When you turn into adults and start working, your parents and adults in your life will advise you to purchase the property. No matter it is for investment or utilizing it your own, it will be a promising reward, said by the adults. In fact, property investment has become so popular today that people consider it as a passive side income.
When auction property become the topic discussion, you must understand that it is not a foul play. As it requires a long-term commitment and advanced knowledge of doing it. Not to forget that you ought to understand the do and don’t to get a plentiful harvest.
Some Basic Concept for Fellow Investor
Five years is the minimum time frame that you will need to commit and start seeing some monetary gains when you are doing Lelong property. It also depends on whether the investment you are investing is located in the city area or suburban area.
Understanding how below market value property investment is secure. It is basically buying now with a lower price and selling it in the future after the value increase. Whether it is the one-off or continuous rental as an investment, it can be a significant number.
Although real estate investment requires an ample amount of money to start off, many people still want to perform in the property investment sector. As it is viable for income generation. Buying low and selling high is the means of property value appreciation.
The rental collection is also one of the viable strategies, as people use the money collected to pay back the loan. Which results in offsetting and in some cases, raising extra income. Visit our website to learn more!
The Numbers You Need to Know
Expert suggests that housing prices in Malaysia will continue to appreciate, which means it will grow continually. For the reason that the land will get lesser and lesser and population will continue to grow. Hence, auction property can be acknowledged as a good hedge against inflation.
With that being said, it still must be a property type that has excellent characteristics. For instance, it must be in a reasonable location and the property itself has to be attractive enough. The initial cost to start property investment may be substantial. Still, it will be worth it as the price will not fluctuate as much as another type of investment.
The annual return for Lelong property is around 8%, which is considered a good hedge. When comparing high-rise residential and landed estates, landed properties yield slightly better results.
Tips and Tricks for Sustainable Gain
Other than residential property, which is most people first choice, property type such as commercial properties has the chance to offer better yield as well. As business and company will probably pay more rental over the long-term. Thus, the capital outlay would be higher, offset by lower maintenance cost.
What are your other choices? You could also consider retail property or Lelong property. Nonetheless, it requires more knowledge to understand the market demand. You may find expert and news stating that the supply of retail property is in oversupply state. According to Elelong Malaysia, the demand still remains high in 2020.
One of the main things investors ought to keep in mind is that property investment is never meant for short term gain. The advantage of investing in industrial property is that as long as the leases are never discontinued, the rental period will tend to keep longer compared to residential property. Moreover, it requires less maintenance and initial outlay.