I always ask myself what is the best investment in the World? Mutual fund, stock market, bussiness, property.....? I told you in my previous post that bussiness will give you the fastest return provided you don't bankrupt in the first 3 years! (Anyway, more than 90% of bussiness fail after only 1 year!)
There are a few good reasons why you should invest in property. However, there is always a risks that you may be trapped in what we call ' property bubble' that can burst anytime! You buy highly overestimated property and you work until your retirement age just to pay back your bank mortgage.
Therefore, always look for good bargain in property investment! You must always buy under market value property so that you can sell it later to get a handsome profit.
Property investment has a long-term proven record as a hedge against inflation. However, never expect that you an make profit of 20-30% after a year. Your property only will increase in value after 5-10 years. However, never hurry to sell your property because you still can get profit from renting out your property!
But the problem that most buyers have in common is " How to buy an under market value property?"I always told my friends that you can buy this type of property if and ONLY if you are not hurry to get ONE!
Try to hunt for this type of property in,
a) An Auction
b) Your neighbourhood where you know that they are unable to pay the bank loan and they have to sell the property no matter how! ( desperate buyers!!)
c) During economic downturn, never buy your property when everyone is making money from the bull market!
Always remember that your first home is not your asset, you have to get money from your property before you call call it an "ASSET"!!