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Category: property

What Are The Factors That Will Affect The Property Values In Malaysia?

First of all, the location itself is the main factor that will affect the property values in Malaysia. If a property is close to school, shopping mall, bank, transportation facility, hospital, restaurant, church, temple, airport or any other places that can provide convenience to the people staying at that area, that particular property will definitely has a high property value that will attract more people than any property.

When it comes to real estate, the principle of supply and demand refers to the ability of people to pay for real estate coupled with the relative scarcity of real estate. The property values will be driven up by the condition of high demand coupled with a certain purchasing power and a short supply due to the scarcity of land. In contrast, the property values will experience a drop when people demand less of it while more supply enters the market.

Let’s take for example Penang, being the second smallest state in Malaysia just after Perlis in terms of geographical coverage yet is the eighth most populous with 1.56 million of residents according to the population and housing census, Malaysia 2010 which is conducted for every ten years. Penang which has an average of 1, 490 persons per square kilometer is the second most densely populated states after Kuala Lumpur. This high level of population density puts competing pressure on land use which results in the rise of property prices as developers will put more expensive price tags on their projects due to the high-land costs. Besides, the lure as a tourist destination and a second home for foreign retirees is also one of the factors that results in a greater demand of Penang property. As a result, the short supply due to scarcity of land and the high demand from both foreign and local buyers is the main reason why Penang properties price are high as compared to say, Kelantan.

Apart from supply and demand, the Feng Shui and Vasthu Sastra which is known as the “science of construction” also have to do with property values in Malaysia. Regardless of you believe or not, many recent studies have shown that the property price will still be affected by Feng Shui. A property placed near a body of water can fetch you a handsome price compared to a property which is not. A property faced with a road junction or built at a dead-end road can have a lower price as compared to another property in the same area which is not. Many people trust Feng Shui because they consider that keeping things related to Feng Shui will bring steady growth, prosperity, good luck, good health, happiness and positive energy to the house, office or to the being. In this way, people will consider carefully the position and placements of the property which in turn makes a well placed or well designed property more attention-getting and favorable.

Next, inflation also has an impact on property values in Malaysia. At its most basic …

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Investment Properties – Loan-to-Value (LTV) Vs Debt-Credit-Ratio (DCR) And What Has Changed?

We are seeing signs that the commercial real estate market has bottomed out as users and investors cautiously begin buying value added commercial/industrial properties. However, lenders are taking a very conservative approach in underwriting these deals in today’s volatile real estate market.

Loan-to-Value (LTV) continues to play an important role in determining the loan amount and down payment required for the purchase. The appraiser plays a key role in assessing the value of the property and ultimately the loan amount. Traditionally, users/companies can expect to buy a property with as little at 10% down or a 90% LTV and investors can expect to put down 25 – 30% or a 70 – 85% LTV. This has not changed and is still the case today.

Users/Companies continue to gravitate towards SBA financing (Small Business Administration loans) which allows them to obtain a conventional loan at an 80% LTV with the SBA loaning 10% in a second position and the borrower having to put down only 10%. Obviously the company’s financials are heavily scrutinized and anyone owning more than 20% of the company must personally guarantee the loan. This has been and is still the case today.

Investors are having a much more difficult time obtaining loans to purchase income producing properties. Lenders do factor in the Loan to Value (LTV’s) on these loans as well as the investor’s financial wherewithal, but the biggest concern is with the property’s ability (income) to afford the loan payments. Debt Coverage Ratios (DCR’s) are now at the forefront in determining how much the lender will loan on the property.

In the past DCR’s were used to determine the loan amount for income producing properties but lenders were less stringent in allowing investors/borrowers to make an argument for future income (actual rents vs. market rents) in determining NOI (Net Operating Income). This, coupled with rising property value, had both appraisers and lenders being overly aggressive in projecting a property’s market value in which to base the LTV and that is what ultimately resulted in a lot of nonperforming loans you see today.

Case Study:

Earlier this year we recently represented an investment group buying an industrial building leased to a food processing company in the Vernon, California market. This is a single tenant building with a ten year NNN lease. The annual NOI (net operating income) was $141,000 with fixed rental increases every 12 months. The property was showing an 8% return based on a $1.74 million purchase price. The investment group had budgeted 25% down or 85% LTV.

The Lender analyzed the property in the following manner to determine the loan amount:

Gross Rents of $141,000
Less Vacancy of 10% or ($14,100)
Less Reserves of 3% or ($4,230)
Less Management of 3% of ($4,230)
Property Taxes to be paid by tenant
Property Insurance to be paid by tenant
Total Expenses ($22,560)
NOI was now calculated to be $118,440
A Debt Coverage Ratio (DCR) of 1.2 was applied to the NOI
Calculated Debt Service NOI / …

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How to Obtain Title For Abandoned Real Estate Through Adverse Possession in the State of California

What is Adverse Possession? How can I obtain title to real estate?

In a nutshell adverse possession is a process where a person or an investor can obtain the ownership or title of real property from another person because the owner has abandoned the property. This is done by simply taking possession of that property in the manner prescribed by state law.

In doing so, you can, literally acquire ownership or title of the real property for just paying the back delinquent real estate taxes and the cost to file a quiet title lawsuit establishing that you obtained title to the property through adverse possession. In other words, you can take title of valuable property for a incredible discount.

The Law of Adverse Possession

The laws governing adverse possession is local state (or, in Canada, territorial law); consequently an Abandoned property investor must look into the specific laws of a specific state or Canadian territory where the real property is located. Since the laws are different dramatically from jurisdiction to jurisdiction and can often be confusing, anyone wishing to take title to real property through adverse possession should contact a knowledgeable attorney before attempting to do so.

In order for you to begin understanding the requirements of Adverse Possession let’s look at a specific example. Below is a closer look at th California Adverse Possession law. We will use this law to identify and explain some of the more common terms used in Adverse Possession.

California Adverse Possession Law

Briefly, California state law states that Real Estate investors wanting to obtain title to another person’s real property through adverse possession MUST satisfy all the following Requirements:

1.That the Abandoned property investor’s possession was held under either (1) a claim of right or (2) under color of title:

2.That the Abandoned property investor’s possession was actual, open and notorious;

3.That the Abandoned property investor’s possession was hostile, adverse an exclusive;

4.That the Abandoned property investor’s possession was continuous and uninterrupted for a period of five years;

5.That the Abandoned property investor paid th real property taxes during that five-year period.

Possession must be held under either (1) a claim of right or (2) under color of title.

The California statutes governing adverse possession and as well as the statutes of most other states make a distinction between claiming adverse possession based upon a “claim of title founded upon a written instrument or judgment or decree” (often referred to as a claim under color title) and claiming adverse possession based upon “a claim of title exclusive of any other right, but not founded upon a written instrument, judgement, or decree” (often referred to as a claim as either a claim of right, see California Code of civil procedures Section 322 and 323. As to such claim under claim o right, see Code of Civil Procedures Section 324 and 325.

Basically a claim of adverse possession based upon color color of title is one where the claimant(Abandoned Property Investor) took in good faith …

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How To Be An Expired Listings Guru (Note: This Is 100% Legal)

The biggest mistake you can make in real estate sales is overlooking the ripest fruit.

Where is the ripest fruit in real estate sales?

Here is the list of the easiest targets for your quality, professional real estate brokerage services:

In order of COLD TO HOT prospects:

9. People hiding under random targets (cold calling, door knocking)

8. People you know (your “sphere”) (just slightly better than random)

7. People who have listed property with a competing real estate broker

6. People who promise someone they will list their property

5. People who promise you they will list their property soon

4. People who have listed, and are currently dissatisfied with their broker

3. People who, today, will drop their current broker and might look for a new one

2. People who promised to give you the listing

And the NUMBER ONE HOT PROSPECT is sort of almost a client already:

1. People who signed a listing agreement with you that is post-dated for the day their current listing agreement expires

I am sure this list could be fortified in many ways. In some of my writings on my website I let you know about some more prospects and how to get them. But for right now I want to let you in on a little-known secret.

This secret is information that most real estate salespeople would pay a lot of money to get, and I will give it to you free here.

The way to get this information is to log into the MLS system of your choice (Rappatoni, MLX, e.g.) and search the database for listings which expire within two weeks. NOT EXPIRING TODAY. That is too late.

Then, contact those sellers with a very plainly stated letter which says in BOLD CAPS: this is not a solicitation to list your property during the present time, but in the future, when NO OTHER LISTING MIGHT EXIST on your property.

Include a statement a listing agreement. Why? Because your sellers may be interested in selling their property still, if their current broker does not hold up.

Make sure you POSTDATE the listing agreement and put it in the envelope.

OK, the big question is….

…Is this ethical? Absolutely. Here is why.

From the REALTOR® Code of Ethics : Standard of Practice 16-4: REALTORS® shall not solicit a listing which is currently listed exclusively with another broker. However, if the listing broker, when asked by the REALTOR®, refuses to disclose the expiration date and nature of such listing; i.e., an exclusive right to sell, an exclusive agency, open listing, or other form of contractual agreement between the listing broker and the client, the REALTOR® may contact the owner to secure such information and may discuss the terms upon which the REALTOR® might take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing…. – Emphasis mine

This practice is known as the Postdated Listing. It is a real contract, but its …

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Cheap Home Appraisals – 2 Ways You Can Get a Free Home Appraisal

If you are looking for a cheap home appraisal, or free home appraisal, then read this article. I will show you two ways to get your home’s value for free. In today’s real estate market you need to know the true value of your home before you list it for sale. If you are buying a home you need to know how much that home is really worth in a declining market.

Real Estate Agents – Using a local real estate agent you should be able to get a close estimate of the value of your home or property. Real estate agents have at their fingertips many tools that will give a fairly accurate estimate of your home’s value. What will this cost? Usually it is free. So what’s the catch? Well, most realtors will do this for you in hopes of getting your business. Should you let just any real estate agent do this analysis? I say no. You want to select a real estate agent that is familiar with your subdivision or area. You also want an agent that understands how the features in your home will either increase the estimate or decrease the estimate. Once you receive an home value estimate, then you should use the next method to verify that the estimate is correct.

Home Appraisal Websites – I like using some of the free online home appraisal websites, like HomeGain. HomeGain will give you a fairly descent estimate within a few seconds. All, you have to do is supply your address and a few details about your home. Click the button, and within a second or two you will have a free home appraisal. There are other sites on the internet that do this type of appraisal but many are not free. I suggest that you get at least two estimates from an online source and then compare it with a real estate agents estimate. This should give you a fairly good idea of how much your home is worth.…

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Four Strategies to Buy Rentals With No Down Payment

This tends to be a pretty controversial subject, and for good reason. When I was getting started in the business, I was young and broke and had no credit to speak of. I was not qualified to borrow money, yet I figured out how to buy properties, and I bought a lot of them. It was not long before I became a full time real estate investor, and on paper, I was a millionaire long before my 30th birthday. I accomplished this with a lot of hard work, education and tolerance to take the risk.

With all this said, just because you don’t need money to buy houses, does not mean you should have no money. I am a big, big believer in this. You see, although I was a millionaire at a young age, I basically lost it all when the market shifted. I was too aggressive with my growth, and did not establish an appropriate amount of reserves. After starting over, I structured things differently and am in a good position to not only survive a down turn, but to thrive in it. In this article, I will briefly walk through 4 ways to buy rentals with nothing out of pocket, but want you to understand that this does not mean you should own rentals with no reserves.

Owner Finance: This could mean many things, but for the purposes of this article I am going to assume that the seller of the home is extremely motivated and is willing to basically sell the house just to get away from the mortgage payments. This is commonly referred to as a subject-to transaction because you, as the buyer, will take title subject-to any other liens that are in place. What this means is you get ownership of the house, but the seller is still on the hook for the loan. You as the buyer will agree to either pay off the loan or make payments on the loan on their behalf. If you don’t, the lender can foreclose and wipe you off of title.

The seller is taking a tremendous amount of risk with this type of transaction, so it is difficult to negotiate and they need to be extremely motivated. It works well for you because you don’t need down payments or to qualify for a loan. It works for them because they have someone else making the payments on their loan, which relieves them of the payment pressure, and potentially can improve their credit. As you become more experienced, this is a strategy you will want to look into. This allows you to purchase an unlimited number of cash flowing properties without ever needing to qualify or sign for a loan.

Lease Options: This is the strategy that really worked for me when I was just getting started. I like it a lot because it is easy to explain to the seller and it is not difficult to get them comfortable with it. They still need to be …

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Some Advantages and Disadvantages of Buying an Older Home

A lot of people think that buying a new home has a lot of great advantages over buying an older home. These days, as the difference in cost between new and old homes become narrower, the question becomes more pertinent. What kind of advantages and disadvantages do you look at when thinking about buying an older home?

Let’s say for example that you’re looking at Mooresville homes for sale and are trying to decide whether or not to buy this gorgeous albeit old Mooresville real estate property. To help you decide, here are a few positive points with buying an older house:

1. Old style constructions – One of the beautiful things about old homes is the amount of meticulous labor that went into it. You’ll find a lot of old homes that still stand and are still beautiful precisely because of the craftsmanship that went into it. Old-style appeal, when further enhanced by regular maintenance, can really give a house a certain charm that’s noticeable. Dated architecture in popular styles of the period also has a lot more character. There’s really something special about owning a classically beautiful house.

2. Living near long-term neighbors – Old houses oftentimes come with long-term neighbors who grew up in the community. It makes for a good, family-oriented and oftentimes safer environment.

3. Some measure of security in terms of changes in the neighborhood – If you buy a house in an old neighborhood, zoning changes aren’t likely to change much over the years. This means that if you’re living in a largely residential and old neighborhood, it’s unlikely that too many commercial establishments will get included in the mix. Mostly because they don’t fare too well in old neighborhoods.

4. Spacious yards – Most old-style homes have houses that are built on large yards. This is because land was cheaper years ago. Having this much room can mean a great deal for you. It could mean additional space for the kids and the pets to romp about, or an additional garage or house extension, a gazebo or maybe even an additional building for a separate office or library.

If there are positive points, there are also some drawbacks to buying an old house.

1. Ongoing maintenance. – As with any kind of house, old houses require maintenance. Since they’re old and a lot of the systems and materials used may not be readily available anymore, maintenance can be more expensive than usual.

2. Repairing systems may be more expensive. – If there’s something that needs to be replaced in the wirings, plumbings, and the likes, it may be more expensive because the system is different from newer ones.

3. Smaller closets. – Old-style houses tend to have smaller closet spaces to accommodate bigger rooms and garages.

4. Often more expensive than new homes – Older homes are often situated near schools, mass transportations, and other important establishments. As such, they can be more expensive than new homes.…

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Caret Bay St Thomas

There is a hidden jewel in St Thomas called Caret Bay. Caret Bay is located on the lush tropical rainforest section of St Thomas. It is only two bays over from Megans Bay and one bay away from beautiful Hull Bay. Most tourists are very unfamiliar with this area of St Thomas. They typically rush to see the things that most tourists do. They travel to Megahans Bay and downtown for shopping.

New homes are being built in East Caret Bay. These homes are going to be built on land that sells for 250,000 so cost to build a home will be in the millions. It is certainly a great area to be in. So far none of the lots are sold because the real estate market is somewhat down. But they will be a very good investment in a few years.

Caret Bay is home to many locals. Homes range from 200,000 to the multi millions. Most homes offer water front views and have been owned by the same families for many years. You will find the locals to be very friendly, courteous and helpful.

Wouldn’t it be great if tourists could see all of what St Thomas has to offer, including Caret Bay? You can rent some beautiful Caret Bay Villas on the North West section of the island. They include 14 luxury villa rentals and are waterfront property. There are 14 villa units varying in size. Some of the units are two bedrooms while others are four bedrooms. They all offer waterfront views and are very private.

What is great about the area of Caret Bay is the privacy and seclusion you get on the very busy Virgin Island. This is tough to come by on St Thomas as it is a very busy island. The population of the island is 50,000 but at any given day there could be two to seven cruise ships in. This increases the population of the island by up to one hundred percent. Most tourists do not even know that Caret Bay exists. Some of the local taxi cab drivers take many of the cruise ship tourists by cab up to the North side of the island because of its beauty. This is really nice because some people will get to see the beautiful side of Caret Bay.

Some other interesting things to do in Caret Bay are surfing. The waves come in from the north and can be quite large. Many locals will rush to the beaches when a North swell comes in. It is great fun just to watch them all riding in the waves. Some of them are really nice and will give you lessons while other surfers do not want you stealing their waves.

St Thomas is a small island of about forty two square miles. The roads are windy and very hilly. Driving to Caret Bay from the airport could take you minutes just to go a few miles. This is because the roads do not …

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Buying Parking Lots and Parking Garages: Finding the Most Profitable Locations

There are plenty of successful investors out there, but many work so hard that it’s hardly worth the money-because they’re never freed up to enjoy the fruits of their labor! It’s far more worth it to find an investment strategy that would allow you to make considerably more money and create more time to be able to reinvest, spend that money, travel, enjoy time with family, or have fun with that “Bucket List”.

Owning a parking lot or parking garage is a great investment because they can offer you two things: free time and exponential amounts of income. Finding these gems is the hard part because most existing “cash cow” lots are sold before they are even listed. And most are purchased by other parking lot owners-they know what they have, and they want more. If you can find these potential parking lots and garages before anyone else, you can find these extremely rewarding profits too.

Think ahead

Most parking lot locations were never designed to be just that. Parking lots are built out of necessity, plain and simple. Someone would never build a parking lot and then proceed to build something that draws people who need to park; never! It sounds simple, but you need to be ahead of the building curve and search for land before it holds great value. You can do this by recalling where you would need to park a car. Think for a second: Where do people really need to park? Let’s brainstorm: shopping malls, schools, sporting events, entertainment districts, government centers…the list goes on.

Now let’s look at these ideas: malls will provide parking for customers because they want shoppers (so scratch that); schools do the same, but there always seems to be no parking at some schools (possibility here). Every time I see a concert, I end up paying to park; keeper. Last time I got a traffic ticket, it took me 30 minutes to find a parking place at the courthouse to fight that traffic ticket. Ding, ding, ding-got a good one here. Where have you needed to park? Where have you paid to park? I used the same thought process and search techniques you just practiced to purchase a one acre plot of seemingly worthless land across from a new 380 million dollar courthouse that was yet to be built. The property owner had the land for 30+ years and did nothing with it, including not reading any local newspaper that clearly highlighted the new courthouse: funding was approved, a date for the ground breaking ceremony had been set, and the severe lack of parking was already projected in the overly-crowded area!

Harness the power of Google

Seems so simple, right? After all, who has not Googled something? Google, the most popular search engine in the world, is a robust mechanism for quickly finding what you need on the web. Unfortunately, a standard Google search of “parking lot for sale” will currently return around 14.6 million results that are all …

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Advantages of Using Rolled Steel Joist Beams in Commercial Construction

When it comes to commercial construction projects, rolled steel joist (RSJ) beams are known for their superior quality, versatile support, and strength. Since the late 20th century, steel beams of this kind have safely and effectively been used in both commercial and industrial construction, and it is easy to understand why.

In modern times, RSJ beams have increased in popularity within the residential construction realm and can be seen being used in the reinforcement of decks, patios, and floors. Contractors enjoy using steel beams because they are durable, versatile, lightweight, and sturdy. Fabricating steel is easier than what it sounds as the material can be bent and manipulated with ease.

Due to the construction industry becoming more aware of utilising environmentally safe practices and materials, steel is always a number one choice for projects as it is considered a “green” material and does not emit greenhouse gases. RSJ beams can also be recycled an unlimited amount of times, which results in less waste material filling up landfills.

In comparison with other building materials like wood and concrete, steel beams are a far more cost effective option and offer a massive amount of benefits for the contractor, fabricator, and building owner.

Strong

As research has revealed, steel has the highest strength-to-weight ratio of any building material in the construction industry. This means that steel is capable of bearing far more weight and stress without compromise than a beam that has the same mass but made from wood or concrete. Both residential and commercial builders opt to use RSJ beams versus other materials.

In fact, in areas where natural disasters are prevalent, buildings are often constructed with a steel framework because they are able to withstand Mother Nature at her worst when other materials cannot. What would you rather be living in during an earthquake or hurricane; a structure made from wood or one containing RSJ beams?

Flexible

You might not know it, but steel beams are insanely versatile. This material can be used and reused in a variety of ways and architectural designs. Due to steel being so flexible, beams can easily be bent, shaped, cut, and formed into many different lengths and dimensions. Because steel is so lightweight, framing a building is a much more basic process than using other materials.

In most cases, steel beams are of the highest quality material in the construction realm. However, a reputable company should be selected when choosing a contractor, as you want to be certain the beams have been put through a battery of tests to ensure their integrity.

Durable

Did you realize that in terms of durability, RSJ beams take the lead? Wood and concrete beam do not stand a chance when it comes to the tough composition of steel. Steel beams are fire retardant, cannot be damaged by termites, and require no chemical treatments. Additionally, when steel is galvanized, it will never succumb to rust.

Longevity

When it comes to withstanding the tests of time, steel is the answer. Many …

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