* Article by FREEMEN *
Buying a property for the purpose of investment in one of the best decision one can make. However, deciding what to do with the property after we get the keys is another ball game altogether.
At challenging times like this, not only are we faced with the challenge of finding the right property and getting our loans approve; we also now need to add value to our property to differentiate it from the other properties in the market.
Adrian Wee, also known as the ID King, introduced the concept of Buy Renovate and Sell (BRS) and Buy Renovate and Rent (BRR).
Adrian Wee has come a long way as a property investor. He learnt the hard way that property investment only work if we do a proper due diligence. Needless to say his first property investment was a disaster.
He and his wife bought two properties almost fifteen years ago and make a loss amounting to almost RM100,000. This experience have deterred him from investing in properties. “After making a lost of almost RM100,000, I was scared to invest again”, he said. “Instead I then focused in my interior design work. I designed show rooms and show units for developers.” He further adds that “Because of my fear I had let go a lot of good deals and I now regret not taking action then. However, I am now a better investor and learnt not to make the same mistakes again.”
Adrian comes from a small town in Seremban, and he has been designing show houses for property developers for the past 15 years in and around Seremban town.
THE TURNING POINT
Then in the year in 2010, he met a well-known developer who convinced him that property investment is the way to go if he wanted to achieve his financial freedom. This was a turning point for Adrian, who began to look into property investmnet again.
This time he decided to invest himself first. He went and attended property seminars, read books and magazines, and spoke to property experts before starting to put money into property again. In his property investment journey, he found his formula for success. When talking to property investors and home buyers alike, he realised that many people who had bought properties, ended not knowing what to do with the property. They either sell or rent out their basic/empty unit, not knowing that they can actually maximise their profit further. He learnt that, as investors, we should buy a property, renovate it and rent it at a higher price (BRR) or buy a property, renovate it and sell (BRS) it at a higher price.
To achieve a higher profit the renovation must be done prudently. Many investors cannot be bothered about renovation and leave it completed to the Interior Designer they hired. Truth be told, Interior Designers are not property investors; hence they do not renovate for maximise profit but for aesthetic purposes instead.
WHAT TO LOOK OUT FOR WHEN RENOVATING YOUR PROPERTY
Another important consideration when renovating your property is the lifestyle of people in the particular locality or area. Is that area occupied mostly by families, or mostly young professionals or even college students? Understanding the area and the needs of the population in that area is key to deciding on your renovation. For example, in area occupied mostly by families, you may want to add in a complete kitchen (with hood and hob) versus in an area occupied mostly by college students. College students don’t really need a complete kitchen as they mostly eat out.
The profit potential in the secondary market can be substantial. For a property that is between 15 to 20 years old, you can actually recoup the cost you invested in renovating. Let’s take a property of RM180,000. If a property structural renovations was undertaken, the same property can be sold at RM250,000. This would give you a profit of approximately RM30,000 vs the 10% renovation cost.
You can also increase the value of a property by creating a perceived value. For example, when you renovate a property nicely and successfully rented it out, the perceived price of the house will go higher. Investors can also buy shop houses and partition the place into smaller rooms and rent out. This way higher rental income can be generated.
As a property investor, we need to be creative and know what we want to do with our investment. If we want to sell it, then make our properties more attractive than the rest. Buyers will be more than willing to buy our property, which is more attractive than the next property!
Now you have a better idea on what to do with your property.
Do you want more tips on how to renovate and beautify your property at a very low cost? Well, I have a good news especially for Property Talk reader. We have compiled these tips into an E-Book titled “Renovation Secrets: 7 Tips For Creating A Minimalist Home Design” And discover on how you can add value to your property.
Get this E-Book for FREE! Click HERE to download now.
Well, I have another good news for you.
Adrian will be in town in Penang and will be speaking at the Property Outlook 2015, the first in the Northern Region, from 4th and 5th April in Penang, together with a line up of other Speakers, who is expert in their own field – Michael Tan (Founder of Freemen and Master in buying property with No-Money-Down), Keegan Tan (Property Investor and Property Coach) and Gary Chua (Senior Banker, with 11 years of banking experience) You can read more about Property Outlook 2015 HERE.
At the Outlook, Adrian will share with you in more details how you can renovate for profit. He would be more than happy to meet with you and answer any questions you have on property investment and tips to make your property ‘sexy & hot’.
Adrian seldoms comes to this part of the Malaysia. So, grab this chance now by registering here as only 17 Silver Seats left and all the Gold seats are sold out.
See you soon.
Article by,
Adrian Wee
Adrian Wee, co-founder of Massive Capital Group, aka “Interior Design King,” is a successful Interior designer and property entrepreneur, based in Kuala Lumpur, Malaysia, who has been in the business for 20 years. Throughout his career, he has learnt and perfected his craft by designing and renovating more than 1000 properties.
Today his work has been covered in various magazines and newspapers, multiple times and he is highly sought after by developers who want to build their impressive show units, as well as rich private homeowners.
Together with FREEMEN, Adrian is now focusing on helping people build and grow their property portfolios to generate retirement options for themselves. You can find out more of our coming event here: http://www.aboutpropertyinvestment.com
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