Real estate prices in Asia have been on the rise during these past few years. This scenario was evident despite the Asian financial crisis in 1997 and the near missed global recession in 2008.

Here are some of the cooling measures governments had put in place to tackle this sensitive issue of providing affordable housing for their own citizens.

Let us first take a look at land scare Singapore, an obvious hotspot considering her small size, political stability and attractive demographic. Foreign institutional and retail investors from around the world as far away as USA, Canada, Europe, Middle East, and neighbouring countries like India, China, Indonesia and Malaysia are flocking to this island state to snatch up the private properties.

Prices for leasehold condominiums located in the sub-urban area can easily cost $1 million. To retard the escalating property prices and to pacify the outcry from the citizens, the Singapore government reacted swiftly with these latest sets of cooling measures, effective 1 December 2011.

1) Foreign investors will be subjected to a 10% stamp duty in addition to the current 3% of the property price.

2) Permanent Residents buying their 2nd or more property will be subjected to an additional 3% stamp duty from the current 3%.

3) Singaporeans buying their 3rd or more property will be subjected to the additional 3% stamp duty.

Real-estate prices have gone up so much that some analysts in this island state are expecting prices to fall by as much as 20~30% from end 2012 to 2013. But having said that, this is subjected to the economic developments coming from U.S, Europe and China.

Next, let us look at Malaysia. This country is separated into two portions by the sea. Peninsular Malaysia lies south of Thailand, and is bordered on the west by the Strait of Malacca. Across the South China Sea are Malaysia’s eastern states of Sabah and Sarawak.

Malaysia is a relatively large country and thinly populated. The highest concentration of property investment is in the capital. Contrary to Singapore, there are no restrictions on foreigners owning landed properties, though foreign investors are subjected to the following set of regulations.

1) A foreign-owned levy 11,000 Malaysian Ringgit

2) Minimum property price is 500,000 Malaysian Ringgit

3) Not permitted to own Malay reserved land

4) Own up to a maximum of 2 properties only (If there is intention to own a 3rd property, application for approval has to be submitted to Foreign Investment Committee of the Economic Planning Unit at the Prime Minister’s Department).

The newest project located on the southern part of the country is expected to be the next economic power state for the country with its close proximity to Singapore. The Malaysian government had already invested millions of dollars into the development of this project and is expected to spend millions more, considering the sheer size and economic importance of the area.

Most investors understand that the housing market goes in cycles. There are times when the market is doing great, and prices keep going up and up. Conversely, there are other times when the market is in a slump and the prices are depressed-that’s where we are right now. And while many people see the down market as a bad thing, with the help of real estate (RE) advisors a number of people can learn to try and capitalize on multifamily real estate investments when the market is down. With their help, you can profit even more when the market makes its way back up.

There is More to Real Estate Investing Than You Might Think

Investing in RE is more than just buying a house that is undervalued. Sure an undervalued home can be a good investment, but it sets the individual up for quite a bit of risk. Instead, a better way to make a real estate investment during a down market is to purchase multi-family units. Apartment buildings provide numerous streams of income from one property. That said, there are a number of benefits to multi-family properties.

The Many Advantages of Multifamily Investing

The biggest advantage to purchasing a building with multiple units is that there will almost never be a time when all the units are empty. This means that even in the event that a tenant decides to move out, you will still have revenue coming in from other tenants to help pay for the mortgage on the building. Of course, there is no guarantee that the units will always be filled, but it is less risky that investing in a single unit building. The law of averages works in your favor.

Now you might be thinking that with a property that has multiple units, there are also many more things that can go wrong. Along with more units come more upkeep and maintenance issues. But this problem can be solved by hiring a handyman service. By leasing a unit to a handy-man and not charging any rent, the building will stay well maintained, and you can avoid the cost out of pocket costs.

What about the Fact that Multifamily Real Estate is More Expensive?

Some might say that the downside to purchasing a multi-unit property is the price tag can be a bit higher than on a smaller single family residence. While this can be a detriment to those who are having trouble getting a loan, it is not always as big a deal as you might think. Many lenders will count signed leases as income, allowing the person purchasing the building to qualify for a much larger loan. You can also go in with other investors on a multifamily property, cutting down on the size of your initial investment.

Decrease Risk by Hiring Real Estate Investment Advisors

It’s true that there are no guarantees with any investment. But there are ways to lessen the risk when investing in RE. Having a little business sense, and hiring the right real estate advisors will help a person learn how to mitigate risks and how to properly purchase, manage, and profit from multi-family properties.

Real estate is becoming big business once again. The economy is recovering and people are gaining more confidence to spend on large investments. However, real estate investing is not as straight forward or simple as many people view it. It isn’t just a simple matter of buying houses and selling them. If your goal in investing in real estate is to achieve a high level of excellence then you must consider the best real estate investments and how to get them so as to reach your goal.

It is obvious that the best real estate investments are those properties that are bought at lower prices than their market value. These properties can be later sold at their real market value or for slightly more. You may be wondering how to get hold of houses that are being sold at low prices. This is an easy enough task. All you have to do is be on the lookout for houses that have been repossessed by lenders. Houses on foreclosure are usually sold for a lower price than what they would be sold for in the market. Lenders are anxious to get their money back and would not care much for making a profit on the property sold. Houses are therefore sold at low prices.

Some of the best real estate investments are those that are sold for market values but have some hidden and unexploited potential in them. When you buy such a property ensure that you make the necessary improvements and have the property back on the market within six months to a year. This will ensure that you get at least 20% more on the house. This requires you to look for a house with care. Don’t just pick any house but, pick one which can be easily improved and therefore appreciate in value.

The best real estate investments for those looking for long term investments are rental properties. With signs of improvement in the economy more people are going on holiday. Holiday rental properties are therefore a good investment as more people prefer to have their own home away from home experience as opposed to living in a hotel. Residential properties are also a good investment as more people move into urban areas.

By Martin Njogu