KUALA LUMPUR: Individuals seeking to
invest in the real estate market have been advised not to put all their eggs in
one basket but to spread their risk among several different investments.
Founder and chief executive officer
of Capital Management Group Max Shangkar said they must also consider three
main things before investing - how safe, how sure, and how long it takes to
secure the returns from the investment.
"For example if you buy land as a
short-term strategy, it could take you a longer time to realise the profit.
"So if you want to maximise your
returns, perhaps it is a good time to invest outside of Malaysia's portfolio
using stronger currencies, as the ringgit is weaker and less competitive in the
global arena," Max, who is also an international real estate investor, told
Bernama yesterday.
He was speaking after launching his
book titled '˜Investment Strategies For Global Real Estate-How To Make Big Money
With Small Capital'.
The book covers land acquisition,
construction, management and restoration, and proven investment strategies in
Hong Kong, New Zealand, the United Kingdom, Germany, the US and Malaysia.
The 195-page book is sold for RM100
in Malaysia where part of the proceeds will be donated to charity homes.
Asked about the impact of the Goods
and Services Tax (GST), Max said there would be a slowdown in the property
market as more time is needed to adjust to the new tax regime.
"Although residential properties are
not affected, construction materials and supporting expenses will be affected
in the input tax.
"At the end, developers may not have
a choice but to increase property prices," said Max.
He said developers should realise
that higher prices would lead to banks tightening their lending, and with
buyers adopting a wait-and-see attitude, this would result in a stagnant real
estate sector.
He however expressed optimism about
the Malaysian real estate market, saying he expects it to improve in three
years as the GST effect dissipates. - Bernama
