Nowadays property investment decision are somehow highly influenced by emotionally created promotional materials picturing good looking suburbs & vast green nature. We are attracted to the most publicised location, lured to attending the latest & biggest property launch & influenced by a handful industry players. All these points are important, however, we believe that to fast track your investments, you need to be a few steps ahead.
The very first step we have learned & would like to share is the skill to identify & consciously ask promoters the upside & growth potential of this property. Skills to look for areas that have the potential to become hotspots and big potential in the next 5-15 years are key to investment. The property may not necessarily already in the limelight as we are looking for a diamond in the rough. For existing hot areas, it’s probably too late as we could be paying prevailing market rates. Meaning, the secret is already out & we may have already missed the boat!
Therefore, the key investment skill is to spot & identify the next up and coming hot spot. Some of the key external look out indicators are, namely potential future approved infrastructure upgrade in the area, potential upcoming developments or major projects and dedicated government direct spending etc. When all these indicators happens, it will surely allows you to gain extra profit.
While some suburbs might appear to be obvious blue chips, we should allow ourselves to consider identifying new opportunities as change is constant. For example, Bandar Jelutong would have been a good investment target some; 5-10 years ago but today we can only expect consistent returns with very limited upside potential.
Alternatively, researching southern region namely, Johor Iskandar region, a growth area due to the significant amount of money the government is investing to the redevelopment of the zone as well as high interest from major multinationals will surely bring higher ROI.
For all we have learned over the years, we believe all indicators are important but which indicator should you be asking first & foremost?