There is been encouraged the Malaysian especially Gen Ys to get involved in property investment field, as they have a natural gift – Time. Believe that you’ve had heard about many property experts saying that the younger you start, the more profits you earn from your investment property(s). This is truth!
Just imagine that if you buying a property in Malaysia worth RM 500k in your 20s, with property appreciation, let say this property has increase a 40% in value after 20 years, you already earned a profit up to RM 200k when you’re 40. Compared to those who started late, and they can only earn this amount when they’re 50 or 60.
While, if you have some savings in your bank account (sufficient to be your capital to buy property), and you’re consider buying your very first investment property. Here are the advance 9 checklists before buying your first investment property in Malaysia.
☑ Is the area’s population growing
If the area’s population is increasing, means high demand for houses. First, you will need to do the search of its area population, from past 5 years to current.
☑ Is the area have many jobs opportunities
If the area create better and more jobs opportunities for workers, the area is likely to be increased in value. For example, Kuala Lumpur is a main city of Malaysia, and it has better job opportunities for the people out of states.
☑ Is the area’s average income increasing
If the area’s average income is increasing, means this area is developing and the value of property will increase as well.
☑ Does the area offer an attractive living style
Is the area focus on green living? Is the area nearby the sea? Is the area in close proximity to famous school or Universities? Different category of living style can attract different type of tenants and buyers. You’ll need to find out which type of living style meet your investment portfolio.
☑ Will the area benefit from an economic changes
Before investing in an area, you’ll need to check how the area sensitive from economic changes. This is generally measured by economic indicators, employment data, manufacturing activity, the prices of goods, and etc. When the economy is sluggish, so is real estate. But, the cyclicality of the economy can have varying effects on different types of real estate. So, you must figure it out before investing in any areas.
☑ Is this area in close proximity to transportation
The transportation centers always drive an area growth. If you buy a property that’s near public transportation, the study says that purchase is more valuable than similar properties without good access to subway, bus and rail lines. Transportation plays an important role in real estate and housing decisions, and the data suggests that residential property in close proximity to public transportation will remain attractive to buyers and renters.
☑ Has the political leadership creates an economic growth atmosphere
Legislation is one of the factor that can have a sizable impact on property demand and prices. For instance, tax credits, deduction and subsidies are some of the ways the government can temporarily boost demand for real estate for as long as they are in place. Besides, the government incentives can also help you to determine the changes in demand and supply and identify potentially false trends.
☑ Is there any existing problem occurring that can be disappear in the future
You’ll need to check if there are any crisis in the area, such as increase in crime rate, flood, the area full of abandoned dogs and cats and etc. Has the government working on these issues and make improvement in the area?
☑ Is the area has large infrastructure projects underway
If the area has large infrastructure project underway, the property value in the area is likely to be pushed up. How can you find out about infrastructure projects? Well, you can take any reports and follow up these announcement and commentary by checking with the planning and infrastructure department of your relevant state website.
Last but not least, besides of the above all, you will need to figure out the potential of your target area. It may be that the demographics are changing, the lower income residents are moving out, young professionals are moving in and etc. The more you figure out and the more yes answer you get, the more likely it will be a solid investment.
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