Category Archives for "Real Estate"

Important Things to Know When You Rent a Home or Apartment in Canada

As part of your relocation efforts to move into Canada, you may need to rent a home or apartment upon arrival as a new permanent resident. Renting a home or apartment in Canada is similar to renting a space in many other areas of the world, but there may be some key differences for you to consider as well.

The monthly payment that you are responsible for when renting an apartment or a home in Canada may be among your single largest expense each month, so it is important that you understand as much as possible about this payment and other aspects associated with being a renter in Canada.

Comparison Shop to Find a Low Rental Rate

First, it is important to understand that rental rates can vary significantly from apartment to apartment even within a short distance of each other. When renting a home or an apartment, you may be concerned about quality of the space, amenities, size and other factors. However, when all things are taken into consideration, you also want to find the best deal on your rate. It can pay off considerably to shop around and to find the lowest rental rate on a quality space that meets your needs

Understand Which Expenses Are Included in the Rental Rate

In Canada, some landlords may include different expenses with your rental rate. For example, some rental payments may include utilities, parking and other similar expenses, and other rental payments may not. The requirements for this can vary by province, and some landlords may include optional expenses in the rental rate. Reviewing this information will help you to determine which rental option is most affordable overall as well as which options are affordable for your budget.


Learn Which Appliances Are Included With the Rental

When you are renting an apartment in Canada, you should be aware that landlords are required to provide you with at least a stove and a fridge. Additional appliances that may be included in the rent are optional, and you should learn which appliances the landlord will provide to you before you sign the lease. When renting a house in Canada, there are no requirements regarding appliances. Typically, the tenant provides all appliances, but this is not always the case. The landlord is generally required to provide the tenant with the tools and equipment needed to maintain the lawn, but the tenant will be required to keep up with this task according to the terms of the lease.

Get Renters’ Insurance

Renter’s insurance, which also may be referred to as contents insurance, is an option for most tenants in Canada, but some landlords may require you to purchase a minimum amount of coverage according to the terms of the lease. The landlords may have a property insurance policy that covers damages to the property itself, but this coverage may not provide for losses you incur for your personal items. Renters’ insurance covers your furnishings, clothing and other items that may be damaged in a flood, a fire or other significant event. You should inquire if your landlord requires it, but you should also consider getting it even if it is optional.

Whether you choose to rent a small house, an apartment or some other type of property, you may want to do what you can to keep your rental rate low and to set up a budget that is affordable for you. After you have learned more about renting in Canada, you can more easily find the right space for your needs and your budget.


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Green Features: Do They Sell a Home?

Your home’s solar panels and geothermal system probably seem like big selling points to you, but buyers may feel differently.

Whether they’re environmentalists or not, today’s home buyers appreciate hearing about a home’s geothermal system, solar panels, Energy Star-rated appliances or LEED certification.

Home builders and sellers of upgraded homes with “green” features want their prospective buyers to know about these features because they likely spent a good amount of money on them. But do the buyers always care? Will they pay extra — and does “green” actually sell a home? The answer is, it all depends.

The feature, fixture or finish?

Buyers pay for features they can touch, feel and show off to their friends and family — the spa-like bath, media room or a chef’s kitchen. They probably won’t pay extra when it comes to the home improvements they can’t see or appreciate, such as the roof, boiler or new plumbing.

Green features fall somewhere in between. A certain “cool factor” exists for solar panels or an energy-saving thermostat you control from your smartphone. And, for that reason, a buyer will pay extra. But will they pay extra for a home with the less-exciting features like reclaimed hardwood and unique air filtration systems, compared to a similar home lacking these? The answer, for the most part, is no.

Money in my pocket?

Environmentally friendly items, without a cool factor, won’t excite consumers about to spend a chunk of their life savings on a home. But if a green home feature means saving money, either near-term or down the road, buyers usually want to hear more.

In the case of a resale, it’s difficult for the seller to recover the costs, dollar-for-dollar, of solar panels or a high-tech thermostat. The expense of that upgrade is built into the value of the home, just like the remodeled kitchen or other features. But this represents the best scenario for buyers, who can receive the value of the green feature, and appreciate any coolness benefit at the same time.

New construction: Green features vs. no green features

In new construction, the buyer needs to make the ultimate cost-benefit analysis. Boniello Development, successful family builders in Somers, NY, built a selection of similarly sized homes. They marketed and sold many based on the floor plans and site plans, then custom-built each home according to each buyer’s tastes, wants, and desires.

They presented each buyer an option of having a full-house geothermal system for heating and cooling. The cost was around $50,000 extra, but buyers received an immediate $30,000 tax credit from the federal government. What’s more, the cost of the system was built into the cost of their mortgage, requiring zero out of pocket.

The buyers would realize the savings, by way of lower energy bills of a few hundred dollars per month, within five years. Half the buyers chose the system, and the other half didn’t want to pay for it.

Why are some buyers okay with paying more for green features, while others aren’t? It’s a personal and financial decision. Buyers who don’t plan to be in the home for more than a few years may feel they won’t have time to benefit from the cost, and their future buyer likely wouldn’t pay extra, particularly in a down market. Those in the home for the long haul, or with a commitment to the environment, will surely be the target buyers.

Smaller market, but a growing one

A growing subset of today’s market is concerned for the environment, wants to give back and is less concerned about the financials of green features. This group will pay extra, whether the features are cool or not. The cost savings, while a nice bonus, won’t drive their decision-making.

Green features are here to stay, and today’s consumers will see them when shopping for homes. Consider the impact on the environment alongside the cost savings, and weigh that with your particular real estate decision. While ultimately a personal consideration, like location, floor plan and bedroom count, green features are increasingly becoming a choice worth prioritizing.


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How Will ‘Baby Boomers’ Impact The Property Market?

Baby Boomers are an interesting bunch.

They refuse to be pigeonholed, as their lifestyles, financial situations and even their definitions of retirement vary significantly – both from each other and from the generations that preceded them.

The only one thing that remains certain is the fact that we’re in uncharted territory, as the ripple effect of Baby Boomers’ lifestyle choices in years to come will be felt throughout the whole economy.

There are around 2.3 million Aussies currently aged between 53 and 68 who are heading towards retirement.

At present, Baby Boomers make up a significant 43% of the working population.

This means that within a short period of time, a huge portion of our employed Australians will leave the workforce and importantly, stop paying taxes.

retire baby boomer leisure exercise sun bike beach elderly old couple

At the same time, they are likely to become an increased burden on our financial system as they live longer than any generation before them and require increased medical and financial assistance.

So our country’s money box will face a double whammy!

Now, traditionally, retirees downsized, opted for a quieter life and lived out their retirement simply and frugally.

But Baby Boomers are not quite traditional, are they?

And what does all of this mean for you as an investor and what sort of properties will appeal to this demographic?


Baby Boomers will set a new standard in what retirement looks like and how retired people live.

The challenge for property investors is to ensure that they ride high on the wave of change, instead of getting stuck in the undertow.

Currently, Baby Boomers sit at the head of the real estate table.

Add to that a nest egg of superannuation and Baby Boomers have unprecedented options when faced with retirement.They have ridden the property boom and live in large homes in great locations so, generally speaking, they are wealthy and cashed up.

Baby Boomers are also the first generation expected to live well into their 80s.

Many will have to work longer than they planned and those who do retire may choose to ease into it and remain working in some capacity, and many won’t be in a rush to downsize straight away.

But most will end up downsizing.

According to a study by RaboDirect, one third of baby boomers expect to retire with a mortgage, while conclusions from recent research by the ASFA Retirement Standard show that the majority of retirees are likely to drain their savings and superannuation within eight years.

Selling the family home and downsizing is still the most popular way Baby Boomers hope to pay off their mortgage and afford retirement.

Others will have to sell up their investment properties or their holiday homes.


The property market is set to heat up with increased turnover and investment opportunities thanks to Baby Boomers, so it is an exciting time – but is the market prepared for the direction these retirees want to turn?

Boomers are coming up with increasingly innovative downsizing solutions.9544936_l

Instead of traditional retirement villages and predictable sea changes, many are redeveloping their current property to accommodate generational living, or looking for smaller, single-story dwellings where they can maintain their independence and lifestyle.

Increasingly, they want to move closer to the city with its convenient transport and amenities, rather than fleeing north to the warm weather and relaxed lifestyle in coastal Queensland.

So, as an investor, what can you do to prepare for this upcoming revolution?


  • Location is key. Current retirement village options are not as appealing for Baby Boomers as they’ve been for previous generations.
    They are generally on the outskirts of town and require a compromise in lifestyle that Boomers simply don’t want to make.
    Creating inner city options for retirees will be a smart option in the next 10-15 years.
  • Low-rise is best. There has been a huge surge in high-rise development in recent years as we realise the growing appeal of inner-city living, but while elevator accessed apartments will still sell well, smaller unit blocks are a smarter option.
  • Bigger is not better. The ageing market wants smaller, single level properties that are close to the city, transport and amenities.
    A house with land in the suburbs is not necessarily an investment win any more – unless, of course, you are considering redeveloping.
  • Newer is nicer. Baby Boomers are not quite ready to settle.
    They want all the mod cons to go along with their new season so new or refurbished properties will likely be in greater demand than older, tired homes.
  • Reconfigure. The layout of new property development needs to be reconsidered if it is going to appeal to Boomers.
    While single level housing is preferred, stairs should not be ruled out altogether; for instance, split level designs can add appeal and interest without deterring older buyers.
    Having the main bedroom and living on the ground floor could also make all the difference.

While there are certainly changes ahead, they aren’t all bad and investors needn’t be cautious.

If you’re armed with insight into the Baby Boomer mentality and have awareness of their impact on the property market, investors will be uniquely positioned to meet a huge need in the market.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Housing Affordability: Baby Boomers Vs. Gen Y

Inter-generational arguments over affordability have again become salient in the media.

Characterizations of moaning millennials were made by economist Stephen Koukoulas, prompting a response from young writer Osman Faruqi that baby boomers should choke on my soy flat white.

Confusion around the severity of housing affordability arises because dwelling prices change daily, yet the institutional papers and ABS data we look to are retrospective.

The Submission to the Inquiry into Home Ownership by the Reserve Bank of Australia in June 2015 explored ownership rates as a possible proxy for understanding the severity of housing affordability, and whether expensive housing was keeping young people out of the market.

However, the home ownership rates referenced are only measured to 2012 – before the enormous housing boom of 2013 – and therefore the submission paper does not take into account the largest and longest housing boom we have seen in over 30 years.

The following graph shows the House Price Index for Australia’s eastern metropolitan markets over time.

The increase in the HPI from 2013 (particularly in Sydney and other east coast markets) marks an unprecedented rate of growth in dwelling values.

Graph 2: House Price Index


Housing Affordability Is An Undeniable Problem In Australia Today.

It is measured using the ‘median multiple’, which is a measure employed by the World Bank.

It is found by dividing median dwelling prices by gross annual median household income.

An indicator of 5.1 or more is considered to be highly unaffordable.

We only have median household income data at a capital city level, up to 2012.

To get a more accurate figure, I have indexed income by changes in average weekly earnings so I could work out the median multiples for each capital city. With the exception of Canberra, the median multiple is well above 5.1.

In Sydney it is currently about 13.

The Interest Rate Debate

One of Koukoulas’ main arguments was that low interest rates have made it easier for young people to take out money to afford a home. He argues that baby boomers struggled with interest rates of over 17% in the 1980s.

While I don’t deny Koukoulas’ latter statement, it is important to get a better understanding of what low interest rates actually do to affordability.

Economics literature shows Australian’s have a high elasticity of demand for houses.

This means that the more money people have access to, the more likely they are to buy houses.

Low interest rates make the cost of borrowing money cheaper and access to money easier.

When interest rates are low, the cost of housing is bid up higher because more people are competing for housing.

Graph 3 demonstrates the inverse relationship between interest rates and Australian median house values.

Graph 3: Interest Rates and Median House Values in Australia


Low Interest Rates Have Not Worked In The Favour Of First Home Buyers.

In fact, in 2014, for the first time in recorded history and while the cash rate was at historic lows, more money was lent to people who were buying investment housing compared to people who were buying something to live in (see Graph 4).

This unusual phenomenon eased shortly after APRA placed higher risk weights and investment lending restrictions on banks, however it does show that owner occupiers, some of which are first home buyers, do not necessarily benefit from low interest rates.

Graph 4: Loans to Investors vs. Owner Occupiers


Home owners also faced high unaffordability in the late 1980s when interest rates increased sharply and average home loans peaked at 17%.

The cost of loans became extremely high and some were forced to sell their home or take on multiple jobs in an attempt to pay off their rapidly growing debt.

On top of this, house prices fell, which left some people with mortgage debt even after they lost their home.

ABS data shows that the average loan size of owner occupiers in NSW over the 1980s was approximately $80,000, while the average interest rate increased to 17% in 1989.

Assuming a 30 year mortgage on $80,000 taken out in 1989, the total repayments work out to be around $263 per week, at a time when the average person across NSW was earning between $359 and $620 a week depending on their job status and sex .

The $263 home loan assumption represents between 73% and 42% of average weekly earnings at the time.

Today, standard home loan rates are at approximately 5.35%.

In February 2016, the average loan size taken out by owner occupiers in NSW was $416,000 .

With the same loan assumptions as above, weekly repayments work out at approximately $536 per week.

In November 2015, the average weekly earnings across NSW ranged between $951 and $1,712, depending on labour force status and sex, making repayments between 56% and 31% of average weekly earnings.

This analysis is fairly ‘back of the envelope’, but looking at these numbers suggests that few owner occupiers today, nor many owner occupiers in 1989, could enjoy stress free and affordable weekly mortgage repayments – which is considered to be no more that 30% of income.

Exorbitant home loan repayments persist 25 years on, but for different reasons.

A surge in interest rates overwhelmed young home owners in 1989, whereas today many young people are lucky to overcome the deposit hurdle due to enormous dwelling prices. loan value ratio percent property bank lend money

In the case of owner occupiers today, this is with the ‘benefit’ of low interest rates.

Ambiguity Still Exists In This Comparison, For Many Reasons.

For example, average weekly earnings is looking at individuals rather than households.

Young people in the 1980s were more likely to have formed double income households than young people today.

1989 was a different world to 2016, particularly in terms of the nature of the economy, technology, job vacancies and the terms of employment.

However, a lack of affordability is not so much a generational problem as it is a socio-economic problem.

Years of analysis could be done trying to understand ‘who had it tougher’, but this seems like a waste of energy.

Low income households and single parent families will face tougher challenges than members of Generation Y who are in high income brackets.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Winning Tips for Buyers and Sellers in Sellers’ Markets

For sellers, success is all about managing the offers, while buyers must strategize and be prepared to compete.

In a market with limited inventory and lots of willing and able buyers, we find a hot sellers’ market. Phrases such as “bidding wars” and “non-contingent offers” are music to sellers’ ears — and enough to scare a buyer into renting for another year. Here are some tips to make the most of a sale or purchase in a sellers’ market.

Sellers still need to make the effort

Just because it’s a sellers’ market doesn’t mean that the traditional real estate rules get thrown out the door. Sellers still must put their best foot forward in order to get top dollar and complete a timely sale. The well-priced homes that show in their best condition will sell instantly in a sellers’ market.

If you price your home higher than the comparable sales or you don’t put in the right effort to make the house show well, you may not get the most mon

Buyers will always flock to the well-priced homes that show well — period.

Dealing with multiple offers

If you have the luxury of multiple buyers making offers, choose the best buyer right out of the gate. How can you tell who that is? The best buyer is the one who is most experienced in the market, is working with a local agent, has their loan lined up, and makes the most aggressive offer, soon after you list. Often they are the first buyer in the door.

Also get a backup offer (or two) lined up and in writing when you accept the first offer. The last thing you want is to have to go back on the market. It signals that there could be something wrong with your home. And once you’ve lost that initial momentum, it’s hard to recoup it when you go back on the market.

Buyers need to plan and strategize to win in a sellers’ market

There is nothing more frustrating than being a buyer in a sellers’ market. A buyer who wants to purchase, has their financing lined up, and has done their research may be unable to do so. This is frustrating, and there is little they can do but wait for inventory and have their ducks in a row.

Don’t wait around

The early bird approach works in real estate. Once a good listing hits the market, the interested buyer should see it instantly. If it comes on the market on a Wednesday, don’t wait for the open house. A more aggressive buyer will see it Thursday morning and make an offer within hours. Come Sunday you will be disappointed.

Invest the time

Buying a home requires lots of time and energy. You need a good agent on your side and a serious investment in time to watch the market and see homes quickly.

If you like a home, move fast with an offer, and make it a strong one — not just in price, but also in terms. Knowing that you may face other buyers, find out what is important to the seller. Maybe they want a quick close, or they need time to find a home. Structure your offer to meet their needs.

Make a good first impression and a strong offer

The first buyer is nearly always the best buyer. By moving quickly, these buyers show sellers they mean business.

If you want to submit an offer, make your contingencies and timeframes swift, and take as much risk as possible off the table for the seller. If you need to inspect the property and have an appraisal, get those done within days of getting into contract, not weeks. If you are aggressive, have the home inspected prior to submitting the offer. Inspections pose the biggest risk or uncertainty in the eyes of the seller. If you inspect before you make the offer, you can make your offer not contingent on inspections.

Loans take longer today than they did 10 years ago. When obtaining financing, work closely with your mortgage professional well in advance. Submit a full file and understand what is needed. The more complete your file, the quicker the loan will close. If you need to ask the seller for a month for a financing contingency, you won’t be able to compete with someone who can do it in half the time, simply because they planned better.

Know before you go

Part of what makes a buyer successful in a sellers’ market is being aware from the outset what they are in for, and then planning accordingly. If you find yourself being beat out by other buyers or too late to the game, you simply may not be ready to buy. Think long and hard about your personal and financial situation, and take a step back if you aren’t prepared to compete.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Mistakes To Avoid When Upsizing Your Home

Do you want to save yourself from the pitfall of extra financial burden? Here are some valuable tips on upsizing your home to do just that.

Making an impulse decision on the property

Since you currently have a home and may be looking to sell it off in future, it’s best to make a right and well-thought out decision before moving out. Upsizing your property is usually done with the intention of living there for quite awhile and so you should think long-term. Will the characteristics of this house suit you and your family? For instance, you shouldn’t stay in an area just because your children are doing primary school there, as they will finish in a maximum term of 6 years.

Disregarding long-term factors

Recently got promoted or got a huge pay rise and so you want to upsize? Well, this can be a big matter since you’ll take on more debt as you pay for a bigger mortgage loan.

As soon as most people get financially comfortable, they start looking at ways they can upsize — like looking at getting a bigger house, a new car, or a big-budget renovation. But these are just ways you can get financially uncomfortable again, because you’re taking on more debt. This leaves you with few opportunities to save for your retirement.

Checking your eligibility

Before you go house hunting on your new dream house, you should check your eligibility with the housing loan eligibility calculator. Other than that, you should check your credit report to see if you might have other debts that you aren’t aware about and check if there’s anything incorrectly recorded.

Forgetting about financing

Various banks will approve your loan at different rates after assessing your financials. Your DSR is the main thing they look at, some banks let you borrow more and some less depending on their determined DSR threshold. It’s best to get a pre-approved mortgage loan.

Costs, costs, costs

Lawyer fees, stamp duty, renovation, agents commission fees, down payment, furniture and the list goes on. Before approaching banks to get a loan, you should consider whether you have enough cash/credit to cover all sorts of costs that will be incurred during the process.

Neglecting your current house

Surely, you’re very excited to move out to your new and bigger home. But what about your current house? You have to decide whether you want to sell or rent it out. Regardless of the choice that you make, it’s best to keep it tidy and preferably in a good state if you decide to sell or rent it out. The condition of your house will matter because it affects the sale value and rent income. Do not spend all your money on your new house and neglect the old one.


Sometimes, it’s easy to get carried away by the hype of getting a bigger/better house. Hopefully these tips can remind you of things that would matter to your decision on upsizing and save you from making costly mistakes that create financial regrets.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Buying VS Renting: Which Is More Affordable?

For many people, owning a house usually means securing a permanent home for their family or to generate rental income. On the other hand, renting is ideal for individuals with a lifestyle or job that requires them to be mobile – they would rather invest their finances elsewhere, instead of getting tied down to a 30-year mortgage. Although, you might be thinking, ‘isn’t paying all that rent = dead-money?’

In actual fact, there are pros and cons to both buying a home versus renting one. You can easily put yourself at risk of bankruptcy if you’re not ready to shoulder all the responsibilities that come with a mortgage.

Finding Out Which Is Best For You

Choosing to buy or rent is truly a matter of your personal financial affordability andlifestyle preferences. You don’t have to rush to buy a home because your family and friends are telling you so.

Below is a breakdown of the key benefits and cost in buying and renting a home. This is a good guide to find out which option is better for your current situation based on your affordability and preferences:

Buy Rent





Security of Having a Permanent Home–       You and your family will always have a place to live in well beyond your retirement Monthly Rent is Cheaper–       This means you will have more disposable income to spend, save or invest in other areas
As An Investment Asset–       You can rent out your house as a second income source and leverage as collateral to take out other type of loans Short Term Contracts & Lower Risk–       Have the flexibility to terminate your stay should you decide to live elsewhere or if your financial situation changes unexpectedly
Freedom Over Property–       Renovate and redecorate your house in any way you like No Burden To Maintain Property–       Your landlord is responsible for handling all repairs and paying for them, not you









What It Will Cost

Upfront Down Payment–       Minimum down payments start from 10%, which can be a huge sum to save up

–       Few banks offer 100% financing for first time buyers, but remember that the more you borrow, the more interest you pay

Upfront Deposit–       The standard requirement includes 1-3 months’ rent as a security deposit, plus 1 month’s utilities deposit


Monthly Repayment & Interest Rates–       The average repayment period in Malaysia is around 30-35 years

–       Most housing loans in Malaysia work on ‘variable’ interest rates – when interest rates increase, so does your monthly repayments

–       Consider more affordable mortgages on properties in the lower end of your budget – you can save more and upgrade later to a better house

Personal Cost of Living–       Assess your monthly budget if you can afford the rental or if it’s beyond your means

–       Every ringgit and cent counts – utilities, astro, phone and internet bills, groceries, eating out, petrol, LRT fare, etc.


Additional Entry Costs–       Other costs payable upfront include Sales & Purchase Agreement (SPA) fees, legal fees, stamp duties and agent’s fee – plus GST, these can come up to several thousand ringgit

–       If the entry costs are too much to pay all at once, ask your bank if they have a “Zero Entry Cost” (ZEC) loan available – similar to a zero down payment loan, higher interest rates will apply in return for a ZEC

Maintenance Fees–       This would apply if you’re renting in a condo or apartment


Assessment Tax & Quit Rent–       Assessment Tax is due twice a year for all types of homeowners

–       Quit Rent


Minimum Tenancy Period–       Find out what is the minimum length of your tenancy agreement and what is the notice period for termination – if your tenancy length is one year, you are obliged to stay and pay rent throughout that period
Maintaining Property–       It’s all on you to pay and manage all repairs and required maintenance for your home  





Monthly Payment (Estimates Only)

Property Price: RM 500,000(i)Monthly Repayment

–       Margin of Finance: 90%

–       Total Loan: RM450,000

–       Tenure: 30 years

–       Interest Rate Per Annum: 4.5%

Monthly Repayment: RM 2,280

Property Value: RM 500,000(i)Monthly Rent

–       Rent: RM1,700 (average for city condo)

–       Monthly Maintenance Fee:RM170

Monthly Rent: RM 1,870

(ii)Upfront Cost–       10% Down Payment: RM50,000

–       SPA Legal Fees: RM3,950

–       SPA Stamp Duty: RM9,000

–       Loan Legal Fees: RM3,600

–       Loan Stamp Duty: RM2,250

Total Payment: RM 68,800

(ii)Upfront Cost–       Monthly Rent: RM1,700

–       Security Deposit (2 months rent): RM3,400

–       Utilities Deposit: RM200

Total Payment: RM 5,470



You are ready to buy a home if you: Renting is a better option of you:
Are financially able to commit to a long loan period. Do not have a stable source of income yet
Can afford the high down payment Have a very mobile lifestyle and have no plans to settle down in a single location
Have a stable source of income Do not want the burden of maintaining a property
Are comfortable to live in a single location Wish to save your money for other purposes

Take your time to compare which bank offers the best type of loan package that fits your situation. Consider refinancing your home later on to lower your monthly instalments, interest rates and extend your loan period. You can free up the extra cash and put it to good use.

It is important to always look at your personal finances in the bigger picture and weigh your decision to buy or rent against it. Be smart, consider all options to save and invest – even if you’re renting right now, owning a property still pays off in the long term. Look for a cheaper property in other locations with more affordable mortgages that you can leverage as an investment asset.

Don’t worry about what everyone else is doing – it’s your home, your money, your choice.


It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Real Estate Investment For Retirement

Investing in real estate provide plenty of benefits to you, and also can fund your retirement. Most of the baby boomers were work hard in order to save more money to enjoy the rest of their life. But, you may seen some of the baby boomers were smart enough to put their money in property investment in earlier time (in old time, the property or land isn’t expensive). Now, what you’ve had see? They’re rich like hell right?

So, invest in property can only make you become wealthy (if you did the great way) and nothing more. If you want to invest in real estate in order to able to enjoy your lifetime while your retired, here are 3 ways to invest in real estate to fund your retirement.

Real estate trading

1. Real estate trading

The traders will purchase properties from owners with the intent to hold them temporarily and then later sell them for a better profit. This practice is also referred to as Flipping Properties. Traders will normally purchase properties that are very high-priced or highly undervalued. Sometimes when a trader purchases a property with a low price they will try to increase the value by doing some renovations. By doing this it can actually result in the trader getting a huge profit when they sell.

Our thoughts ➣ Flipping properties consider as less risky investment strategy as the above said. But if you flip a property after owning it for less than 1 or 2 year, it doesn’t qualify for long-term capital gains treatment. Apart from that, this is a high cost investment too. If you are taking a mortgage loan, the bank then will impose early settlement penalty. Besides that, the legal fees and agency fees are the cost that you can’t underestimate too. And, not to forget the interest and stamp duty that you paid when buying a property. These costs are often can directly affect your profits, but, if you did it in the correct ways, you can still earn the massive profit from it.


2. REITs

This stands for the Real Estate Investment Fund and is one of the easiest ways of investing. The invested money is put into this fund. It is created when a corporation or trust uses the investor’s money to operate and buy properties. It functions like a stock exchange. The corporation or trust will have to pay out ninety percent of its taxable profits to the various investors in the form of dividends. This investment is the right choice for someone who wants to earn a regular income.

Our thoughts ➣ REIT is holds rental properties to generate incomes. The rental properties can be, office building, shopping malls, land and etc. But do note that there is still have significant problems with the valuation of real estate, you’ll need to consider that REITs will also take a serious hit if the property valuations fall. If you really interested in REITs, you’ll need to put some effort to keep on eye on whether real estate market is remain healthy. Do consult stockbrokers regarding the current real estate market before you doing it.

Giving on rent

3. Giving on rent

Buying a vacant habitable house can be rented for a period of time with the owner of the property paying for the mortgage, various taxes, and maintenance. The rent is normally decided on the basis of where it is located. The owner will get a fixed amount of money each month in rent. Some owners like to charge more for rent so they can get more of a profit. The best thing to do is charge enough rent to cover the mortgage payment. When the tenant moves out you should put the property on the market to sell to get additional profits.

Our thoughts ➣ This is the best choice to earn the passive income for your retirement. You may apply mortgage loan from bank, and do research where is the house that have high chances to rent out. For example, the house nearby a university or office building. (Click here to read Step by Step Guide for Renting Out A House)


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What is freehold property

As the developer owns the land, property built on it facilitates the transfer of land to the buyer provided it is a landed residential property such as a bungalow or a terraced house. This ownership will be in the form of Master Title.

As for a condominium or other high-rise residential properties, the buyer owns a stake in the condo by way of the unit but the developer still owns the land. In this case, the developer will distribute the ownership via Strata Title.

Unlike leasehold, only environmental and town planning controllers limit freehold developments. Under the Land Acquisition Act 1960, the state can take back freehold land if it is for public purposes, such as an MRT project, or economic development.

For example, the federal government acquired the land which the Ampang Park Shopping Centre was built on for the MRT project. If such an acquisition occurs, the owner will be paid the market value of the property.

Freehold land certainly does have its fair share of benefits. Owners face fewer and less stringent limitations should they want to transfer their land to someone else. They also have the right to subdivide and allocate the land, although it is still subject to town planning controls.

If there is no development taking place on a freehold land, the state cannot claim the land from the owner, meaning you are not required to stick to a specific timetable.

Generally, freehold properties go through stable growth provided all other aspects of the property are in good condition. There is also the possibility of redevelopment of old freehold properties where owners will be compensated.

But there’s one thing to note here: there are freehold properties that need the consent of the state when transferring ownership. An example of “restricted” freehold properties are the semi-detached houses in Kelana Jaya. The reason for this is these properties were converted from leasehold to freehold.

Source: PropSocial

Potential buyers are advised to look at the title of the property to find out if there are any restrictions on the land before deciding to make a purchase.

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What is leasehold property

The tenant has to care for the land as defined by the land legislation and may be responsible for developing some property and maintaining it. If the state deems the tenant unfit, the security of the tenure may be compromised. The state can forfeit the lease for non-performance.

1. It takes longer to sell

During the period of ownership, unlike most freehold titles, only the state or an equivalent can grant approval for a transfer of the lease. The sale for a leasehold property takes 3 + 1 months, which only starts after the state has given consent – this can take anywhere from six months to a year. This can make reselling your property a problem in the future.
If you are purchasing a second-hand leasehold property, the paperwork for transferring ownership can take about a year or longer in Selangor and Kuala Lumpur due to the number of consent requests. It is believed that leasehold property bought on the primary market, or from a developer, usually doesn’t consume that much time.

2. Value may be lower than freehold

When it comes to value, experts observe that properties with a 99-year lease go up at a similar rate with its freehold counterparts during the first 20 to 30 years. Some leasehold properties do gain more value than freehold ones during the early years. But beyond 30 years, the values of leasehold properties stagnate and depreciate until the expiry of the lease.

3. Financing may be more difficult to obtain

There’s also the problem of financing. Financial institutions tend to not lend to those wanting to acquire leasehold properties with less than 50 years remaining on the lease. Most banks veer towards lending for leasehold properties with at least 75 years left on the lease. Even if you do get approved for financing, your margin of financing (loan amount) will likely be lower than the maximum 90%. This means you will have to fork out more cash for your down payment.

4. Value is lower than freehold

Price-wise, leasehold property may or may not be cheaper than that of a freehold of similar specifications. Assuming that all other details are equal, such as the built-up area of the building and the land size, the price of a leasehold property is often around 20% lower than a freehold one.

Source: PropSocial

Finally, there’s renewing the lease. The last thing you want is to suddenly receive a notice that your lease is expiring within a few years and to renew it you have to pay an exorbitant amount, just like what happened to the folks in PJ Old Town.

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