Unlike most other investments, Property Investment guarantees the Investor an asset that is physical (i.e. land and / or building).

Here are 3 basic tips when choosing properties to invest:

• Surrounding Infrastructure

Accessibility of transport, retails, schools, and hospitals are main consideration for people (workers or families) to move into a property.

For example, a studio apartment with LRT access & surrounding retails will be popular among workers, because it provide comfort in commuting and providing daily needs (foods, safety, time efficiency).

• Development Phase

A landed house complex that has been developed fully might not give higher Capital Gain compared to an apartment complex that is still in pre-construction sale (e.g. NUP stage).

Nevertheless, investment in a landed house is generally much less risky compared to investment in an apartment. General rule: high risk = high gain (or even high loss). 

• Financing

Choosing between Full Cash payment, Installment payment, or Bank Mortgage Loan (e.g. KPA) is not a clear cut.

It is very important for an Investor to estimate the amount of cashflow needed to cover the property investment in years ahead. For example: Mortgage Payment, Rental Income, Maintenance Expense, and Tax.