In any investments, it’s always about the profit.
And in property investment there are ways you can maximise profit even if you are just getting started or a newbie.
Let’s look at the whole property investment value chain, to better understand this.
To start off with, choosing the right property market at the planning stage will let you maximise your borrowing capability, and at the same time ensure you can continue to leverage from the bank.
Choosing which market to invest in will determine the percentage below market value you can get for your property. This can go from between 20% up to 50%. But the trick is, do you know if the value you get is the actual real value?
In the current market, we are seeing worrying trends where the prices of certain property type are actually depreciating (or going down) creating a scenario we call negative equity. Why? Simply because new projects by developer have been sold at a price much, much higher than actual valuation. The prices were artificially inflated.
Instead of buying new projects, there is a huge opportunity in buying from the secondary (or sub-sale) market, which 𝗦𝗨𝗥𝗣𝗥𝗜𝗦𝗜𝗡𝗚𝗟𝗬 𝗰𝗮𝗻 𝗺𝗮𝗸𝗲 𝘆𝗼𝘂 𝗺𝗼𝗿𝗲 𝗺𝗼𝗻𝗲𝘆 𝗔𝗡𝗗 𝗙𝗮𝘀𝘁𝗲𝗿 𝘁𝗵𝗮𝗻 𝗻𝗲𝘄 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀
And now is one of the BEST time to start investing in the secondary market..
✅ Property is at least 20% cheaper than market rate
✅ We can know safely and surely the actual valuation
✅ Start receiving passive income within 3 to 6 months
✅ And the good news is make from between RM 20,000 to RM 60,000 within 3 to 6 months (and still collecting rental)(you can read more here)
Next is property type.
You need to decide and choose the property type. Choosing the correct property type can stretch your borrowing capability to optimise your return. And this can be determined based on your individual profile and your budget.
Well, you may think to yourself – “What budget? Property price is so expensive now, it is way above my budget.”
Let me debunk one of the biggest myth in property investment. You do not need a lot of money to start investing in property.
You can start investing in property with as little as RM1,000. Again, match your available and existing budget/ capital with the different property type.
So what are some of the property types? Residential property type ranges from flat, apartment, condominium, single or double-storey terraces, semi-detached or bungalow.
Whilst commercial property types are offices, shoplots, retail space, hotel, industrial (such as factory and warehouses) and special purpose property.
The first step
So first thing first, you need to decide on the budget that you are comfortable with. This includes how much monies that you have (which we will call capital) to pay the upfront necessary payment needed and the monthly installments.
With this mind it will be much easier for you to further narrow down the property type.