Following my previous post, here I pen down my learnings on what makes a good investment property:
1. Rental yield at 6% (or 2 X of fixed deposit rate) or more.
2. Price of property is close to or below market (bank) value.
3. Property in golden triangle (work, live, play) area.
4. Property has >80% occupancy, which means it is highly sought-after area.
With these minimum 4 criteria, if you secure such a property at hand, it will not be at negative cash flow, nor unable to sell when you need to liquidate for cash.
1. Rental yield at 6% (or 2 X of fixed deposit rate) or more.
2. Price of property is close to or below market (bank) value.
3. Property in golden triangle (work, live, play) area.
4. Property has >80% occupancy, which means it is highly sought-after area.
With these minimum 4 criteria, if you secure such a property at hand, it will not be at negative cash flow, nor unable to sell when you need to liquidate for cash.
very good tips! i love to read ur post!looking forward to own my 1st property.
ReplyDeletebut i found that most of hot property in my area are leasehold..is it a disadvantage?TQ
Cik Erza, it depends on what your goal is. If you are keeping for rental in a hot area, leasehold is not a problem at all. A slight problem may be when you want to sell, how many years of lease is left. Bank loans will be more difficult to your prospective buyers, but it is still possible even when the lease only has 45-50 years left.
ReplyDeleteRead this old article here: It should be still valid.
http://www.hba.org.my/news/2002/1002/leasehold.htm
For best answers on "loanability" check with the banks.
Those who purchased in Dubai are aware that there will likely come an occasion when need for real estate asset surpasses provide simply because qualities that are being purchased off plan are not finished in here we are at the increasing inhabitants to reside in.
ReplyDeleteMemphis investment property