Sunday, October 18, 2009

Something about Property Investment

Have you buy a house or starting to involve in property investment? From what I look at it in details, I really have to change my mind about property investment.

Previously, I thought I've to think like an abnormal people. If everyone going for property and the price keep increasing until sky high, I should keep away from it. I learned this theory from stock market. This is very true, because stock is affordable and easily can buy and sell perhaps within minutes, and you can do it alone. Unlike property, it takes time for us to do the transaction of buying and selling, and you also need some team members such as realtor, lawyer and banker.

Property investment gives a steady income and low risk profile for most investors.

Further more, stock market investment require high rational thinking, and it's risky. Property investment is a lot simpler. Imagine when there is economy recession, which investment will be more sensitive? Why we need to opt for the difficult one? In conclusion, my analysis was wrong, I shouldn't treat all investments the same. The property is already sky high, and it keeps rising. City land is getting less and lessor, pricing will be getting high and higher definitely. I'm so regret that I don't invest it when I was younger.

From historical analysis, property will only slump when there is recession. Oh yes, we just have a global recession, didn't we? But unfortunately, despite the materials cost dropped over 100%, the housing price remain unchanged, and it begins to rise like a rocket. The only benefit is the lower loan rate. It's a different situation in our country here. So I don't anticipate the property price will drop in a reasonable way in short or mid-term.

Stock market return can be higher, but it's volatile and require high rational thinking.

Anyway, let me just share with you a few tips I learned from experts, and perhaps we can take them as advice to do property investment.
(1) Start early. The younger you start, the earlier you benefits from the market value promotion. None of the investment channel is as stable, high return and low risk as than property.
(2) Cut your spending and turn it into installment. The old says, work hard now and enjoy later.
(3) Don't go for luxury property like a bungalow, it's more difficult to find a rich tenant and the rental won't be high as well.
(4) Don't go for low-cost property like very small apartment. Your tenant might not afford to pay the rental most of the time, more risk for you.
(5) New housing perhaps has better quality of materials and structure, but not all of them suitable for your/tenant living.
(6) If you have steady income and you are affordable, suggest to look for a suitable property for investment.

If you want to learn more about property investment, do read up experts recommendation.

If you are free, kindly visit a local blogger, CK Wong who blogging about local property investment. His analysis for local property is interesting. Do check it out.

Happy investing.

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