What are the top three most important factors in property investment? Many used to say, "location, location, location!". This is no longer true, I'm not saying otherwise, but there are actually more things to look at other than location. There are four (4) main factors which i would normally advise my client in property investment:
(1) Location
Things to look at may include accessibilty, visibility, road level, carparkings, pedestrian flows and etc.
(2) Rate of Return
You should be looking at minimum 6%p.a. as a general guide. Please refer to Real Estate Tips #8 on how to calculate Rate of Return.
(3) Tenantability
If the property become vacant, how long will it take to rent it out again?
(4) Property Management
A poor property manager will result in a decreasing in capital value and the rental of your property in long run.
I shall explore further with the above factors with you all stages by stages. Before i end here, do let me highlight to you the paramount rule on property investment, i.e.
"BUY ONLY THOSE PROPERTIES YOU ARE FAMILIAR WITH!"
Over 30 years of experience in Iskandar Malaysia's property market, Johor Bahru -based registered estate agency, Tiram Realty, offers FREE tips and info on the selling, buying, renting and auction of properties in Iskandar Malaysia through the blog.
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