#The Edge Forum* Value added properties for higher margins

KUALA LUMPUR:  A property investor can gain higher margins by adding value to a property, shared NK Tong, group managing director of Bukit Kiara Properties at The Edge Real Estate Investment Forum 2010 entitled “To buy or not to buy: Where to put your money?” on April 10.

One of five speakers, Tong, who spoke to over 500 participants at the forum held at the Sime Darby Convention centre on the topic of “Investing in Physical Properties” shared that investors who find “ugly” dilapidated properties in good locations have the opportunity to turn the ugly duckling into a swan and increase its value.

He cited an example of a property which Bukit Kiara Interiors Sdn Bhd acquired for RM2.1 million in 2005 in Bukit Pantai, Kuala Lumpur. After spending RM600,000 to renovate it, the house was later sold for RM4.2 million two years later. “This  venture was more profitable than being a developer,” he said drawing laughter from the floor.

However, Tong cautioned that investors must have a long- term view when it comes to investing in property and one should not make emotional decisions.

Moreover, a study of one’s personal investment profile is important to see if one is ready to invest in property. Some aspects to be considered are cash flow needs and investment objectives.

For the full coverage of The Edge Investment Forum on Real Estate 2010, read the April 19 issue of City & Country, the property pullout of The Edge Malaysia.
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