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6 tips on choosing the right property for investment

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.

Source: FMT News

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