Why should we buy investment property 1st (or at least don't treat it as a home) especially when we are below 30?!
Don't lose your virgin money
People tend to overspend when buying for their own stay. They will buy better quality furniture like leather sofa, bigger TV, built in kitchen cabinet & wardrobe. What's worse, they will throw in 100k+ for renovation and extension.
They have lost their golden period to invest while they are enjoying the "Cozy Home" which might end up being their only property. They will need to wait for another 3 to 5 years in order to fund their next investment.
Appreciate your golden period (25-35 years old)
Max tenure for a mortgage is 35 years and up to 70 years old, whichever comes earlier. The repayment for a loan after 35 years old will only be getting higher and tougher.
People tend to be more particular for own stay property and often the ideal home will be over their budget. So they spent years in searching for the "Dream Home" and end up they have to compromise for a less ideal home.
Start small, start safe
We cannot afford to lose especially for the 1st investment! Start with a median to lower price property (150k to 500k) as it is the most demanded segment in the market.
Buy a completed property which will lower down your risk as you have known the surrounding and the market demand. More importantly, it can provide us with instant rental return and income to support for next property investment. Repeat the process and you will own millions of Ringgit of properties in the matter of time.
Buy a new project if the down payment is your concern. There are many great promotional packages and incentives for 1st-time homebuyers in the market. Look for those with rental demand where the rental is expected to cover the loan or at least 70% of the loan. Remember, don't wait too long as waiting will be the highest interest to pay.
This article was contributed to property Hunter by IQI Sabah Team Leader, TJ Wong.