Malaysia Land Banking, Real Estate Investment

Landbankig: REDEV Properties in Malaysia

2009-11-08T21:15:00.000-08:00

REDEV Properties is coming to Malaysian shores. What so special about REDEV properties? Well, for one, unlike the usual land banking offering that you hold long-term for capital gains, with REDEV you are able to earn both income and capital gains. REDEV allows you the opportunity to hold a direct investment (undivided interest) in prime Canadian commercial properties for a fraction of the cost it would take you to invest in a commercial property in Malaysia. And did I mentioned REDEV commercial properties are fully tenanted as well?

REDEV Properties has been syndicating commercial properties to investors since 2001. Today, they own and manage 25 well located, fully occupied commercial properties along with 4,000 investors. Eighty percent (80%) of the investing partners are Canadians and this speaks volume in terms of the credibility of the investment offered. In fact, they recently won the Hong Kong Business High Flyers of 2008 award.

The 3 founding members are Richard Crenian, Howard Manley and Darwin Forer. They partnered up in 1981 and since then have developed over 11,000 condominiums and commercial properties in Canada. By 2001, they changed focus to redeveloping established commercial properties. It had become cheaper to buy existing properties than developing new ones, and with long term leases already established, it posed less risk and provided immediate cash flow.

By partnering up with REDEV, you enjoy immediate cash flow generated from existing leases with regional and multinational companies. You are expected to earn between 6% - 10% nett income pa. Commercial properties leases are long and secure leases of 5 - 20 years. The best part is... these are Triple-Net Leases where the tenant is responsible for all taxes, insurance, miscellaneous expenses and all costs associated with repairs. This protects you as an investors.

On top of your 6%-10%pa cash flow, you enjoy capital gains as well. At the end of 5 years, investors will vote to either sell or refinance the property. REDEV has a historical capital gain of 140% after 5 years. You have a clear exit strategy.

Commercial real estate is normally beyond the reach of the average investor. REDEV provides a platform for investors to simply own a percentage interest for as little as C$25,500 in freehold property, with existing tenants and existing cash flow. This is a very secure investment with land titles (undivided interest) and a trustee to safeguard your investment. Their current project Sturgeon Plaza has established tenants such as Canada Post and Royal Bank of Canada. An excellent investment such as this is expected to be sold-out very soon. If you are interested, drop me an email now!

p/s: Don't miss out on this!

Landbanking.us - What is a good investment in 2009?

2009-06-04T20:37:00.000-07:00

I’m sure many of you noticed that I blog less and less nowadays. Actually, now I read more blogs than write blogs. My favorite blog is definitely Malaysia Today started by the famed Raja Petra Kamarudin or RPK. He is currently enjoying a holiday away from the constant pestering of the Malaysian authorities. Anyway, today’s blog is not about RPK (or where he is holidaying right now. Brisbane, Australia? No idea!)… I’m just wondering what is our level of investment appetite for 2009? Are there still any good investment opportunities around? Read on and find out!

What is a good investment in 2009?

Landbanker - SSM moving in to regulate land banking co?

2009-02-23T07:41:00.000-08:00

A BERNAMA report (Malaysian National News Agency) reported on 24 Oct 2008 that The Companies Commission of Malaysia (SSM) raided 3 land banking companies; UK Land International (M) Sdn Bhd, Profitable Plots Sdn Bhd and Edgeworth Properties (Malaysia) Sdn Bhd. They are suspected of offering illegal land investment schemes. Gosh… have I been in the wrong industry all this while?

Continue to read more ..

SSM moving in to regulate land banking co?

Land Banking Investment - Smart Investor

2009-02-07T19:57:00.000-08:00

Here's an excerpts of the cover story in Smart Investor (Singapore Edition) that appeared in August 2008. This cover story is an independent article (not an advertorial) entitled “Land Banking Investment: Separating Facts from Half-Truths”. Out of the 10 companies offering land banking services in Singapore, 4 major players; Edgeworth Properties, Walton International, Jardin Smith International and UK Land Investments are mentioned. Quotes ” ” represents a direct excerpt from the article, italics are my own words and bold are my own emphasis. The article started of with the tone.. Continue to read >>

Land Banking Investment - Smart Investor

SSM moving in to regulate land banking co?

2009-02-05T19:53:00.000-08:00

SSM moving in to regulate land banking co?

Land Banking Investment - Separating Facts from Half-Truths

2008-10-22T10:33:00.000-07:00

Today I would reproduce excerpts of the cover story in Smart Investor (Singapore Edition) that appeared in August 2008. This cover story is an independent article (not an advertorial) entitled “Land Banking Investment: Separating Facts from Half-Truths”. Out of the 10 companies offering land banking services in Singapore, 4 major players; Edgeworth Properties, Walton International, Jardin Smith International and UK Land Investments are mentioned.

Quotes ” ” represents a direct excerpt from the article, italics are my own words and bold are my own emphasis. The article started of with the tone…Read the rest of the story here >> Land Banking Investment - Separating Facts from Half-Truths

Landbanking: CPO price hits historic high!

2008-01-16T18:37:00.000-08:00

Yesterday’s headline screams, “CPO price hits historic high“. The crude palm oil (CPO) 3-months futures contract price soared to a historic high of RM3,080 per tonne on 26 December 2007. If you refer to my previous blog post on Country Heights Grower Scheme (CHGS) you will recall that I use an illustration of flood as a common risk to plantation owners. I have highlighted that when you invest with CHGS you are NOT sharing into the risk of the plantation directly but rather protected by a management agreement governed by a trustee. The risk you take is on the CPO prices.

In fact, with the recent flood in Malaysia, CPO prices have actually risen due the flood. So what happens if you are an investor with CHGS and the same scenario (flood) occurs in the future? You will gain a hefty return based on the CPO price (12%pa to be exact if the average CPO price for that year exceeds RM2,100). But I am no commodity speculator and neither do I have the ability to control the weather (what am I, a witch doctor?). When I invest with CHGS, I invest based on the fundamentals of demand and supply for palm oil. Let’s look at some of the factors that have driven and will continue to drive the CPO price.

Continue to read.. CPO price hits historic high!

Landbanking - Country Heights Grower Scheme

2007-12-26T09:45:00.000-08:00

There is a new kid in town… and its Malaysian! This investment scheme is the brainchild of Tan Sri Lee Kim Yew, the Managing Director of Country Heights Holdings Bhd. Country Heights pioneered the concept of country living in Malaysia with the launch of Country Heights Kajang. Tan Sri Lee successfully transformed a near worthless rubber land into the “Beverly Hills of Malaysia” in 1987. Another feat is the transformation of the world’s largest open cast tin mine into one of Malaysia’s distinctive landmark called Mines Resort City. Country Heights Grower Scheme is a unique oil palm plantation investment scheme. Read the rest of this entry »

Landbanking - A ‘quiz’ on Alberta’s oil sands

2007-12-17T09:37:00.000-08:00

DIFFICULT, YES. IMPOSSIBLE, NO… the headline screams. “Unconventional oil deposits, such as oil sands are likely to play an increasingly vital role in meeting the world’s energy demands. The challenge with unconventional deposits is that the oil is difficult to extract. Does this mean we should turn our backs on them? Of course not…” Guess where did I get this quote from? And who is this Asian tycoon with an eye for real estate that skeptics wondered why he took control of one of Canada’s oil company and suffered years of poor return? But now the oil company is one of the ‘jewels’ in his portfolio of companies. Another billionaire investor who has a history of staying away from resource investment is now FINALLY interested in investing in the Alberta oil sands. Who is this billionaire investor? And which are the landbanking companies that will profit from investing in Alberta, Canada? No prizes for guessing this one… currently it is companies like Genesis Land Development Corp. and Edgworth Properties Inc. that will benefit from this boom.

Read the rest of this entry »

Landbanking In Malaysia

2007-11-08T19:20:00.000-08:00

Land banking is defined as the practice of acquiring large parcels of undeveloped land and holding it until the time is right for future development. Traditional land banking involves holding a parcel of raw land as close as possible to the path of development and wait for a few years. When there is demand for your land due to the approaching development, your parcel of land will increase in value ten-fold or even more. However, land banking requires much patience and investors can go on waiting indefinitely. The cost of holding the raw land can also be crippling.

Nevertheless, land banking investments can be an excellent investment given the right location, proper expertise and holding power. Many have built their wealth on land banking investments ranging from the likes of Donald Trump in the US to Li Ka-shing of Hong Kong. To the average investors however, 3 major constraints prevents us from participating in this lucrative part of real estates investments. They are the lack of capital to purchase large parcels of land, lack of holding power and the lack of expertise to gain the proper planning approvals.

In Malaysia, an article on land banking investments appeared in the financial magazine "Personal Money" published by The Edge on April 2004 and this signifies the growing awareness of a new breed of professional land banking companies. These companies purchase huge parcels of land in the path of development and syndicates it to investors that will then own an undivided interest in the land. A 100 acres of land for example, could be divided into smaller units of 1/2 acre each, making it affordable for investors to purchase a single unit of investment. They also act as your asset management company managing your land investments. Their services includes submitting concepts plans to the authorities to get the proper planning permission and presenting offers from developers that are interested to acquire your parcel of land to all the joint investors.

Investors make their profit by selling their lands to the developer at an appreciated price. Lands that have gained planning approvals will fetch a premium price from developers. The decision to accept any offers from the developer will be done via a voting process that involves all the joint investors. Many Malaysian investors have made lucrative profit from these investment programs and the number of investors are steadily rising.

David Chong is the popular author of David Chong's Investment Blog. Since he cease his popular blog, one of his favorite blogsite which he now reads and recommend is http://www.landbanking.us which serves as an informative guide on landbanking and managed real estate investments.

The Greenbelt land Debate in United Kingdom

2007-11-07T09:37:00.000-08:00

Who will win the debate? There are primarily two sides of argument to the debate on greenbelt land. On one side is the government (and developers) who argue that they have a responsibility to provide affordable housing to the people and calls for a review of greenbelt land policy.

On the other side is the people (of UK) who wants to preserve a ‘green’ UK in order to protect the country’s wildlife and ecosystem. The housing situation in UK has created the opportunity for landbanking companies to flourish in UK. But who will eventually be the winners and losers? Read on.. The Greenbelt land Debate in UK

Landbanking in United Kingdom

2007-11-07T09:34:00.000-08:00

Three major locations for landbanking investments are currently in Canada, UK and US. Companies such as Walton International Group started off with projects in Alberta, Canada… moved on to Ontario, Canada and finally to the US.

Edgeworth Properties has a highly focused strategy in the high growth areas of Alberta, Canada. And finally, companies such as Profitable Plots, UK Land Investments and Jardine Smith International are marketing lands in UK. Today we will touch on landbanking investments in the UK!

Read more .. Landbanking in United Kingdom

Subprime Effects on Landbanking

2007-11-07T09:32:00.001-08:00

Everyday whether I read the business headlines in the morning or watch Bloomberg TV at night, there is bound to be a mention on the subprime mortgage crisis in the US. Now what exactly is the subprime mortgage crisis? In short, it was started by mortgage lenders in the US who extended mortgage loans to consumers with low credit rating (subprime) as opposed to consumers with a high credit rating (prime).

Consumers whom could not qualify for a mortgage loan under the mainstream banks flocked to subprime mortgages with variable (usually on an increasing basis) interest rates. Now if the value of the property rises, the home owner could always refinance their loan to keep their loan cost low. The problem arises when the US housing market stagnated and these home owners could no longer refinance their loan. Caught with the increasing interest rates on their housing loan, they could no longer afford to repay their loan and many eventually defaulted. This in turn created a ‘domino effect’ on the world markets. A report at Wharton gives us a more detailed picture of the crisis. Now what are the real effects on landbanking…

Continue to read more..

Subprime Effects on Landbanking

Genesis Land Development Corp.

2007-11-07T09:30:00.000-08:00

Today, I am in a dilemma… should my blog have a local focus or a global focus? Should I focus on investments available locally in Malaysia or explore what is the BEST investment opportunities available in the world today? To solve my dilemma, I thought about it for a moment… if given a choice, would I rather gain the best investment returns benchmarked against local investments or against the entire world? Well, I guess its a no-brainer, I am putting my money where I can gain the highest returns within acceptable risks irregardless whether it is available locally or overseas. Why ‘limit’ myself to local investments if the returns are low? I plan to write a series of reviews on land banking investment available overseas but has no presence yet in Malaysia. First up on our company review will be on Calgary-based Genesis Land Development Corp. Read the rest of this entry »

What You Must Know For Property Surveys For UK Land Investments

2007-11-05T19:15:00.000-08:00

If you are considering investing in UK land, you will need to have a property survey performed. The following questions and answers will help you understand the details about what a UK land property survey is, how the survey is carried out, and why a property survey is needed for UK Land Investments.

What is a UK land property survey?

A property survey is an examination of a piece of land that yields a report describing the land's features. Land survey is a vital preliminary step when one is investing in land. The various types of surveys are described later in this article.

Why do I need a property survey for a UK land investment?

The property survey provides important information that you will need in order to make good decisions about investments in UK land. The results of the survey may cause you to reconsider the asking price of the property, and may give you leverage to ask for a decreased price. You may even reconsider the decision to invest in that particular piece of land.

How is a property survey accomplished?

Conventional transit and tape, electronic angle and distance measurement equipment, as well as computer-aided systems are used. Physical markers are typically placed on the property and a survey map is created.

What are some of the different types of UK land surveys?

Subdivision Survey:

Maps out boundary determinations for the purpose of subdividing a portion of land into smaller sections.

Topographic Survey:

A survey of both natural (vegetation, creeks, contours etc.) and man made (buildings, fences, monuments etc.) elements on the property which is used to help plan, design, and build on a site.

Land Survey:

A land survey determines size, level, and character of the land, usually for purposes of obtaining project approvals.

Boundary Survey:

These surveys can be done in combination with a land survey or independently to establish disputed boundaries, when property ownership is being changed, or when a building project is planned.

How does one find a qualified surveyor?

Some land survey companies specialise in a specific industry or specific type of survey. Choose a UK land surveyor who has expertise in the type of survey that fits your specific need. Never select according to price alone. Choose one who has a good reputation and with whom you are able to easily communicate. The Royal Institute of Chartered Surveyors provides referrals to surveyors of all specialties.

How do I prepare for the UK land survey?

Discuss the specifics about your potential investment. The surveyor can then recommend the type and scope of survey needed. The surveyor should be given the current title report information about the property in which you are interested. Let the surveyor know about any specific questions or concerns you may have about the property, in order to be sure that those issues are addressed.

How long will the surveying process take?

The length of time it takes to complete a UK land survey depends on several things, including survey type, shape, and size of the land, terrain level variations, amount of existing brush, and how easy it is to get to and measure the land.

What is the cost for a property survey?

The variables listed above for the time scale will also affect the fee. Look for a surveyor who offers free quotations.

Remember, the fees you spend on a property survey before investing in land, can save you both time and money later on.

Leonard Montgomery is a an expert in UK Land and land investment. For more educational resources for the private UK land investor please visit http://www.land-investment-uk.com