Portfolio diversification is the key to growth with minimum risk.  We therefore consider property to be an important part of a clients investment portfolio. Why is Property Such an Essential Asset Class?     Property returns often run counter to both equities and bonds and thus reduce volatility     Property values and rental income have traditionally tended to exceed inflation     Property values rise and fall more slowly than equities and bonds, thus further reducing portfolio volatility     The perfect retirement play – growth AND income Many people consider themselves to have already invested in property, however this is a misconception because:     Your home will give you shelter in retirement     Its value should be your hedge against poverty, not be allocated as a source of the retirement income     It is the main asset that you intend pass to your children     It cannot provide income while you maintain full ownership/control     It is likely to have been purchased using emotional criteria and not carefully evaluated as an investment vehicle For these reasons we consider Property to be of utmost importance as part of a client's portfolio.  We aim to help you to construct a full balance sheet with the inclusion of 'Property as an Investment'. Our property services therefore include:     Mortgages          Thai Properties (Residential and Investment)     Property Investment Funds        Bali Properties (Residential and Investment)      UK and European Investment Properties     Hong Kong Investment Property      Malaysian Property (Residential and Investment)

Property has been a popular route to wealth for many years. Buying our own home is often the first ‘investment’ many people make, and purchasing another property may well be the second – even before shares and other assets. Indeed, buying a small apartment, especially offshore, to rent out can be a good way to accumulate funds so you can eventually buy your own place. Investments in property have many attractions. Property can be less volatile than shares - though not always - and it tends to be regarded as a safe haven when other assets are declining in value. It has the potential to generate capital growth (an increase in the value of your asset) as well as rental income. Then there’s the tax advantages associated with negative gearing. However, as with any investment, there are no guarantees. Property prices go down, as well as up, and sometimes tenants are hard to find – especially good ones who pay on time and take care of your investment. Investors need to have a keen awareness of the interest rate environment – how higher rates might affect their expected net return and the market for their property should they wish to sell. You also need to make sure the return or ‘yield’ from their property stands up against the return you may have achieved had they invested in shares, for example. Capital growth is the increase in the value of your property over time and is one of the main reasons people invest in residential real estate. The nature of the property cycle means real estate should probably be thought of as an investment with a 10-year horizon. Your best chance of achieving capital growth is buying the right property, in the right place, and – most importantly – at the right price. As always with property: location, location, location. With Intelligent Investments, we are able to help and guide you in buying:      UK and European Investment Properties       Bali Properties (Residential and Investment)     Malaysian Property (Residential and Investment)     Hong Kong Investment Property     Thai Properties (Residential and Investment)       It is important to apply the same standards to a property investment as to any other investment, ‘benchmarking’ the potential return against what you might achieve elsewhere. An important measure is a property’s yield. That can be calculated by dividing the annual rent it generates by the price you paid for the property and multiplying that by 100 to get a percentage figure. Remember, yields fall as house prices rise, and keep an eye on vacancy rates – the proportion of properties sitting empty out of the total rental supply.

With its political stability, economic strength, good climate and high quality of life, Malaysia is an appealing favourite destination for second homers. Malaysia My Second Home Programme, MM2H, is promoted by the Government of Malaysia to allow people from all over the world who fulfil certain criteria, to stay in Malaysia as long as possible on a social visit pass with a multiple entry visa. It is open to all citizens of countries recognized by Malaysia regardless of race, religion, gender or age. Applicants are allowed to bring along their spouse and children as dependents (below 18 years old who is not married). Finance/Income The following sets out the financial criteria which depend on the age of the applicant. If a married couple apply the oldest person’s age decides the appropriate criteria. i) Applicants aged below 50 years old: Must open a fixed deposit account of RM300,000 Can withdraw up to RM240,000 for the purchase of house, medical insurance or children’s education expenses after the deposit has been placed for one year. Must maintain a minimum balance of RM60,000 from second year onwards and throughout stay in Malaysia under this programme. ii) Applicants aged 50 years and above: Have to place a fixed deposit account of RM150,000. (If they receive a government pension or a pension from a well recognized global company in excess of the RM10,000 the requirement may be waived) Can withdraw up to RM90,000 of the fixed deposit after one year to purchase of house, medical insurance or children’s education expenses. Must maintain a minimum balance of RM60,000 throughout their stay in Malaysia under this programme. Sponsor/Assistance There is no longer a requirement for a Malaysian sponsor. However, all MM2H candidates must submit their applcations through licensed agents only. Insurance Coverage / Medical Report Applicants must possess a medical insurance coverage from any insurance company that is valid in Malaysia. This may be waived for older applicants who are denied coverage because of their age. All applicants are required to have a medical examination in Malaysia. Participants of Malaysia My Second Home Programme are provided with various incentives to make their stay more comfortable and enjoyable in Malaysia.   Each participant is allowed to purchase residential houses at a minimum prices above RM250,000 each, depending on the location of the property. Each participant is allowed to bring in his/her own personal car OR to purchase a locally-assembled car without the need to pay import duty, excise duty and sales tax. At Intelligent Investments, all of our key advisory staff are permanently based in Malaysia, and through our extensive local networks here we are able to assist and guide you through the MM2H programme.

Pooling your funds with other investors in vehicles such as property trusts and property funds provides exposure to a broader range of property, including commercial, industrial and retail as well as residential, with often with a smaller investment required. You’ll be spreading your risk rather than being hostage to the ups and downs of the residential property cycle, and you won’t have to worry about kitchen colours and clumsy tenants. Real Estate Investment Trust - REIT A REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid, dividend-paying method of investing in real estate. There are three main classes of REITs: Equity REITs: Equity REITs invest in and own properties (thus responsible for the equity or value of their real estate assets). Their revenues come principally from their properties' rents. Mortgage REITs: Mortgage REITs deal in investment and ownership of property mortgages. These REITs loan money for mortgages to owners of real estate, or purchase existing mortgages or mortgage-backed securities. Their revenues are generated primarily by the interest that they earn on the mortgage loans. Hybrid REITs: Hybrid REITs combine the investment strategies of equity REITs and mortgage REITs by investing in both properties and mortgages. You can invest in REITs either by purchasing their shares directly on an open exchange or by investing in a fund that specializes in public real estate. An additional benefit to investing in REITs is the fact that many are accompanied by dividend reinvestment plans. REITs invest in shopping malls, office buildings, apartments, warehouses and hotels. Some REITs will invest specifically in one area of real estate - shopping malls, for example - or in one specific region, state or country. Property securities funds The growing popularity of Listed Property Trusts, LPTs, in turn, has led to the development of managed funds that specialise in investing in LPTs (as other funds do in shares or bonds). These are known as property securities funds. Some of these funds also allocate a proportion of their money to unlisted property trusts as well as LPTs. The theory is that property securities funds diversify your investments and reduce your risk even further. Another variation on the theme is the geared property securities fund, where managers use borrowed funds as well as investors’ money to buy properties, with the aim of boosting returns to investors. Intelligent Investments has direct access to a range of unique funds. One such proprty fund invests in three different property-ralted assets, reweighting the portfolio as necessary to achieve maximum growth and sustainable income from the following areas: Comercial property investments Shares issued by proprety companies and investment trusts Bonds issued by property companies and complementary institutions Property syndicates Property syndicates are another growing area. These syndicates are unlisted and usually involve a restricted number of investors and a set amount of capital to be raised (making them ‘closed-end’ rather than ‘open-ended’ funds). They are built around a single property or a group of identifiable properties. Syndicates usually have a set life of around five to seven years, making them much less liquid than listed property trusts. However, some managers allow limited redemptions under prescribed circumstances in the intervening period. Look for syndicates that have been assessed by independent researchers and be aware that entry fees and ongoing management fees are higher than for ordinary managed funds. Also consider the risk involved in being exposed to just one or two properties in a syndicate.

Buying a property is one of the biggest financial decisions most of us will ever make. However purchasing a property overseas, or back home when you aren't living there, can seem even more daunting, particularly when you have to weigh up currency risks, and dealing with lenders who work with different criteria than those you are used to. Mortgages should be straightforward: you borrow money to buy a house and pay interest on the loan. But after a few enquiries, you soon realise that it`s not so simple after all - especially as an expatriate. In a hugely competitive market, lenders are continually updating and extending their range of mortgages. Furthermore, only certain lenders will consider expatriates and those that do treat us in different ways.    The most important points for you to decide on are: How you pay back the capital you borrow, and How you pay the interest on that capital When choosing a mortgage, one of the biggest dilemmas can be working out which currency to borrow in. As a general rule, if you are buying a property back in the UK in sterling and the rental income is in sterling, then you should take out a sterling mortgage and avoid the extra headache of dealing with exchange rate movements. For non-UK residents who are UK domiciled, there are no particular UK tax advantages to using an offshore mortgage to acquire a UK property. This is regardless of whether the property is for their own use or as a buy-to-let. However, depending on the level of rental income raised by the property, purchasing through an offshore company could restrict the UK tax liability on the net rental income to 22pc. Where the property is held directly, tax could be payable at 40pc. For expats earning in other currencies, such as euros or US dollars, and who are buying a property for their own use, a foreign currency mortgage may be the best option. Lenders can often set up the loan using an offshore bank account and payments can then be made in the same currency as your salary.