Strategy For Owning Property Among Women
Property investment can bring satisfying returns, but one must carry out necessary preparations before taking up this form of investment.
This is the message that Property and Profile Consultant Ros Shila highlighted when speaking at a property talk recently held by Property Insight.
While delivering her talk on “Strategy for Owning Property Among Women”, Shila says that she decided to start investing in property after experiencing financial difficulties.
“Two years ago, I was struggling with some financial difficulties. People earning decent or relatively high wages can be troubled by financial problems too. It all boils down to their lifestyle and commitments,” she states.
Despite facing financial difficulties, Shila built up courage to venture into property investment. She started attending property investment classes and collecting information on properties
“Two years ago, I wanted to buy a property priced slightly above RM600,000, but my housing loan application was rejected. I was puzzled as my income at that time was quite good, which shouldn’t pose as a problem for me to get the loan.
“I asked the bank officer why my loan application was rejected but the officer said he cannot reveal the reason.”
Facing this setback, she went out in search for a financial guru and restructured her own financials. “That was when I realised we invest in property not to own the property, but the purpose is to benefit from the purchase.
“The best thing about investing in property is making profit. Although there is another way to make profit which is through running a business, but then not everyone is good in doing business,” she explains.
After overcoming her financial difficulties, Shila managed to purchase a few properties in the past two years under the guidance of a property investment guru.
She stresses that one must have a clear purpose to why they picked property as a form of investment. It is also crucial to set targets, such as the number of properties to acquire, as wells expected capital appreciation and rental yield, she adds.
However, she urges those with plans to invest in property to manage their debts well to avoid hiccups, for example rejected housing loan application.
One of the reasons to invest in property is because it can be done by using “other people’s money” such as bank loan and rental, she asserts.
She says that property investment is a form of safe investment, as long as it is done with sufficient knowledge. “No matter how much property prices drop, the decrease will be in line with the rate of inflation,” she adds.
She points out that property investment also offers different options to earn profit. “A property investor can rent out his or her purchased property or sell it to gain income.”
Another reason for one to invest in property is to use it as financial preparation for the future. It can be a preparation for children’s education, retirement or leisure (such as vacation) purposes, says Shila.
She has five strategies for women to own property. The first is to be brave and rise to the challenge of investing in properties, she quips.
“Many women have the intention to purchase property but lack the courage to take action. Hence, it is important that after building up courage to invest in a property, they must find a strong reason to avoid losing it.” she says.
This will help to avoid the situation where one backs out of purchasing property at the last process because of doubts, even if there is no problem with the loan application, she adds.
Shila advises those who are not wealthy financially to purchase an investment property first, before acquiring their dream home.
“Not every home buyer can afford to buy a dream home which is of a higher-end category. However, there is always the alternative to purchase an affordable investment property and rely on upgrading to eventually own your dream home,” she explains.
The second strategy is to not be held back by doubts and mere possibilities. “In terms of investing in property, women will have doubts such as will it be difficult to get tenants or selling the property in the future.”
She urges women to adopt a hands-on approach when investing in property and not solely depend on their husbands to manage the financial aspects.
Third, is for those planning to purchase property to practise a smart way of managing their financials, which is crucial, says Shila.
“It is better to be patient and carry out proper financial planning for ten years, in order to live an easy life for the following years.
“Set aside a portion of income to purchase property. Plan and focus on financial priorities such as setting a limit on unnecessary expenditures. It is also more important to manage financials smartly rather than saving money,” she asserts.
She says that the fourth strategy is to participate in property investment with the necessary knowledge.
“It is advisable to invest in knowledge first through an investment guru. Then, one can start taking action on property investment based on the acquired knowledge. Without knowledge and action, what has been planned will only be a plan.”
According to her, the last strategy is to be in the same circle of fellow property investors. “It helps when you are friends with others who are investing in properties. They will help to give you ideas and information on property investment.”
BY JEFF TAN
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