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