Patrice SARDA - Get Rich through Property Investment in Asia

Patrice SARDA - " Meet with an Advisor"

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As evidenced by many multi-millionaires all over the world, there is money in the property market. When you decide to enter the real estate business and acquire properties for potential profits, you can look at many types of property from vacant land to homes, offices and even investment properties overseas. When you decide to enter the property market, you also have to look at whether you want to purchase properties to resell at a profit or if you are looking for properties with the potential to bring in a passive income through rentals over the long term. You could also look at a combination of the two concepts. When you choose property investment as a path to becoming wealthy, there are a few fundamentals that you need to consider include:

1. Purchase and retain to prosper:

In general, the property market in always on an upward trend but to make sure you stay ahead of the curve, look at properties that can be improved on or that are most likely to increase in value over time. This generally means doing some research, such as the locality, demand and condition of the property. Most properties should increase on average 5% to 10% each year, this may not seem like a large profit over the short term, but you would need to realize that property investment is a long-term wealth creation strategy. It is possible to make some quick cash over the short term by buying properties, improving on them or developing on land and then reselling for a quick turn over of capital and a small profit. While this will bring in some income, to generate larger sums of cash, you need to invest in the properties for a longer period of time and benefit from the long term increases in value in the housing market in general.

1. Don't stretch your budget too tight:

Unless you purchase your properties without taking a mortgage or personal loan, you will likely be paying someone back for the loan on a monthly basis. Even if you are renting the property and earning a rental from your tenants, you need to ensure that you are able to cover the loan amount yourself, especially if the tenant defaults. If the tenant pays rent in full, you need to realize that you need to pay back the loan plus any fees or taxes on the property as well as insurance on the building and also put aside some money in the case of repairs or maintenance being required. You need to make sure that you have looked at all the costs involved and that you are able to cover the costs without it killing your monthly budget and hopefully it will still leave you with a minor monthly profit from the rental if all goes according to plan. When you decide to purchase a property to rent out to a tenant, make sure you have done your homework and factored in all the costs so that you are not left with large amounts that need to be paid out of your pocket every month. This type of investment requires research to ensure you don't end up losing the property due to non-payment and that you can actually make a profit from it.

1. Go with your head, not with your heart:

When you purchase a property, you need to ensure that you have done all of your homework. No matter how beautiful the property or how perfect it may seem, if the numbers do not add up, and you will experience a loss on the property monthly, walk away. The purchase needs to make sense from a business perspective as opposed to being an emotional buy.

1. Location, location, location!:

Speak to any estate agent and they will advise that where the property is tends to be the most important aspect for any potential purchasers or tenants. The neighborhood and community where a property is situated can have a huge impact on the value of the property. Make sure, once again, that you do your homework before you buy. Look for areas that are being improved and developed over areas that appear to be neglected and in a decline. If the property is in reasonable condition, in a great area, you will have no shortage of tenants, whereas, even the nicest house in a bad area will be extremely difficult to rent out and you may also not obtain the quality tenants you may be looking for. Check the current rentals in the area you are planning to purchase in to get an idea of what you will be able to charge to ensure it fits back in with your budget. High rental charges that are over the normal rents for the area will also see you struggling for tenants.

1. Don't overpay for the property:

This means you will really have your work cut out for you. Most estate agents and home or property owners will want to get as much as possible for a property. If you overpay for the property at the start, you will take a lot longer to reach the correct price for the property in relation to the current property market. You need to purchase within or lower than the market rate in order to make a profit sooner on the property. If you purchase at a value that is effectively below the current market rate, you make an instant potential profit, which would be the best way to purchase, but don't lose out on a great property by quibbling over pennies and dimes.

1. Spend other people's money:

Finance your property purchases. This may seem like a weird way of investing when you borrow from others such as banks and large institutions, but the larger the loan you take and the more effective the repayments monthly, the more likely you are to be granted even larger loans in the future for further purchases and investments. This also frees up any capital you may have to purchase improvements to properties to ensure a better price is reached when sold or a higher rental rate is achieved. This also allows you to eventually buy lower value properties for cash for rentals or quick turnovers.

1. Continued research is key:

The property market changes constantly and developments in areas can change property values from one year to the next. You need to stay on top of the game. Learn all you can about the industry, stay up to date with the latest information as well as all the rules and regulations governing properties and rentals etc. Finding out more about the financial aspects of the business as well as basic maintenance will help you stay ahead in the game. Good communication skills is also important in this industry as you deal with people from all walks of life including your bankers, tenants, estate agents, repairmen and so forth.

1. Take the leap:

Once you have a basic background and you have done your research, the next step is to get out there and do it!! You cannot start earning cash from real estate until you actually take the initiative to purchase that first property. There is potential for large amounts of wealth in this field, but you won't earn anything until you get started. Stick to the basic principles, do your homework and take that leap of faith and you will be that much closer to being rich!

Patrice SARDA