Apart from the infrastructure surrounding the neighbourhood, it should be noted that amenities within a property are equally important to increase the property’s value and increase the potiential of property investment. These days, with a hectic life, it’s quite rare for residents of a property to leave their homes.
Their form of relaxation might be focused on spending their time at the in-property amenities such as the swimming pool or clubhouse provided. Including an additional in-house amenity, especially in metro cities, would have a high chance of having the property investment’ values increase.
The investor, upon retiring, could still have that source of money even without a job. It would also act as a secure source of income for those who’d been fired or retrenched from their jobs. That’s why people are considering property investment.
The choice between leasehold and freehold properties has always been a prominent debate between property buyers. However, in the context of investors, the best choice is definitely the freehold property. Now, to explain the differences.
To see the returns from one’s investment, one has to also spend the appropriate amount to reap the benefits. From the very beginning, the investor would have to spend money for the downpayment and the closing costs as part of the property investment. Not only that, if the property comes in less than a desirable condition to live in, a renovation would be necessary too. This would also come in handy to maximise the rental income. Upon owning the property, there would still be miscellaneous expenses, such as property taxes, insurance, mortgage payments, and property maintenance.
Apart from the usual errands that an investor would have to do such as finding prospective tenants or buyers and maintaining the property, learning about the ropes of real estate would also be time-consuming. An investor should only make significant decisions in his property investment when he’s absolutely sure of it. One way to make sure that the investor is going down the right path is by educating and surveying the real estate scene in Malaysia. This, on top of making sure the property is in top shape, would definitely be time-consuming and might take a toll on the investor’s daily routine.
When investing in a property, one should always remember that it would be a long term commitment. Regardless, if it were to be rented out or to be sold when the land value appreciates, it is still a lengthy commitment. A handy tip for prospective investors is to have a set timeline of retirement, and familial commitments such as funds for the children’s education and medical insurance, before stepping into the realm of property investment.
Finance would indefinitely be a large majority’s subject of concern when it comes to property investment. With the rising living costs, it is near to impossible to set aside some money to invest in properties.
If a prospective investor were to only have a small amount of cash, property investment would be a slightly easier task as there are readily available funds that could be used. The other portion could be found via other means such as loans, instead.
When it comes to real estate investing, a one size fits all concept is definitely unavailable. Different types of investors have various ways of putting money in property investment to obtain profit. There are various factors determining the methods of investing — budget, risk appetite and investment goals.
These types of property investment consist, but are not limited to terrace houses, apartments and condominiums. Basically, any property that comes with residential land titles would be entitled to be labelled as a residential property. However, an exception would be any commercial land-titled properties, protected under the 住房发展法案 (HDA).一种流行的房产类型是 SoHo 单位。
Property investment in the category of commercial investments would include office buildings, small office versatile offices (SOVO), small office flexible office (SOFO), small office lease office (SOLO) and small office smart office (SOSO).
These types of property investment would include industrial warehouses, firms and storage units. Industrial investments would often include a significant fee and service revenue streams to increase the return on investment for the owner. However, the downside to industrial investments is that it would be considered riskier, as a successful investment in it would require specialised professionals to maintain and manage it. A bigger upfront capital investment would be required for this investment too.
This type of property investment is completely new in the real estate investment scene. The perks would definitely be the affordability and ease of entry. This means that an investor would be buying shares of a corporation that owns real estate properties that would distribute its income as dividends.
The industry to invest in would be up to the investor, for instance, the hotel industry or the airline industry. However, the investor would not actually own the property and would have little to no decision making power in how the entire property is to be managed unlike property investment.