Sunday, August 29, 2010
Property investment strategies in the next 6 months
Lessons from my property role model, Renesial Leong, that we may already know, but it's good to remind ourselves now and again so that we can reach our financial goals.
1. Get your personal credit in good shape so that you are able to capitalize on opportunities should they arise.
2. Spend less, invest more - you need to build up seed money. So hold back before you buy that LV bag!
3. Avoid speculating on property with money you can't afford to lose - if you are buying to sell, don't risk it if you cannot hold.
4. Now is a good time for 1st time home buyers - mortgage rates are still low, high margin of financing and up to RM10,000 deduction on home loan interest rates for 3 consecutive years (for home purchased between 10 Mar 2009 - 31 Dec 2010)
5. Be extra careful with cashflow - factor in vacancies for 1-2 months, because it is a tenants' market right now - meaning that they have a lot of choices to rent from.
6. Be aware of upcoming mega projects. I for one, was amazed by the number of mega projects that is happening in KL city that will transform the KL skyline forever. KL International Financial District, Sime Darby Vision Valley, Sg Besi RMAF transformation, just to name a few. And I thought there was no more room for development in KL!