Real Estate Investing: What Everyone Should Know Before Investing In Real Estate

Till today, many Malaysians aspire to own their first piece of real estate.

It has been hardwired into our brains that real estate is “The Number 1 Investment” to have. And the problem is many Malaysians have the common struggle of saving up enough money to make that initial investment or downpayment for that piece of real estate.

However, the other “hidden” problem that most Malaysians have is that we tend to overly focus on real estate as the way to make money. This problem is otherwise known as tunnel vision.

“It’s the safest investment” “You can get passive income” “Real estate will always climb in terms of price. Capital appreciation!”

All this is still true to a certain extent. But we have to also realize that things around us are changing rapidly. There is more than one way to make money these days.

The Reality of Real Estate Investing

Being able to invest in real estate is definitely remarkable. However, it also comes with life long debt. So, when it comes to saving money for real estate, we share with aspiring property investors to look further into the future.

Would you be able to sustain yourself in the time to come? How do you see yourself growing in terms of your career over the coming years? Will you be able to make more money?

Here is another angle. What opportunities do you see yourself having in the future? Having to pay those monthly repayments, would you be able to take on these opportunities? What would you lose by losing out on these opportunities? What would you gain if you did jump on these same opportunities?

We believe you know how to manage your finances already. As a rule of thumb for managing your finances though, your housing expenses should not take up more than 30% of your gross income, including your loan repayments, taxes, and insurance.

But the question is have you thought about what other ways, apart from real estate, could possibly increase that number in your bank account significantly?

Published by Taco Heidinga

International Property Expert and Real Estate Coach, living in beautiful Malaysia.

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