Archive for November, 2008

The hassle–free property selling guide; FSBO or hire a property agent

Thursday, November 27th, 2008

For Malaysia property owners who are contemplating of selling off your property, you have the choice of either selling your property on your own (FSBO) or hire a property agent. The fundamental question is that can you sell the property for the best price and without pains and hassles?

To succeed in selling a property be it a house, apartment, condominium, shop or land, you need to be competent in real estate marketing skills and knowledgeable in market conditions, financing and legal etc and acquire negotiation skills and experience in dealing with sophisticated buyers.

For Sale By Owner (FSBO)

If you want to hire yourself, there are numerous web blogs offering free FSBO tips available on the net. Below are several web blogs on FSBO that you need to implement effectively on your own to avoid time consuming, costly and frustrating failures.

i) For Sell By Owner (FSBO) Tips;

ii) Sell your own house;

iii)5 tips to help you to sell your home fast.

If you need many more tips, go to 101 Tips for Selling Your Home.

Hire a property agent

According to a survey on profile of home buyers and sellers by the National Association of Realtors (NAR) in USA, the FSBO rate for year 2006 and 2007 remains low at 12%. The survey indicates that majority of house owners in America selling on the open market are choosing to work with an agent. Read more here.

The NAR currently has a strong 1.3 million realtors (property agents commonly known in USA) providing real estate agency services in USA which has a population of more than 305 million. In comparison, according to MIEA, Malaysia, with a population of 27 million, currently has over 1,900 property agents registered with the Board of Valuers, Appraisers and Estate Agents.

Find out the reasons before you decide to sell your property by FSBO or choose to work with a local licensed property agent. The MIEA has advised property owners to hire professional and registered property agent only and avoid hiring unlicensed agent. The scale of fees of licensed property agents in Malaysia is available on MIEA’s website.

For advisory on Malaysia property investments in Kuala Lumpur and Penang, email to us at Izrin & Tan Properties Sdn. Bhd or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

Global Financial crisis and Malaysia Property Outlook

Tuesday, November 4th, 2008

Global Financial Crisis

The subprime troubles and the ensuing financial crisis in the US has been called the global financial storm. The crisis, which former Federal Reserve chairman Alan Greenspan described as “once in a century credit tsunami” whilst the 2008 Noble Prize Winner U.S. economist Paul Krugman said the crisis bears some resemblance to the Great Depression of the 1920’s.

The IMF has warned of a sharp slowdown in the world economy next year and forecasts that financial sector losses could total US$1.4 trillion(US$1,400,000,000,000.00) whilst as much as twenty million jobs will disappear by the end of next year as a result of the impact of the financial crisis on the global economy, according to UN’s report. The global economic downturn is expected to last two years before it slowly recovers from 2010 onwards as world economy recovery takes time. For visual illustration to the financial crisis, click here.

Malaysia Response

For Malaysia, like other countries in the world, has already felt the impact of the global financial meltdown as Malaysia’s key sectors show signs of slowdown. The Malaysian economy has been resilient in the first-half of 2008, but is increasingly being affected by the global downturn.

According to MIER, Malaysia’s economy may grow at the slowest pace in eight years in 2009 given the dismal outlook for the global economy stemming from the financial turmoil.

In response to the crisis, the Malaysia Government has already announced several measures of economic stabilisation plan ie. a)Bank deposits are guaranteed by the central bank of Malaysia until the end of 2010 and b) Inject RM5 billion into a special- purpose fund Valuecap to support the stock market etc.

To further cushion the effects of the world economy slowdown, Malaysia’s Prime Minister-in-waiting and Finance Minister Najib Tun Razak has announced the RM7 billion Economic Stimulus Package during his Budget 2009 winding-up speech in Parliament on 4th November 2008, details of the stimulus package are here and here.

Impacts on Malaysia Property Sector

Just about 6 months ago, Malaysia’s NAPIC has projected a bullish property outlook for this year. But the property landscape and market sentiments have changed in recent weeks. Recent statements by REHDA’s President as well as commentary of several property industry experts indicating that Malaysia property sectors are showing signs of softening. The weakening of market conditions has also affected the listing of two largest REITs on Bursa Malaysia.

However, the Malaysia property sector is unlikely to face similar degree of market downturn as experienced by Singapore Property Sector. Malaysian property market still remains attractive to foreign investors. Comparatively, properties in Malaysia are still among the cheapest in the region and property investment remains a solid hedge against inflation in the long term.

For property owners and investors seeking for latest update and outlook on Malaysian economy as well as the Malaysia Property Market amidst the global economy slowdown, here are the several upcoming events and seminars by Malaysia institutions of ASLI, MIER and PEPS:-

National Property Housing Summit 2008 by ASLI;
Date : 13 – 14 November 2008
Venue : Sunway Resort Hotel & Spa, Petaling Jaya

National Economic Outlook Conference 2009-2010 by MIER;
Date: 2 - 3 December 2008
Venue : Hilton Kuala Lumpur

Malaysia Property Market Outlook 2009 by PEPS;
Date : 20th January 2009
Venue : Sime Darby Convention Centre, Kuala Lumpur

Update (1/1/2009) : Latest statement by PEPS’s President James Wong on Malaysia Property Market Outlook 2009, here and here.