Nov
24

8 tips on Property Investment

1. Be calculative
Always look for the potential upside, and always calculate the amount of risk involved in the investment.

 

2. Face the facts
Always refer to facts and figures and not the hype surrounding the property or, especially, your own hopes and emotions. Before you dive in, do your research and work out if you have sufficient funds to hold onto a property for at least a few years.

 

3. Go in at the right price
When it comes to choosing the right property, the architect’s brand name or even the location is not as critical as the right entry price. This means cross-checking a property’s price against surrounding properties; if it is lower than its neighbors, that means you’re taking less of a risk and have the potential to make more of a profit.

 

4. Property’s popularity
Besides the affordability angle, a property’s popularity needs consideration. It has to be sizable enough, 40- to 50-unit developments are considered small. Best that it is located in a reasonably well-known area with a strong publicity push. When the market goes up, these are the properties which prices will double or triple up faster.

 

5. Technique rather than Concept
For greenhorns only just starting the game, a thorough step-by-step course that teaches techniques rather than broad concepts is recommended to equip oneself with the skills to identify the right properties and make astute decisions.

 

6. Look For Uncertain Times
The difference between newbies and “real investors” is that the former will wait for good times to invest while the latter craves market uncertainty. If the market isn’t good, there will be buying opportunities and interest rates will have to stay low. As long as you have done your calculations and are not speculating, take advantage of the opportunities.

 

7. Multiply Your Assets
Even seasoned investors make mistakes. These investors often have trouble formulating an exit plan: when to sell their property. Cashing out your profit will probably enable you to buy more properties. This is how people multiply their wealth.

 

8. Be Confident
Unlike the stock market, the property market isn’t as volatile and subject to extreme changes day-to-day. As long as an investor has the adequate knowledge, holding power (the resources needed to keep a property for a few years) and confidence in the long-term economy of the nation, go for it.