Question: My budget is below RM450,000. I am not sure to buy a landed property or condominium / service apartment?
Answer: if I’m in your shoes, I prefer to buy high rise residential property example: apartment, condominium and service apartment. The reasons being are: –
- I’m neither a cash rich nor strong holding power investor. Therefore, landed property will not be the best property type for my investment portfolio strategy.
- I need positive cash flow property to earn passive income for long term planning. It is a norm for high-rise property having better rental yield compare to landed houses.
- I need good rental income statement (positive cash flow) to increase credit score so that banks are willing to lend me more money to buy more properties.
- I always believe in “Power of Leveraging”, that is why I’m keen to buy property for investment, using others people money (banks’ money) to make more money. Banks are making big money using others people money too, isn’t they?
However, that is nothing wrong with buying landed or high rise property for your first investment property; the best investment strategy is all depending on individual needs and objectives.