Buying property, whether as a home or an investment, is most people’s biggest financial decisions. Proper research and planning are crucial to ensure that it is a sound investment that can yield good returns. Property experts, country head of JLL Malaysia Y.Y. Lau, and Propedia Consultancy principal Vicky How, share some advice for women who are looking to invest in property.
Is investing in property a good idea?
Lau: There are a number of options for investments such as fixed deposits, government securities and bonds, shares and properties. Each of these have different risks attached to them. The current inflation rate is from 3% to 4%. Fixed deposit rates are also around the same level, which wipes out any gains from placing money in fixed deposit.
Investing in property is a good idea as it is a fairly good hedge against inflation as land is a scarce resource, especially near city centres.
How can property investment improve women’s financial standing?
Lau: Most people cannot reach financial independence by being full time property investors as you need cash for the deposit when buying any type of property.
You would need a steady income to service the property loan. Active income is also necessary for the banks to assess how much credit or loans they are willing to extend to you.
But income from real estate can be a form of passive income that will help you build your retirement income quicker or enable you to live as well as you did during your peak earning years.
Property investment can be an investment to make your surplus money work for you.
What must a woman consider before investing in a property?
Lau: Affordability is key. As a general rule of thumb, a third of your monthly income can be apportioned for mortgage payments.
It is also important to have the necessary savings for the deposit and check whether you can obtain financing for your intended investment
Search Fund Accelerator 