When you invest in property or real estate, what are the factors you need to consider and do a research? If you fail to do any research, it will have a huge impact on your financial problem and may cause you many years to recover back from your financial problem. Here I will like to share the 3 important factors of property investment.

1). Location

A location is a key factor in property investment. If you buy a property with a good location, you will have a higher ROI. To learn how to choose a good location, please check “how to choose a good location to invest?” for more details. A good location with infrastructures surrounding will bring up the value of the property that you invest. Therefore, to find a good location to invest is a key factor that we need to do research when invest.

2). Purchase Price

What is the best price to offer when you invest/ buy a property? Should I offer the seller at RM300K or RM350K?  I believe this question is always asking by all the investors commonly. Don’t you? The purchase price is another key factors that we need to do a research when invest in property. I will suggest that you must doing a valuation research by yourself for the surrounding area of the property that you going to invest. You may check and ask about how much is the per square feet at current market value of the houses, condominiums, apartments, shop lots and lands that surrounding the area you going to invest? Then, compare it with the purchase price that offer by sellers/ developers before you determine the best purchase price to optimize your ROI.

3). Ability to Hold

I always heard from many property investors said that if you hold for longer time, you will get higher ROI in property investment. Is this statement true? Yes, property investment is a long term investment plan compare to other investments like unit trust, share or forex. The value of the property was increasingly by the number of years if the demands is at the higher site. For example 10 years back, my friend bought a gated 3 storey terrace house at RM305k and now it valued at RM500K. However, the ability to hold the property you bought is actually depends on yours strategy in property investment. If yours strategy is for flipping, you may just bought it and within few months sell it over. And if you plan to invest for longer period, you may hold it for 10 years, 20 years, 30 years….etc. Therefore, the ability to hold is another key factor you need to plan and consider in property investment for optimize your ROI.

Hope my sharing will benefit you in optimize your ROI in property investment. Do comment at below and share us more any others key factor that I miss out? Let’s share your thought!