Updated: May 29, 2020
"The opportunity to travel extensively to major cities of the world (more than 50 countries at the age of 40) and getting to know many successful entrepreneurs from many different industries have shown me that there is one common things among them; they always talk about Real Estate Investment (“REI”), either in their own country or abroad. This has motivated me to look into the industry seriously, eventually venturing into REI with my mentors, renowned entrepreneurs and acquiring proven and tested knowledge in REI.
Over the span of 3 years, I have travelled extensively to many countries that can potentially offer a secured, calculated risk, attractive Return on Investment (“ROI”) and ultimately defined exit strategies. With strong support from our trusted networks, we have expanded our projects not only in our home country Malaysia, but also to Hong Kong, Germany, United Kingdom, United States, Australia, New Zealand, Indonesia, Dubai, and soon to follow many other potential countries. Throughout this journey, I have come across many fresh real estate investors voicing their disappointment on their local portfolio, either the appreciation is below expectation, or they are making losses as the rental yield is not enough to cover the outgoing costs like mortgage interest, maintenance fee, property tax, quit rent, etc. or worse, not rented out at all.
I have also frequently come across many who have invested abroad, complaining that despite the real estate price appreciating over the years, they are still making losses due to high up-keeping cost, exit cost and their weakening currency against the country they have invested in.
A major factor to consider before investing abroad is their local property law, depending on whether a country practices democratic, socialist or monarchy system, property ownership can range from absolute to a periodic lease, and most probably on separate regime for the foreign investors. A country’s legal fundamentals also play an important role relating to the protection of property ownership.
Another area that should be taken into consideration is the tax system. Generally, there are 2 common strategies when investing in property, directly and indirectly. Both strategies involve different financial issues, and one of those is tax. One should understand the tax system in each particular country against the property investment portfolio to able to get the most out of the investment. Direct property investment in most countries is subject to Capital Gains Tax (CGT) including Malaysia. Disposals of Malaysian real property is subject to Real Property Gains Tax (RPGT). RPGT is levied at progressive rates, depending on the property’s ownership period or holding period prior to its sale”.
To be continued…… How do man and woman invest differently?
Behind every success there is an unseen hard work, sacrifice, and persistence.