If you are just looking for hard investment tips, am sure you will be able to find lots of them by just Googling. Over Internet, you will realise that hard facts are so easy to come by.
However, we believe that what is important are not just the hard facts but really listening to all the mistakes, understanding the reasons behind the mistakes suffered by experience investors. You want to avoid these mistakes as much as possible. When we are able to avoid the mistakes then investing in properties can be a very rewarding experience.
Am sure you have heard how Renesial Leong, Milan Doshi, Ahyat Ishak and many others started their venture into property investment & how they have finally successfully build a business system that offers their family a wonderful lifestyle. These are few successful stories. Many failures went un-reported; therefore, it is better to learn from the few successful investors.
In the last few articles, we have shared the following 6 investment tips;
- Potential For Upside
- Price, Buying Cost & Equity
- Easy to Liquidate
- Capital Growth
- Supply & Demand
- Vacancy rates/vacancy demand
The last investment tip which we should be aware of is Vacancy Rates & it is determined by demand/supply for the rental unit. When investing in a property & having to depend totally on monthly rental payment to pay for monthly housing loan can be a stressful situation. Can you imagine what will happen when there is no demand for your rental unit & you have to continue to pay for the monthly housing loan? You may not be able to sustain this negative cash-flow situation for long if you do not have enough savings or do not plan your finances carefully.
Therefore, it is always safer to make some preparation & investigative works before we commit on purchasing a property for rental. Am sure you would like to know whether your invested property can be rented out as quickly as possible? How nice if we have this secret information?
Well, this secret information can be easily obtained by you. You just have to pretend to be a customer to rent in your chosen area. We suggest that you contact a few property agents focusing in that area & asking to view few properties for rent. Find out whether it is easy to rent. How is the rental rate? Is it negotiable? Are there lots of units for rent?
The more comprehensive your investigative works, the more reasons it will justify your investment decision.
Having a good relationship with a few trusted property agents will surely help us in our investment. Our suggestion is to build rapport relationship with 7-10 property agents from various agencies. You can get their names from property listing sites like estate123.com and start contacting them right away.
Good luck in your venture!