Investing in property – and the ballot

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By Earnest Towle

We see many stories daily bandied across online, social and in the press extolling the virtues of one party and the flaws of the other. Typical coffee shop talk is mostly about politics. Many are interested in ensuring that this period of voting will result in long-term stability for all and sundry.

Like the property cycle, which more often than not mimics the economic cycle, there are ebbs and flows which cause some volatility. Buying a property in a good and established location above the prevailing market rate or investing in an area that will take time to mature while depending on the cash flow returns immediately to hold onto the asset will undoubtedly lead one who is on a tight budget to cash flow turbulence if not distress.

Real estate, though shown to be a good wealth builder and a preserver of wealth not only in Malaysia, is for those with a longer-term horizon. Some investors have called it the lazy man’s game as it takes years for “growth” to be seen let alone realised. Many factors contribute to it ranging from the economic cycle, access to loans, demand for the product, competitor products within the same locale and access to the site.

Nevertheless, it is equally important to arm yourself with as much information about the target property before you commit to it. After all, the bank lending you the money will never forget you are the borrower – until you settle the loan. It is easier to manage the property before you buy it and not once you have taken it over. Similar too is your vote. Better to know all you can from all the news that is available and make your decision. After all, this will directly impact the value of your real estate investments here.

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