CRITERIA SETTING is very important.

ChatPropertyMalaysia.com criteria to buy investment property:

1. Below Market Value – > 15%
2. Rental Yield – > 6% or break even with monthly instalment
3. Occupancy Rate – >70%
4. Take up rate for rent – < 2 months

* Below market value = (bank value – purchased price) / bank value
* rental yield = (monthly rental x 12) / property price
* Occupancy rate = percentage of units which are being occupied/stayed/tenanted
* To determine take up rate, get agent who service and focus in the area and ask how fast does it take to rent a unit there on average.

Above is simple our example, you or your group have to set your own criteria
So that when the deal come, you know whether you will buy or not
If you don’t want to buy, please give a solid reason, why?
It is not professional if you give the reason like: just don’t like the property.

When we have to set criteria, our mind will be very clear on what type of property and deal we want
Why is it important? So that we are able to make fast and precise decision!

Now, imagine, if there is a deal
We should be able to make the decision within half an hour.
And the decision we made, should be the same with make decision within 3-4 days later when we consider back.

Out of all deal, if we can get the NMD deal with no negative cashflow, if would be the best.
Why, because within 3-4 months after final disbursement, we can take back all our fund and in fact have extra cashflow to invest for the next one.

If cannot get the NMD, BMV deal with positive cashflow is consider great deal.

Most of the time, people go property fair or go developer sales office to view property and find out it looks like class A deal

Most of the time, it is not. But we are merely emotionally attracted by the fascinating show room and also colorful the brochure.

Simply because we don’t know how to calculate the number for investment; ie: had the success factors and criteria set.

Or when we go to view the subsales, we are so easily being attracted by the ID of the unit and had urgency to place the booking fee already.
With the set success factors and investment criteria, we will able to decide whether it is class A investment deal or not; this simple thing differentiate the successful investor from the normal one.

We Had Bad Experience, We Should Not Make Decision Base on Binary Choice. Will share with you next session.