Many people has jump into the property investment bandwagon. Back then, buying a property for the purpose of selling in short term was definitely tempting and possible. As of today, buying a property and selling it in a short time is definitely harder as compared to decades ago. Before you jump onto the property investment bandwagon, it is essential to understand the Real Property Gains Tax on how it works. There are many articles on useful tips when it comes to property investment on the Internet. This article will guide you through 4 useful tips when it comes to property investment.
Is the property located at a location that is ideal to live in? Is the location convenient? Does the location have easy accessibility to public transport and amenities? Are there any public transportations such as train station nearby? Are there any education institutions within the vicinities? These are all the factors that will affect and determine the price of the property and the rental yield. 2. Real Estate Agent Finding a right real estate agent is important as well. A good real estate agent will save you from hassles and stress as they will be the one to handle any property related matters on your behalf. After all, they are real estate agents with professional expertise that you do not have. 3. Choosing the best loan As we know that properties belong to illiquid assets, it might not be a great idea to put all your money in properties. It is important to know that the process of selling a property is not easy. It might take approximate 6 months to a year, or more to sell off the property. Even so, the price that you are selling the property might not be the best price. Hence, it is advisable to opt for a mortgage loan to finance your investment. With so many loans available from different banks, it is essential for you to educate yourself on the loans available. Find out the difference in interest rates, prepayment penalties and settlement cost offered by different banks. 4. Types of property There are many types of property available, such as condominiums, apartments and landed properties. It is important to choose the right type of property based on your needs. Landed properties are generally more expensive than condominium units or apartment units. However, landed properties appreciate more in value as compared to apartments. That being said, it is advisable to invest in landed property, even a single storey house will do, as it will give you more advantages ultimately. In conclusion, property investment is not as difficult as it seems. It may seem daunting but the return is definitely worth the effort and money that you have out in, provided you did it the right way.
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