Traits Of A Wise Property Investor

Traits Of A Wise Property Investor

Are you planning to step on the journey to becoming a property investor in Malaysia? Just like the celebrity Faizul Ridzuan, he has 23 properties under his name by the age of 30. Sure it is not an easy journey to becoming a property investor in Malaysia. In addition, there are many real estates in Malaysia, making the right choice is important to become a successful property investor. Hence, it is important to do your homework and research thoroughly before you decide on making such huge investment. This article will guide you through the traits of a wise property investor

1.Financially creative

First of all, you need to know that money is first needed to make more money. You will need to have adequate amount of seed capital to property investment. For example, a property with a selling price of RM400,000 will have a 10% down payment of RM40,000 if you manage to secure a 90% bank loan. In addition, there is also an additional of RM20,000 of processing fees and charges. That being said, the homebuyer will need to fork out approximately RN60,000 cash as the initial payment. Therefore, you should start looking out for credit card that offers a zero interest payment plan. 

We understand that not everyone is capable of securing adequate capital in the early stages of the property investment. But with some financial creativity, one can definitely secure enough capital by leveraging the zero interest payment scheme that is offered by your choice of credit card.

There is no need to sell your organs to earn your capital for your property investment as there are many ways that you could explore to earn your capital and make them grow. Working adults could also consider stocks investment or unit trusts. However, the liquidity of unit trusts investments can be an issue as investors are usually advised to hold their unit trust for a period of 3 to 5 years to make a return from it. In addition, you could also put your money in your bank’s fixed deposit that comes with lower risks than unit trusts and stocks. 

2. Make friends with people that share the same interest

Making friends with the like minded people is important if you want to be in the property investment market. One of the fastest and most effective ways to learn more about property investment is to attend various property workshops and forums organized. By attending such property workshops and forums, you get to meet like minded people and you get to ask for advices and learn some investment strategies. This is also a great way to exchange ideas and keep yourself updated with the real estate market in Malaysia. Moreover, it is also beneficial to newbies who have just started on their property investment journeys as they get to expand their networks to learn more things related to property investments. Most importantly, these workshops and forums get you updated with all the happenings and news in the property market. Getting yourself updated is important because the property landscape in Malaysia changes over the period and you may need new strategies to tackle the problems as what worked previously might not be a good strategy now. 

Do however note that these workshops and forums do not come free and can cost from a few hundred ringgit to a few thousand. But it will definitely be a good and worthy investment, especially for newbies. 

3. Be involved in your investments

Last but not least, you will need to be hands on with your property investments. You will need to be involved to know what you are doing. Whether you are planning to earn a profit from reselling your property or from the rental yield, it is always advised to be involved in your investments. 

Pretty sure you have heard many people commenting that location is important when it comes to buying a property for investment purpose. Having some foresight or knowledge will help you in making the right decision when it comes to property investment. 

Other than that, you will also need to know the local vacancy rate in Malaysia. This is one of the most expensive expenses that an investor faces. Knowing the average rental rates in the area could help you to minimize vacancy as you are able to adjust your rental rate accordingly. With the right rental rate, you will then have a steady income from your rental yield and make it more affordable to hold on to your asset. 

Hence, involvement in property investment is essential. Make sure you explore the neighbourhood more at different times and also check out on the amenities available such as education institutions, supermarkets and so on within the proximity to allow you to decide on your rental rate. 

In conclusion, being a property investor in Malaysia involves a lot of preparation, research, studying, and networking. Only educated decisions will bring you far and make you a wise property investor. Most importantly, make sure you only make investments in property that you can afford. You definitely do not want to end up being in debt. Stay within your budget to prevent yourself from troubles in the future. 

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