“Location, location and location.” The most common answer a property investor gets when they ask for the 3 most important factors when it comes to buying property for investment purpose. Most property investors are told to buy properties located in the property hotspots, such as properties located at the Golden Triangle in Kuala Lumpur. With so many available schemes, such as PR1MA, Rumah Mampu Milik in Selangor, buying a house is no longer a far fetched dream. Before you buy property for investment purpose, make sure you fully understand the Real Property Gain Tax (RPGT) in Malaysia. This article will guide you in determining property hotspot.
- The Golden Triangle
According to a professional, the Golden Triangle is the comfortable travelling distance between home to everything, such as work, play and live. It is reported that most people are prepared to travel approximate only 5 kilometers from their homes to everything or everywhere before they start to feel uneasy.
- The population
The current new hype in the property investment sector is the integrated mixed developments. The integrated mixed developments are townships that deliver a wholesome lifestyle that include commercial centres, international schools and green parks within the vicinity. However, the density of the population in the area plays an important role in deciding whether the integrated mixed development is a popular development or not.
Let us say you build a township in Rawang where housing demand is low, then it is very unlikely that the demand for the properties in the area will be high. However, if you were to build a similar township in an area where population is already high, then it like most likely that the development will be sold out like hotcakes. This is simply the demand and supply logic. The demand and supply ratio is a key of the property price growth.
- Research of big boys
One of the easiest ways to know a property hotspot is to go after the big boys. By any chance you heard any rumours that Aeon Supermarket is going to open a store in an area, the chances of property investors searching for properties in the same area are going to be high. This is due to the extensive research on population is done by their R&D team before deciding to open a store in that particular area.
- Unexpected catalyst
Finding a catalyst is also one of the ways in determining property hotspot. Examples of unexpected catalyst are universities and industrial areas. The establishment of universities and industrial area will need a number of houses for students, tenants and workers. Most of the time, only regulars will know the establishments and the public will not get any news of the new establishment.
In conclusion, if you are a newcomer in the property investment sector, do not be intimidated by those who tell you to invest in property hotspot of Kuala Lumpur. Having properties in property hotspot might not 100% guarantee you a good profit. That being said, a low cost apartment might get you a beautiful profit if you put in effort in your property investment journey.