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lly
28-07-2010, 03:19 PM
I read about making passive income from properties, good debts etc ie when the repayment on loan is less than rental income. Hence mulling the idea... For a start, I am looking for books to read up or seminars to attend. Anyone has any property investment books to give away or sell? Thanks

Sentinel
28-07-2010, 04:40 PM
Look out for some international exhibitions of properties like those from Melbourne (studio apartments there give really good yields plus appreciation in values) and they do give talks and seminars on the side. Its free attendance anyway plus got makan and minum lagi... its always published in the papers.

CS Chua
28-07-2010, 05:27 PM
Studio units are the fashion now and bring in high ROI. It is a worthy investment even in KL. But like always, it is all about location, location, location.

ivanhow
28-07-2010, 10:15 PM
I read about making passive income from properties, good debts etc ie when the repayment on loan is less than rental income. Hence mulling the idea... For a start, I am looking for books to read up or seminars to attend. Anyone has any property investment books to give away or sell? Thanks
Are you looking for local property or foreign property? Anything you already have in mind? There are lots of such books in the market, basically it's talking about the concept, which you already know. The easy part is getting the numbers right, and the location right, but the difficult part is getting the economic factor right. It's all about supply and demand. Is there a lack of supply to meet demand present and in the next 5 years? Where is the demand coming from? These you cannot get it from the books. You got to smell it! :D

zinglicious
29-07-2010, 01:07 AM
Buy wherever the foreigners are buying, you would make a sound investment. Buy where the foreigners renting, the outcome would be a bad bet. ;)
It is just amazing that home properties are snapped out before they are launched like those in Sri Hartamas back then and the newest hottest spot - Desa Park City. Now those all in above 1M bracket. :eek:

Sentinel
29-07-2010, 01:20 AM
Studio units are the fashion now and bring in high ROI. It is a worthy investment even in KL. But like always, it is all about location, location, location.Melbourne is a university town, with Melbourne U, Monash and what have you and any locations of studio apartments near these campuses are all snapped up el pronto. Good rental yields as well. Rumors have it Chinese mainlanders are the ones grabbing these studios as a AUD$350k investment which can give them good returns is also allowing them to qualify for PR.... :eek:

Oh BTW lly, rental incomes from your apartments remitted back would be free of income tax. :D

lly
29-07-2010, 11:48 AM
So far have not had the guts to venture into foreign properties. ;) Saw some land for sale in New Zealand at Hartamas Shopping Centre but too risky. Nice view but future developements may be too slow and far. So far the only overseas property I know of is when sis bought a studio aprt in Melbourne but its not for investment - for children studying there. In the meantime will look out for any seminars on such properties.

Property investment is risky business and a bad deal can potentially cancel all gains. Even locally, it is not easy to have the foresight. Ex, Desa Park City - Just 3 years ago, it was very highly priced and not too many buyers. Today the prices have sky-rocketed and yet suddenly people q up to snap up the houses. Their recent launch 2 storey link house goes for min 1.7mil and all snapped up before 1pm. The sales people are very LCLY cos they don't have to persuade people to buy.

Lau_utlang
29-07-2010, 12:33 PM
Melbourne is a university town, with Melbourne U, Monash and what have you and any locations of studio apartments near these campuses are all snapped up el pronto. Good rental yields as well. Rumors have it Chinese mainlanders are the ones grabbing these studios as a AUD$350k investment which can give them good returns is also allowing them to qualify for PR.... :eek:

Oh BTW lly, rental incomes from your apartments remitted back would be free of income tax. :D

Sentinel, you seem well versed in Melbourne property. Prices have been going up and up. I will have to come down right. Still can buy Melbourne property at this price meh?

rakyat
29-07-2010, 01:36 PM
Melbourne CBD is considered one of the frothiest property bubble at the moment. The price is driven skyhigh not due to demand but chinese (mainland & s'porean) coverting the easy entry for PR.

The aussies are not buying.

Sentinel
29-07-2010, 06:00 PM
Sentinel, you seem well versed in Melbourne property. Prices have been going up and up. I will have to come down right. Still can buy Melbourne property at this price meh?If you read the research papers, Melbourne still very short of apartments... thats why they are limiting the developers offerings to foreign investors, to give more opps to the locals. As Rakyat rightly pointed out and which I mentioned a few posts earlier, its automatic qualification as a PR especially for the mainland Chinese....

coogee
29-07-2010, 10:09 PM
Melbourne CBD is considered one of the frothiest property bubble at the moment. The price is driven skyhigh not due to demand but chinese (mainland & s'porean) coverting the easy entry for PR.

The aussies are not buying.

Hi. Just thought I share some latest news on Australian properties prices :http://smh.domain.com.au/real-estate-news/home-prices-seen-stagnating-survey-20100729-10x47.html

While the buying demand from mainland chinese is genuine (at least until the new Temporary Entry Visa holders ruling was announced), I would say these buyers tend to be active in certain predominantly "Asian suburbs" in cities like Melbourne and Sydney. I can tell you for a fact the aussies still forms the bulk of the purchases.

In regard to buying a aussie property to secure PR, I am not 100% since it's been quite sometime I last check the immi website on this but I do not think it lend any added advantage for the PR application. Read this extact from Australian Property Monitors :http://www.apm.com.au/osbuyers/legals.htm

The gov recently changed the rule on Temporary Entry Visa holders (including students staying >12 months) on property ownership which is covered in the APM link.

geordie
30-07-2010, 12:14 AM
Have fleetingly considered securing a pigeonhole in Oz recently but didn't take it further. Also, a Brit friend of ours in KUL who owns a student-flat in Melbourne moans that after deducting taxes and expenditure, nett returns is only about 2%. That raises the question of what is the tax structure like for a non-Aus on rental income. Would be interesting to find out ....

zinglicious
30-07-2010, 03:37 AM
So far have not had the guts to venture into foreign properties. ;) Saw some land for sale in New Zealand at Hartamas Shopping Centre but too risky. Nice view but future developements may be too slow and far. So far the only overseas property I know of is when sis bought a studio aprt in Melbourne but its not for investment - for children studying there. In the meantime will look out for any seminars on such properties.

Property investment is risky business and a bad deal can potentially cancel all gains. Even locally, it is not easy to have the foresight. Ex, Desa Park City - Just 3 years ago, it was very highly priced and not too many buyers. Today the prices have sky-rocketed and yet suddenly people q up to snap up the houses. Their recent launch 2 storey link house goes for min 1.7mil and all snapped up before 1pm. The sales people are very LCLY cos they don't have to persuade people to buy.

Land in New Zealand also been snapped up by Mainland Chinese particularly in the city townships just like USA to Australia. In fact, Brooklyn priced was boosted by the Chinese. But just extra precaution when they have a open sales booth about the wonderland. otherwise, it is akin of buying landed properties like in Ipoh where the properties prices rarely make a good investmnet. The only thing they jump off the page in Ipoh are the coffee, Kari Mee, Hor Fun, and some froggies.

The Desa Park City is one strategic locality with great concept which has have appealed to the foreigners in particular. Yes, they dont have to presuade people to buy and in fact would persuade peole to sell. They have more buyers than sellers. Too bad you couldnt get it on the launch date, otherwise, you could easily make 100k the next day. :confused: :eek: :confused:

coogee
30-07-2010, 01:10 PM
Today's edition of The Australian newspaper on foreign property buyers for the next 12 months is projected to be around 8.5% out of 520,000 properties that is likely to be traded across the country. So I guess it depends on how one look at it, 8.5% maybe high to some.

http://www.theaustralian.com.au/business/property/property-rules-failing-to-keep-foreign-buyers-at-bay/story-e6frg9gx-1225898693766

As for some mainland chinese buying big, yes we know of one who buys one property a month in Sydney, well at least until early part of this year. Must be laughing all the way to the bank with all the gains the past year.

About the tax on rental income & capital gains, I understand foreign property owners will have to pay tax based on non tax resident rate. Check out www.ato.gov.au

Rhiga
30-07-2010, 01:52 PM
They have more buyers than sellers. Too bad you couldnt get it on the launch date, otherwise, you could easily make 100k the next day. :confused: :eek: :confused:

This is the part I hate most.

These properties are not that great and far from valued buy. (freaking terrible location, not really upmarket neighborhood, average house design and building materials, etc).

Due to hype and so-called “market forces”, people are willing to queue nights before the launch day, hoping to get one and sell the next day to make quick bucks.

I know, nothing wrong with this phenomenon but just hate this type of buying mentality.

That’s why I never have an inch of sympathy for those who burn their hands and legs in speculative buying and I always make a cynical smile each time I read news about people suffer loses due to greed-driven investment.

patrick
30-07-2010, 06:37 PM
From past experience, such buying frenzy tends to be the prelude to a crash. Almost similar to the stock market when the fishmonger and hawkers start to buy like crazy.

geordie
30-07-2010, 07:02 PM
Concur with Patrick's sentiments ...

Remember - "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful" .....

patrick
02-08-2010, 10:55 AM
Concur with Patrick's sentiments ...

Remember - "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful" .....

Strangely, the very next day after both our comments, there was an article in the Star hinting of a possible retail credit bubble. And there was mention of an increase in housing loans whilst there was a drop in business loans! So there we have it ! Think I'll wait for the bubble to bust! ;-)

ivanhow
02-08-2010, 12:15 PM
Strangely, the very next day after both our comments, there was an article in the Star hinting of a possible retail credit bubble. And there was mention of an increase in housing loans whilst there was a drop in business loans! So there we have it ! Think I'll wait for the bubble to bust! ;-)
Hi Patrick, there have been conflicting reports about property bubble. The housing demand is rising but on the low and middle category, while developers had not been building. However, developers had been building and cashing in on the high property category...

coogee
03-08-2010, 09:07 PM
Am getting mightily concerned ever since 2 of my bros told me about the high capital gains on Malaysian properties the past months early this year. Just last night one told me he is keen to buy into the forthcoming last block launch of G Residence (Gembira Residen) saying those that bought the first launch at RM450k now selling it for 550k. Me thinks the condo / apt prices are going berserk esp the new launches. Perhaps people are dying to make some fast $$$ since with business slowing and stockmarket like casino, properties the way to go.

Did asked a real estate friend who specialises in USJ/Subang properties and she confirmed property market which was very strong end last year has been relatively quiet since the interest rate increase.

zinglicious
04-08-2010, 01:32 AM
The best deal right now is to own a condo in USA where it is cheaper than a Toyota. http://finance.yahoo.com/news/Condos-that-cost-less-than-cnnm-1234989345.html?x=0

ivanhow
09-08-2010, 10:41 AM
I read about making passive income from properties, good debts etc ie when the repayment on loan is less than rental income. Hence mulling the idea... For a start, I am looking for books to read up or seminars to attend. Anyone has any property investment books to give away or sell? Thanks

Hello lly :) , if you are still mulling over the idea of investing in property maybe this is a good lead for you. Follow the footsteps of our Malaysian National Funds (PNB) to invest in property in Australia (http://www.usj.com.my/bulletin/upload/showthread.php?p=440162#post440162). Every year PNB funds provide good returns on it's unit holders. Could not be very wrong to follow PNB in it's investing.

CS Chua
09-08-2010, 12:40 PM
At the end of the day, it is very much a personal choice as many factors are involved. Does the buyer have excess cash? Is he/she taking a high loan? Is it a good location?

Personally I will not commit myself to another property until the European mess clears up. That make take 2 more years. However, if a property that fulfills the 3 location factors, and gives me a ROI of 8% and above, I will likely reconsider. The logic is simple. For this type of property, the price retreats about 10-15% in a down market compare to a possible 50% depreciation for properties in a bad location. Moreover, rental may not be affected much. So, if you have the spare cash and found a property as described, go for it.

patrick
09-08-2010, 07:21 PM
Did you all read Saturday's property segment in the Star under "Welcome to a speculator’s market" ?

But the most important statement to me was the single line at the end of the article that read " The writer remembers the US subprime crisis and how it pulled down the global financial system. There needs to be some prudence in our property market too. Need I say more?

zinglicious
10-08-2010, 02:28 AM
Despite warnings from the dot com era, peole still didnt give a damn. Heck, even the warning about get rich scheme or pyramid, there are still a line of suckers or perhaps greedy fools. So the subprime rates fiascos matters? :confused:
But on the hand, there are still those who listen to the well intended advice given by Patrick and there are those who would ignore even the life and death advice given by Tupai - who said 'How hard is you head without the safety helmet?" ;)