If you’re looking for some valuable property advice, then buy a property in places where there is a strong rental demand.
For example, in Asia, there is an abundance of untapped opportunities. Investors should stay mindful of countries such as Sri Lanka, Cambodia and Vietnam. Despite the slowing of the real estate market in Singapore, Cambodia, Sri Lanka and Vietnam and the uncertainty of Brexit, the countries in Asia are now catching the attention of investors looking for more promising investments.
According to the Urban Land Institute’s report on “Emerging Trends in Real Estate Asia-Pacific 2017”, Ho Chi Minh City (HCMC) has been ranked as the second-most popular market in Asia for real estate investments.
The report highlighted that 71.4% of institutional real estate investors say that Vietnam properties are worthy of buying into. Rental demand in Asia is high as so many people go to Asia to work from overseas and are looking for long-term rentals. The nation’s economy is growing fast, making the entirety of the subject even stronger.
So it’s very useful to take into consideration the fact that when you buy a property for rental purposes, you’re not planning to live in it yourself – you’ll rent it out and be paid for it. That then pays them the mortgage, the insurance, the management and other liabilities. The more popular the place you buy in, the less likely the property will be left empty. Supply and demand come hand-in-hand.
Having a strong monthly cash-flow will really help towards investing and managing properties. When you buy a property it always helps to have a safety net of money around you to safeguard towards any small, potential risks and any outgoings that may crop up unexpectedly. If the property prices keep going up then not having a strong monthly cash flow isn’t an issue, but when the property prices do go down, then paying the mortgage may prove to be a problem. Understanding this key principle will prevent panic should the market drop.
Nobody can predict what a property market will do but if a person is able to build up in income from rental payments alone, then this is positive in relation to real estate investments.
So keep on top of rental trends and where is the most popular places to rent at the moment. Don’t concern yourself so much with the look of the property or how suited it is for ‘you’ to live in, think about the supply-and-demand ratio: how wanted are properties in the area? Once you have calculated this, then a rental risk is almost impossible.
Written by Gemma Smith