It is often perceived that property and real estate investment is the most stable investment methods among all others. This is because the price of a property is likely to appreciate and only under some strange circumstances will its value fluctuate.
Perceived as most stable
It is often regarded to be the most secure as long as the loan is healthy while other investment schemes like stocks and bonds are commonly easily affected by economic and political factors.
More predictable than other investments
In most cases, the price of real estate remains stagnant during a recession while during the good times when the market is more bullish, the prices tend to appreciate quicker and by larger portions.
Furthermore, if you invest in property, should the neighborhood enjoy rapid development, the price will also benefit. This is seen as something which will happen in a matter of time as development is bound to take place sooner or later.
Good for long term investment
Among the most significant advantages of investing in property is that the value never depreciates in the long term. This means that embarking into this type of investment will be a long term commitment.
Not common for prices to depreciate
Hence if you are looking for a medium or short term returns on your investments, this would not be the best choice to embark into. There has been only a handful of situations where the property value depreciate.
Why do property prices appreciate?
Perhaps the most influential reason for this is the fact that land will eventually be used up as time goes by while the population in the world keeps increasing. This will create the demand for property which will result in the rising prices and value.
How do you earn from investing in properties?
There are a few common methods of earning a profit from properties. The most common way is through buying and selling. This can be done if you have disposable cash for this purpose.
Property investors usually purchase units for a few years and then sell them off when the market price increases. This is a common volume-based investment method. For those who can afford to wait, you can rent it out while waiting for the property value to appreciate.
Another common method of earning a profit through renting is by purchasing several units and then while servicing the loan, rent it out and when you have repaid the loan, then the rental will be your earnings.
Is investing in properties 100% safe?
On the flip side, you will have to be cautious when investing in real estate because it would require sound foresight and evaluation.
The location of the property is vital in your investment because if you buy at the wrong location, it could take a longer time before you can enjoy its returns. However, there are locations that are ‘dormant’ in the beginning and would only be lucrative after many years.
These types of property would be ideal for you if you are not looking for any short term returns and have the patience to wait for them to mature. After all, you will find that property in the prime areas and popular locations would usually be extremely expensive and very limited.
Is the Malaysian market ripe for investing?
Naturally, investing in property in Malaysia is considered as one of the most lucrative and long term ones, especially with the development of the Greater KL project which is set to bring in more investors and create more job opportunities while expanding the size of the nation’s capital.
This means that more suburbs will be enjoying rapid development by the government which in turn will result in the rising price of property not only within the city center but throughout its outskirts as well.
