The property market in Malaysia is really picking up and it is now a very popular place to think about buying a property. Property is tipped to rise in price quite dramatically as the Western expat looks for somewhere to spend his sizeable pension. The Malaysian government is now trying to make it easier for people to get on the property ladder, and for that reason, there has never been a better time to begin a property development business. If you wish to become a property developer and want to make some good investments then continue reading.
- Create A Plan – If you are thinking of getting into this industry on a short or full time basis, you really need to have a business plan that will lay out what exactly you want to achieve. You need to set yourself realistic and hopefully achievable goals and how exactly you are going to reach those goals. If you hope to employ more staff later, look into the job market for such positions and see whether the people you are going to need are in supply. If you intend to have an online presence which is probably necessary in today’s digital world, then look into designing your own website or find people who can do it for you.
- Return On Investment – You need to ensure that your property will give you some kind of rental yield because even if you want to sell, the market might not be performing well at that time and so you need some kind of income to cover the mortgage until the market picks up. Ten percent is a pretty good yield on a property and that’s what you should be aiming for. Selling your property however is a different ball game and you really should be hoping to achieve at least a thirty percent return on your initial investment.
- Where To Buy – Being a property developer in Malaysia means that you really have to know your market and you need to know the best locations in which to make an investment. Buying properties in well known popular place is quite easy, but the prices are higher compared to other areas. The key is to identify up and coming areas that are not yet on other property developers radars and to buy early and then just wait for the prices to shoot up and make yourself a nice profit.
- Be Finance Savvy – Make sure that when you do buy that you don’t take emotion into the deal. You may really like an area and you may fall in love with the property, but this is a business deal and you mustn’t pay over what the property is actually worth. It is easy to get caught up in the bidding process, but compare prices to other properties that have been sold in the neighbourhood and stick to that number.
In order to become a successful property developer in Malaysia, you need money and plenty of it. Remember when you invest in a property that money is all tied up for the duration, until you sell it on, hopefully for a healthy profit. Go talk to your bank manager who will assist you regarding finance and funds.