Using a blend of expert advice, common-sense wisdom, inspirational quotes, and personal anecdotes, Faizul Ridzuan rendered a two-hour seminar that spurred those who attended to take control of their financial futures.

To answer the question of why someone should buy a home instead of renting – even with less than RM400K – one of Malaysia’s Most Influential Young Entrepreneurs in 2017, Faizul Ridzuan, details his experiences as a property investor who went from being a salaried employee to a landlord in a short span of just a few years.

Property enthusiasts and aspiring homeowners gathered to hear the CEO of Far Capital Sdn. Bhd., Faizul Ridzuan, share some of his trade secrets at an exclusive event held at the artful Antara Residence sales gallery in Putrajaya’s Precinct 5.

To an investor as savvy as Faizul Ridzuan, negative market sentiment does not put a damper on the appetite for property investment, and neither does a property with negative cash flow – to Faizul Ridzuan, even properties that entail a negative cash-flow can be considered viable investments, “Personally, I don’t mind buying a negative cash-flow property – if it will become positive cash-flow within five years.”

To those who say paying rental instead of making monthly payments towards a home loan may free up more capital for investment into financial instruments or assets other than real estate, Faizul Ridzuan had this to say, “I think it depends on the property that you are buying.”

“So for example, if you buy in a high-rise – let’s say in Putrajaya – the attributed rental could be RM1,600 all the way up to RM3,000. To buy, it could cost you half a million ringgit, and your mortgage payments could be RM2,500. I would say that if your rental is more than 50 percent of that, I would buy."

“If, for example, I’m going to pay RM2,500 in instalments and I can rent below RM1,300, I would rent – but if the rental is above RM1,300, I would buy.”

Faizul Ridzuan is discerning about the kind of properties he chooses to invest in – if it isn’t “Grade-A”, in his view, it probably isn’t worth looking into. In response to the question of what factors determine if a property can be considered "Grade-A" and would represent a viable investment, Faizul Ridzuan is of the opinion that there are far too many to count, “You can’t finish writing it even if you had 200 pages to work with.”

But he relented and revealed a few golden rules, “A 'Grade-A' property is one that will yield a minimum 20 percent upside – buying at a steep discount, to a large degree, you’re almost guaranteed a margin of 20 percent."

“Let’s say Putrajaya today, the average price of a high-rise unit is about RM500 per square foot, if I get to buy one at RM300 per square foot, I don’t care whether the MRT comes in or not. That guaranteed upside of 20 percent makes it a 'Grade-A' property.”

As to how people can determine what is reasonably priced and what is considered below market value, Faizul Ridzuan had some more advice to share, “People think they know what the market value is, but they don’t. No one can tell you what the market value really is – even me, and I’ve got the advantage of 14 years of experience in the property market here in Malaysia – and externally, in places such as Singapore.”

“The most uncommon rule – but one that I strictly follow – is the average age of purchaser. The upside is greater compared to a development which is mostly made up of older buyers.”

“That’s why Bangsar South outperforms older areas of Bangsar – if you look at the demographics of buyers in Bangsar South, you’ll find most of them are younger buyers.”

The logic is uncanny in its simplicity: the incomes of younger buyers are expected to rise as they progress in their careers – which eventually leads to a spill-over effect on surrounding businesses and raises the values of properties in the area.

Check here for upcoming property forums so you don’t miss out on nuggets of wisdom like these.