Friday, August 24, 2012

3 things to consider when buying property for renting

Are you planning to invest some money in a residential rental property? This is a very good time to invest in real estate because the industry seems to be in an upswing, recovering from really low prices. While the price of the property you purchase is indeed very important, there are many other things that you have to consider in order to ensure that the deal is profitable in the long term as well as short term.

Keep the following tips in mind when buying real estate for renting out:
- What is the amount rent you can expect? You need to be assured of a rate of return that is at least more than the rate of interest offered by banks. Certain types of properties will offer you better returns than others but they might also cost more. A related factor is whether the property will continue to give returns over a long time.

- What will your expenses be? As the owner of a residential property you will have fixed and variable expenses to deal with. While fixed expenses such as taxes and insurances have to be dealt with on an annual basis, you'll also have to deal with major repairs from time to time. Plumbing, electrical, tiling work etc. are your responsibility and not the tenants (as long as the problem has not been caused by the tenants). If your property is not well maintained that you will have a tough time attracting tenants or even getting the right kind of rent from them.

- Will you find it easy to get tenants? No matter how much money you pour into your real estate venture you will only be able to get the desired returns if you find the right kind of tenants easily. The location of the property is an important factor here since potential renters will assess the accessibility of the place as well as the nearby amenities such as schools, hospitals etc. People will also want to know if the place is a crime-free area.

You need to examine all relevant factors before investing your hard earned money in real estate. This is a really great way to make money as long as you eliminate all risk factors and work to highlight the strengths. One of the simplest things to do is take advice and assistance from an experienced realtor before buying a place to rent out.

Based on the article by Davies Grainger
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Wednesday, August 15, 2012

Excitement in the air as 2nd Penang Bridge hits 3/4 mark

GEORGE TOWN: Excitement is clearly growing with the state's second Penang Bridge having passed its three-quarter completion mark. Workers on the ground are beginning to have a sense of an ending now that the bridge is taking shape literally. Jambatan Kedua Sdn Bhd construction director Hamizol Ngah said progress on the island's second link had been tremendous over the last two and half years. “As at April 26, the bridge was 76.22% completed. It is great to be able to say that the bridge is (1.2%) ahead of schedule and in another 15 months, there will be traffic on it,” he said at the China Harbour Engineering Co Ltd (M) Sdn Bhd (CHEC) office in Batu Maung here recently.

Shape of things to come: The outline of the second Penang Bridge can be clearly seen from the main span. 

The bridge, scheduled for completion by Sept 8 next year after work began in 2008, is set to be the longest in South-East Asia. Hamizol said although working on the bridge had posed several personal challenges, the end result was worth it. “I cannot swim. I'm afraid of heights and get seasick, but at work, I put on my fierce face. When you have to deal with things, you will,” said the retired Public Works Department senior assistant director. He said he felt a great satisfaction from having worked on a project that would benefit the public on a daily basis, citing experiences of spotting schools of dolphins and being stuck on pier platforms during rough weather as the highlights. Teng Jit Poh, a CHEC construction manager, said the bridge's Package One was 93.8% completed, about 4.35% ahead of schedule.

“With the structures up, you can basically see the whole alignment of the second bridge from the first,” he said before giving The Star the first close-up look at the link's main navigation span. Teng, who is from Sungai Bakap, said that although working on the second bridge was challenging, it was also satisfying. “Compared to building a bridge on land, you are fighting both time and tide here. The time window is very tight and you only have two to four hours of low tide to complete everything you need to do,” he said. “It's great to be involved with one of Penang's mega projects more so as a Penangite.”

Source: The Star Online - Tuesday, May 8 2012

Friday, August 10, 2012

Lure of Penang see spike in property prices

GEORGE TOWN: The scarcity of land on Penang island and its lure as a tourist destination and a second home for foreign retirees have caused residential property prices to soar by more than 25% over the past five years. According to real estate valuers, the prices are among the highest in Malaysia, which is why the Consumers Association of Penang claimed that only the rich could live on the island a world heritage city. 

A survey by The Star revealed that condominium units in Batu Ferringhi, Tanjung Bungah and Gurney Drive which front the sea are being sold at astronomical prices, in some cases beginning with RM2mil for a 1,000 sq ft unit.

Crowded skyline: High-rise buildings dot Gurney Drive, which was once a sedate, low-density area where locals came to relax. — K.T. GOH / The Star
Even pre-war houses in the inner city for example, in Campbell Street have been snapped up mostly by non-Penangites, who have turned them into boutique hotels or simply kept them because of their architectural beauty. The prices of the houses have rocketed from about RM500,000 in 2007 to approximately RM800,000 today an increase of about 30%.

Raine & Horne Malaysia director Michael Geh said the increase was among the steepest in the Pulau Tikus, Gurney Drive, Tanjung Tokong, and Tanjung Bungah residential neighbourhoods, which experienced a rise of over 25% in prices of condominium units. Other areas where prices of condominium units and terrace and semi-detached houses have shot up by at least 25% are Bayan Baru, Sungai Ara, Minden Heights and Batu Maung.

Source: The Star Online - Thursday June 7, 2012

Thursday, August 2, 2012

Wellesley Residences goes to Queensbay Mall (2-5/08/12)

The open concept of the new exhibition booths sits very well at the central atrium of this popular mall.  The modern look is in line with the core concept of Wellesley Residences which is Chic Urban Living redefined.

Due to the strategic location, the booth attracted quite a crowd and curious to find out more about this luxury condominium that is a part of Harbour Place - Butterworth's first Metrocity.