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Thinkproperty Blog
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Tag >> Property Investment
Investment in strata title property - a tool to create more units.
How to get started in investing in property? A lot of investors never find out this option. This is because they are no aware of this concept of strata property. A lot of my members share with us the joy of owning a property, using the same of money available, normally, this is their monthly rent.
Investment in strata property is a good way to save. This is for those has a monthly saving of RM 500.00. This is a small way to commence to invest in a small unit, say, the cost of the property is RM 60,000.00. With a monthly rent of RM 350.00. This rental shall cover your loan.
How to purchase more or bigger unit?
Say, you can afford to pay off in 10 years time. The property price shall increase by 5% every year. The value of the property is RM 110,000.00 You can see the gain that you are getting.
Since you have settled the property, with the property title, you can buy a bigger unit. Use this unit as the down payment, some developers are willing to accept your unit as down payment.
This strategy has been carried out a number of my member in Kuching. This is a good way to start your investment in property.
QUESTIONS YOU SHOULD ASK A PROPERTY MANAGEMENT COMPANY You have any property investment the next step is to find someone to take over its management. Do your research and list questions you want to ask when interviewing prospective property management companies. Short list a few companies that interest you.
Phone them to ask questions then, if you are still interested; make an appointment to visit in person. Visiting in person gives you an idea of how they conduct their business and you can meet the people who will represent your interests. Here are the top nine questions to ask when you interview a property manager.
Why investment in strata titles properties?
This strata titles properties are good for those running a business. Your business need a space to service your clients. Your need to rent a space. your budget for rental is RM 1,200.00. The concept is use your rental as a tool to own your office.
Now for a monthly installment of RM 1,200.00, you can invest in a property whose value ranges from RM80,000.00 to RM120,000.00 depending on your down payment.
Now you are a property owner. Property is kuching has strata titles are Pearl commercial centre, Junction 168 commercial centre, for more see rtheng.blogspot.com
Many investors are not exactly aware of the fact that there is a ballistic trajectory to the potential return of property in relation to its price.
Rental return in general tends to improve in the beginning phases as the really cheap ones either have no facilities or comfort and mostly fetch peanuts for rent, or old and tired and cost a lot in service charges and maintenance in relation to its rent to produce a healthy final rental yield (this is a really rough curve, so don't think the angle represents a relative portion of the property market).
Now afterwards, the plateau is basically the "sweet spot" where rental yield to property price is maximized, in KL we're talking above 6%. This represents your medium to premium condominium apartments and homes.
The sinking portion of the curve is when you get to high value properties, such as major KLCC condominiums and bungalows. The rental yield in relation to price falls as that number grows, because simply the reasonable rent to charge on such high end properties is not high enough to keep such a percentage. For example, think about a RM700K 3 bedroom condo in Mont Kiara, and a RM 4 million 5 bedroom condominium in KLCC. The first is easy to rent for 4,000 per month, 48,000 annual rental, or more than 6% yield after service charges. But for the second to net 6%, it needs to rent at more than 20,000 per month, 250,000 annual rental or more. Do you believe it's possible in today's market? I didn't think so either. Now think how much rent you need to collect on a RM 10 million Damansara Heights bungalow to get to 6%? You're right, more than 50,000 per month, which is practically impossible unless it's a palace that would cost twice as much in the first place and furnished for at least another small fortune.
So do your homework to learn what is popular, in demand and gives you the biggest bang for your buck, before plunging and buying a property unit that might rent hard and still underdeliver.
Some people can jump in the property game, buy an apartment, rent it out to the first viewer, and then says: “HEY! This stuff is easy, how come not everyone is doing it.
It is true. Property investment is quite an easy process to get into, and many starters even with the least amount of homework can land a decent piece of property and generate both rental return as well as a healthy book value increase over the following few years.
However, the differentiation between racking multi-million dollar fortunes in any market, and those who fall by the side in frustration at market conditions/falling yields/rising maintenance/panicking over bank payments not being met, happens on the middle laps of this stamina race.
Property investment is like Le Mans 24 hour circuit, not a quarter mile drag. You won’t get rich by pulling a good gear change. Alternatively, if you are on a circuit and gaining half a second per lap on your competition, and the car is setup to withstand the long journey, with your team prepared with necessary spare parts and enough fuel, then the game is set from the beginning and you will cruise to take your checkered flag in confidence.
Can you see the Petronas twin towers from here?" The look of disappointment comes on the faces when the agent shakes their head in negation. That question is not really asked by an eager prospect expat tenant, it's asked by eager Malaysian investors who have it in the back of their heads that this is the view that people wants.
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