MaxMobi Capital
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Real Estate Investment
Property Investment does not equate lucrative all the time. Its takes more than putting money in real estate in hope for good returns. Question is, are the real estate fundamentals reasonable to have potential to generate capital gains or rental yield? Premier is one great example. Demand is high supply is low. A classic textbook opportunity that most laymen might missed. That said, equipping with knowledge does not mean the ability to execute at the right pricing.
Are market timing important in real estate investment?
Trying to enter a perfect entry in real estate investment is not the right way to invest. Even experts can get it wrong most of the time. If picking the low and selling the high is that straight forward, everyone will be super rich Asians. While its true that a perfectly timed investment can massively gain returns. Some investors got overly fixated on one of their past experiences or friend's advised. They usually missed the boat altogether. That said, 95% of speculative investors in financial market lost all their capital. Point taken, its never easy to pick the low and sell the high. Any guru alluring headline promising that, should make us all turn our back immeditately. Yet many people bought into their scheme that hook into human greed.
In MaxMobi Capital, there are two types of investments. "When to" and "How to"
"When to" are rare for real estate. Its largely depends on when you buy and when you sell. Timing is the key factor. Following the buy low sell high, expect to make a killing. Contrarily, buy high and sell low, you lose your capital. Financial market are much better fit for "When to" investing.
"How to" fits better into real estate investment. A scenario with US real estate market. Despite a steep drop in 2008, the real estate market is still outperforming stock market (Source) in the past two decade. Suppose you bought a property and the economy head south. Looming recession will dip the value of the property. If you don't sell it, no loss will be suffered. Property can be rented out till the economy recovers or leverage on loans to ease cash flow. Real estate has proven to recover in most countries with a well structure economy. From the example below, buying at the peak of Jan 2007 and selling it in Jan 2017, gave you a near 100% return in investment. Not forgetting the cumulative rental collected over the 10 years period.
Not too much on When to invest in real estate. More important to learn How to seek our properties that:
- Attract quality tenants
- Potential capital appreciation criteria
Don't missed the boat again
Investment gets easier when you know what to look out for
David is the go to guy for my property investments. He is professional and not pushy. Always laid out the options for me to choose. Detail understanding of the surrounding and potentials. Without all these facts, it's much harder to make a wise and fast decision. Engage him with confidence.
Philip R. Investor