There are many available schemes to help the nation to buy a house, such as PP1M, Rumah Mampu Milik and so on. With the increasing cost of living and stagnate pay cheque, many people have started buying properties for investment purpose. Property investment is a good way to earn passive income. This article will teach you some basic ideas to make profit from real estate investment.
1. Buy to let
2. Rent to rent A rent to rent is also known as sub let. This is similar to buy to let, with the only difference is that you rent a property at a cheap price and rent it out to make a profit. You make a profit from the difference between the rental you pay to your landlord and the rental you get from your tenants. 3. Flipping There are 2 ways to do flipping: 1. Buy a cheap property and sell it off; 2. Buy a worn out property, refurbish it then sell it off. There are some things that you should avoid to ensure you are making the best out of flipping: Not paying enough attention to the property market You need to keep yourself updated to the latest and most current real estate trend to know which neighbourhood is the best for flipping. You will need to do enough market research to find out more on the property market. Miscalculation of budget You need to bear in mind that you are not only paying for the house itself, but also the miscellaneous fees such as renovation costs, legal fees, taxes, utilities fees, maintenance fees and so on. You might also need to apply for a short term loan. All these should be taken into account when it comes to calculating your budget. Auction property Buying an auction property for flipping purpose is not a smart move as all property auction do not allow you to do an inspection of the property, which makes it a risky thing to do. You might end up paying more than what you should. In conclusion, there is no shortcut when it comes to making money from property investment. Therefore, you will need to do your homework and research to generate more income for you. Check on the location, the type of property and amenities available before you buy a property for investment purpose.
1 Comment
2/9/2022 02:19:57 am
I think that the most important aspect of buying a house is location. Apart from the condition, size, and price, location is one such thing that cannot be changed. Location is also one such criterion that decides how your property will perform in the housing market if you think of selling it in the future.
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