Tag Archives: investor

When you should sell your property?

How do you decide when it’s time to sell your property? The average individual has an annual physical examination to check up on his physical condition. Your investment, like you, needs an annual check-up to ensure it is still functioning well and is healthy. There are four possible motivating factors, any of which will tell you it’s time to get out of you present real estate investment and into another.

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Do you still want to invest in real estate through a company?

Some investors have been asking us about the tax benefits they may enjoy if they invest real estate through a company. Common understanding is that a company enjoys more deductibles than an individual in terms of tax benefits. Most investors understand also in Malaysia if you have 4 or more rental properties, then your rental income can be considered as a business income. What most people don’t know is that there are terms and conditions that restrict you to enjoy tax advantages on this “business income”, particularly the definition of an investment holding company. If you are just started to invest in real estate or you just owned a few properties, you better calculate carefully before you incorporate a company to invest in real estate.

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Is the bear market returning?

Markets have been wobbly for at least the last week or so in any case. But the big blow to confidence yesterday was the Washington-based World Bank’s announcement that the economy was in an even worse state than it had thought as far back as three months ago. In March, the World Bank reckoned the global economy would shrink by 1.7% this year. Now, despite a three-month stock market rally, it reckons it’ll shrink by 2.9%!

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Bad experience with a mortgage broker

Last year, we came to know a mortgage broker who helps property buyers to apply for mortgage loans from several banks. When we first met, we didn’t pay much attention about his side business in insurance. After a few months, things started to show that we have made a mistake. Our bad experience with this mortgage broker does not affect our view about the insurance itself. It taught us a lesson about working with people with different expertise and interests. We do believe there are people who can master and do well in more than one job. But we never believe one can do well in jobs that have conflict of interests.

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Why do you need to pay so much interest to bank?

In real estate investment, or maybe all other kinds of investment, what we emphasise most is the maximum return – how can we get the highest return from the minimum amount of money invested? Stay focused on the maximum return that you can get from real estate investment instead of the interest that you pay to bank. Interest is only part of your costs of investment. Just take all the costs into account before you calculate your return, and then choose the right strategy to go for maximum return.

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