INVESTING in real estate clearly still has the most number of success stories compared with the many other forms of investment, said Malaysian Institute of Estate Agents (MIEA) president Stephen Tew.

''Unlike other investment products such as equities, bonds, metals, futures, etc., investment in real estate gives you the opportunity to be in total control of the management of the investment and dictate its value via value adding, such as interior decoration or architecture,'' he said at the Malaysian Annual Real Estate Convention 2003 in Kuala Lumpur on Saturday.

According to Tew, between the years 1990–97, the Malaysian House Pricing Index registered a cumulative capital growth of 112% and it would have been the normal pattern except for the few years after the Asian financial crisis where temporary adjustments took place.

The Malaysian House Pricing Index reaffirms that the capital value of real estate generally doubles about every seven years. This is yet to take into account the average rental yield of about 7% a year that one would receive on one's property.

''The strong national population growth of about 500,000 a year provides a base to the whole equation of demand via the need for more domestic consumption, and hence the positive turning of the economic wheels,'' Tew said.

The two-day Malaysian Annual Real Estate Convention 2003, which ended yesterday, had attracted more than 500 people, comprising property industry practitioners and members of the public.

The year's convention, titled Profiting Through Strategies...Part II, was opened to the public for the first time. The previous 10 annual conventions were only extended to MIEA members.

The convention was aimed at providing participants with the necessary skills and know-how to be successful property investors as well as helping industry professionals improve their management and negotiation skills.

MIEA members are required to attend seminars of such nature to keep abreast with industry updates so as to be more efficient in their jobs. About 50% of real estate agents practising in Malaysia are members of MIEA, the recognised body representing the registered agents.

There are currently about 1,900 estate agent licences in issue but Tew estimates that of the number only 1,300 are actively practising.

''A person has to be licensed to be a legal real estate agent in Malaysia. And there's no such thing as a part-time real estate agent, that's illegal. The public is not aware of that,'' Tew said, adding that MIEA hoped the government would help it address the issue of illegal real estate agents.

Source : The Star  10/3/2003