Buying a property is not that simple or easy as ABC’s. In order for you to be successful in property investment, you must do a detailed research to get the information of the property investment as much as you can and also find a intelligent investment strategy to use.
So for the four points that all of the investors should know to understand the way around property investment is :
1. Why invest in Real Estate? 🏠
Compare with other type of investments, investing in real estate is the investments that can bring many beneficial for you because it is a way to hedge against inflation. Property investment is considered as one of the best ways to grow wealth and leverage to purchase more property.
For example, if you compare between buying, holding and selling your real estate, you make money when you hold the real estate. This can happen in two ways, through capital appreciation and rental income. Capital appreciation guarantee increase in property value over time, whereas monthly rental can help with the mortgage and side income.
2. Get updates on current issues 🏠
Some might not be aware of this, but some current issues that are happening in the country can affect a property’s market value. Depending on the issue, it can either increase or decrease the property’s value. So, for the current issues that property investors must know are political stability, real estate bubble, depreciation of the ringgit, bank rules on mortgage loan, government curbs and also the implementation of Goods and Services Tax.
3. Be aware of pitfalls as an investor 🏠
Witnessing a high return on property investment could make one eager to buy without careful planning, research and preparation. This will bring high risk for your money.
The five pitfalls or mistakes that many investors made are :
🔓you just follow which investment that your friends buy because you see friends and relative buying property.
🔓 not paying attention to the absolute price versus psf value
🔓 imposing own value on property
🔓 buying during bad times or without a good deal
🔓 buying even though the property is not within budget
4. Think like a savvy investor 🏠
Investing in property is not just about making money, it is also about having the right mentality to make savvy investment decisions. You must always remember that property investment is not a decision to be made on impulse. When it comes to making profit like savvy investors, make sure that you are familiar with the concept of Finder, Financer and Funder. Then you can increase the probability of you securing a good property deal with these 3 concepts.
The most important things in property investment is to know the necessary in order to build a solid investment strategy. It is important to learn and understand the game of investing in property, and to maintain objectivity. You should also have to make sure that the property that you buy is always below market value.
Finally, i hope that these 4 points will very helpful in your investments and i prefer to invest in high-rise developments because it usually cost lower than landed property, and also because it makes quite good rental income.
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