There’s been a lot of on investment these days. Unit trust, the stock market, shares, fixed deposits, land, agar wood – anything, it seems, can be a form of investment. The key, though, is to invest wisely and with the occasional derring-do. Get this equation right, and you’ll be laughing all the way to the bank.
Perhaps the safest, risk-free form of investment with sure returns is property investment. The stock market is an unplumbed avenue with far too much risk. Unit trust is not tangible; fixed deposit interests are negligible and agar wood is, well, only for the true believer JProperty investment is, by contrast, predictable, tangible, easily understood.
Here’s why: with the booming global population comes a growing need for food and industry which translates to an increase in the need for jobs, schools and higher learning institutions. This has a direct effect on housing. And as such, buying property for rental can be a great source of income.
The thing is where and what to buy. Buying locally for investment is not quite an option – at least not in Malaysia, Hong Kong and Singapore – what with the respective federal governments tightening the noose on housing regulations, and property prices skyrocketing at an absurd pace and altitude.
The alternative is to invest in property overseas. We are firm believers of buying in locations where there is job and industry growth, schools and higher learning institutions, and where the local municipality/councils are making concerted efforts to improve the locality.
Property Investment Tips
Here are some helpful property investment tips, especially if you are a first-timer.
• Follow the money
Again: buy in locations where there is job and industry growth, schools and higher learning institutions, and where the local municipality/councils are making concerted effort to improve the locality.
• Leave the past in the past
Just because a certain place is new or never had a great reputation in the past, doesn’t mean it has not or won’t improve. We could name some not-so-desirable places off the cuff that are now booming or starting to: Jurong and PasirRis in Singapore; Sentul and Brickfields in Kuala Lumpur (on that note: did you know that Bangsar used be water-logged, full of rats and flood-prone at one time? It’s now one of the most expensive places in KL!); Gastown in Downtown Vancouver, Canada, and more.
Don’t be quick to accept what others say of a certain location. Just because it looked bad when they visited 10 – 20 years ago, doesn’t mean things have not changed.
You want to research and find out what the local councils have planned for expansion of the area, what improvements have taken place and are taking place in the future, and the developers that are zooming in on the area.
• Buy the type of property that is most “lettable”
In some places, two-bedroom houses and flats appeal to the widest range of potential tenants. Try not to go for large family homes.
• Don’t be restricted to your own immediate area/ expensive areas only
Just because the property price in your area is expensive, doesn’t mean it will fetch good rental prices. Property in some towns located further away may cost cheaper, but will fetch a better rental yield. Cheaper purchase price, but higher rental price – you do the math. Make your money count.
• Ensure the locale is a thriving one for tenants
Convenience – supermarkets, nearby universities, walking distance to amenities… these are where demand will be highest.
• A letting agency is a good thing
Do your homework and allow your property be managed by a good letting agency. This way, your property is well-managed and hassle-free.
• Check out the developer
It is prudent to invest in property developed by a developer with sound credentials. This is not to say that you ignore new developers entirely just because they have no company track record. While it may be the case of luck or trial by error when it comes to new developers, you might want to pay attention to their joint venture partners, financials, and/or study their choices in location.
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CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence.
Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.
Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260