‘Go for auc­tioned prop­erty, rent-to-own or land­bank­ing’

New Straits Times - - News -

Prop­erty in­vestors should opt for al­ter­na­tive in­vest­ment strate­gies dur­ing this prop­erty mar­ket slow­down to get bet­ter value and re­turns.

Prop­erty con­sul­tant War­rick Singh said this was be­cause con­ven­tional strate­gies, like buy­ing prop­er­ties in the sec­ondary or pri­mary mar­ket, would not of­fer in­vestors the best value.

He said the prop­erty mar­ket cy­cle in­flu­ences the dif­fer­ence in value and price. High value low price in­di­cates time to buy while low value, high price in­di­cates time to sell, he added.

“Dif­fer­ent prop­erty cy­cles re­quire dif­fer­ent strate­gies. When the econ­omy is on the rise, it is okay to go for con­ven­tional strate­gies be­cause the price would be higher than its real value in the fu­ture. So buy now, sell later when the price is higher.

“But with the cur­rent eco­nomic cli­mate, the price of a prop­erty is higher than its value due to high re­jec­tion rates among buy­ers. So, con­ven­tional strate­gies will not work. You could be forced to hold the prop­erty longer than you ex­pect.”

War­rick said al­ter­na­tive in­vest­ment strate­gies in­clude buy­ing a house at auction, rent­ing to own and land­bank­ing through group pur­chase.

“There are around 70,000 auc­tioned prop­er­ties in Malaysia.

“You can get as low as 70 per cent dis­count, even at hot spot ar­eas.

“The rent­ing-to-own strat­egy does not re­quire cap­i­tal to get in­volved. If you need to hedge against in­fla­tion, land­bank­ing would be a good strat­egy. Get a few part­ners to join in to de­crease the cost of cap­i­tal.”

PIC BY MOHD YUSNI ARIFFIN

Moder­a­tor El­iz­a­beth Siew (right) in­tro­duc­ing MyRumah panel speak­ers (from right) Ray Chung, Danic Pheh and War­rick Singh yes­ter­day.

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