Tips For Investment Rental Property

The drop in real estate prices have made this time one of the best times to buy investment rental property. But if you don't know what you are doing, rental property can turn into your biggest nightmare. Here are some tips for investment rental property that can help you get started and keep you on track.

1. Get past the fear - lots of people fail to pull the trigger on investment rental property.
2. Get some knowledge - this goes a long way towards getting past the fear
3. Learn what type of property is the best one for you
4. Its all about location - don't buy property in a war zone - who will rent your property?
5. Start with something simple like buying single family houses
6. Learn how to finance investment property - there are dozens of creative real estate investing ideas to chose from
7. Save money for a downpayment - no money down real estate usually has negative cash flow
8. Clean up your credit record - a good credit score can lower your monthly payments significantly
9. Buy houses in the "starter homes" price range
10. Only buy houses from motivated sellers - you earn your money when you buy
11. Hire someone to do a home inspection until you have experience to do your own
12. Use a "subject to" clause in any contract you submit to a seller
13. Don't over improve a rental house
14. Use a lease-purchase strategy to get the best tenants and best rental income - if you make the tenants 'potential owners" you can even get them to do some maintenance
15. Always do a background check on potential tenants
16. Follow your lease to the letter. If you give tenants an inch they will take a mile
17. Keep accurate records of your income and expenses

These are just a few tips for investing in rental property. Like any profession, knowledge is power. Take time to study what successful real estate investors do. Join a real estate investment club and associate with people that are buying investment rental property.

Article Source: http://EzineArticles.com/?expert=Paul_Beauchemin

Investment Growth In Malaysia

Malaysia shows solid potential as a promising emerging property market for foreign investors. Below is an overview of some of the factors that are contributing to the growth of Malaysia as a successful investment arena.

International real estate investors looking to target a well priced, strong economy for sustainable growth and yields over the medium to long term are considering Malaysia as a highly lucrative option.

The government’s blueprint for economic growth and diversification for a four year period between 2006 and 2010, known as the “Ninth Plan”, aims at vast improvements to Malaysia’s infrastructure as well as economic developments. This progress is predicted to directly and positively effect the real estate market in Malaysia, bringing with it strong growth potential.

As a resort destination Malaysia’s affordability is a great attraction, bringing growing numbers of visitors annually to boost the economy. Tourist arrivals in Malaysia rose to 16.5 million in 2005, a rise of more than 160% in five years. This is an astonishing achievement for tourism in Malaysia and is good news to many property investors in the coastal resort hotspots, such as Port Dickson. The first low cost airline offering global services from Malaysia is planned for July 2007 and will connect Manchester and Luton as well as Hangzhou near Shanghai and Tianjin near Beijing from a later date – all good news for Malaysia and its growing tourism and investment arena.

While the country’s economy keeps flourishing, inflation remains low, overseas export opportunities continue to expand and more businesses are establishing regional centres in Malaysia. Malaysia is the Asian leader in terms of attracting interest from foreign investors, most of whom are from the Middle East. They see it as a viable and attractive emerging market with high medium term growth potential. The amount of foreign investment into the country continues to increase and international investment into the property sector in Malaysia is firmly predicted to grow at unprecedented levels.

Another particularly positive factor in favour of real estate in Malaysia today is the value of the local currency, the ringgit (MYR). Valued below the euro, dollar and British pound, foreign investors buying into Malaysia are reaping the rewards of buying so much more for their money. Meanwhile, property per square meter in all Malaysian towns, cities and resorts remains at a fraction of the cost of similar properties in the likes of London or New York.

Demand for real estate is high from an affluent expatriate market as well as an increasing Japanese, Indian and Singaporean market leaving many investment options open to shrewd investors in Malaysia.

Capital Growth Predictions

Depending upon location, off-plan residential property both in the city and within coastal resorts has seen price increases of between 14 and 15% per annum. With economic indications showing Malaysia can only continue to grow at a steady pace, many investors are purchasing now in order to achieve the highest returns on their investment.

Rental Yield Predictions

The best yields are possibly available in the commercial property sector or KLCC serviced apartments, with returns of 8% not being unusual. It is possible to invest in “tenanted” residential or commercial properties with guaranteed yields of 8%-10% available. We also suggest looking at off-plan commercial premises that will net yields well into double figures, while a number of hotels are also available with gross yields in excess of 17%.

Tourist resorts offer strong rental and capital growth potential with recorded yields in Port Dickson last year reported at 9.36%.

Malaysia Economy

Economically, the outlook in Malaysia is very positive. According to a recent study from ING Real Estate, Malaysia will be the Asian country with the biggest increase in work force from 2003 to 2013, with worker numbers increasing to 13 million, representing a 27.9% increase over the 10 year period.

Growth has been driven by a spurt of corporate investments, sustained consumption, improved external trade facilities and foreign investor friendly fiscal and monetary policies, that have boosted Malaysia’s economy to new levels.

Reasons Why Malaysia is an Intelligent Property Investment Location:

• New tax incentives and the relaxation of laws governing real estate purchase by foreigners.
• The government’s “Ninth Plan” will have a positive impact on the Malaysian real estate market through further improvements to the infrastructure and economic policies.
• Stable economy and government.
• English is widely spoken by a multi-lingual, experienced and qualified workforce.
• Local currency valued at far below the euro, dollar and pound sterling, allowing foreign investors to buy a lot more for their money in Malaysia.
• Property prices per square metre in all major Malaysian towns and cities are at a fraction of the cost of similar investments in many other worldwide destinations.
• Great demand for quality new real estate from an affluent expatriate market.
• Malaysia ranks among the top three countries among the 53 Commonwealth countries for the greatest number of tourist arrivals, according to the World Tourism Organisation.
• Malaysia attracted 20.88 million foreign visitors in 2007, representing a 19% rise on the previous year
• Location near the Equator, hence a year-round tropical climate, ideal for tourism.
• Extensive, beautiful, white sandy beaches at luxury resort areas offering an escape from hectic life just south of the bustling capital of Kuala Lumpur.
• Low buying costs currently at between 3.4 to 6.75% of the property value.

Investment Property In Malaysia 2009

Malaysia real estate investment offers Britons good value for money because of a favourable exchange rate between the ringgit and the pound.

This is the claim of a new article on the Choices website, which states that an increasing number of opportunities are opening up in the country in light of the price and its popularity as a holiday destination.

"At today's rate of 5.85 Malaysian ringitts to the British pound, Malaysia represents excellent value for both the holidaymaker and the property investor," the piece says.

In addition, it notes that properties of equivalent value are generally of better quality in Malaysia than in Europe, while the government has introduced tax breaks to incite investors.

Further announcements regarding the liberalisation of regulations surrounding foreign property ownership in the country are expected to be made by prime minister Datuk Seri Najib Tun Razak at the Invest Malaysia 2009 conference this week, according to the Star Online.

Investment property in Malaysia offers foreign investors low prices and high growth potential. Recent improvements and reforms have led to a strengthening property investment market in Malaysia.

Malaysia is experiencing major development and economic growth, giving rise to an upturn in its tourist, residential and commercial property markets.

A solid infrastructure that is being further strengthened by the government’s “Ninth Plan” renders Malaysia a modern and efficient country. Increased air services as well as tax breaks and other incentives are enticing overseas investors to the country. With prices still at an amazing low, discerning property investors regard this strong Asian economy as a lucrative one for high returns on investment.
International Property Investment Network (IPIN) and Malaysia

The International Property Investment Network has selected Malaysia as one of its chosen locations to offer solid investment opportunities to its members. Why not find out about the many reasons for this in our Malaysia investment research section. Here you will learn why Malaysia is firmly set to offer property investors excellent growth potential.
Why Invest in Malaysia?

As one of Asia’s prime emerging property markets, Malaysia has much to offer worldwide property investors. Natural and economic factors are set to offer fast and significant growth potential in Malaysia.
Natural and Cultural Factors

• Proximity to Australia, Bali and Singapore easily attracts investment and visitors from these countries
• English language is widely spoken, creating ease and transparency in property purchase transactions
• Warm climate with average temperatures of 21 to 30°C, enticing a year-round tourist trade
• Exotic culture and food. A warm and friendly population and peaceful society
• Great sports facilities, including golf, fishing, diving and other water sports
• Stunning palm fringed, golden sandy beaches and beautiful holiday resort areas

Economic Factors

• Property growth of between 15 and 30% per annum
• A surge in economic activity has created high demand for quality commercial and residential property to serve a growing expatriate community
• Government incentives to ease foreign investment in Malaysia, including tax breaks and relaxation of laws governing foreign ownership of property
• Low cost of living compared with many other countries. Correspondingly low buying costs and maintenance costs
• High rental demand due to a strong tourist economy and an increase in commercial activity in large cities such as Kuala Lumpur
• Malaysia is among the top three of all Commonwealth countries in terms of tourist arrivals
• Easy access to Malaysia via cheap flights from Asian cities as well as from the UK (approx. £300 return)

Land for Development / Project Sourcing

Malaysian land purchase offers investors a prime opportunity to gain maximum returns on investment. Propertyshowrooms.com and IPIN (International Property Investment Network) work with a close network of developers, land owners and agents alike to establish a carefully vetted list of sources and contacts which allows us to find our clients the very best options available today. Should you so require, we will also assist you to set up joint venture opportunities in Malaysia and implement investment strategies with the help of our trusted network of competent and reliable professionals.

An improvement in the worldwide property investment climate now allows us to identify many large-scale individual investors and investment consortiums who wish to take advantage of the current strong investment locations in Malaysia.

Malaysia currently offers some of the best investment opportunities available in the worldwide property market. Rental yields and capital growth figures rate well amongst today’s emerging markets and a new spurt of corporate investments via investor friendly government policies, have boosted Malaysia’s economy to new levels. This, together with a booming tourist industry and the creation of new luxury resorts is creating an exciting property investment climate in Malaysia.

Intelligent investors are quickly making the most of today´s real estate market in Malaysia, while prices are low and opportunities still last.

Property in Malaysia

Reasons to invest or live in Malaysia
One of the main advantages of investing in Malaysia property is the fact that real estate laws protect Malaysians and foreigners in equal measure. Foreigners may purchase properties with a minimum value of RM250,000 (USD75,000) and may own multiple properties in freehold or leasehold, depending on the land tenure in question. Property laws are based on British law.

With the introduction of the Malaysia My Second Home (MM2H) programme, the decision to invest in Malaysia is effortless, and is open to all non Malaysians looking to live permanently in Malaysia or simply come for well deserved holidays.

Applying to invest or live in Malaysia
MM2H applicants must first apply for a conditional approval letter which is issued by the country’s Immigration Department. Documentation proving your financial situation is also required.

Financial requirements for those BELOW 50 years of age

• Open a fixed deposit account of RM300,000
• After one year, you may withdraw up to RM150,000 for approved expenses such as purchasing property, medical expenses or your children’s education in Malaysia.
• From the second year, you must maintain a minimum balance of RM150,000 in the account, which must be maintained throughout your stay in the country.

Financial requirements for those ABOVE 50 years of age

• A choice of either putting RM150,000 into a fixed deposit account or show proof of a government-approved monthly off-shore income of a minimum of RM10,000.
• After one year, you may withdraw up to RM50,000 for approved expenses such as purchasing property, medical expenses or your children’s education in Malaysia.
• From the second year, you must maintain a minimum balance of RM100,000 in the account, which must be maintained throughout your stay in the country.

Living in Malaysia
Great weather. Malaysia enjoys a truly tropical climate with warm days and cooler nights. The average temperature during the day is 27°C.

Political stability. Malaysia is a constitutional monarchy with a system of parliamentary democracy, and has enjoyed political stability since independence in 1957. The rule of law follows the British system of justice with an independent judiciary.

Low crime rate. With a relatively low crime rate, Malaysia is considered to be one of the safest countries in the region, making it ideal to raise children.

High standard of living. While the cost of living well in Malaysia is comparatively lower than most developing countries, the standard of living is high. Overall, spending power has progressively improved.

Medical facilities. World class medical facilities and care is available at a reasonable cost and the country is gaining a reputation for being the top healthcare hub in the region.

Accessibility and infrastructure. Every major city has an airport and train station. Islands can be flown to or have regular ferry / boat services. Landmark developments include KLIA (Kuala Lumpur International Airport), Cyberjaya, Putrajaya and the MSC (Multimedia Super Corridor).

English speaking. The national language is Malay (Bahasa Melayu) and English is widely spoken and considered to be the country’s second language.

Education. Pre-school through to university with a choice of either public or private, are available. There is a variety of international schools including British, Australian, American and French amongst others, systems of education.