/// Exclusive Interview
From a Room Tenant to a Landlord for Many
Jacky Liaw, age 31, discusses the benefits of letting your properties
E
xecutive Director of Airworld
Travel and Tours, Jacky Liaw was
previously a student at Monash
University in Bandar Sunway. He
never had much interest in property
and real estate, but he noticed
how a lot of students (including
himself) rented a room at nearby
housing estates. He soon realized
the business potential of buying and
renting houses in the area. And in
2007, at the tender age of 25 years
old, he bought his first property in
Bandar Sunway.
He said, “People always tell us to
never put all our eggs into one
basket, when it comes to buying
properties. But I believe that you
should so that you will be able to
earn more money at a faster rate.
When I purchase properties I always
make sure that I am familiar with
the area and Bandar Sunway was
my home for many years. I know the
market well and I was confident that
I could create a business out of it.”
He adds: “After I bought my first
house, I realized that if I could
purchase two more houses around
the area I could make enough rent
to cover my bank loans. So that’s
what I did. And I ended up buying six
properties in Bandar Sunway.”
Many landlords think that renting to
students is risky business and not
worth the headache. But for Jacky,
they are the perfect tenant because
he sees an opportunity to make
more money. He has a strict penalty
system whereby he will deduct
money from their deposit if they
cause any damage to his property.
And it works.
According to Jacky, even though
he targets students, he is actually
in business with the parents.
And he takes the effort to foster
relationships with the parents and
keep in touch with them on a regular
basis. That way he gains their trust
and they become long-term clients.
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Besides purchasing residential
properties to rent, Jacky has also
invested in six other properties
which include commercial
properties. However, he refuses
to purchase retail properties as he
finds it very unpredictable.
He explains: “We already have an
oversupply of retail properties in
Kota Kinabalu and it’s hard because
Chinese investors as well. He said,
“More developers from China have
joint ventures with local developers
and I foresee this trend to continue
in the near future. Property prices
in China are sky high and it is much
cheaper for the Chinese to invest in
properties here. Plus, Sabah has so
much more to offer like our pristine
islands and mountain views.”
You have to be brave and you also have to be
smart. Plan, but don’t plan too much until it
scares you. The market is going strong and
properties will appreciate in value.
our people just don’t have the
buying power. We have a lot of
tourist coming in but that’s not
enough. Sabah is not a shopping
paradise and that’s the simple fact.”
Other than letting his properties
to students, Jacky also sees the
potential in renting his properties to
tourists especially in Kota Kinabalu
where there is still a lack of hotel
rooms. A lot of tourists also prefer
to travel in bigger groups and rent
apartments as it is cheaper then
booking hotel rooms particularly if
they are staying for a longer period
of time.
And with the increase of flight
connectivity and Malaysia My Second
Home, Sabah is also becoming a
popular destination for expats to
relocate. Being in the travel industry,
Jacky knows that more and more
people from China are gaining
interest in Sabah. The state is now
a top travel choice and he predicts
that we will see an increase in
He continues, “There are also a lot
of other factors why foreign buyers
find Malaysia an attractive country to
invest in. Firstly, our property value
is still considered very reasonable
compared to many other countries.
And compared to neighbouring
countries, we are stable politically,
we have good natural resources and
we are not affected by major natural
disasters.”
As more foreign investors are taking
interest in Sabah, Jacky is also taking
interest in investing overseas. He
currently has two properties in
Macau that he purchased with a
partner. The rapid growth of the
region dubbed the Las Vegas of Asia
shows a lot of potential and Jacky
aims to take advantage of it.
When it comes to giving advice to
potential property investors, Jacky
says they just have to not over think
it and follow their intuition. And
if people have difficulties raising
the initial funds to make the down
payment, Jacky thinks that the best
way to go about this is to find a
partner (or more) who has good
credit and who can share the
financial burden with you.
He says, “I can frankly tell you that
most people who are successful
in property investment and other
areas in life think less and do more.
You have to trust your gut feeling.
But definitely do your research on
the property developers and invest
in location especially in properties at
the central business district.”
He goes on saying that there is
no right or wrong time to buy or
sell. But he does admit that the
new restrictions by Bank Negara
which makes it harder to get a loan
will definitely affect the property
market. Plus, the property prices in
Sabah especially is increasing and
surpassing the purchasing power
of the locals. This will be the main
challenge to come. Jacky however
does encourage those who are
seeking financial freedom to venture
into property investment.
He says, “You have to be brave and
you also have to be smart. Plan, but
don’t plan too much until it scares
you. The market is going strong and
properties will appreciate in value.
And you don’t have to worry because
the market in Malaysia is quite stable
and prices don’t fluctuate quickly like
other countries.”
As for his future plans, Jacky is
hoping to be able to combine both
his businesses together: travel and
property. He dreams that one day
he can include property tours into
the travel itinerary that he offers
and allow tourists to visit different
property showrooms in between
visiting tourist sites and shopping
malls.