Tips on Investment Property
Many people still like to invest into property even after the US biggest
subprime mortgage crisis in history. Well if you know the tricks of property
investment you still will make some fortune in it despite any market
Here are some handy but always applicable true facts and tips for your
reference in making property investment.
Like the American business magnate Mr. Donald Trump said before, the only
3 important words in property investment which is location, location and
location. The better location would be property that has surrounding with:
a. Public infrastructure and facilities like hospital, day care center, school,
college, post office, police station, exhibition center, international meeting
b. Department stores, shop houses, 24 hours convenient stores
c. Easy to access through multiple channel of roads
d. Offices and factories, finance business distric
e. Great scenery like mountain view, sea view, beach front, great coastal
view, great city view
f. Great Feng Shui
All of these locations aspect will help to generate faster property value
appreciation over time and easier to sell off later.
2. Demand and Supply
If there is demand, for sure there will be supply. Identify which property
ranges and types is shortage in your market that you familiar with, invest
into that, since demand is definitely high if there is short supply of these
type of property. The categories could be pricing tier, types of property and
new property value features that others don’t have.
Inflation is something related to the whole economy, any single increase of
pricing on commodity products, everything else will follow the rise. Oils,
commodities, foods price shoot up, hence bring up the property price too.
Sometimes, there is deflation too, but this happen really rare, only saw it
during the deep economy depression, and market slowdown.
Time is another factor. All investment involves time relation, the best idea
case would be buying great value property at economy downturn and keep
for couple of years until the economy is growing again, this will help you to
get ROI of easily 50%-80% or even breaking the 100% return. So it is the
same time to release or sell of the property at the market peak so to
maximize the profit.
Sometimes, when there is new property launching, the developer will offer
the early birds for pre-launching price with certain percentage of discounted
property selling price and some other offer packages like free stamp duty /
taxes, legal fees and freebies like extra car park lots, air conditioners,
renovation discount vouchers, etc. This is also a good timing to acquire or
invest into property, as you will get immediate cost saving of easily $10k to
$20k of processing fees and once the property is launched, the price usually
will gone up for about 10%-30%.
5. Property Types
There are basically two types of property, the residential and commercial
used property, either it is land plot, or houses or condominium. Also in some
countries the property ownership is not forever - leasehold, some are forever
- freehold. Leasehold property usually has a due date of the ownership like
99 years, 75 years or even 50 years depends on the local government policy.
To elaborate further there are different types of property like: landed houses
(terrace, link houses, semi-detached, detached/bungalow), condominiums,
apartments, service apartments, shop lots, shop houses, factory, etc.
Hence you have to understand what is the demand property in each region,
as it varies greatly even in a small city. Example, city central might prefer
high raise condominium; country side might prefer bungalow with great plot
of land for activities; medium price apartment or studio apartment might be
great demand in university area.