A young, handsome, smart and ambitious entrepreneur, KY Lim is an iconic propreneur and property investor in the arena of Malaysia’s property investment. To young property investors and millennials, KY is not merely the founder and Chief Executive Officer of KYY Empire, he is the property guru that guides them step by step to purchase their first property without forking out a hefty down payment.
It was only until 2010 when KY began to expose to property investment. Upon attending courses, he learnt from various seniors and mentors and practising under their guidance, KY was fortunate to become a full-time property investor. Truly, he is thankful and indebted to all of them.
Having a zealous penchant for property investment and venturing, KY realized that in Malaysia, if he could grasp and master the investment tips and channels which are known only to a few, then it is a much easier and hassle-free investment, as compared to other business investments. In addition, KY gets to enjoy more financial and time freedom.
Property Investor turned Entrepreneur
“However, subsequently I recognized that as a single individual investor, I could not effect much influence nor exert much weight. Hence over the last few years, I converted myself from an investor to an entrepreneur, by establishing KYY Empire. I steadfastly believe that as a property investment entrepreneur with branding, not only that I am empowered to expand, scale up and diversify my investment business enterprise, I am also able to influence, help and support others in property investing.”
KYY Empire takes great pride in upholding the vision to become one of the most influential leading property investment consultancy firms in ASEAN, making everyone understand that property investment is not just for the rich, but everyone.
“Our mission is to enable everyone to invest in property with zero down payment, whilst sharing profits so as to achieve financial freedom, via unique and innovative investment solution.”
Unique Selling Proposition
KYY Empire’s position is distinctive and different from the real estate negotiators and agencies. Its unique selling proposition (USP) is to carry out bulk purchase in large quantity from the premier property developers at a cost lower than the market price without charging commission. Thereafter KYY Empire will cooperatively invest together with the carefully selected clients-partners.
“Our greatest selling point is that our clients-partners do not have to pay any initial deposit, legal fees, renovation costs etc. We provide one-stop service right from bank loan application, property management and to monthly bank loan instalment servicing. Ultimately we would sell off the properties at higher prices and share the profits yielded.”
Unprecedented Resource-Integrated Based Business Model
KY believes that this unique resource-integrated based business model is exceptionally unparalleled in the market. Apart from enabling KYY Empire to broaden and multiply its investment portfolio whilst achieving win-win collaboration with the property developers, most significantly KYY Empire can contribute to the community by assisting many young people who cannot afford to invest in property.
In 2017, KYY Empire was privileged to have been conferred 5 awards, namely Worldwide Excellence Award, 100 Most Influential Young Entrepreneurs Award, SME Platinum Business Award, SME 100 Fast Moving Companies Award and Grandeur & Elegante International Business Award.
Leverage, Leverage, Leverage
Combined with its philosophy of “Property Investing Is Not Just For The Rich, But Everyone”, KYY Empire’s strategies are “Leverage, Leverage, Leverage” and “Invest Property with No Money Down”.
What is Leverage? In contrast with the conventional golden rule in real estate – “Location, Location, Location”, KYY Empire is more emphatic on “Leverage, Leverage, Leverage”. It leverages on bank financing, network resources, geographical advantage and the right timing.
Malaysia is one of the very few countries that allows 90% bank financing. Hence, for a property of RM300,000, generally one just has to pay 10% as deposit sum which is RM30,000 including legal fee, etc. If one makes good full use of rental to service the bank loan, the value could be enhanced to RM600,000. RM30,000 of capital cost could generate a profit of RM300,000, which is 10 times of return. This is the power of leveraged investment. This is also the reason why KYY Empire focuses on investing within rather than out of Malaysia.
However, the challenge now arises – the bank loan needs to be serviced, and what if one cannot find or procure a tenant? All these are the myths troubling the novices and beginners in investment.
KY’s answer is very simple – as long as one takes property investment seriously with the right attitude and is committed to it as a business wholeheartedly with relevant learning, research and analysis, one will certainly be able to control the risk and resolve the challenges.
What is Zero Down Payment?
In the market, there is only a handful of people who have been involved in property investment know how to purchase property with zero down payment. Many misunderstand that property investment necessitates a high threshold and thus requires hefty funds.
This is not true. As long as the purchasers can locate the suitable developers and arrange with them to agree to grant a rebate of 10% or more, and after that obtain a bank loan of 90%, then they can save a considerable sum of down payment after just paying booking fee of a few thousand ringgit.
In the secondary property market, once the purchasers find some capable real agent agents and lawyers to negotiate with the sellers to mark up the prices and obtain the relevant bank valuation, then they will be able to regain the down payment from the bank loan, hence attaining zero down payment purchase.
The good news is that the current downturn in the property market means it is the golden timing for bulk purchase in large quantity from developers at a lower-than-market price, as well as for zero down payment investment in the secondary property market.
Property Investment Outlook in 2018
Based on the leveraged investment rationale, currently KYY Empire is primarily investing in Malaysia’s properties rather than those in overseas. However, regardless of whichever country, apart from the chain effect caused by economic stock market turmoil, the factors which will directly affect the real estate and property trend and movement are, namely, government policies and bank financing.
For example, in 2008, Malaysian Government repealed the Real Property Gains Tax (RPGT), followed by implementing Developer Interest Bearing Scheme (DIBS) and other policies aimed at promoting real estate. Along with these, the banks also relaxed loan application terms. As a result, real estate and property transactions were stimulated and intensified, causing property prices to soar and surge until 2013-2014.
Reversely, when the Government implemented housing control measures like increasing the RPGT rate, raising threshold for property purchase by foreigners, coupled with stringent bank lending, the property dealings were reduced, resulting in price slump.
Therefore, since the housing control measures of the most rigorous extent were implemented in 2014, the Malaysian property market has been brought down from a Seller Market to the sluggish Buyer Market. The 130,000 units unsalable in the first quarter of 2017 clearly showed that the developers were facing enormous sales strain and pressure. Thus, we feel that if the Government does not announce any policies to promote and stir the real estate market and further should the banks do not loosen mortgage loan conditions, Malaysia’s real estate market will continue to plummet and deteriorate. This is the situation we would like to see, because only this sort of market condition will pose the optimal timing for KYY Empire to carry out bulk purchase in large quantity from developers at a lower-than-market price.
Notwithstanding the above, KYY Empire is extremely optimistic about the real estate market in the next few years based on a straightforward reason which many are unaware of. Malaysia will undergo radical transformation in the next 10 years. Besides the various mega scale infrastructure development like Mass Rapid Transit (MRT), KL-Singapore High Speed Rail (HSR), Tun Razak Exchange (TRX), Bandar Malaysia, Merdeka PNB 118, East Coast Railway Line, Iskandar Malaysia, Forest City, Chinese Enterprises like Jack Ma’s Alibaba, Tencent, Country Garden, China Railway Construction Corporation have successively entered Malaysia one after the other. The Belt and Road Index released in February by the real estate consultancy firm, Knight Frank, illustrated that, among the 67 proposed countries along the routes of the Belt and Road, Malaysia ranks as the 6th Country with the Most Potential and Opportunity. This is because Malaysia has a strategic geographical location and has been benefiting from the above proposal.
In 2017, KYY Empire has accumulated a RM50 million property portfolio. In 2018, it is forecast to stride towards investing RM300 million and have set a target of 1 billion real estate portfolio by 2020, helping over 1000 young people to invest in real estate together with KYY Empire with zero down payment.
Moreover, KYY Empire plans to venture into the fields of property development and venture capital, and within 2 years to acquire listed companies to enter Southeast Asia to realise KYY Empire’s vision of becoming ASEAN’s most influential real estate investment enterprise.
“Recently, to make up for my parents’ disappointment, I completed my MBA and Ph.D. degrees and continued to enrol in a number of other courses. I will make the most of these business knowledge, robust corporate and personal branding, synergize with my experienced seniors, proficient mentors, strategic partners, bankers, lawyers, financial planners as well as the core team of KYY Empire, I firmly believe that we will achieve our vision and accomplish our goals!” KY concluded.