There are people who are very successful in the field of property business. On the flipside, there are some who are not fortunate enough. Have you ever thought about the reason behind it? Is it just luck or is there something more?
Well, property investing is not as simple as buying houses. People have to go through tough obstacles sometimes. They have to consider some significant aspects to be on the right track. To help the beginners who intend to start a career in property investment, here are top four tips that we gathered from the experts.
Choose a place according to your budget
Sorting out the budget is the first thing that needs to be done if you are thinking of investing in property. The purchase price, other legal costs, stamp duty, mortgage insurance and extra funds for safety must be included in the budget plan. Once you have all this information, it is time to consult with the bank about borrowing money.
Next comes choosing the place that complements your budget. You will need to search and research in order to get an overall idea about the local demographics for this. Keep in mind that location always matters. Don’t run after those properties that don’t match your budget. You have to make each move strategically. Many times, the location may work as the main decider on whether it is the perfect choice or not. For some places in Malaysia, the development of the surrounding areas puts an impact on residential property prices. Every property market has its own cycle of growth due to customer satisfaction, economic balance, and local demand. So, capital gain is also a point to take note of during the searching phase.
Know your target market
When you have finalized your budget and location, the next step is to focus on your target market. You need to have an in-depth idea about it, so, you need to research. This research can’t only be based on the internet or some vague data. You must collect authentic data, either on your own or through trustworthy agents. Talking to the locals can work in this regard, and checking out recent sales can also give you a good idea.
If you associate with agents, they will charge you a management fee. However, the right agents will make this fee worth it, dealing with a majority of your problems and providing effective information about your preferred market.
Know the developer
Knowing the developer and doing a background check on this are a must. Otherwise, your total project can go downhill. Knowing who you will be working with plays a big role when it comes to making your decision. There are many negative stories about developers abandoning their buyers’ project at a crucial stage. They may not do the work properly or make the buyers wait for months, sometimes years. Therefore, the reputation and the results of the developer’s previous projects need to be checked, in order to diminish the risk of facing a vulnerable situation.
Do not be over ambitious
“If you push your luck too hard, fortune’s muscles might tear;” not unlike this quote, being ambitious is good, but when you become over ambitious it may backfire.
Investors mainly buy property because of its value. They look for capital appreciation, potential of rental returns, and so on. If you focus solely on profit, you can ruin all your hard work. So, move strategically, get yourself into the right mindset and concentrate on the end goal.
You will definitely have to take the risks and test your luck when you step onto any business field. However, there are also things that can show you that you are in the right path and these aforementioned tips will ensure your success.
This article is written by Rahnama Haque
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