Making Money Investing in Property
Making money in real estate is often perceived as a get rich quick scheme, and it’s really not that way. Just like any other investment, real estate is an investment that must not be entered into lightly.
No matter the amount of money you sink into your real estate endeavors, never forget that you could lose it just as easily as you invested it, just as with any other investment.
The most common means of investing in real estate is through rental properties. Many people will buy properties, fix them up (or not, lots of times) and then turn around and lease them to others in exchange for a monthly rent.
It is important to keep in mind when buying a property with the intention to rent out. If a family could afford to pay RM1,100 or RM1,200 a month just to rent a house, chances quite high that they will eventually take out a mortgage and buy their own properties. Thus, it decreases the need for rental properties.
In Malaysia, the government is now trying to help the lower income group to own a house. Quite a number of incentives have been introduce to-date. From the waiver of stamp duty, encouraging developer to build cheaper home….. etc.
In order for the rental market to continue, rental rates must be reasonably priced. You can base a fair rent off of the value of the properties in the surrounding neighborhood.