By Nalina Suria Ravi, nalina@mystar.com.my
There are many opportunities for young people to gain experience in many fields. Among them is investing in property.
Although the Covid-19 pandemic has impacted negatively on the property market, on a brighter note, it also created openings for young people to start their property investment journey.
But not knowing where and how to start can be a hassle. Here are some tips for youngsters to get into the property market when opportunity knocks on their doors.
Knowledge is gold
Do as much research as you can. Young people must do their due diligence and study the scope of their potential investment before dipping their legs in. Seek information on the pricing of properties in the area over the last few years. If the price is at an all-time low, then it could be the best time to buy.
However, potential homebuyers still need to find out about other property-related matters like land tax, budgeting, personal financing and government charges. Knowing how the property market works will help you to know what you are actually looking for and you can plan accordingly.
Look at tenanted properties
Buying a sub-sale property that already has an existing tenant eases the pockets of young investors. Many young investors tend to look at new properties in the hopes of getting better deals from developers but those who have saved sufficiently can look at the ready-made market.
Having an existing tenant whose rent can be used to help offset the loan repayment will mean that the homeowner will have additional disposable income in hand.
Right location with right needs
Location, location, location is one of the mantras for property investment. However, you also need to look at the needs of potential tenants if you are planning to lease out the property.
Investing in a property in the right location that is in demand puts the investor in the driver's seat with greater negotiating power.
Earn more, save more
Many people nowadays have more than one job. Many are doing part-time businesses for saving purposes. However, always plan your expenses and commitments according to your income so that you can save more as you earn. Don't spend more just because you are earning more.
Research bank loans
Getting a loan for your first property is vital. To avoid over-paying fees and potential financial constraints, study the differences among the many loan choices offered by banks.
The banks may offer different rates and packages. Look into other aspects like additional repayment ability, redraw facilities, the flexibility of account, and duration of payment.
There are many possibilities for the young to involve themselves in property investment and be successful in this field. With the right methodology, the next generation can save up for their families and future plans.
Stay ahead of the crowd and enjoy fresh insights on real estate, property development, and lifestyle trends when you subscribe to our newsletter and follow us on social media.
