Property investment in Malaysia
Real estate investing is a topic that many people wonder about. The earning potential of a smart investor is extremely high, because unlike nearly every other type of investment, real estate does not typically decrease in value.
When you are looking for a way to ensure your security for the future, or to build a retirement portfolio, real estate is a good vehicle to use.
Real estate investments give you much more than just somewhere to ‘stash cash’; they give you the ability to continuously increase the value of your investments to an almost unlimited level.
Before you get started, here are some things to keep in mind about real estate investing:
- How much do you intend to invest
- Are you buying it to collect rental or looking for capital gain
- How much you are able to borrow from the bank
- What is the cost of the property
- What is the expected returns from the said property
- Is the expected returns higher than the cost of borrowing
- How easy the property can be disposed if you plan to do so
- What is the actual price of the property, is it over priced
- What type of property to buy
- Where is the location to buy
- What is the demand and supply of such property
Do you realize that real estate investors are often not first time investors? While first time investors are not discouraged from purchasing an investment property, seasoned investors often decide at some point to pull cash from their other investments in order to purchase some sort of property. Why? The answer is simple. Real estate is far less volatile than many other investment vehicles.
So, if you are looking for a way to make some cash with a minimal investment, real estate may be the answer you’ve been waiting for.
As you know, in Malaysia, if you are to invest in unit trust, you might have to come out with 100% cash for the investment whereas you may get a loan for property investment.
Many people do not realize just how simple it is to become a real estate investor and use the power of leverage to build wealth virtually overnight.
A seasoned investor already knows the value of leverage. Real estate is the one investment area where you can definitely use money to make money without question. Once you have a single investment property, you will find the process of getting more much simpler. Real Estate moguls have made their fortunes using this philosophy.
Do check with your banker or mortgage broker to find out more.