Real estate possesses the potential to double or even triple in value over the course of one year which makes it an impressive method to invest our funds. Most intelligent investors already come into realization that real estate is the perfect choice to pursue if one’s goal is to establish a stable income stream, whereby only increases with time.
According to Dr. Lee Ville, Director of New Bob Group, “Real estate investment is an ideal way to boost your personal wealth should you able to produce the initial investment , whereby goal is to generate as much money as possible while subsequently prevent potential pitfalls. Regardless of rental property or flip houses, with real estate investment, you are definitely one step ahead to financial freedom”, he said.
There are many ways that could be utilized to maximize profits from property investment. Firstly is to shorten the loan tenure. Since interest is the primary cost of property, the longer you loan, the more interest you need to pay. Hence if we intend to settle with shorter loan, it’s advisable to avoid taking the biggest loan you could reach for. Best to opt for something where the repayment is below 40% of your income. Or else with the spike of interest rate, we might be forced to refinance in a way that extends our loan period.
Secondly is to buy a property that you could rent “out”. If you are capable of renting “out” a property, you are basically loaning it for free. In this scenario, the tenant usually ends up covering the loan repayment which saves us from paying the loan. After paying the loan, surplus from rental can be used to cover the occasional vacancy or upkeep the house. However, never make assumption that any property could attract tenants. Should the house be rented at a desired rate, you should be familiar on that aspect before buying it. Seller must be clear of the property’s rental history. Or else, we can always survey for the rental rates in nearby areas to give us good estimation.
Thirdly is to select the right location. Its crucial to buy a property that is built in a strategic location in close proximity to schools, shops, transportation centre and recreational facilities. This could help to draw potential tenants and investors. As example, a bungalow house located in an excellent location within the heart of the city with beautiful sea-view will possess higher desirability factor and value over a poor house that sits next to a garbage dump.
Lastly is to buy the property before completion. Incomplete property normally comes with a discount. Best to buy it before completion as the sellers may absorb certain cost. Plus you’ll also be one of the exclusive few to view the units, thus able to find your desired unit at a cheaper rate. Therefore, with the earlier purchase, the duo of discounts and choice apartment could render you a decent deal. It also enables you to sell for higher profits in future.
To look for property, one many turn to New Bob Group, a renowned real estate company in Penang which offers everyone wide selection of properties at affordable rates.
Flip house : A type of real estate investment strategy in which an investor purchases properties with the goal of reselling them for a profit.