Tag Archives for " Property Investment "

5 Simple Guidelines For Property Investment

Before purchase any property, whether you’re purchase for your own stay or investment purpose, you must put these following into your concerns;

Ready-built Property

➊ Buy Ready-Built Property

As a wise property investor, always buy the ready-build property from secondary or sub-sale market instead of from developer. This is because you can reduce the risks and you can get immediate returns by rent it out to the tenant.

Purchase The Property at Below Market Price

➋ Right Location For Investment

Location is the main factor to affect the property appreciation. There is a high demand for the property nearby transportation services, shopping mall and other convenience amenities which mean you can rent out or sell out easily. Here is a tip for you, if you’re target tenant market is expatriates , then you should invest in the property that nearby international schools, have a good infrastructural links, near the place of their work or have the presence of other expatriates from their own country.

Property with High Occupancy Rate

➌ Buy The Property With Ready-Tenant

Purchase a property with ready tenant because they often come with a rental income. Tenants are able to help you to pay part/ full of your monthly loan instalments. Every property investor always take good care of their tenants and treat them as their customers because without tenants, they’re unable to earn profits from rental business.

➍ Buy And Keep Forever

Buy the property with the purpose of keep it and never ever sell it out. And you only sell it out if the property goes from good to bad (there is new highway being constructed in front of your property), or there is a better investment deal comes to you and you have no any extra money to accept it.

Residential property

➎ Never Regret What You’ve Bought

If you’re plan to move into somewhere unfamiliar areas for some reasons, it is advisable to rent the property for a several months and only make the decision of buy or not to buy after 2 years. This is in case you don’t like its area after several months, due to bad neighborhood or you’re not prefer the amenities.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Getting Started In Property Investment While You’re Young

In this topic, we will discuss about why you should getting started in property investment while you’re still young. You must wondering that what determines whether you are still “young”? Well, we are aiming at those fresh graduates and the age below 30.

Nowadays, most of the young people out there are looking for the job that can satisfied their fancy demands such as brand new car, branded handbag, branded costume and other things that can make themselves stand out from others people. However, that fancy demands often make you even poorer as you don’t have any money left for savings.

If you want to become a rich man in future, property investment is definitely the best choice for you. Why? Here, are some reasons why you should get started in property investment while you’re still young;

1. A smarter way to spend your money.

➻ Rent payments go straight into the pockets of the landlord, and at the end of the day, you’ll have nothing to show for it, as the property doesn’t belong to you.

➻ Mortgage payments are an investment in the future. As the remaining balance on a mortgage is reduced, home equity increases, padding your own retirement account – and not your landlord’s. Better to spend your money on your own home than on unnecessary, short-term expenses that won’t provide value later.

2. Resale Value

➻ The larger your investment capital is, so are your risks and return of investments. However, risk in real estate is given a sense of reassurance due to the ever appreciating value of property that Malaysia has seen thus far. Simply buying a home in the right district can mean earning a profit of even double the purchase price in 5-10 years (or less, if the area is highly profitable).

3. Low Interest Rates

➻ Borrowing to buy a place to live is seen by banks as a much safer investment than credit cards, and interest rates are still at rock bottom. It is hard to qualify mortgage debt as a bad financial decision these days.

4. Supplement your Retirement Income

➻ As millennials contemplate buying homes, they should think about the future. They’ll benefit from having a home as a storehouse for retirement funds, and their homes will likely be paid off by retirement, allowing them to tap into home equity to fund retirement benefits.

5. Emotional Value

➻ Although it is not a primary benefit for millennial homebuyers, there is also a sense of pride that homeownership invokes. You’ll never forget that sense of achievement… and the look of awe on your peers’ face.

In property investment field, time is so much important for every property investors. And as a young adult, you’re already took advantage of this. If you are property investor in your 20s, you’ll have at least 30 years to planning your retirement funds.

In conclusion, property investment is something that you should start as early as possible.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Property Investment Tips

Property investment is a hot topic in around the world. Everyone would like to getting into this field to create massive wealth then retired early. Whether you are purchase the property for rental returns or appreciation, you sure will get the large profit from either one. Sound attracted? In case you are interested to joining in the property investment field, we have share you some simple tips and advises to assist you before you putting your savings into property investment.

Ensure you have a financial plan for your real estate investment:

If you are a real estate investor putting money into any real estate investment, you need to start thinking of yourself as a small business owner – because that’s effectively what you are now!

A business owner must plan thoroughly and keep records of all plans, purchases and projections. Taking your real estate investment seriously means treating it as you would any business, so all these things must be done.

When you plan to put resources into real estate investment, such as funds to repair the house you’re purchasing, make sure your pre-purchase projections of the costs involved are manageable given your initial real estate investment costs, transfer costs and projected earnings from the repairs.

Don’t blow your cash on a house you can’t bear to repair. Prior to scouting homes, it’s better to check your funding.

Being a business owner, you sure will have a plan to running your business in order to to get the good profits in returns. However, you have to make sure you have positive cash flow before doing this. As the above said, from the purchase of property to waiting the appreciation or rental returns, it’s all about money.

Besides, before you started your investment life, you must find a strategy of how do you invest in property and determine which strategy is work best for you. (Click here to read more 7 Tips To Find A Right Property Investment Strategy)

Know your goals for any real estate investment:

Continuously ask questions about your real estate investment purpose and goals. Have a plan for your investment, and a reasonable schedule and pipeline for progress in that plan.

What is your end objective? Everyone’s objectives are slightly different, as are their paths’ to success.

How are you going to accomplish that plan? Make sure your plan is in touch with reality, and take it step by step.

Do you have any partner or you are you investing by yourself? If so, you need to plan together and find out what suits your both best. It is really important to invest time making a strong plan so that you can access your relative success and failures.

Plan, Plan, Plan, important things must repeat 3 times. Plan is very important before you started to do anything. Especially property investment, you must plan for yourself, which type of property investment suite to your current financial status, how many money you have to put into it etc etc.

In conclusion, a well plan and strategy can lead you to success, it doesn’t matter you are starting slow as long you are prepared. Besides, a proper education in property investment is important too. Attend the property seminar or continue reading our articles can boost your knowledge on property investment.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Financial Planning Insights Into Property Investment

At the time of purchase, those units were located in hot areas and were quickly snapped up for its rental yield.

wealth conference 2016

wealth conference 2016

With the current economic situation, some of them are facing tenants who delay payment or are unable to get new tenants when the existing one leaves. This leads to the situation where the secondary market and the property auction list starts to grow.

In fact, there is a growing list of Bandar Utama double-storey link houses up for sale. Once upon a time, the moment one is available, it is quickly snapped up and will rarely make it to the For Sale list.

The next challenge property investors face is the repair bill when a tenant leaves. You need to spruce up your place to attract new tenants.

Another major challenge is the tenant’s deposits that you hold on to. Nowadays, tenants will happily contra their deposit with their rental whether you like it or not. Chances are, after they have left, you will find areas that need repairs which the tenant conveniently forgot to inform you before leaving.

Another nightmare is the tenant who turns into a freeloader citing bad times for not paying their rent. You must get them out after the stipulated period in the contract to avoid potential sabotage from your angry freeloader. A model tenant is undeniably a blessing, but they are a rare breed.

money

Financial Planning Strategies of Property Investment

Many property experts out there would have shared with you where, when, how and which are the valued properties to invest in. To complement all these knowledge, the Financial Planning Association of Malaysia is providing insights from a personal financial planning angle.

This is a reflective piece in view of the above scenario being played out with each economic turbulence over the years. Here are some ideas on how you can invest in properties and survive during tough times.

First and foremost, property experts will continually stress on the importance of location, so this is a given. On the personal finance side, the investor must keep enough cash reserves to cover the installments in case you are unable to rent out your property.

This cash reserve should come from emergency money that you put aside, which should amount to 3-6 months of your expenses. Your emergency money must either be in the form of fixed deposit or a vehicle which is liquid. Tying up your emergency money in shares or an equity fund is not a good idea as, during economic turbulence, these may drop in price or it may be hard to dispose of to raise the cash you need.

When you are collecting rent, remember to set aside a portion of your rental, aka sinking fund, towards:

  • Repairs and repainting for when your tenant leaves
  • Advertisement for new tenant
  • Annual payments for quit rent, assessment and house owner insurance

This is a separate sum from the emergency money, which is to pay for instalment whilst you find another tenant or find a buyer to purchase your property.

Last but not least, for those who have been saving their money and think that this is an opportune time to pick up bargain properties, do a quick calculation of your income and expenses to make sure that you have enough savings to fall back on before you plonk your hard-earned money in an investment property.

hot tips

Having the down payment alone is not good enough, especially if you are solely responsible for all the finances and do not have a spouse or parent to fall back on for financial help should it arise. You must factor in the following cost of acquisition in terms of fees and payments:

  • Lawyer and agent’s fees
  • Bank loan agreement
  • Insurance premium
  • Renovation and furnishing
  • Stamp duty
  • Goods & Services Tax

Property valuation fee to determine your eligible loan amount by the bank

Source: PropertyInsight

Don’t stretch your purchase price now unless you want to be financially stretched later.

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

Financing A Property Investment In Malaysia

Not many of us have spare funds that we can use to pay for the purchase of a property in one lump sum. Moreover, even if we did have those funds, we may want to put it into other uses such as playing the stock market or expanding our businesses in order to gain other financial benefits. Hence to purchase a property, we have to depend on loans or overdrafts. This fact is well recognised as you will see temporary offices of banks and finance companies set up in property developers’ sale offices to facilitate such services.

What are the sources to finance a property investment in Malaysia? This article will seeks to provide you with the answers. However, what is stated in this article should be taken as a guide only. It is advisable for you to check with your financial institution for the specific terms and conditions prevailing at the time of taking the loan.

The sources of financing of property purchase in Malaysia are:

  1. Commercial banks and licenced finance companies. One of the most common source of mortgage finance is from either local or foreign banks in Malaysia. However, there has been a growing trend of other financial institution such as insurance companies jumping into the mortgage bandwagon.
  2. Bank Simpanan Nasional (National Savings Bank). This bank provides housing loans but it is selective as to whom it gives those loans to. It provides loans for property costing RM100,000 or less. The applicant should be a Malaysian citizen, aged between 18 years and not more than 55 years upon date of the loan maturity.
  3. Malaysian Building Society Bhd (MBSB). This is the only building society in Peninsular Malaysia which gives out housing loans. It has been doing so for many years. Only Malaysian above age of 18 years are eligible for the loans but the loan must be for houses in Peninsular Malaysia only.
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How to ensure a Successful Investment Deal? – Tips for High Net Worth Investors

Property Investment Portfolio and Purchase Costs

Many mortgage brokers, lenders and banks do not have the required comprehensive knowledge about all the types of funding structures required by High Net Worth Investors who are looking at buying real estate property, and in particular if you are also looking at financing the arrangement under a trust structure. So, you should take time to seek expert advice from a professionally qualified finance broker as he/she can help you “structure your property investment finance” and create an investment portfolio. To help you during the decision process, here is a list of things to consider and which you should discuss with your finance broker:

Borrowing Power – To help you determine the amount of debt you can take on, your finance broker should be able to determine the extent of your borrowing power (i.e. ascertain how much you can borrow?).

Loan Comparisons – To help you make simple loan comparisons, your finance broker should provide you with a list of finance products and options.

Rental Income – Your finance broker should discuss how rental income can cover the total costs of your investment property.

Purchase Costs – You should consider some of the typical purchase costs, such as loan establishment fees, conveyancing costs and stamp duty. Lenders Mortgage Insurance (LMI) premium can also be payable if the total amount you are borrowing is more than 80% of the total security value of your property.

Property Investment Strategy – To devise a suitable optimum property investment strategy, your finance broker should understand your financial position by working closely with your accountant and solicitor.

Loans Under Trust – Your finance broker should be able to help you in choosing the best trust loan option.

 

Useful Tips

So, now you know how choosing an experienced and professionally qualified finance broker can help you to create a successful and highly efficient funding structure. Here are some useful tips to also consider:

Taxation and Legal – Speak to your accountant and solicitor to take advice regarding:

>> Financing under a trust structure as trusts can provide advantages like asset protection and tax benefits

>> The benefits of negatively gearing your real estate investment property

>> The range of property investment tax deductions you may be able to claim

Personal Income and Expenses Budget – To enable you to determine the extent of your financial situation, establish a budget of all of your income as well as working out all of your expenses.

Find a Suitable Property – Have a clear idea of the type of real estate property you want to buy and its location.

Pre-Approved Finance – Discuss the possibilities of pre-approved finance with your broker because pre-approved finance gives you the assurance of credit.

So, if you are a High Net Worth InvestorHealth Fitness Articles, keep these tips in mind because they will ensure a successful investment property deal.

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Property Millionaire Intensive

Lease Option Real Estate Investing

A real estate lease option contract is a combination of two documents.

The lease part of the contract is where the owner agrees to let you lease their property, while you pay them rent for a stated period of time. During the lease period, the owner can not raise the rent, rent it to anyone else, or sell the property to anyone else.

The option part of the contract represents the right you purchased to buy the property in the future, for a specific price. If you decide to exercise your option to buy, the owner has to sell it to you at the negotiated price. The option part of the contract obligates the seller to sell to you during the option period — but it does not obligate you to buy. You are only obligated to make rental payments as agreed during the lease period.

When the lease option contract is written and structured properly, it can provide tremendous benefits and advantages to the investor. If the lease option includes the “right to sub-lease”, the investor can generate a positive cash flow by renting the property to a tenant for the duration of his lease, or lease option the property to a tenant-buyer for positive cash flow and future profits. If the lease option includes a “right of assignment” the investor could assign the contract to another buyer for a quick profit.

Lease option real estate investing, is a flexible, low risk, highly leveraged method of investing that can be implemented with little to no money.

High Leverage

It is highly leveraged because you are able to gain control of a property and profit from it now–even though you don’t own it yet. The fact that you don’t own it, also limits your personal liability and personal responsibility. Only if you decide to purchase the property by exercising your “option to buy”, would you take title to the property.

Little to no money

The real estate investor’s cost to implement a lease option contract with the owner requires little to no money out of pocket, because it is entirely negotiable between investor and owner. Also, there are a variety of ways the option fee can be structured. It can be structured on an installment plan, balloon payment or other agreeable arrangement between both parties. The option fee can even be as little as $1.00.

In order to secure the property for purchase at a later date, tenant-buyers typically pay a non-refundable option fee of approximately 2%-5% of the negotiated future purchase price to the seller. Depending on how the lease option agreement is written and structured, the investor could possibly use the tenant-buyer’s option fee money to pay any option fee owed to the owner.

Flexible

Lease option real estate investing is a flexible method of investing because the terms of the agreement, like payment amounts, payment dates, installments, interest rate, interest only payment, balloon payments, purchase price and other terms are all negotiated between seller and buyer. Responsibilities of both parties are also negotiable. For instance, if the investor doesn’t want to act in the capacity of a landlord, he could specify in the lease option agreement that tenant-buyer will be responsible for all minor maintenance and repairs and the original seller will remain responsible for any major repairs.

Financially Low Risk

It is low risk financially, because if the property fails to go up enough in value to make a profit, you have the purchased the right to change your mind and let the “option to buy” expire. Even if your tenant-buyer decides not to buy the property, you have profited by a positive monthly cash flow from the tenant-buyer’s rent payments, and upfront non-refundable option fee.

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