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 economic environment. Here are some handy but always applicable true facts and tips for your reference in making property investment. 1. Location 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 center, etc. 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. 3. Inflation 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. 4. Time 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.
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