1. Pick type of development
Residential, commercial or industrial? Select the type that you want to be specializing in. Pick also projects that have groped in the most media hype. Buyers are very concerned about things like know-ability, modern designs, facilities such as transportation convenience, security, allocated car park space, access in and out of the property, etc.
Residential, commercial or industrial? Select the type that you want to be specializing in. Pick also projects that have groped in the most media hype. Buyers are very concerned about things like know-ability, modern designs, facilities such as transportation convenience, security, allocated car park space, access in and out of the property, etc.
2. Set your goals
You need to know whether you are going purchasing to keep (for rental returns) or flip (buy-to-sell upon capital appreciation). It is also important to figure out who the target tenants or buyers are once the project is completed as that affects your goals. Time your purchase and avoid buying at the market peaks, just in case there is an economic downturn years down the line when the property is completed. Ideally, you should buy during market downturns or when the economy is coming out of a recession.
You need to know whether you are going purchasing to keep (for rental returns) or flip (buy-to-sell upon capital appreciation). It is also important to figure out who the target tenants or buyers are once the project is completed as that affects your goals. Time your purchase and avoid buying at the market peaks, just in case there is an economic downturn years down the line when the property is completed. Ideally, you should buy during market downturns or when the economy is coming out of a recession.
3. Plan your financial portfolio
Decide on your budget, whether it would be less than RM500,000 or RM100,000 and so on. For a newbie, it is advisable to begin with a smaller budget. Prep your financial credentials by:
• Paying your taxes
• Refinancing some of your paid properties or properties that have increased in value
• Being a member of banks’ priority or privilege clubs
• Paying all your loans on time
• Establishing good work relationships with your bankers, lawyers and property agents
• Looking out for discounts and promotions such as 5/95 (5% down payment / 95% financing from bank), 10/90 or 20/80 from developers
Decide on your budget, whether it would be less than RM500,000 or RM100,000 and so on. For a newbie, it is advisable to begin with a smaller budget. Prep your financial credentials by:
• Paying your taxes
• Refinancing some of your paid properties or properties that have increased in value
• Being a member of banks’ priority or privilege clubs
• Paying all your loans on time
• Establishing good work relationships with your bankers, lawyers and property agents
• Looking out for discounts and promotions such as 5/95 (5% down payment / 95% financing from bank), 10/90 or 20/80 from developers
4. Set your target location
Don’t run all over the place. Instead, be an expert in a particular area and keep farming (investing) in that area. Choose the right location where the demand is high and future supply low.
Don’t run all over the place. Instead, be an expert in a particular area and keep farming (investing) in that area. Choose the right location where the demand is high and future supply low.
5. Research
Spend a majority of your time on research before placing any deposit. Make sure that the price per square foot and location is reasonable in comparison to similar projects around the vicinity. Once you have figured all that out, then you should analyze the developer. To evaluate, you need to find out these key information – track record, financial strength, reputation, past projects (completed/abandoned), end-financiers, workmanship, license approval and the individuals behind the project.
Spend a majority of your time on research before placing any deposit. Make sure that the price per square foot and location is reasonable in comparison to similar projects around the vicinity. Once you have figured all that out, then you should analyze the developer. To evaluate, you need to find out these key information – track record, financial strength, reputation, past projects (completed/abandoned), end-financiers, workmanship, license approval and the individuals behind the project.
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