Just Property Magazine Cover Story

INVESTING IN PROPERTIES : YOU TOO CAN STRIKE IT RICH!

She came from very humble beginnings, and over the years, she developed great passion for property investment. Property investing was the vehicle that gave her financial freedom. She is really happy that she can now indulge full time in property investment, trading actively and managing her pool of “blue chip” tenants. Martin S meets up with property consultant, trainer and author – Renesial Leong for our cover story.

What is so exciting about both Renesial and her book? What is this ad all about? An immediate phone call, and a few days later, the interview was set and she was more than obliging to share her experience and thoughts about how to make it big in the interesting world of property business. A bubbly character, Renesial says property investing has made her dreams come true. Here, she is keen to make everyone Rich in Knowledge and Wealth.

Renesial is the Chief Executive Officer of Right Lifestyle Sdn Bhd, a property investment academy. She is also the author of Property Jewels, the first Malaysian Property Investment Guidebook, which has been accorded a national best seller. A dream comes true for her to publish this book. It is her intention to continue sharing, in her own words, her ‘two cents’ worth of knowledge in property investment through workshops and perhaps a few more books in the near future. Renesial, who holds a MBA from the Preston University , USA, is currently pursuing her Doctorate in Business Administration from the Dublin Metropolitan University, Ireland. This enterprising businesswoman who hails from Ipoh believes that unless knowledge is shared, it is of no value at all.
Outlook of the property sector

When asked what is the current outlook of the property sector, Renesial says there are strong reasons to feel bullish about the property market.

“Our strong economic performance, the smooth transition in our country’s leadership, local and foreign financial institutions’ low interest rate regime and our government incentives for property purchase are all positive contributing factors.

Besides the above, when compared to other investments options in Malaysia, in my opinion property investment is still one of the best investment vehicle. It may be slower but could provide stability over the mid to long run. In fact, I feel blessed to have chosen property investment as my main investment vehicle some 16 years back, especially so when I witnessed the roller coaster performance of our stock market. I certainly sleep better as opposed to many of my friends who have chosen other investment vehicles,” noted Renesial.

Property will always have value. She points out that one will never hear of anyone’s property going down to zero in value as opposed to investing in a business or the stock market. As a matter of fact, no matter how advanced society can become, people will always need a roof over their head and a place to carry out their business. It’s a supply and demand game. Demand will always be there if the place is right.

Buying or Investing in Property

Renesial says property investment can provide investors with a steady stream of passive rental income.
With property investment, she notes that time is also on her side as she has experienced and witnessed well located properties doubling in value between 5 to 10 years. Other benefits are it is one of the best hedge against inflation and it offers excellent leverage – e.g. investing RM20,000 and owning a property well above RM100,000. If this property is to double in value in 10 years time (conservative period) your RM20,000 investment will give you a handsome profit assuming your rental collected is sufficient to offset your mortgage repayments and other outgoings.

“Another of property’s greatest attribute is its value as collateral. It is a widely known fact that property mortgage is the favourite product of most bankers. In fact, bankers are getting to be extremely creative with their mortgage products and are falling all over offering mortgage loans. Today, you hear of flexi loans, no moving costs, etc., etc., all one needs to do is to sign-up. Thereafter, you will actually have the opportunity to have your tenant help you pay off your mortgage loan.

The other beauty is, with property investment, you are in full control. Right from what to buy, when to buy, where to buy, who you would like to work with, from bankers to lawyers to agents and tenants. It can be really rewarding for the right person! Imagine having a steady stream of income while you sleep, go on vacation or simply indulging in your favourite leisure activity.

Gains – short and long term

Renesial says that when structured properly, it is a slow and steady way of building wealth. Not only will you enjoy rental income, 5 or 8 years down the road, you will also enjoy significant capital appreciation.

“For example, a condo at the Pines, Mount Kiara would give you a rental return of at least 10 to 12 percent per annum whilst a double storey terrace house in SS19 Subang Jaya has almost doubled in value over a 6 year period. Similarly, a commercial shop-lot in Bukit Tinggi, Klang can easily give you above 12 percent return per annum and its re-sale value has increased by 50 percent over a three-year period. Further to this, mortgage interest rates are at an all time low with lots of incentives thrown in. There are lots of creative packages to pick from to suit one’s financial needs.

Over the long term, investors of properties can choose to cash out or refinance one of their properties for their children education needs or for their own business capital,” she added.

Any time is the Right time

“I have often been asked when is the right time to buy properties. As far as I am concerned; any time is the right time, provided you know how. I have been buying and cashing in every now and then during the last 16 years. To be honest, there were times when I felt lost and would go about frantically looking for property investment seminars to attend and property investment books to learn investment strategies and have my questions and doubts answered. However, those days, there wasn’t any seminar of this nature and most of the contents of the investment books I read were not applicable under the Malaysian climate due to the differences in legislation, culture, investment structure and taxation factors.

So I made a promise that if I am able to make it in property investments, I will share my ‘two-cents’ worth of knowledge through conducting seminars as well as writing a book or two. So there you are, that’s the reason why I wrote “Property Jewels” which is the first Malaysian Property Investment guidebook. It has since become the National Best Seller,” said a proud Renesial.

Retire with a Net Worth of a Million in Properties

Some of you may say, “I am convinced. Show me how to retire a millionaire.” Let me just give you a simple illustration.

“Paul has RM105,000 cash. He invests in 7 income-generating properties of RM100,000 each. He pays a 15 percent down payment of RM15,000 for each property, and he takes a 15-year loan for each of his 7 properties at a rate of 6 percent per annum. This means his total loan is RM85,000 X 7 or RM595,000. His total asset value is RM700,000 and his debt is RM595,000; Therefore his net worth is RM105,000.

Because he carefully chooses his properties, they will all be income generating; with the rental income comfortably covering all mortgage payments and other expenses.

Ten years from today, let’s say his property value doubles to RM1.4 million – something that is very achievable on the average. By then, his debt would have been reduced to approximately RM370,000, which means his net worth would be RM1,030,000. In other words, he has become a millionaire. His wealth has grown by RM925,000 or almost ten times. This is the beauty of leveraging,” Renesial pointed out.

Property Jewel

Renesial, in property Jewels, explains the different types of properties that are presently available in Malaysia. Here are some of her 263 Diamond Studded Strategies:

- Buy Freehold properties
- Buy Landed properties for Capital Appreciation
- Buy well located Condominiums, Apartments for Good Rental

Income

- When buying leasehold properties, always check the exact Balance of Lease Period
- Buy leasehold properties with a remaining lease period of a least 70 years
- Buy at Auctions for Bargains

In chapter three, Renesial also discloses the common sources of finance. Yes, you can start with very little cash of your own. Here is a quick look at the different sources you may want to consider to raise your investment capital:

1) Your own savings
2) EPF withdrawal
3) Loan from banks or other financial institutions
4) Cash value from your insurance policy
5) Loan from the government
6) Loan from your employer
7) Re-mortgaging your own home
8) Loan from parents
9) Mortgaging your parents’ home

Renesial also reveal some Sparkling Tips for selecting good properties. If there’s an award for viewing and analyzing properties, she would probably had earn two doctorate degrees, as to-date, she has seen and analyzed at least 2,000 units of assorted types. She says it’s alright to view 100 properties before buying your first. She also recommends the following:

- Buy properties facing Waterfront
- But properties facing Greenery
- Avoid units where the main areas face the Setting Sun

It would be unfair for us to reveal more at this juncture from Renesial’s Property Jewel. It is most appropriate for one to get hold of this best seller and give her strategies a fair try. She firmly believes they (strategies) can make a remarkable difference in their investment decisions.

“This really is The Book when it comes to investing in property. Renesial’s book excites me because every idea presented has been tested and tried by her personally. We are getting first hand insights on property investment never this practical! Even personally being involved in the real estate business through the years, I find this book energizing, remarked Charlie Chan, Chief Executive Officer of S.K. Brothers

Enjoy the Journey
Renesial has these words as her closing remarks in Property Jewels:

“Believe in the law of abundance, i.e., there is more than enough wealth to be distributed around. Respect the laws of nature; we reap what we sow, so do unto others only what you want others to do unto you. Most important of all, live life to the fullest. And no matter what stage you are on the journey towards financial freedom, enjoy the journey,” she concluded.

RealEX PROPERTY Magazine Cover Story

PROPERTY IS BETTER THAN GOOD

PROPERTIES are the jewels that gave me financial freedom. Aside from a steady stream of income from rental, every now and then, I also enjoy the fruits of capital appreciation. The returns from property investment have provided me with many luxuries in life, most remarkable of all, the luxury of having ample time to spend doing things I enjoy most.

Over the years, I have come to know a number of people who make a lot of money but have one thing in common- they are extremely busy, so much so that they don’t even have time for their family. Perhaps, one missing element is leveraging wealth creation to create passive income.

The beauty of property investment is rental income. It is passive income and can be infinite. Structured correctly, it is one of the best mid to long term investment vehicle to provide a steady income stream to fund your children’s educational needs, your retirement needs and your own financial independence.

Looking into the different types of investments, you will probably agree with me that aside from fixed deposits in banks, property investment is one of the most forgiving investment vehicle should an investor make a mistake. Whilst I have seen a couple of my friends’ business investments gone down to zero, I have also witnessed some friends who invested in the stock market using contra trading and saw their investments gone below zero.

I started out with humble beginnings. Somewhere along the way, I decided to give up employment and went into business. As my business needed premises to operate from, I rented some commercial office and retail space. That was my first encounter with a real estate transaction. A very ordinary encounter.

Then, I started travelling around a fair bit to other countries. During my travels, I was inspired by the great successes of people who had either made money through property or parked their money in property. The more I traveled and the more I read, the more convinced I became that almost all rich people do that. It got me very inspired and I wanted to follow this proven path.

To get me going, I searched around for guide books, but I couldn’t find any that was written with the Malaysian context in mind. Not to be deterred, I read other books nonetheless, although I found a great part of them irrelevant under the Malaysian property investment structure, legislation and climate.

Then, I took my first step. I bought my first investment property in 1987 and haven’t stopped since. My latest purchase was in the first quarter of 2003.

Of course, not everything was rosy and smooth sailing. Along the way, I missed some good deals and made a number of mistakes. But I learned. I learned that good deals in property investment come around almost every other month, so there’s really no need to mourn. Also, having paid for those mistakes, I learned and grew up almost overnight. I realized too that property investing is a continuous learning process. There will always be new situations and unique circumstances to learn from.

But I must say that it was all well worth it. Although I was into other investments, namely, equities and unit trust, property investment was the vehicle that brought me financial freedom and much earlier than anticipated. Miraculous as it may sound, property investment has made my dreams come true.

Today, my tenants include families, expatriates and college students, as well as some easily recognizable corporate names like McDonalds, Angel Cake House, Tai Thong Restaurant, Secret Recipe, Time Wireless, Citylink and the list goes on.

“ Property investment is one of the best mid to long term investment vehicle to provide a steady income stream to fund your children’s educational needs, your retirement needs and own financial independence. ”

Property investments are big investments and it is very risky to do it by trial and error. One wrong property purchase could set one back a couple years, just to undo the damage. As such, investing correctly can make a big difference as to whether you work for money or you get money to work for you. The good news is it is possible to be successful in property investing. In fact, any time is the right time to invest, provided you have the right investment knowledge. I have personally gone through two recession periods, one in the eighties and one in the nineties, and it has been proven that it really pays to acquire the right financial knowledge before purchasing any properties. I strongly believe that, with the right knowledge, it is possible for others to achieve what I have in half the time.

Looking back at those 15 solid, long years and, especially, recalling how lost I was when I first started off, I felt there is so much I’d love to share with people who want to venture into property investing. And since I couldn’t find a book written in the Malaysian context, I thought I might as well set about having one written. And that was how the book “Property Jewels” came about. It is the first Malaysian property investment guide book.

“Property Jewels” is written in a user friendly manner with 263 tested and proven strategies and lots of real life stories from my own experiences woven into it. It is my hope that, through the various experiences I had and the numerous strategies I distilled along the way, people could benefit from them and avoid making the same mistakes I made.

It is my hope that readers will give these strategies a fair try. I believe they can make a remarkable difference in their investment decisions. I’ve been blessed with numerous e-mails and wonderful letters from participants of my seminars, saying how much they have benefited and the extraordinary deals they have managed to strike in property investment. It is my hope that you will experience all these and more. It would be truly fulfilling to me to know that, ultimately, people who attend my seminar and people who have read my book were able to make it big without having to travel the long way I took. Hopefully, some of you would be able to achieve even much bigger successes than I did and in much lesser time than it took me.

Finally when you arrive, it is also my wish that you feel and spread the magic and live your life to the fullest. You do not need to be a billionaire to feel better than a billionaire. Just keep in mind some simple things in life: Don’t stop your education, learn to laugh at yourself and remember to have fun.

For information in regards to our seminars and / or “Property Jewels” please call our Help Desk at 41088669 ( hunting line ) or visit our website www.UPIA33.com.

QUEEN OF PROPERTY

HERE’S a book for you to read... it’s by this woman who’s had no property background, but today is very successful buying and selling properties. Give her a call and talk to her,” said my editor, Andrew Wong, a few weeks ago.

He gave me the manuscript to Renesial Leong’s book, titled Property Jewels. I took one book, flipped through a few pages and promptly told Andrew it looked like one of my school textbooks, something I outgrew years ago.

But work is work. I had no qualms about meeting the author, so I took the draft home to read and prepare my interview. And was I in for a surprise! Not only is it written in a clear and understandable manner, it’s also littered with gems of advice from real-life experiences.

After finishing the effort, which seemed to be modeled on a Dummy-meets-Chicken Soup book , I couldn’t wait for the interview and days later, over a sumptuous Japanese lunch, Leong explained how she got into the buying and selling of properties.

CONCRETE REWARDS

After working for 10 years in business administration, I decided to become my own boss in the mid-80’s, and started an import-export business from a rented shophouse in SS19, Subang Jaya,” she began.

“Not long after, I encountered problems with the landlord, who wanted to increase my rent by 100 per cent. I had no choice but to move out and this disrupted my business.”

She realized then that moving to another rented unit held no guarantee that she would be free of greedy landlords and rising rents. She also realized that buying landed property has its rewards.

Her first acquisition – a double-storey terrace house in Taman Sri Rampai, Kuala Lumpur – was bought for RM 45,000 in1988 and subsequently let out a rate that gave her a monthly surplus of RM100 after paying the mortgage instalment.

“ I realized that it made more sense to own, especially properties that can command rents which are more than a bank’s monthly instalment.

“ It provides good passive income,” Leong said.

What she learnt during a trip that took her to Hong Kong, China and Canada cemented her resolve to get into the business of trading real estate.

While in Hong Kong, she read in the local newspapers that the island’s property tycoon Li Ka Sing had won a bidding war for a prime piece of development land.

Her next stop was Beijing, China. While passing through Wang Fu Jiang, the city’s commercial heart, she was attracted by a row of specially designed “for rent only” office buildings stretching from Silver Street to Gold Street, all of which belonged to Li.

Her final stop was Vancouver, Canada, where she saw a group of locals protesting the award of a prime piece of beachfront land to another of Li’s development companies.

Leong found out later that the rationale for giving Li the job was because of his strong financial standing, excellent track record and ability to develop the land on his own, unlike the closest bid by a consortium of four companies.

“Was I impressed by Li’s achievements! Right at that moment, I knew I had to make a career out of property investment,” she said.

Getting into the business, she found out that not only could she derive steady income from buying and selling real estate, she also had more time to enjoy with family and friends.

Forty-something Leong claims to have bought and sold more than 200 properties of various types since the late 80s.

“One of my most satisfying transactions came from the purchase of a shop-office in the USJ-Subang Jaya Taipan Triangle business precinct for RM600,000 in 1989. Four years later, I sold it for RM1.75 million,” she said.

Leong said she started by investing in residential properties “because they were ‘safe’ – they didn’t cost very much and could attract a large pool of tenants”. Once she got into the hang of things, she took the plunge into the “challenging” world of commercial and industrial investments.

“I went into the industrial market during the ’97 economic downturn. Many people were selling, prices were low and it was a good time to buy.”

Soon after, Leong ventured into the office and retail sub-sectors, and is now the proud owner of a penthouse office in the KL Sentral development as well as a few retail lots in Sungei Wang Plaza in Kuala Lumpur.

OVERSEAS VENTURES

Besides Malaysia, Leong also invested in residential units in Hong Kong and Australia in the early 90s, but cashed out six years later.

Hong Kong was a lucrative market for expatriate residential properties. I initially bought two studio apartments of less than 400sq ft each but traded them for a larger unit. In 1996, I became uncomfortable with the political situation and sold all my Hong Kong properties,” she said.

Her experience Down Under wasn’t good, she admitted. A dishonest real estate agent made her believe that her apartment in Perth was untenanted, but on an unplanned visit six months later, she found out from neighbours that it had been tenanted all along, which made her lose half a year’s rent.

A few years ago, Leong decided to “start giving back to society” by holding seminars to share her experiences and insight. Now, she runs about six seminars a year.

This is the result of promising herself years ago that she would document her success in the property sector and guide others, so that they would not make the mistakes and suffer the same pitfalls she did.

When she started investing in properties, which subsequently became content for her Invest Right the First Time and Every Time seminars, Leong referred to books, magazines and attended many seminars to learn the wise ways of investing. Unfortunately, she found the reference materials and seminars to have largely foreign content which did not fit the local property scene well.

TESTED STRATEGIES

“Property Jewels came about as a result of the lack of relevant information in the marketplace. Written in a straight-forward style, the 220-page guide lists 263 proven and tested investment strategies,” she said.

Currently doing her Doctorate in Business Administration, Leong said now is the best time to invest in properties, because of the all-time low financing regime.

“People must arm themselves with the right knowledge before buying, to avoid expensive mistakes. One can make a profit of up to 30 or 40 per cent, before cashing in to re-invest,” she said.

As for her future plans, Leong plans to write two more books, one on managing tenants and the other on finding the path to financial satisfaction.

top