Property investment is one of the most profitable investment in the world. Many of listed billionares invoved in this investment such as Donald Trump. When ordinary people talking about property investment, in their mindset they should have huge amount of money. For example if you want to buy a double story house near Kuala Lumpur area like Puchong, it will cost you around RM500 - 600K. That mean only rich peoples whoese have big capital can really do this bussines.
This mindset was not always right! Actually everybody can involve in this investment. Most important, you should have fix job and enough knowledge before you make any deal.You want to feather your nest for when you are older or to leave an inheritance to your children. Whatever your reasoning, you need to decide whether you want to do something low or high-risk.
Low risk routes are obviously the way that many people go as they will always look at “what might go wrong” In that way you can often cover yourself and although this may not make you a lot of money quickly it can be a sure steady way for your property portfolio to build and to secure your future.
High risk routes would probably involve you buying as many properties as possible and borrowing to your maximum allowance without having a cushion to catch you if you (or the property market) fall.
Some tips for investing in property:
- Don’t go too far outside your comfort zone.
- Plan ahead. Work out what you want to do with any property you purchase (rental, resale, etc).
- Research – check the price of comparable properties and rental rates in the area you are looking to buy. Ensure that there will be a demand and a market for the property.
- Work out the financials – do an initial budget and then add more on to cover any unforeseen circumstances that often occur.
- Get a good mortgage plan – the best ones will allow you to make overpayments as and when you want to without incurring penalties.
- Don’t buy too many properties at once. If you are a beginner at this and have nothing else to do then start with 1 property and gradually build up to more as you learn from mistakes (which you WILL make) and experience.
