Three Reasons to Buy More than One House

Say, you’ve been working or doing business for a while, saved up some money with your cashflow managed well. Then you realized you could buy more assets to make the best out of your money. You then went into some reading, discovered property investing and even found some interesting properties in town that you feel interested in investing in. But then you may want to ask yourself:

“Can I buy more than one property or house? Is it even worth it?”

Worry not, your concern is legitimate. Buying a property is a massive purchase decision, and you would want to know if you’re making the decision right, as every step count when you want to continue down the path. After all, even buying the first property would also require a not little amount of contemplating, let alone buying second or third. If you’re still dabbling on this, read on to understand three major reasons you may want to buy more than one house in Malaysia.

Potential

While it is known to require high capital, property investment has been recognized as a viable manner of generating income if done right. The major source of income to come off property investment is always the rental income paid by your tenants on a monthly basis, which will offset the monthly loan repayments significantly if not totally. Also, by investing in residential housing, you are doing a favor to families or individuals who could not afford to secure a loan on their own, yet are capable to pay the rent. If you are worried about having to find tenants, then head on to Speedhome to get you started, hassle-free!

That aside, you can also opt to remodel your house into a homestay, offering alternative staying places to travelers that are out of town and prefer something that’s close to home instead of staying in hotels. This strategy is terrific if you purchase a property that’s situated near to tourist attractions or at least having an ease of access to them, such as the city of Melaka which is known as a place of tourism. If all else feels troublesome, know that just by buying the house and holding it for some time, the value will appreciate and you can sell it off later at a much higher price, given the positive outlook of the market. At the end of the day, you will still be the one that profits.

Location

Without a doubt, when buying any properties in Malaysia, location is always a significant concern to buyers, even more so when you’re thinking of investing with the property you buy. Buying properties in major cities like Kuala Lumpur, Penang and Johor Bahru are good prospects, as these cities are expected to continue bustling, which means a sustained capital appreciation and continuous supply of tenants should the need arises. By buying properties in these locations too, you will have more leverage in terms of pricing and rent, which is a given since the demand is already high in these areas, to begin with.

A much lesser strategy to invest in a location would be to invest in its growth as an area. An area that was known to be a barren land now may be valuable in the future, depending on the plans to develop them. After all, major cities mentioned above can only grow for so much, and developments are ought to spill onto other nearby areas as well, which may not be as lucrative, but still gives off decent profits. One such example would be the Sentul area, which was known as a high-crime area in the past but has now become a hotbed due to its proximity to Kuala Lumpur city center. In this case, the winners would have been the early buyers that bought off Sentul properties in its heydays. These groups of buyers may have not been budged by the trends, but believed in the area’s true potential after diligent researches and thought.

Future Plans

Life, as it is, isn’t always consistent through and through. In fact, the only thing that may be constant throughout life is always the ‘change’ part. Consider that you’re working in the city now, and you may want to retire in the future. However, you could decide not to retire in that city you’ve spent a major part of your working life. After all, you’ve been dealing with the jams and the noise for years. So you would seek to buy another property in an area you feel comfortable to retire – perhaps the state where you used to grow up or a more relaxed place that’s free of the hustles and bustles of the concrete jungle.

Undoubtedly, by the time you retire, you may not have as much income to your name as you do now – so when you’re still alive, healthy and making money, you might as well want to buy that property. After all, you won’t know if the same property will be around by the time you retire, would it? Besides, if you buy that property in present, you may as well have another home to yourself that you could return to during the holiday season for you to enjoy living in peace. This alone may outweigh any major financial benefits that you’re looking for.

Indubitably, any property purchases that you want to make, must align with your current financial goals. Ask yourself things like:

  • Do you want to focus on having massive bank savings?
  • Do you just want to have an additional passive income stream?
  • What’s your budget and capital?
  • Do you want to buy assets and have the mindset to grow them accordingly?
  • What’s your risk appetite?

All these things are necessary to fully understood by your own self as a person, in order for you to make justified decisions rather than deciding by impulse. Once you’re ready to go for it, don’t forget to check our article on things to consider when buying a house in Malaysia. This may help you with your strategy of buying properties in Malaysia with due diligence.

And now over to you. Dream of positive cash flow every month? Easy, just rent it out.

It has never been easier to be a landlord. With the safest end-to-end property platform; SPEEDHOME you can buy your next home with Zero Commission and rent it out within days! Truly landlords’ hidden gem.

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