Capital Growth and Rental Return In Property Investment

Knowing property investment each asset is unique and has different risk-return profile. Capital growth or rental return should be referrer in property investment? When discussing property investment there are two somewhat conflicting philosophies. Some suggest you should invest in property for high rental return while others feel you should invest for capital growth (the increase in value of the property).

We would all like to buy property that have both great capital growth and a high rental yield. Fortunately this is currently what is being experienced in the North East of England at this present time, Asia country like Hong Kong, Taiwan, Korea and Malaysia.

Many new and experienced investors invest purely based on rental yield (the rental income generated over a year expressed as a percentage of the purchase price of the property). In general strong capital growth usually goes hand in hand with a lower rental yield. Read more »

Investment Portfolio Management

Investment portfolio is important sector in property investment. Over the years, real estate has proven time and again its stability, attractive returns and ability to hedge against inflation. Thus, it is not surprising that most of the rich invest substantially in property investment.

It is an expert opinion that most people’s Asset Allocation Model and Investment Portfolio should look something like this (give or take 5%): Assuming you have RM100,000 set aside for investment purposes, at least RM60,000 should be invested in properties. Less than RM30,000 go directly into the stock market and the balance (less than RM5,000) into high risks, highly leveraged, volatile investments such as Options, Futures or Foreign Exchange (Forex).

Many people make the mistake of concentrating too much of their time and money into the upper levels of the pyramid, as their investment portfolio returns are highly volatile and unpredictable.

First, it’s extremely important to build up a solid investment base using real estate before venturing into other investments to give your investment portfolio regular and predictable rental income and to enjoy capital appreciation.
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How To Buying Investment Property in Smart Way

Many people think of make money through investing. Many turn into real estate investment. How to Buying Investment Property in Smart Way? Buying Investment Property base on personal financial goals. What kind of property investment you need in real estate industry? Just to make money quickly or build long-term wealth?

For short-term investment, perhaps the best strategy for you would be looking for buying investment property that you can transform and sell easily and quickly. This is call flipping. It can be more effective if you look for houses that more run down than they really are. And only need few cosmetic changes to be made in order to greatly enhance their resale value. If you are first time property investor, you can refer to previous article “Property investment for beginners”

For build long-term wealth or increase your monthly income, perhaps you should consider buying investment rental property instead. Buying a property at a very good price, then make the changes needed to bring them up to market value. You will also need to do your property investment market research well in advance to determine that the rental value of this property will meet your expectations when all improvements are made though. Monthly rental income should more than cover the monthly mortgage loan payment. Read more »

Property Investment For Beginners

You may think about to get started in property investment. Ask a beginner for property investment, you might not figure out what is the first step. There was much kind of investments; many people are interest in property investment. Most of people don’t have any idea on how to get started. So they put it off time and again until it becomes an afterthought. You’ll miss out on the opportunity to gain the return of property investment. Please bare in mind, there is no guarantee for investment.

For property investment neophytes, don’t be afraid of the challenges and pitfalls you may encounter along the way. Don’t feel do not the slightest chance in property investment. What’s been keeping you from property investment? Do you think it’s too complex? Difficult to learn? Whatever it is, forget about it. Some of the most successful property investors were in your shoes when they first started. You have to get rid of your self-created obstacles before you get investing. Read more »