| You work hard to earn and invest your surplus in the | | | | environment of the locality. The level of infrastructure, |
| hope of a higher return. Investment property is the ideal | | | | proximity to educational institutions, healthcare services, |
| choice because you receive regular inflows of rental | | | | banks and other facilities make a big difference to the |
| income and benefit from capital appreciation over time. | | | | attractiveness of the property. If you chance upon a |
| There are several avenues to park your funds. Not all | | | | property in an off-the-beaten track area, consider its |
| of them have the same risk-return profile. If you invest | | | | growth potential. Talk to experts and go ahead if it |
| in bank or trust deposits, fixed interest rates mean | | | | shows promise. Otherwise, just forget it even if it |
| fixed income over a time period. This does not cover | | | | comes cheaper. |
| for higher outflows on expenses due to rising inflation. | | | | • General condition of the property |
| If you are adventurous and invest in stocks, the ebb | | | | determines the repair, renovation and remodeling costs. |
| and flow of the market affects your fortunes. From a | | | | An objective inspection by a property inspector would |
| millionaire you could go bankrupt overnight, as the | | | | give you a fair idea. Bargain hard if you feel that the |
| market corrections are generally volatile. | | | | repairs would be extensive. |
| Investment property is fairly insulated from such | | | | • Different people have different property |
| shocks. While the long-term outlook is always | | | | needs. So, match the socio-economic status of the |
| favorable for real estate, changes in the short run | | | | population in the given locality with the suitability of your |
| could have some impact. Nevertheless, it commands | | | | investment property. Rich folks and tourists like |
| more favor than any other investment avenue. | | | | mansions and vacation condos and middle class guys |
| Investing in property calls for systematic approach. | | | | would be content with apartments or units. Choose |
| Here are three things that you must know before | | | | your investment with the target user group in mind. |
| making a final decision: | | | | This way you would never go wrong about the |
| • Location of the property is the first criterion. | | | | potential income stream. |
| On your personal inspection, you must note the general | | | | Copyright © 2006 Joel Teo. All rights reserved. |