Property Investment for Beginner

Property investment has recently become the hottest options among all investment instruments recently. More and more people believe investing in tangible asset like properties is better choice compared to investing in poor performing share market in Malaysia.

Even though, there are many other investment instruments available such as REITs, Land Banking , ETFs (Exchange-Traded Fund), Unit Trusts, Gold Investments, Commodity, Futures and Forex Trading; property investment has proven to be a more reliable asset class. Property investment is more reliable because it’s very much driven by local demand and less affected by external uncertainties in US and Europe.

In past few years, many of my friends earn big bucks from new property launches due to surge in property prices in several localities like Bandar Kinrara, Mont Kiara, KLCC area, Ara Damansara, Putra Heights, Setia Eco Park, Bandar Puteri Puchong and Kota Damansara ; just to name a few. Low down payment of 5% to 10% (0% in some cases) and extension of housing loan repayment periods from 30 years to 40 years (up to 70 years old) makes the situation more vibrant. Most of the time, when you buy the right property, property appreciation of 15% to 30% (or more) from property launches to vacant possession is sufficient for a decent profit even after paying RPGT.

When some of beginner in property investment seeking my advice, I always told them to

1.Buy in area that you most familiar with

2.Location, location, location

3.Make decision based on numbers/indicators like yield, return of investment (ROI), cash- on-cash (COC) return, occupancy rate etc. But NOT solely on speculation

4.Not to over-stretch your loan installment and make sure you able to pay the installment in the event not able to sell the property after its completion. Better still if you can keep the property for own use in the event your forecasted price & demand not there.

Please take note that this posting is based on my knowledge and opinion, feel free to comment and I would like apologize in advanced for any grammar mistakes.

dumpsite

Hello to the world!
Welcome to my blog!

Errm...the reason i call this blog as "my dumpsite" because i can dump whatever that comes to my mind out from the brain, whether due to frustration, for sharing or for discussion purposes.

I'm an engineering graduate and currently working for a telco company in Malaysia - naturally, i likes technology and telco related stuffs.

My hobby is collecting income-generating properties. I also like to think about all sort of business ideas, jalan-jalan cari makan, looking at heritage buildings, going back to nature, and spending time lepak with friends and loves one.