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Have a look through API magazine for the last year. They had an article on setting up syndicates and what you needed to cover in agreements. They described an actual development and how they did it.
That’s a difficult one. I think to find out the true situation you really need to visit and do a proper assessment.
The blurb below is trying to illustrate just how different things are in south east asia to Aus/NZ.
Medical care in Malaysia is very different to Australia and NZ. My wife’s uncle has diabetes and had problems with some of his toes. The family took him to see specialists in Singapore who stuffed around taking one toe at a time off. He had a bad turn back home in Malaysia and the public hospital took off his leg (just under the knee), his recovery was spectacular and has not had a problem since.
People in Malaysia would say that the specialists were dragging things out to make more money. I’m not a doctor so I can’t say things would be done differently here.
Doctors in Malaysia and Singapore tend to give antibiotics like lollies. The ones they mostly give are about as strong as lollies but they are still antibiotics. They do this because patients will shop around and if they don’t get antibiotics they will just go to another doctor. We were told this by a GP in Singapore and also saw an example of it in Malaysia where the doctor said it’s a virus and then proceeded to supply antibiotics and panadol.
The people I know in Malaysia tend to get medical treatment as a last resort, they will then expect instant results.
I think a lot of the medical professionals in Malaysia are very good but people have very high and often unrealistic expectations.
I suspect most people visiting a physiotherapist would expect an instant recovery and would not be happy to be told what exercises they need to do.
I’m sure you could make a good business for yourself. I’ve seen it in lots of countries, people with lots of money seem to like foreign medical professionals. There is a swedish dental practise in Kenya that charges something like US$1000 for a root canal, the local dentists (UK trained and very good) charges around US$150.
I’m sure if you marketed yourself well in KL and delivered excellent service you could almost charge anything you wanted. Remember that the patients you would be targetting normally believe the more expensive you are the better you are.
Originally posted by Scarecrow7:I also have the luxury of considering property in Malaysia where the devaluation of US$ is bringing tremendous buying opportunities, so again with calculated risks, there is a selfish silver lining in the A$’s momentum for me.
Good luck Scarecrow7. I’m sure you’ve seen the number of abandoned houses and abandoned construction projects in Malaysia.
It just amazes me that while all these completed houses, half completed houses and partly completed buildings are slowly falling down, some developer is building 500m up the road. It’s also scary to see how much land reclamation goes on. I certainly wouldn’t be paying for a sea view in Malaysia, who knows where the sea front will be in a couple of years time.
Having said that, I wouldn’t mind a few good houses in KL but with a price tag in the millions I think I will make do with Queenstown, the view is better and apart from the food it’s a better holiday destination than KL.
Originally posted by SergeMaton:The GST is chargeable at 0%
Does this mean I have to register for GST if I’m buying this investment?
Is it possible for me to take the apartment away from the hotel operator and rent it myself as a normal residential rental (for example, if the hotel operator is not performing)? Would this trigger any GST payment due to IRD?
61m2 for a type “i” 2 bed ground floor apt inc patio.
Type “e” 2 bed 41m2 inc deckThis is another trick these companies use. They include the deck or patio in the floor area they quote.
This sounds like a promising opportunity. If I was looking at it I would also check how big the development is. If it’s got more than about 50 apartments the banks tend to be wary of them, which can make it hard to borrow money on them. This may not be an issue for you but could present problems if you ever need to resell. I looked at a 200 apartment development in Auckland and was told only one lender would lend 80% on it due to the size of the place.
The apartment size is also considered by the lender, some will accept 40m2 but most won’t be interested unless it’s 50m2 or more.
The 2007 completion date makes it sound like it is a very big development. You should also check out if the developer has “resource consent”. This process can take a very long time and has killed projects in the past.
It sounds like the developer is trying to meet their pre-sales target to get bank funding, you may be able to negotiate some good discounts by buying now.
Sounds like a serviced apartment deal to me.
8% won’t pay your costs. You need to be nearer to 10% in NZ.
If it’s downtown Auckland CBD you may have trouble financing it (without additional property as security) and it will be even harder if it is a serviced apartment.
LIM = “Land Information Memorandum” (I think).
It’s basically a copy of the relevant files held at the local council, it can tell you if there are any outstanding issues with the council (such as drainage problems or work that was started and never given final approval).
I think it also tells you about the council rules for the area (like building restrictions due to high winds etc).
It can only tell you what the council knows, obviously if there is a problem they don’t know about it won’t show up!
P.S. On re-reading what I wrote above I forgot to say this is a NZ term defined in one of the acts governing local councils.
That story has a bizarre ending. It’s illegal in NZ to ask for more than two weeks rent and four weeks bond on a normal residential rental. The landlord could get into trouble for accepting the $6,000.
I prefer to leave the loan on interest only permanently as long as I can make principal payments should I want to.
This makes it easy to check that the bank is calculating interest correctly.
When I decide I want to reduce the loan balance I just pay some money back.
My ideal loan type is revolving credit as this gives you full control of what happens.
muppet, I’m curious to hear what you think after you have been to the sales pitch.
I also did the calculation on the richmastery seminar, I assumed 500 participants (from counting tables in the photos) and $1,000 profit per head. Not a bad way to get $500k and I think they are running two seminars in October.
I can see when the current property boom subsides and people go off property I will have to start preparing seminar material to sell during the next boom.
