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Sunday, 11 April 2010

Developing properties for different generations

THE hype surrounding the huge “generation gap” among Malaysians seems to be among the many efforts marketeers are creating to widen the appeal of their products.

Differentiation is certainly a clever way to expand in an otherwise listless and static market. From new generation gadgets such as the iPod to branded fashionwear and credit cards, marketeers are quick to leverage on these differences to make us buy into their message that “we should never leave home without them.”

The country’s demographics is changing fast with more young Malaysians making up a bigger share of the population. The Gen-Yers (aged 15-30) are making a big impact in the market place. The Gen-Xers (born between 1965 and 1979) and Baby Boomers (1945-1964) are also important market segments as they wield the most purchasing power.

The different needs, habits and lifestyles of the various age groups creates huge opportunities for property developers to tap into.

So, planning and designing the right products to meet the requirements of the various age groups should be among the priorities of niche property players.

Instead of turning their projects into a one-size-fits-all, the better option is to identify special products and fit them with the right facilities for the different age groups. This will add higher value to the projects and make them more marketable.

In fact, greenfield projects offer the best opportunity for developers to draw up a good master plan where the needs of different buyers can be catered to.

Irrespective of age, developers should note that property buyers place high priority on security, good neighbourhood, quality workmanship and convenience. So, projects should always be planned with those needs in mind.

Although there are more niche developments, especially high-end gated and guarded enclaves, most property projects are conventional developments aimed at the mass middle-income market.

The projects are mostly apartments, terraced and detached houses with the usual basic necessities, either in guarded or non guarded enclaves.

I believe there aren’t any developers that have set out solely to cater to the needs of senior citizens. The reason may be because most senior Malaysians are cared for by their children and are living with them, while some may be in homes for the aged or infirmed.

But there is certainly a growing number of senior citizens that have the financial means to own homes in well planned, built and managed housing estates.

For many senior citizens, retirement will be the best time to pursue their “postponed gratifications.” Those with grown up children are likely to experience the “empty nest” syndrome and will look forward to live in homes that are easier to manage.

Many Baby Boomers (aged 45-64) will soon be joining the ranks of retirees and are likely to consider such facilities. If properly planned and managed, developments for our senior citizens could be the next trend for developers just like in Australia, Japan and South Korea.

Projects should preferably be low-density and low-rise with amenities for the aged such as lifts, ramps, medical facilities and attendants, health rejuvenation centres, laundrettes and convenience stores.

As most retirees will look forward to a more relaxed environment, developments should be in quiet suburbs, but close enough to the basic needs and conveniences.

Meanwhile, properties that cater to younger buyers such as Gen-Yers should have smaller built-up for easier maintenance.

 The Real Estate by ANGIE NG
Deputy news editor Angie Ng believes simplicity can enrich one’s life regardless of whether one is a Baby Boomer, Gen-Xer or Gen-Yer.


The Magic of Property Investment, Book review:\

EXCERPTS from The Magic of Property Investment:
 
Here are several reasons why Renesial Leong likes property investment over other forms of investments:


>Cash flow on a monthly basis
  Make sure your rental income is able to cover mortgage repayment, service charges and other expenses.

>Leverage

A 10% downpayment is equivalent to 100% ownership. Be careful with the gearing though.

>Capital appreciation
Well located properties have good capital appreciation over time, especially landed units.

>Property investment pays for itself over time
If the rental income is sufficient to cover the monthly expenses, the property pays for itself over a period of time.

>Return on investment
Well thought out purchases, when put on the rental market, generally provide a positive return on investment.

>Control
You have control over what and where you want to buy, and the type of properties you are comfortable with. It is also within your control whether you want to rent or put it up for sale.

>Hedge against inflation
One of the reasons why property appreciates in value over time is due to inflation. The price increase in new properties is generally reflected in an increase in existing properties.

>The benefit of use
Whether it is a house, an apartment or a commercial property, there is a demand for it if the property is well located.

Related story:

An unexpected success

An unexpected success

RENESIAL Leong’s success in property investment was not something she expected or sought. She went into it because of a need – she was tired of being poor.

“My father was a dedicated teacher and extremely passionate about his career. But we were poor and I was tired of always being in need.

“I went into property investment not with the goal to become rich but to meet a need for myself and my family.”

Leong says she had several options to choose from. “You have to invest to grow your capital. You either go into business, buy stocks and hope for capital gains, or invest in properties.” She took the last route because it was the most stable and tangible.

Leong’s perseverance to delay self-gratification has also helped her succeed in her field of work.
“You have to invest to grow your capital. You either go into business, buy stocks and hope for capital gains, or invest in properties.” —Renesial Leong

“I disciplined myself. While my friends were going to the movies or shopping, I was looking at properties. My mother also gave me a lot of strength to weather that period in my life. I wanted to make life better for her and that also motivated me tremendously.”

Leong has been in property investment for about 20 years now. In her early days, she would buy a property, sell it and reinvest the proceeds in two or three properties. Today, 70% of her property assets are commercial while the rest are landed and high-rise condominiums.

“In some ways, commercial properties are easier to manage. Because the tenant has a business to run, the onus is on him to upkeep and manage the place well. A business will be there for quite some time. It is different for residential properties. The tenant may stay for a year or so,” she says.

Leong’s achievements have enabled her to divide her time evenly between work (six months) and personal development (six months). Her experience in property investments have helped her to think long term and she uses this principle when planning for her personal development.

“Like my father, I put a premium on education. I really enjoy short courses, not just to learn, but also to experience the culture and life in another country,” she says, adding that she intends to keep on learning regardless of age.

Leong has been setting aside several months in a year for this purpose. She will be going to Britain to do a four-month course on psychology and marketing soon. She plans to go to Oxford next year and subsequetly Harvard.

Leong recently released her fourth book titled The Magic of Property Investment. She is currently working on her fifth book with feng shui master Joey Yap.

She says her fifth book will incorporate elements of feng shui as she believes property owners should know more about it.

“Whether one believes in it or not is irrelevant. There may come a time when you want to sell or rent out a place. The buyer or tenant may (subscribe to feng shui) and there goes your customer.”

For example, according to feng shui it is not ideal to have a house located at a T-junction because on-coming cars will shine their headlights into the house. Home owners also have to contend with dust due to passing traffic and lack of privacy.

Leong says it is important that people know when to take a break from work. She says people often go on working without knowing when to slow down.

But while her work life is on a different pace, it is by no means a slow one. She continues to give talks around the world.

Be it European or Asian countries, the principles of property investment remains the same and she wants others to benefit from it.

“I’m glad I spent time with my father and though I am sad that he is no longer with me, I made time for him. And I thank my mother for standing by me when I started on this investment journey when I was in my 20s,” she says.

Note: Property investment consultant Y.M. Leow, who is trained by Renesial Leong, will give a talk on The Ultimate Property Mastery today (2.30pm-4.30pm) and April 28 (2.30pm-4.30pm and 8pm-10pm) at Level 1, Menara PJ, Amcorp Mall, Petaling Jaya. Tel: Liew 9059-5785/017-720-6030

By THEAN LEE CHENG, leecheng@thestar.com.my

Related story:

Book review: The Magic of Property Investment