
neighbourhoods, etc.);
4) we have to be updated on the
government’s transformation
plans, vision andmission (The
11thMalaysia Plan); and
5) we ought to be aware of the
projects, plans and directions of
mega corporations (plantations,
manufacturing, oil &gas) – new
set-ups, expansion plans, etc.
In short, we need to have our
antennas up and on the alert as to
what is happening all around us,
including neighbouring countries.
SEARCH
Having inquired and done some
basic homework, we should nowbe
aware of theDNAor characteristics
(some at least), that wouldmake a
good property investment. Here are
some essential features and
characteristics that wouldmost
likelymake for a good investment.
Big cities/matured townships
–These areas usually come fully
equipped andwell facilitated
with readily available catchment
of potential buyers looking for
second properties to stay or to
invest in. Purchasing new
property and selling themoff is
easier within these locations
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where there are schools, banks,
hospitals, shops, parks, etc.
Accessibility – Easy entry and
exit, convenient connectivity…
linking such areas to other big
cities andmatured townships.
Strategically located areas
provide smooth access into
other catchment areas. Many
benefits as these are populated
centres that comewithmany
advantages and property here
hardly drops or dips.
Prominent developers –There
are projects handled by the big
boys and others, fly-by-night
unknown operators. Rest
assured, themore significant
property developer’s projects
usually comewith a higher price
tag and fetch a better bargain
when investors sell too. By
investing in property froma
more renowned developer, the
chances of being facedwith an
abandoned project is less likely.
Universities/colleges/
international schools – Places
of higher education and those
that offer international schools
for expats already give investors
a one-up as rentals usually thrive
in such areas. Take Subang,
Sunway, TamanMelati – high in
student population, and Bangsar,
theDuta andMont’ Kiara areas
which cater to the expatriate
communitywhere
accommodation is in demand.
Traffic jams and bustling
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Email your feedback and
queries to: propertyqs@
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>Characteristics associatedwith good buys
Property hotspots: consideringDNA PART1
areas –Districts like Bukit
Bintang, Ampang, Cheras, USJ,
AraDamansara, Petaling Jaya, etc
– these congested areaswith mad
traffic draws the crowd. Places
such as these are like the
heartbeat of a city, with shops,
entertainment and F&B outlets
andmany thriving businesses,
where there is a constant hive of
activities.
Transportation systems –At a
recent property investment
seminar, a speaker suggested that
buyers simply consider the
nation’s LRT, Monorail andmajor
highway plans before deciding on
a property to invest in. It also
doesn’t take rocket science to
realise that property located near
such amenitieswill be some of the
first to be taken/rented/bought.
Once you have considered all the
above, take time to investigate and
do research to learn of the future
plans of a particular area you intend
to purchase your property in.
Followour property feature
during the next fewweeks, exploring
“hot spots” according to some of the
nation’s renowned industry
professionals.
[*Note: Some of the information is
taken fromTanHwaChuan’s book
“MakeBIGMoney viaLand”.]
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