Investing in property can be a very lucrative move for you and your family, and a great way to turn some of your savings and wealth into the kind of money that can grow itself. However, like any profitable investment, there are a lot of variables that can go horribly wrong when it comes to investing in property, and there are a lot of factors to consider before you make your move. You have to be patient, calculating, and most of all, not emotionally attached.
However, while investing is hard – nothing worthwhile is ever truly easy – it most definitely isn’t impossible. You just need the right guidance, and you need to ask the right questions.
Know Why You Want to Invest in Property
First of all, why property? There are many ways to invest. For one, you could invest in stocks. Large companies are quite predictable, and it’s fairly safe to invest in their stocks as long as you pay attention to the business section of your local newspaper. Minerals and other commodities are fine investments too, if you so choose. You could turn a collectible’s hobby into an investment, and buy up antiques and art.
Anything that has an inherent, yet fluctuating value is an investment. So why land, real estate, and housing?
While your answer can be personal, from a financial standpoint, the biggest boon that property has as an investment is that it can be rented, and it generates wealth over time. While the same can be said for a car, you’ll be making more money with less upkeep and lower risk through the housing market than by renting out a vintage automobile to select renters.
That, and not everyone needs cars. Everyone, however, needs a roof over their head – be it a shabby apartment or a luxurious oceanfront condo. Year on year, according to ExpatriateAdvisory, Malaysia’s property market is yielding eight to ten percent returns for investors. So, once you’ve compiled and justified your own reason for deciding to invest specifically in property, it’s time to consider the process itself.
Do Not Invest in Unfamiliar Neighborhoods
This rule holds generally true, and is especially important for first-time investors. When you don’t have the capital to hedge your bets on several properties, you’ll want to start with something that you have intimate knowledge about. If you know for a fact that a neighborhood is up-and-coming, then buying property there is a great deal – if, however, you read about the neighborhood being up-and-coming, chances are that the prices have already gone through a hike and are slowly stagnating.
The same thing goes with land. In the very least, you’ll want to study a property before you decide on whether or not to invest. Ask yourself – is the area around the lot developing quickly? Does the land have potential for agriculture? Is the region you’re planning to buy in undergoing any specific growth in an industry, perhaps due to government subsidies?
Consider Your Options
When investing in property, “property” is a loose term you may want to narrow down. You can invest in land by buying undeveloped land and sitting on it for years, or by buying a vacant lot on the cheap and selling it through a long-term down payment plan to make money over time. You can buy a condominium unit and, depending on the condo’s rules, rent it out to a tenant. Or you can buy an apartment building and live in it, while renting out the rest of its units to students and young couples in the area.
A house can be an investment as well, if you turn it into your place of business. By taking up work at home, you save yourself the cost of commuting, and if you’re a business owner, today’s technological advances can help you take your entire company and build it virtually.
Begin Your Search Properly
Once you know what kind of property you’d feel most comfortable with, it’s time to begin your search. The best place to begin is online. Through a large Internet real estate directory such as Property Guru, finding the right property for sale won’t be difficult, given Malaysia’s rapid online growth.
The country’s Internet demographic ranges mostly between the ages of 16 and 54, with up to 66 percent of Malaysians in their thirties and early forties regularly using the Internet on a daily basis, according to Statista. Despite that, should also keep an eye on traditional classified advertisements, posted on dedicated real estate magazines and local newspapers.
Consider both lawyering up and getting in touch with multiple experts before making an investment decision. Although you can complete the bulk of the market research on your own, undergoing a large property deal for the sake of investment is best done with the help of a legal consultant.
Once you’ve gone through the necessary steps, however, all that’s left is to sign on the dotted line and accept your new property as a serious investment.