Getting rich through property investment

Buying a new house is an exciting experience but saving for the down-payment usually takes a while.
For most of us, buying a house is probably one of the largest single investments we will ever make in our lifetime.

Andaman Property Management Sdn Bhd sales and marketing director Datuk Vincent Tiew offers some tips on investing in property.

As an avid investor himself and with more than 10 years in the property industry, Tiew believes that property investment is one of the ways to amass wealth.

Do’s and don’ts
“You have to understand the objective before purchasing the property. is this property intended for your own use or is it used as an investment?” explains Tiew.

“Be certain of your wants and needs before you purchase the property, so that you will be able to get the right property.”

Another important consideration when buying property is to have an appropriate budget. This refers to the targeted price range of a property that you are planning to purchase.

Think carefully before making a final decision. There is no need to rush into buying a property because you do not want to regret the decision and end up spending a huge amount of money on something not worthwhile.

Research on the prospective yield of your investment and always calculate the level of risks involved. It is important to conduct sufficient research and survey the types of property you intend to buy.

Tiew advises prospective buyers to get detailed information via the project’s website. They should also visit the developer’s office or the actual development site. An investor has to understand the “product” that they are buying.

“Don’t buy a property due to peer pressure. This factor has caused many first-time home buyers to enter the property market when they are not quite financially ready,” says Tiew.

Developer Interest Bearing Scheme
Should one buy or rent a home?

Tiew is quick to reply, “Buy! When you buy properties, you hedge against inflation and you can benefit from capital appreciation.

“Moreover, it’s quite easy to purchase property nowadays as property developers are offering the Developer interest Bearing Scheme (DiBS) which is beneficial to home buyers as they will have more time to save money while the property is still under construction.

“Also, with the advent of government programmes such as My First Home Scheme (MFHS) and 1Malaysia Housing Programme (PR1MA), it is so much easier to own a home now.”