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Lease Option – Benefits to Seller (Lessor) & Buyer (Lessee) – Continue from earlier blog post.

Benefits to Lessor Lease option tenants (Lessee) will generally tend to treat or take care of the house better since they will soon own the property compared to a tenant of the house. They will generally keep the house clean, take care of the flooring or carpet and will clean it more regularly and will generally take care of minor repairs too. Lessee may under the terms of the lease option be required to take or assume the minor repair or maintenance works as they will assume ownership of the property someday.

How the real estate cycle drives economies and investors. Is Malaysia property cycle still in an expansionary period?

Real estate speculation drives this cycle of boom and bust. Economic growth leads to higher real estate prices as demand for property (from expanding businesses and flush households) grows. This increase in property prices is ultimately driven by land values: a house costs much the same to build, in terms of labour and materials; regardless of where you build it it’s the location that makes the difference to the value.

Lease Option – One of The Latest Strategies Used By Property Investors

Rich dad forbade the words ‘I can’t afford it.’… Instead, rich dad required his children to say, ‘How can I afford it?’ His reasoning, >the words ‘I can’t afford it’ shut down your brain. It didn’t have to think anymore. ‘How can I afford it?’ opened up the brain. >Forced it to think and search for answers.” Lease Option strategies are one such creative tool that allows you to invest in properties with little or no money down.

Will Malaysia property prices continue to rise in 2015 & 2016?

Where is Malaysia now in the property cycle? Is Malaysia in the final years of the upswing of the property cycle? How long more will the cycle remain robust? Malaysia property prices have been rising since 2010 fueled by easy credit, low interest rates and high demand on the back of strong economic fundamentals. The projected super cycle that will bust in 2012 did not happen. Prices continue to rise.

Boom & Bust Cycle: What Causes It?

In the “Business and Real Estate Cycle: The Kuala Lumpur Office Market” by Siti Almafahaza, Stockholm, 2011 master thesis, the author described the development of Real Estate in Kuala Lumpur that has taken place since 1960’s and how it has changed into a modern city with the impact of industrialization of the economy. The study shows that real estate cycle and business cycle do move in recurring wave-like fluctuations that are in a circular motion.