PROPERTY FOR SALE

HOUSES FOR RENT : RUSSTINI REAL ESTATE.

IF YOU HAVE HOUSES  FOR SALE OR TO RENT CALL US.

Russell 8762 502, Erwan 8988 389.

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LOCATION                                   HOUSES FOR RENT                                    RENT

MENGLAIT           Room           a/con                                                                       $280

TUNGKU               Room           2 Rooms                                                                 $300

JERUDONG          Bunglo         3 beds 2 baths, U/F                                                  $800

BATONG               Det d/s        3 Beds 4 baths, U/F                                                 $1,000

SERASA                 Bunglo         Semi-Det, 4 bed, 2 baths, f/f                                    $1,200

KERIAM  TU         Bunglo         4 Beds, 3 Baths                                                       $1,400

KG KAPOK            Det d/s        5 Beds, 3 Bath u/f                                                   $1,500

JERUDONG          Det d/s        5 beds, 2 Baths u/f (P/F $2K a/con, curt)                  $1,800

T. JAMBU             Det d/s        4 Beds & Baths, f/f                                                   $1,900

SERASA                 Semi-D         4 beds, 4 baths, large compound                            $1,900

RIMBA                   Det d/s        4 beds, 4 baths modern house                                  $2,500

KILANAS               Det d/s        5 beds, 4 baths, u/f  new house.                               $2,500

Tg Nangka            Det d/s        6 beds 5 baths, 3 sitting rooms, f/f                               $4,000

Mabohai               det d/s         6 beds, 5baths, etc                                                     $4,000

                                                                                                                                          

                                                                                                                                           

If you have any Houses for Sale or to Rent call us.

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LAND FOR SALE : RUSSTINI REAL ESTATE.

IF YOU HAVE LAND FOR SALE OR TO DEVELOP CALL US.

Russell 8762 502, Erwan 8988 389.

Location                   Acres     LAND FOR SALE BSB                           PRICE

BATONG                   0.123     Kekal, perumahan                                      $120,000

BATONG                   0.251     Kekal, perumahan & pernagiaan                 $130,000

BATU AMPAR         0.9          KEKAL                                                     $295,000

T. Nangka                 5 ac        2 pieces,  2.5 Ls land          each                  $595,000

BATONG                   0.19        3 PIECES                        each                   $70,000

                                                                                                                       

                                                                                                                       

LOCATION               Acres     LAND FOR SALE TUTONG                PRICE

PENAPAR                 0.22        lease55/43, access                                     $35,000

KIUDANG                 0.25        access ok                                                  $90,000

Tg MAYA                  0.9          (Ls55yrs/27 remain) Tg Maya                    $140,000

Bt UDAL                    1AC        1acre [part lot]                                          $140,000

KELUGOS                 0.96        KEKAL,                                                   $140,000

LAMUNIN                1.03        Kekal, roadside                                          $150,000

KUPANG                  0.5          KEKAL, SELL OR DEVELOP                 $185,000

KERIAM                    2ac         KEKAL                                                     $250,000

                                                                                                                       

                                                                                                                       

LOCATION               Acres     LAND FOR SALE KB                             PRICE

TERABAN                 0.8          KEKAL                                                        $250,000

LABI                            1.39        LEASE                                                       $65,000

TERABAN                 2 ac        Lease                                                            $785,000

Sg LIANG                  0.7                                                                               $750,000

RAMPAYOH            2.8          LEASE                                                          $95,000

                                                                                                                       

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If you have any Land for Sale or to Develop call us.

HOUSES FOR SALE : RUSSTINI REAL ESTATE.

IF YOU HAVE HOUSES  FOR SALE OR TO RENT CALL US.

Russell 8762 502, Erwan 8988 389

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TERRACE BUNGLOS IN PANCHOR MURAI $135,000. CALL FOR DETAILS.

BATONG              Stilt            unfinished stilt house on 0.16ac                                 $150,000

KAPOK                  Bunglo     3 beds, 2 baths 0.24ac lease 2yr remain                        $250,000

BUNUT                 Det d/s    5 bed, 5 bath                                                               $350,000

KB TERABAN       Bunglo     5 beds, 4 baths 0.4 kekal. Nice home.                           $365,000

JERUDONG         Det d/s    5 beds, 4 baths, 0.13ac                                                 $500,000

MUARA                Det 3fl      7 beds, 5 baths, 0.24ac kekal perumahan                      $500,000

MADANG            Det 3fl      LUXURY HOME, FURNISHED 4000sqft+, 0.3ac          $650,000

                                                                                                                                                

                                                                                                                                                

PROPOSED HOUSES                                                                                         PRICE

SG LIANG             APART,    4 beds, 2 baths, under construction                       $150,000

KERIAM  TU        STILT         1300 sqft, 3 beds 2 baths, 0.12 acres                        $185,000

SG TILONG          TERR         4 beds, 4 baths, 3000sqft                                         $255,000

PANDAN 7           Det            5 beds, 6 baths, 4000sqft, 0.2ac                                 $580,000

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If you have any Houses for Sale or to Rent call us.

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RUSSELL 8762 502, ERWAN 8988389, Ron 881 0624

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RUSSTINI REAL ESTATE, C2, (2^nd Floor), BLOCK C
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SHAKIRIN COMPLEX, (SAME BUILDING AS HSBC), KIULAP.

POWERS OF ATTORNEY – WORTH MILLIONS OF DOLLARS?

POWERS OF ATTORNEY – WORTH MILLIONS DOLLARS?

Many of us in the property business in Brunei are concerned to read that the government is abolishing the power of attorney used by some to invest in property in Brunei.

The 47,000 powers’ of attorney said to be implemented in Brunei represents a huge economic success story for the often struggling private sector of Brunei’s economy. The government says it wants and needs foreign investment. So how much foreign investment do these power of attorneys represent?

Let us assume that say, 20,000 of these powers of attorney are foreign held. I will mention later why some locals need to use a power of attorney.

If the value of the properties owned via these power of attorneys is only $250,000 per property, (and that is a very low estimate given the prices of Brunei properties), we are talking about $500,000,000 DOLLARS worth of investments that have been made in Brunei. And that is probably an under-estimate! What other sector of the private economy has had comparable success in attracting investment to Brunei?

The impact of abolishing powers of attorney upon investment in Brunei will be considerable. I have already had clients cancelling bookings for houses that they planned to buy here!

What does this mean for Brunei? A huge number of jobs are created by the building industry. All these shophouses or homes and the people living and working in them, need all the things that you need in your home! They need to eat at cafes or food courts; they need to buy food and clothes, motor cars and all the other products that so many businesses, employing Bruneians, supply to them. The amount of business and money involved is enormous. Is this economic success story about to be destroyed with an ill-considered stroke of the pen?

The Brunei government has billions of dollars in property investments in other countries. In addition, many of the super-rich in Brunei (and many of the less rich) have invested in overseas property. Shouldn’t we expect foreign governments to protect our investments? Especially when these investments are creating jobs and other benefits in those countries?

Over 95% of Brunei is still ‘State Land’, much of which is undeveloped, and given Brunei’s small population and the government’s commitment to ‘The Heart of Borneo’ ideal, it will remain so for a great many more generations. It would be well to remember that neighbouring Singapore is a lot smaller and very sensibly makes huge efforts to market its property to overseas investors. Again, they recognize that it is not just the sale of the property that creates wealth for Singaporeans, it is the goods and services that the residents will buy. The size and the value of the investments at risk in this instance are huge for a small economy.

The power of attorney is an incredibly useful tool; it would be well to recognize this before making any final decisions about its use.

Now, why do locals need to use a power of attorney? This question highlights the problems still caused by an unwieldy, outdated government bureaucracy that has never been properly overhauled by a succession of incumbent ministers.  In Brunei, it can take at least six months to transfer a piece of land from seller to buyer. That is if you are lucky! It may take a year; it may take as long as three years!

You can transfer ownership of a $100,000 motorcar in a couple of days, but a $50,000 piece of land may take a year. How long would the car dealers of Brunei stay in business if their customers had to wait a year to receive their new cars, and they had to wait a year to be paid? This is just one of the crippling conditions that we in the property industry have to live with!

What does this delay mean in real terms to the buyers and sellers of property in Brunei? I have known people desperate to sell land because they needed money urgently, perhaps to pay for their children’s overseas education, or tragically, because they need expensive overseas medical treatment. They cannot get the money because it can take so long for the sales process to complete. A power of attorney can, quite literally, be a lifesaver.

So, many local people use a power of attorney because they need the money quickly. Others because they want to start building their homes without the long delay involved in transferring land from owner to buyer.

There is yet another reason why so many local people use a power of attorney. You may be Malay, you may have been born here, you may have a yellow i.c., but maybe you are not ‘rakyat jati’. And you may be prohibited from buying land that is reserved for those who are ‘rakyat jati’. I have yet to meet anyone who thought that this was a bright idea. It is a relic of a bygone age and it creates divisions in the nation instead of creating harmony.

The land office tells me that they can transfer land in one week. So why does it take so long? All applications go before The Sultan in Council Committee for further scrutiny before permission is given for the land to be finally transferred. That is the reason there is so much delay. This would be understandable if this scrutiny only applied to land sales of more than say, 50 or more acres. But everyday land sales of a few acres or so, or small pieces of land of less than an acre, should not subjected to this kind of delay. It creates real hardship for many Bruneians. In fact, it should be possible for land transfers to take place on the spot. In the age of e-government with all properties on computer, if both parties present themselves at the land office with a sale and purchase agreement, ownership can be changed at once. Again, in much the same way that ownership of a motorcar is changed.

Brunei is struggling with a bureaucracy still rooted in the early 20^th century, but we are living in the early 21^st  century. A thorough overhaul of the system is long overdue and would be a huge benefit to business, the people and the nation.

What is the Best Investment? A House or Land?

What is the Best Investment? A House or Land?

This is a question that I am often asked. The long answer is it depends what your investment objectives are. The short answer is a house is the best investment. The advantage of investing in a house is that you can rent it out and get an immediate return. With land, you may not get a return for years.

 Another big advantage of buying a house, compared to land is, you don’t have to pay for it! If that doesn't whet your appetite, nothing will. Your tenant will pay for your house, or most of it. Apart from your deposit and initial costs, the rental income will pay for most of the house loan. A nice arrangement.

You will have to maintain the property, and there will be occasions when the house will be empty, but otherwise you have a very generous tenant who also acts as an unpaid janitor that takes care of your house. It is a fantastic investment.

 WHAT IS THE BEST HOUSE FOR INVESTMENT?

What type of house should I buy? In the old days... well, never mind them!

Let us just say that times have changed in Brunei. There was a time when ‘the bigger the better’ was the rule for house buying. Investors bought big, detached houses and the government rented them for three or four thousand dollars, often more, a month. Bank loans were typically repaid over a seven-year period. Nowadays it is more likely to be a 20-year repayment period. That says it all!

Times have changed. There are fewer European expats living in Brunei and the demand for expensive rental homes has fallen. For the same reason, rents have dropped dramatically. The 'bigger the better' days have gone. In today’s market, ‘less is more’. Your prospective tenant wants a smaller, less expensive, but more modern rental home. For the investor, it is better to buy two smaller houses for $250,000 each, rather than one big house for $500,000. The smaller houses are easier to rent out and the rental return is usually better.

HOW TO MAKE A SUCCESS OF YOUR PROPERTY BUSINESS

Being a professional property owner is a serious business. You have invested perhaps, two or three hundred thousand dollars or more in your business. To protect your investment and to make it profitable you must look after it and maintain it to a high standard. Just as a taxi driver must service and maintain his vehicle, so the professional property owner must service and maintain his house. Allowing it to fall into disrepair is bad for your business.

Many older houses in Brunei have not been properly maintained or modernised and they are no longer desirable to renters in the higher end of the market. Houses built in the boom years of the 80’s and early 90’s that have never been properly maintained, can only be rented if the rental is very cheap. Many of them have sub-standard kitchens and bathrooms and are in poor condition generally. These houses need to be fully modernised to make them attractive to higher paying renters. 

HOW DO YOU MAKE YOUR HOUSE ATTRACTIVE TO POTENTIAL TENANTS?

The most important rooms in a house are the kitchen and the bathrooms. They should be equipped with modern fixtures and fittings. Many older houses have badly designed and built kitchens and bathrooms. They are simply unacceptable in the 21^st century and many tenants will not even look at them. These houses are still suitable for use as cheap rental accommodation for workers. If you want to attract a higher paying tenant then you have to invest and renovate your property.

The kitchen is the most important room in the house. It is the heart of the modern home. It is like a small factory. Food has to be stored and prepared in a hygienic and modern environment. Houses that have old, poorly equipped kitchens are difficult to rent. The old-fashioned concrete, tile covered, kitchen cupboards are only acceptable to tenants looking for cheap rents, around $600 to $800 per month. Renters paying more want a modern, hygienic kitchen with plenty of cupboard and workspace and a modern cooker.

Bathrooms are also very important.  A shower stuck on the wall, without a proper shower cabinet or even a shower curtain, belongs in the past, along with the squat toilet, and is no longer acceptable in the 21^st century. You must replace bathroom and kitchen tiles that are grimy, blackened and cracked, with new tiles. The same applies to dirty or torn curtains.  

Cupboard doors that are broken or damaged, (in kitchens and bedrooms), have to be repaired or replaced. Walls that are dirty or grimy must be repainted. And please, not white! White paint is OK on the outside of a house, (if you cannot think of anything better), but inside white is a poor choice, it gets dirty very quickly. Paint interior walls in an attractive pastel colour. In addition, a single colour is better than using half a dozen different colours! It is also easier and cheaper for you to touch up and maintain.  

HOW MUCH RENT CAN I CHARGE?

There are not so many companies renting houses today, and those that are, usually want fully furnished properties. They pay about $1600 to $1800 per month for a fully furnished house in BSB. In Kuala Belait, rents are much higher.

If you have a new house that cost you $350,000, and you rent it for $1800 per month, you are getting about 6% gross return on your investment. That does not sound too bad, but you will have to deduct some costs and expenses from that. Like all businesses, you have to look at your costs. If you have a bank loan to repay that will be a major expense. You must also consider the property taxes that you will have to pay from next year. Add to that the cost of furnishing and maintaining your properties, and times when you have no tenant, and will have to bear all these costs yourself, then the net rental return is lower.

In other countries, the main source of profit from a rented house is not the rent itself, but the capital gain. That is, the amount that the property increases in value over time. Capital gain is not a factor in the Brunei property market, so you have to try to get the best rental return that you can from your house rental business.

IS IT BETTER TO OFFER A FURNISHED OR UNFURNISHED HOUSE?

If you want to reduce your costs, you may consider renting out an unfurnished house. But first, let us clarify what an ‘unfurnished house’ IS NOT! It is not an empty concrete shell, with just doors and windows. An unfurnished house should include fixtures and fittings that make a house 'liveable' like, air cons, water heaters, built in cupboards in kitchens and bedrooms, plus a cooker and curtains.

These are not ‘furniture’. These are fixtures attached to the walls of your property like lights and doors. Your tenant is not going to buy these things for your house because he knows that when he leaves they are no use to him. These are standard fixtures in todays' homes and they add value to your property. If you do not have them then get them fitted. It will make your house a much more attractive proposition to clients and it will give your business an advantage over others.

Never forget that you are in a business. And a very competitive one. Part of your job as a business owner is to stay one-step ahead of the competition. The tenant should be able to move in his furniture and live in the house he is paying good money to rent. He is not the house owner and he should not have to buy fixtures and fittings!

The main advantage of renting out an unfurnished home is, you do not have to buy furniture and you do not have to repair or replace it. In addition, a tenant who provides his own furniture is likely to be more careful and considerate with your property. So renting out an unfurnished house may be worth considering.

If you want your business to be a success you have to take care of your customer; the tenant. If you do, just like any other businessperson, you will have a good chance to be successful.

INVESTING IN LAND

I do not propose to say as much about investing in land as the reasons for doing so are more varied and complex.

Land can be developed for profit or simply held and re-sold later when, (and if), prices and demand rise. Well-located land, within say 30 kilometres of the city centre is a good future investment, but it is already becoming quite expensive.

Buying land for your children can be a great investment for them. Investing in land for your children can be an excellent way to help secure their financial future. If you are buying for the long term, for your kids use for example, consider buying land in more distant locations. They may seem out of the way today, but they are still affordable and they will be busy suburbs in the future.

We can expect land outside the 30 kilometre zone to be an attractive option for the future and many Bruneians are investing in land in Lumapas, Batong, Maraburong and other locations well outside the BSB city boundaries. If the bridge connecting Mukim Lumapas is built then Lumapas land will become much more valuable. If you are considering buying land for long term investment, it should be considered.

Supply and demand plus location determines the value of land. There is a huge supply of land in Brunei compared to population size. Most is state land so it can be ruled out as an investment. In addition, much of the most desirable land never goes on the open market. It changes hands privately between families and friends. For this reason, it can be difficult to buy well located land close to town. Land within a 30 kilometre radius of BSB can be considered desirable. Land within 15 kilometres of the city centre, very desirable. And already expensive! However, if you can afford it, it should prove a good investment for possible development. We always have clients looking for land to develop in the right locations.

Property is one of the few things that it is worthwhile borrowing money to acquire. If you buy a new car, by the time you have finished paying for it, it may be worth very little. If you borrow money to buy a house, it will always be valuable, and if rented out, will provide you with an income for the rest of your life. It will pay for itself many times over.

Whether you choose to invest in a house or land you will be following in the footsteps of many of Brunei's wealthiest businesses, whose growth and prosperity has been based upon inherited or acquired land.

Consider investing in property carefully and get good, professional advice to help you avoid the pitfalls. It could be the best decision that you ever make. It can help assure you of a happy and prosperous future and it can provide a legacy that will be appreciated by your children and their children, for generations to come.