The property investment checklist - Beginner Level

Wondering if you could ever invest your money in real estate but not too sure about where or how to begin? Or worry whether your investment would end up being a loss instead of a profit? Well, don't fret as this guide is here to break it down for you!

Yes, as you can see, your journey as property investors has just started. Above here is a visual guide as to where you’re at before progressing into the further steps for successful property investment.

For now, let’s dig into the key factors that you need to take into account before investing in a property.

1. Evaluate Buyer Demand

Before investing in a property, it is a vital step to check on the dynamics of the property location. You should take ample time to identify your target tenants by analyzing the amenities around the area.  A futuristic mindset is needed to perceive the potential growth indicators such as expectations of developing business centers, universities, and factories where there is the growth rate in employment and students. This is to ensure an increase in your profit investment rate as they would be on the lookout for potential rental properties.

Simply said, clarify the rental needs, if there are none, it is time to explore the other location!

2. Identify Supply Demand

Pretty sure you are familiar with the economic term of “supply and demand”. Whereas in this case, too little or too much of something is never good. 

Take the case of renowned Cyberjaya where rental prices have dropped tremendously due to the vast development with low demand.  Even though there are high populations from the students and employees nearby, the fact that many of them started to spread out to neighboring towns like Puchong, Dengkil and Sri Kembangan is another crucial factor that causes tons of units available.

It boils down to the same thing here where an increase of land there would be an increase in rental supply. But then again, the upcoming MRT Cyberjaya might make a difference. Who knows?

3. Checking Infrastructure Availability

As history has proven, infrastructure is known to boost the economic growth of an area likewise boosting job employments and increasing the social benefits of the society where it would then increase livelihood. Thus, improving the property investment market with the increase of rental demands.

For example, KL City is now provided with easily accessible public transportation all over the place which makes all over places are accessible for a lot of working adults, expats, and even tourists for rental or Airbnb. This proves the above statement that the presence of infrastructure increases tenants from not only in that specific area as well as from different & wider areas.

"Location, location and location", is what it all breaks down to when it comes to investing in real estate and only that can deem your profit or loss and with your money and savings on the line, it is okay to take some time to have deeper evaluation on the properties and locations before betting your money on them.With the guide above, you can get a head start on crossing out properties and locations that don't check the boxes above!

Be sure to check out property from the various location here & also more property guide to dive deeper into your next big step in life!