25 February 2021
Choosing a property is more than
just location and looks. (Pexels pic)
Good property investments can bring you stable cash
flow. You can ride on its short-term and long-term returns to plan your future,
especially when it comes to retirement plans.
However, investing in property isn’t just about
selecting the most beautiful home, or the most convenient one.
Deciding to buy a property is never easy. It is
even harder when you look at it from an investment perspective.
To get you on the right path, here are some tips to
help you invest in the best one.
1. Carry out some market research
Don’t start researching only when you’re looking to
buy properties. Make plans ahead and always keep an eye on the property
market’s movements and patterns.
This will allow you the time to gather the
necessary data and knowledge to understand how the property industry behaves.
As a result, when the time is right, you will be
able to strike a good deal based on the area, property value, rental market and
quality of the property.
2. Choose your type of real estate
There are no bad properties when it comes to investment.
More often than not, people go for residential properties and put them up for
rental or sale.
But, you have the option of investing in retail as
well as commercial and industrial properties. Of course, the latter types of
properties will need more capital and you will have to deal with businesses and
the demand in the market for that particular type of property.
However, if you are looking for safer investments,
you can always buy landed properties.
These are the most sellable and steady properties
in Malaysia even during volatile economic conditions.
3. Think beyond the location
When it comes to properties, everybody says to
focus on the location. But in today’s environment, that should not be the main
aspect.
When you look for properties to buy, you must look
at the developer’s brand name.
On top of that, look at the design, background,
facilities and amenities installed in your property.
This will help to capitalise your asset in the
future when you sell it or put it up for rent.
Consider the amenities and
facilities provided. (Pexels pic)
4. Take advantage of market volatility
Whenever there are economic challenges or political
conflicts in the country, the property market suffers like any other industry.
However, it is not particularly a bad thing. If you
are a sharp investor, you would know that during critical times, people often
find it difficult to pay their home loan instalments.
So, many people are forced to put up their house
for sale below the market rate.
If you have cash on hand, you can take advantage of
the situation and buy a decent property at a very low price.
This not only saves a ton of money but you can
immediately put it up for rent and earn a stable income.
When the market moves up later, you can sell it at
a greater profit margin than if you bought the property at a standard price.
5. Buy property at favourable loan terms
Loans are a big factor when and where property
purchases are concerned.
You often pay the deposit and apply for a loan for
the rest of the purchase price.
So, you need to vet several banks and choose one
that offers the best interest rate for a home loan at your preferred terms and
conditions.
It is a good thing that in the pandemic era, the
Overnight Policy Rate (OPR) which dictates the lending rate is quite low.
So, if you buy a property now, you can get a loan
at a lower interest rate than usual, meaning you will be in a favourable
position where you will have to pay less in monthly loan instalments.
6. Get professional assistance
Hire a qualified professional or consultant if you
are serious about buying a property.
They can provide you with important information
about the property market that you will not be able to draw from your own
research.
They can also help you negotiate the property price
and get you better terms and conditions when you deal with buyers.