From the time when I took my first investment property, to the present day, there have been many lessons learned. We have learned that it is important to be able to identify a good deal. Also, it is important to have an effective strategy on how you would like to maximize your return on investment in the shortest possible time. There is no doubt that residential property investments can make you wealthy but only if done right. Investing in residential property is a great way to build wealth, diversify your portfolio and generate passive income. It can be a challenge for first-time investors, however, so here are some tips on how to get started.
Research your Potential Property
A good strategy to develop residential property investment is to conduct research on the potential investment. Below are some of the things you need to do:
- Research the area where you want to buy your house. You can look at the crime rate and other statistics that will give an idea of how safe it is, or if there are any places nearby that may be prone to flooding. This information is useful when deciding whether or not it’s a good place for you and your family, as well as other potential buyers who might be interested in purchasing homes in this neighborhood too!
- Research both houses and apartments before choosing which one suits your needs best! If possible try visiting each one so that nothing gets missed out later down the line (like hidden structural problems).
Find an agent who knows the area
The most important thing you can do when looking for a real estate agent is to find one who knows the area. The residential property market is very different from commercial or industrial, so it’s important that your agent has experience in working with investors and understands how they operate. Agents who have worked with investors before will also be familiar with their needs and concerns, which can help them better serve you as an investor in their area.
Investors tend to prefer agents who have been around for a while if they’re still around after several years, chances are good that they know what they’re doing! It also helps if this person has been able to build up a good track record over time: this shows potential clients (like yourself) that he or she knows how things work in this community and has an idea of what makes sense financially given current market conditions.
Look at comparable sales to determine the value
Comparable sales are important in determining value. When you’re looking at comparable sales, it’s important to keep a few things in mind:
- The size of the property must be similar. It may seem obvious that two 2-bedroom houses won’t be comparable to one 4-bedroom house, but there are other factors that come into play here too. For example, if one of your properties is located on an acreage with more land than its neighbors and another has an ocean view from its front window, those differences will affect their respective values as well.
- Try to find recent sales for similar properties the closer they are in time (within 3 months), the better! You want as much information as possible so you can make an informed decision about what price range would make sense for this type of home in this location at this point in time.
Establish a budget and figure out
If you’re looking to start investing in residential property, the first thing you need to do is establish a budget and figure out how much money you can invest. You’ll want to use a spreadsheet or calculator to determine how much of your savings and income should be used for investing in residential property. For example, if the goal is for 20% of income (including rental income) then this would mean that only 1/5th of monthly payments go toward covering mortgage costs while 4/5ths go toward covering maintenance fees, taxes, and insurance as well as any other expenses related specifically with owning real estate such as repairs or renovations.
Residential Property Investment
Residential property investment is one of the most popular forms of investment nowadays. This can be explained by its high returns and low-risk profile. However, it’s important to note that residential property investment is not a get-rich-quick scheme and requires careful planning, and research to let This strategy involves buying a property that can be rented out for an income.
You can use the rent received from tenants to cover the monthly mortgage payments and living expenses. However, you should always ensure that your cash flow is positive (i.e., rental income exceeds expenses incurred)., and proper execution in order to be successful. There are several strategies you can use when investing in residential properties:
- Buy low and sell high – This involves buying an asset at an affordable price before re-selling it at a higher price later on (e.g., buying at RM100k but selling for RM200k).
- The key here is timing because if you buy too early or sell too late then your profit will suffer significantly due to inflationary pressures in Malaysia!
The first step to developing a residential property investment strategy is to understand what type of investor you are. If you’re someone who likes being hands-on with their investments, then perhaps buying a duplex or triplex could be right for you. Alternatively, if you want something more passive but still want some control over how things operate in your portfolio, then maybe consider investing in shares in an apartment building through REITs or real estate ETFs like IYR or IYF.