7 BENEFITS OF INVESTING IN REAL-ESTATE.

Image from blfunding.com

      1.      Low capital.

With down payment of 20% or more, one can start to buy a investment property that suit their budget.

 

      2..     Hedge against inflation

Statistic show that Malaysia 2016 inflation rate is 3.13% and Bank Negara Malaysia reported a 3.5%. The Fixed Deposit rate highest by current bank is 4.3% for 12 month tenure. The return on your cash saving is only less than 1% yearly.

Image from Statistic.com

 

Image from Ringgitplus.com

3.      Good value appreciation.

The property will appreciate in value with time and usually invested in reasonable location, one will enjoy not less than 30% appreciate in property prices after more than 5 years.

 

4.      High return on investment.

With minimum down-payment and the servicing of the bank repayment is by way of rental received, the return of investment in 5 years after adding in all expanses incurred to manage the property, the invested sum shoud generate a 100% return. 

 

5.      Easy to manage

The investor need to take care of the property and make sure it is reasonably tenantable and paid all relevant authority bills. 

 

6.      Return are predicatble

       It is easy to make prediction on the value of the investment based on the growth of the

       surrounding area. Data from NAPIC show that prices of propertyis rising every year.

 

Image from NAPIC

 

7.      Retirement Fund

As retirement are only due at much later stage in life, planning for a regular income after retirement is paramount in our life. Bank loan for property can be stretch up to 20 years and once the property is paid off, the rental received will form one part of our retirement fund.

6 WAYS TO BE AN INTELLIGENT PROPERTY INVESTOR.

1.   Invest what they can afford.

Invest what you have make you feel you are in charge of your money and booze your confident. It also provide you an immediate property investment opportunity.

2.   Choose location nearer to you. 

You be able to gain extensive knowledge of property around your own vicinity rather that area unfamilar to you. You will also be able to manage properties easily compare to those that is very far away from you.

3.   Choose rentable property. 

For investment property, it is best that the property that you invested in should be favourable for rental with reasonably good tenant community.

4.   Good management of investment monies. 

Managing monies is very cruial for investor as how well you understand the return and how it should be spend on maintenance as well as go towards payment of bill at the same time the utilization of surplus will make the investor grow it portfolio steadily.

5.   Buy regulary.

Intelligent investor will but regulary. It can be annually, 5 years once or 10 years once. It does not matter but the mode of buying should be there and form part of an investor habit.

6.   Capitalized investment every 8 years.

Being a Malaysian, after 5 years there is no Property Gain Tax be imposed by the tax department. Usually every 8 years, the property invested in reasonable good area should be able to have a return of 50% to 60%.