practicing and properties makes perfect

INVESTOR NEXT DOOR
PRACTICING AND PROPERTIES
MAKES PERFECT
A lawyer by profession, but an investor by passion, Dato’ Teh Tai Yong
tells us his secret to balance and success
BY: NATASHA GIDEON
A
lawyer by profession, but an investor
by passion, Dato’ Teh Tai Yong tells
us his secret to strike a balance in
life. Dato’ Teh is a senior partner at law
firm Teh Kim Teh, Salina & Co., which has
offices at Setia Alam, Kota Damansara and
Johor Bahru.
Dato’ Teh, who is also a Visiting Associate
Professor at the Southwest University of
Political Science and Law China, practiced
Law before venturing into property
investment. He started practicing in 2005
at Shearn Delamore & Co. and started
investing in property later on in 2008.
Investing in property came naturally to
him as he was already involved in preparing
legal documents for property related cases.
Since then his interest in property
investment grew tremendously and he has
never looked back.
The first property Dato’ Teh purchased
was located in Bukit Jalil. Due to other
commitments then, instead of letting the
idea of buying the property, he made a
wise decision by combining resources with
three other friends to buy over the property
in 2008 by way of a joint venture.
“Like other great ideas, this one started at
a ‘mamak’, too. We were having ‘teh tarik’
after a badminton session one day and
decided to buy a unit at Vista Komanwel,
Bukit Jalil for RM210k. The returns were
good and after we sold the property
few years later, we made over RM40k
each. From there I reinvested into other
properties and that’s where it all began.”
The risk and capital for Dato’ Teh’s first
investment was well spread and today, he
56 I APRIL 2016 www.propertyinsight.com.my
INVESTOR NEXT DOOR
Have a mission and a goal. Ask yourself why
you’re buying before you do anything else.
Whether it is for your children or financial
freedom, make sure you know why”
- Dato’ Teh Tai Yong
has 35 properties in his portfolio.
“I had 32 properties when I was 32, so
people joke about me buying (a property
every year) according to my age,” he
chuckled.
Amongst the many hurdles along the
way, the toughest yet for Dato’ Teh is the
financing part of it. “Banks are even more
prudent than before and loan approvals
are something all of us know are difficult
to come by.”
But he is positive in this trying time and
hopes to see the market stabilise soon.
“We hope to see loosening of bank loans
and changes in policies. It should be a
matter of time.” Besides that, another
personal challenge that Dato’ Teh goes
through is the accumulation of knowledge
he sets to achieve on the property market.
“It has and will always be my biggest long
term challenge. I constantly keep myself
updated with the relevant information.”
Dato’ Teh has a multi-prong strategy
when investing in properties.
“I usually buy and flip units under
construction which I choose to buy from
reputable developers and sell them off
once completed. For positive cash flow, I
usually rent out high rise and commercial
properties as they bring in a higher yield.”
In terms of managing all the investments
at hand, Dato’ Teh ensures he has a good
credit score, so that banks are more
confident in giving out more loans for his
future purchases.
“It is also important to keep a cash reserve
after vacant possession your property is
delivered. That is when you need to service
your loan instalment.”
He also claims it is important to have a tight
screening process to find the best tenants.
“I’m not afraid to say ‘no’ to tenants I’m not
comfortable with. It’s always important to
set a good first impression, leaving them
with an idea of how serious you are about
payments.”
Dato’ Teh seeks for good deals from
all channels available and uses that
opportunity to find himself investments
with good returns.
“There are online and offline portals, like
magazines and online websites. But I also
follow developers with a good track record
very closely.”
Besides that, he looks out for good
townships with excellent potential, hence
he always make sure he is up to date
with all the property know-how and knowwhere.
Dato’ Teh has three tips he lives closely
by when investing in property. “Have a
mission and a goal. Ask yourself why you’re
investing before you do anything else.
Whether it is for your children or financial
freedom, make sure you know why.”
“Secondly, it is important to have good
connections. Keep a good team of strategic
partners close so it’s easier for you to
deal with your business investments.” He
explains the last bit with a laugh. “You also
need to know the law! Know the property
and banking laws, what amendments have
been made, when? For instance, the RPGT
(Real Property Gains Tax) may change
from time to time. Find out all these things
before diving into the market.”
For the challenging year ahead, Dato’ Teh
urges all investors and investors to-be to
keep their eyes open for good deals in both
primary and secondary markets. “Good
market players will survive this cycle. I’m
optimistic about 2016 and I will not take a
break this year, that’s for sure.”
www.propertyinsight.com.my APRIL 2016 I 57