He may be an ardent property evangelist, but Danny Goh is also a straight shooter. The executive director of Malaysian firm MCT Group of Companies promises not to peddle his portfolio or pressure the audience at his keynote at the upcoming iProperty.com Expo. Instead, all the 43-year-old intends to do is educate the crowd on real estate investment, paying particular attention to the nascent Malaysian market.
(Malaysia is seen as a good market to invest in.Image courtesy of thinkstock.com)
The top property investor believes it is one of the best markets to place your bets in. “If you are armed with good knowledge in property investment, the chance for you to lose money is very slim,” he says. “Property is still a safe choice among other forms of investment.”
The real estate guru will begin his talk by outlining the impact and benefit of property investing—perfect for newbies, Goh says—before launching into more in-depth topics. Goh will share his thoughts on how to choose the right property to invest in, and what kind of risk factors should be identified early on. For seasoned investors, this promises to be a goldmine of applicable knowledge.
“My talk will mainly be on property knowledge and giving investors some guidance—not recommendations,” he clarifies.
A STEEP ASCENT
With 16 years of experience in the market, Goh is intimately familiar with investing in Malaysian property. His firm manages a portfolio worth RM1 billion and is currently at the helm of a massive project in the Klang Valley, making Goh one of the foremost authorities on the subject.
Right off the bat, Goh dispels some rumours. “There is no such thing as to when it is a good time for Singaporeans to start buying property in Malaysia,” he insists. “There is always a good time to start if they are well-prepared and very knowledgeable before they buy.”
Still, the facts are hard to ignore. Goh identifies a dramatic increase in the capital appreciation in Malaysian property: before mid-2009, this value averaged 5% to 8%, but during the last two years, capital appreciation skyrocketed from 30% to 100%, depending on the type of property.
And Goh predicts even rosier times ahead. “Stability” is the watchword here; Malaysia’s one-party political system means the country is run on solid ground, and a burgeoning middle class with high savings power points to a steady economy, Goh justifies.
“Generally Malaysian property is still very affordable compared to Singapore’s, which is about five times higher,” he notes. “Hence, there is still big room for property appreciation.”
MALAYSIAN MALADY
Not that Malaysia is immune to problems. The spectre of the 2008 financial meltdown, prompted by a crisis in US subprime mortgage, hangs over the surging Malaysian property market. It’s something banks have to watch out for, Goh warns.
“Bank control of loan borrowing is important,” he explains. “Leniency on loans for property borrowers when their documents are not solid should be avoided.”
Even more recent are the Eurozone troubles. A slowdown in the European economy—or for that matter, the world’s—might subsequently barricade growth in the Malaysian market, according to Goh. However, this is potentially only a trickle-down effect that will not completely plunder Malaysian property.
“More local investors than foreign ones buy Malaysian property,” Goh qualifies.
Domestically, Malaysia has to look out for conservative government intervention. If policies are not aggressive enough in promoting or creating a good business climate, the property market might stall, Goh says.
“The ‘ground rules’ when approaching Malaysian property are very simple,” he sums up. “It is based on the basic fundamentals, where there must be high occupancy, and demand and supply must be justifiable.”
COMMON MISTAKES
Nonetheless, Goh contends the more common investment problems arise not from macro-level issues but from human errors in judgment. “Mistakes usually happen when investors buy property emotionally without doing any research before purchase,” he says.
This will usually lead to selecting an inferior location, developing the wrong type of property or simply over-building in an area vacant of residents and tenants. When that happens, malaise replaces malady in sounding the property’s death knell.
Says Goh, “Another common pitfall occurs when the investor pays no attention to the property upon handover from a developer or seller, and just lets the property sit idle without rent or proper maintenance.”
Entering a foreign market can be a thorny endeavour, and Goh stresses to investors the importance of patience and risk assessment. He explains, “When investors gain the interest, then only can they have the patience to learn how to choose the right property and understand the various risks in property investment.”
If you’re thinking of investing the Malaysian market or if you’ve only just started in the property game, listen to Danny Goh himself this 29 and 30 October at the iProperty.com Expo, held at the Marina Bay Sands Singapore. Visit www.iproperty.com/expo/ for more details.
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Related Categories: Country Guide - Malaysia, Interviews
Tags: advice, Danny Goh, development, event singapore, International Property Expo, invest, investment, iProperty Expo, Klang Valley, Malaysia, Malaysian property, mistakes, property, property event, property event singapore
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