TOP 5 DON’T OF PROPERTY INVESTMENT

WRITTEN BY INVESTOR'S WATCHMAN ON JUNE 20, 2013. POSTED IN BUYING PROPERTY GUIDES, INVESTOR GUIDES

Top 5 Property Investment Mistakes to Avoid

Buying property is a good way to be rich. Property Investment is known to convert many into millionaire multimillionaire. However there’re plenty of property investors struggle while investing in their first few investments.

Why? The reason is simple any of the property investors didn’t know the rules, the do and don’t in the game.

For many investors who struggle while investing in properties, most probably do not know the pitfalls and mistakes they should avoid.

So what should a property investor do? And what should a property investor avoid?

Here’s 9 common “Don’ts” in property investing.

DON’T BUY RURAL AREAS.

For the last 10-15 year property prices of urban have kept on increasing. Areas like Klang, KL, Penang, and Johor, have its prices skyrocketed. I remembered one of my friends bought a property in Penang 8 years ago for RM 100+ K, now the price is about one million. Her property bought itself every year.

The reason not to buy in rural areas it’s not because, the price appreciates slowly but the demand of land is too much. It’s easy for any developer to build a property and have buyers buying them. Thus it’s harder for you to get tenants in the rural area.

DON’T BUY ON IMPULSE AT PROPERTY FAIRS.

Do you think great deals are in the property’s fair? The answer is simple- “NO”. You have to spend time and money to allocate your own great deal and most of them don’t appear in places like property fair. Even though the packaging, and the brochures are nice. But for property investment, you have to see the place, analyze it before you make any decisions.

DON’T BUY RESIDENTIAL PROPERTY FACING HIGHWAYS OR INDUSTRIAL AREA.

Don’t get your investment exposed to too much pollution. If the government builds a highway in front of your house or investment, sell it. If you don’t your tenant won’t stay in your property for long.

DON’T BUY NEAR HIGH TENSION CABLE AREAS

It’s common when people always find properties near high tension cables extremely cheap. However, those cables might put you or your tenant in a high health risk.

DON’T BUY NEAR THESE AREAS.

• Worship Places
• Schools
• Shopping centers
• Food Stalls
• Pubs
• Multi Propose Hall

Near is great but too near is troublesome, image a mega worship place is right in front of your house, it’ll give you tons of trouble with the noise and traffic jam.

CONCLUSION

  There’re no prefect properties, even with the above don’t you’ll still have to put in some research and find out your target market. As long as your property has more pros than cons.