Investing in property to collect rental in Malaysia

Investing in property to collect rental

Many people today are intrigued with the idea of owning investment real estate. It sound like an awfully simple way to make money: Owning property, renting it out to tenants, and collecting rent payments. The truth is, it can be an extremely profitable venture, or it can be a train wreck.

An individual who is purchasing rental property for the purposes of income has a long road ahead of him, and he should be involved every step of the way to ensure that his investment turns out in the end.

The first step in figuring out if you’re ready to own investment property is to ask yourself how much money you have to pay up front. Buying your own home can require costly down payments, but investment properties generally require that plus much more. You may very well have to come up with not only the down payment on the property, but also the cash needed to bring the place up to code and rental standards.

Keep in mind, there are loans available for those buying rental properties. But rates and terms for investment real estate loans are harsher than those for private homes, since lenders believe there is not as much emotional investment for the borrower, and so their loan is more at risk. Explore your options and check into a few different lenders, trying to get the best loan rates you can. It may not be easy, but if you are not planning to back down from the task, you will not be wasting your time.

Once you manage to get your property renovated and you’re ready to go, you’ll face the issue of finding good tenants through the screening process. You can certainly hire a property manager to help you out here, as well as to deal with repairs that come up later, but most small landlords are much better off doing this process themselves. Screen tenants carefully and don’t let emotional involvement get in the way. Set some standards regarding credit reports and income, and stick to them regardless of who walks in your door.

Don’t expect to make a profit at first. Your rate of return is going to be small, even if you have done the math and figured out your rent cost as carefully as possible.

Also prepare yourself for unexpected repairs which are going to bring down your profit margin and require some work on your part. The first three years of a rental property are, typically, the shakiest. If you’re committed to being a landlord, you’re not afraid to roll up your sleeves, and if you’re planning to stick with it, you can reasonably expect a decent profit at some point in the future.

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Factors to consider when engaging a real estate agent

Factors to consider when engaging a real estate agent

When you are selecting an agent, be sure that they are willing to provide you with a detailed blue print on how they intend things to go from that point on out.

Ensure that you and your prospective agent discuss how they plan to inform others that your property is on the market.

Are they going to post an ad on the Internet? Are they including your particular property in a flyer or circular? Be sure to ask them how much time they plan to devote to your particular account.

If you are looking to sell your property on a schedule or if you are in a time crunch, a part time real estate agent just will not do.

Be sure that details regarding fees and commissions are disclosed properly prior to any type of agreement, especially a contractual agreement.

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