KISS your investment property now, meaning Keep It Super Simple. I can’t stressed how important it is to keep your investment based on simple logic and common sense. For example, I have a friend who is very well educated, those that have gone to Big University in Foreign Land, bought an investment property in Kepayan because he heard some gurus talk about it, the developer also giving lots of rebates, have a lot of potential blah blah blah, and thinks its a good buy.

Well, I am not a fortune teller or magician, but I can safely forecast, his money will be better spent elsewhere, because the whole area is quite cut off from other developments nearby, making it have to self sustaining, which is almost impossible without a sizeable residents staying in its immediate surrounding.  Who is going to shop at the nice mall? Who is going to be there on the weekdays? What does this place has that others mall like IMAGO doesn’t have to attract me there? But what to I know right? No guru here haha. (Perhaps time to get a nice watch and flashy car?)

A lot of times when we are doing investment we forget what is the most important aspect of property investment is about. Which is ? LOCATION lah, I know you going to tell me who dont know that, but sometimes bad location can be Upsale (yup its upsale) into a pretty good location. Lets see one of them have to Suritz condominium, this development ticked all the right buttons, good products, nice facade and nice swimming pool, good layout, reputable developer, somewhat ok pricing (650k to 700K), but Location is Bad, period. I remember I can’t find the road to this property while I was doing my research, not just once but a few times! You can safely say that your friends will need some time to look for you if you stay there.

Ok, KISS for Property Investing?

1. Good Location
Location is important to know who is staying in this area, what is their income, occupation, age group.

2. Good Price
Well title says it all, if you are buying new, look for pricing that are good or reasonable for the middle income group, which is likely your target market for tenants. Lets say a property has a rental of RM1500 and yield of 4% then the property you can look at is RM450k (1500×12/0.04)

3. Good Developer
Developer with a history of delivering value and good product quality and good service gets my vote.

4. Good Holding Power
Well, as I said before Property Investment is a long term game, things might not turn out the way it should, as investors who bought the Loft IMAGO have discovered in KK is currently discovering, a bit of cash goes a long way it terms of way for investors who bought the units are coughing up blood each month or they are force to sell, already recently I got offer for 700k for 911sf unit, owner just want to let go because no money to renovate and nobody would rent an empty unit.

Keep it Super Simple!

propertykid.

Always Learning. Always Investing.