When the new international airport (before KLIA is built) was supposed to be located north of Kuala Lumpur, many people rushed to buy properties in Bukit Beruntung. Today there are probably more houses than people staying at that location.
Astute property investors would want to buy their investment properties at below market prices. This is because you could even make a profit even when you are forced to sell in an economic downturn.
It is said that you would need to view at least 100 properties to end up buying ‘the one’.
About the Author:
Calvyn Laang regularly conducts property investing trainings to share his vision that investing in property is not only for the rich but is also for everyone. He believes that property investing is the best investment vehicle for an average wage earner to retire earlier if he or she chose to. For more information on his “Secrets to Successful Real Estate Investing” property investment training, go to: http://PropertyInsiders.com.my or simply WhatsApp him: +6016-992 1800.
For many who are starting out to buy your first home or your first investment property, it certainly feels that many people around you seemed to know a lot more about property than you.
The truth is that just like any subject matter, we need to take time to learn. So what are the secrets that one should know to buy property?
Secret 1 – Knowledge
It is not uncommon to see and hear your friends telling you that they had bought a property recently. When you proceed to question their rationale behind buying the property, more often than not they will say that their friends said that it was a good buy.
Other times they will tell you that they bought the property because the developer had this discount or that a certain development is coming up near the property they bought.
Some of you would remember the story that the new international airport (before KLIA is built) was supposed to be located north of Kuala Lumpur, which is why many people rushed to buy properties in Bukit Beruntung. Today there are probably more houses than people staying at that location.
Therefore knowledge is very extremely important for you to start this journey to start buying or investing in property.
“Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” – Anonymous.
You must learn “how to fish” (read acquiring knowledge) instead of relying on others to give you “tips” which may be mere rumours. You can either learn from making your own mistakes or from the mistakes of others. Of course the first option would be rather painful, expensive and also rather unnecessary when you can learn from someone else’ mistakes.
For a start you can buy a book and read it. Some of these books would detail how the author went through certain stages of their property investing life and how they succeeded at the end. In fact the start of my own personal journey in investing in properties as a way to getting out of the rat race was sparked by the book written by Robert Kiyosaki “Rich Dad Poor Dad”.
You may also get resources on the internet to aid in your learning experience. Some of these resources are free while you may need to pay for others. You can also find property investing online courses too. Some of these courses would even have videos to cater for those of you who can learn better through sight and sound.
Though this may be the cheapest form of acquiring knowledge, some of you may find reading or surfing the internet a chore. You may prefer to have a more personal interaction with the experts. As such you may want to attend property investing training and seminars that are widely available even here in Malaysia.
You may have to sit through a two-day “how-to” seminar in a class room setting. They don’t come cheap but the plus point is that you are able to interact personally with the person conducting the seminar and can ask all the difficult burning questions.
Secret 2 – You Make Money When You Buy. Not When You Sell
Many people get it wrong when they buy properties, whether it is for their own stay or for investment. Many people think that as long as they are buying the property at market value, they are satisfied. This is because they think that the capital appreciation of the property is so huge in 10 to 20 years’ time that it is alright to pay market price to gain control of the property.
However, astute property investors would want to buy their investment properties at below market prices. This is because you could even make a profit even when you are forced to sell in an economic downturn.
Therefore in order to buy properties at prices below the market, you would need to know there things. The first thing that you must know is the current market price. Not yesterday’s market price and certainly not the market price for previous year.
The second thing you would need to know the ability to negotiate. Price negotiation is a largely ignored skill in today’s market and it will certainly serve you well. Some property investing courses or seminars do not even include this very important topic. Therefore do your due diligence properly.
The starting point of a price negotiation is the third piece to this puzzle. The third thing to know is the reason why the seller is selling the property. If you are able to know the reason, you would be able to come up with a win-win solution for everyone.
For example if you are able to find out that the reason the seller is selling this investment property is because he needed some money to renovate his home and you are contractor, you can offer to get the job done at a discount. This way you are able to save the seller some money and you can secure some job for your contracting business. However the most important thing is that you are able to buy the property at a discount.
Secret 3 – Perseverance
Many people think that buying a property is very simple. All they need to do is to look at the property and if they like it, they just sign the dotted line. However for a successful property investor, the process is different.
To be successful, just like any other thing, you will need perseverance as it would require a lot of legwork, at least at the beginning. As part of the education process, you would need to view many properties. By doing this you would get to know the property prices and the type of residents in that area. And this can only be done if you “walk the streets”.
When you go out to view properties, you would come across a very important person in your business. This person would be one of the resources who will teach you about the property and its surrounding area. So who is this person? He/she is your friendly neighbourhood real estate agent.
It is also during such property viewing process that you would assess which real estate agents that you would want to build a long term relationship with. Once you have identified the few real estate agents, work with them and it will be a mutually beneficial relationship for the both of you.
It is said that you would need to view at least 100 properties to end up buying ‘the one’. This is a realistic estimate, at least at the beginning of your property investing journey. So why the need to physically view so many properties? This is so that you can learn and at the same time separate the gold from the dross, the grain from the chaff and separating the good deal from the bad deals. After all we are talking about a long term investment of hundreds of thousands of Ringgit.
This is the part that many would-be property investors stumble and ultimately give up. Many are not willing to pay the price. They prefer to while away their time watching the television or going to the movies or hanging out at the local mamak shop.
There you have it. The three secrets that every property investor should know. Knowing these three things is a good start. As you start on your journey to invest in property, you will find that you will uncover a lot more secrets. These secrets will transform you from an ordinary property investor to a successful one.