All Turning Points Led To Property Investment

In three years double digit amount of property 

A corporate career for 27 year old Adrian Ng might not come as a surprise since he has always been a hard worker with strong academic background. Armed with bachelors in accounting, one might think that Adrian has a relatively conservative risk appetite. Over the past three years Adrian has ventured into property investment, his journey through this process was indeed calculated but it was also coupled with passion and determination to obtain financial freedom.

TURNING POINTS

There were three turning points in his life, which led to him being a property investor. Firstly a chance encounter of his dad’s book ‘Rich Dad Poor Dad’, upon reading this book he decided to change his mindset on enriching himself with more knowledge on financial education. After several endeavors with network marketing companies and Internet business, Adrian was left with three digits on his bank account and things looked bleak. Then came the second turning point, a book once again reignited his interest on financial freedom and this time by reading Faizul Ridzuan –WTF: 29 Properties before 30. The book inspired him, but property investment did not immediately take off. His most significant turning point came at the end of 2012, needing a financial reboot he read the book by Dexter Lim and Kam Wei Tsung – Start from 0! 3 years to 10Million Property Portfolio.  After reading the book he and his then girlfriend Ruth Mak paid whatever remaining money left to attend the seminar. It ignited the fire in Adrian to pursue property investment despite not having any prior knowledge, contact and very low capital. Adrian told himself “Search for the right deal first, think later. Once you’ve found the right property, the money will come.”

GETTING THE BALL ROLLING

Right after attending the seminar, Adrian set appointments almost everyday to view properties. He joked that initially he was worried his poor Mandarin skills would be a problem in negotiating with agents. His research paid off as within two weeks, he found and purchased his first property 20% below market value and with 6% yield in Bandar Sunway. He purchased the property using creative financing techniques he had learned. Soon after bought his second property six months later and has steadily accumulated double digit of properties over the last four years.

Adrian has purchased all his properties for minimum of 15% below market value. “The current market might be challenging but equipped with adequate knowledge and crunching down the data and  numbers you can make an informed purchase. Most of the time, a property may not fulfill all your criterias but if seven or eight out of 10 is fulfilled, it is quite safe” He says.

STEP BY STEP ACTION

Research and study as many resources as possible

Conduct self-assessment by setting goals based current levels of commitment

Shortlist three to five areas within 30-45 mins then further shortlist into subareas

Simultaneously decide which type of property you want to purchase

Aim for positive cash flow

“Property investment can be rewarding but it can also be unforgiving if you make a bad purchase driven by hype that can take years to recover therefore go through the shortlisting process thoroughly. When you get the first ball rolling the second ball will be easier because the base is already there.” Adrian says. He stresses that for rookies out there, youth is your biggest advantage as you can start early. He encourages people to take the first action.

He tells everyone to trust your instinct if you are having doubts and to make sure you face realities of property market. The current market is tough with many incoming supply of high end condos facing low rental yield. Do not get trapped by the hype or promise of buying without doing thorough research. A simple strategy of purchasing medium cost apartment or condos for capital appreciation and adequate cash flow is not sexy but is often a safe strategy.

MANAGING IT ALL

“Choosing the right tenant is a process you have to get right from the beginning by not rushing and screening tenants thoroughly to save time consuming problematic follow-ups. Gut feelings sometimes is all that you need to tell you whether the tenant is go or no,” he says.

Adrian has strong support from his wife and has bought properties together with several partners and work together as team therefore he says managing everything is not burdensome. He advises people with over 20 properties to pass on to a property manager, as that would free up more time for them to solely focus on finding properties.

DO IT YOUR WAY!

“I believe it is still time to buy granted buyers conduct thorough research and the figures makes sense. If you are comfortable with one strategy, duplicate it and be a master of that technique. While some may amass a large diversified property portfolio consisting of shops, land, condos, retail lots, I suggest for beginners start by purchasing apartments between around RM200,000 to RM500,000 with good cash flow. The conservative plan would be suitable for those with RM3,000 to RM5,000 salary range.”

“With abundant of primary units coming up, buyers have to be more selective on projects and be very clear on your investment gameplan. Many don’t realise there are still several undercon projects reasonably priced, opportunities are there as long as it fit with your criterion and you put in the effort to find them,” he adds.