Can I Afford an Investment Property?
Can I Afford an Investment Property?
With all the buzz around upcoming developments, you might be asking yourself, “Can I afford an investment property in Malaysia?” Chances are, you are more than capable but you just haven’t realised it yet. The other day, I was talking to a dear friend of mine who was telling me about what he was going to do with his upcoming bonus. He himself wasn’t exactly sure but he knew for certain that he wanted to spend it on something. He came up with all sorts of things that he felt he needed; from new shoes to going on a solo holiday. I agreed that those were all nice things that he would enjoy but asked him why not consider investing the money instead of blowing it on things that he would only enjoy momentarily? Why not invest in some property?
Bonuses aside – most people have indeed had enough money at one point or another that could’ve been used to afford an investment property. This is especially so, for first time buyers who still do not have a home loan under their name. Most people desire the façade of appearing rich or enjoying things that rich people have the luxury to enjoy, as opposed to actually being rich themselves. That new Braun Büffel bag you saw online the other day that would make you look simply irresistible or perhaps you think it’s time to get a brand-spanking-new Mazda instead of continuing to drive that boring old Myvi – It’s thoughts like these that soak up the excess cash that could be better used elsewhere. From frequent nice meals at fancy restaurants and weekend party nights – money that can be used to afford an investment property is being spent on essentially, non-essential things.
These days property is extremely affordable to the Malaysian middle class. With developers coming up with all sorts of creative deals, down payments are getting lower and lower – expect your 10% down payment to be anything from 3% up to 0%. It doesn’t stop there – you can even expect cold hard cash for your property purchase. Some developers will actually pay you for your signature to pick up a unit from them. You do have to come up with a booking fee though and this normally can be anything from RM3000 – RM5000. So, there you go, just RM5000 can get your foot in the door to owning your first investment property.
There are things that you need to consider before buying the property and when applying for your home loan though. You will also need to figure out how you will cope with your home loan repayments and weigh the pros and cons between finding a long-term tenant or managing short-term ones. This takes a significant amount of time and is absolutely crucial for making your property investment a good one. You wouldn’t want to lose money rushing into something without full knowledge of your investment. Check out the links above to find out more.
The main point here though is that, you can afford an investment property if you really want to. It’s not something that is miles out of reach or something far beyond your wildest dreams. Owning an income generating asset is something that you can do right away, if not something that you can work towards obtaining in the very near future. Start by doing some research online, visit some property showrooms, familiarize yourself with talking to agents and explore what opportunities there are on the market. Once you know what is out there, you can figure out what is best for you and your family and then take the first step – put down a booking fee and before you know it, you’ll have the keys to your first investment property. Before everything else however, close that Lazada browser and tear up those new car brochures, your property investment journey is right around the corner.