Real Estate Matters | A Beginner’s Guide to Real Estate Investing Strategies

Juliet Risdon

If you’re thinking about investing in real estate to make money, the first thing to determine is the financial goal.
Do you need to make money quickly, invest for your children’s college fund, or build wealth for your retirement? Once you determine the financial goals, you can decide which type of investing strategy works for you.

Make Money in Real Estate – The ‘Fast Cash’ Strategy
If you’re low on cash, a popular way to get started is by finding a bargain property and selling the lead to another real estate investor.
Frankly this is a popular method in other countries, but the law and circumstances in Macau make this method very difficult to execute. However, difficult is not impossible, and there are some bargains to be had if you have your cash at the ready.

Make Money in Real Estate – The Income Property Strategy
If you want to increase your monthly income, look for income property that returns a positive net income from rents month to month.
Start with a small apartment. Look for a property ‘below’ market value, and improve the apartment to generate top rental income.
Simply put, you are looking for an apartment that will rent for more than the loan re-payment cost.
You will want to look at a location that supports the highest return on your money (at present this is Taipa).
You can’t pay $5,000,000 for a home with a mortgage of $25,000 that only rents for $12,500. You might start with a home for around $5,000,000 having paid a 50% deposit that rents for $12,500.
You will need good credit to get a loan with good interest rates. In time the rental income should go up. Many property investors enjoy thousands of dollars each month generated by income property.
However, some investors don’t like dealing with tenants and either hand the property to a full service agency like JML or prefer to make money in other real estate ventures.
Make Money in Real Estate – Development / Investment Property Strategy
If you want to make money focusing on profits, investment property offers a different strategy. Instead of worrying about rental income, investors look for property that can be transformed and sold or property that will appreciate significantly over time.
Obviously given the current climate in Macau, this strategy is also a little more difficult than buy to rent. However, it’s a good strategy to employ when the market dips and many buyers are trying to off load properties.
Some investors buy buildings and turn them into small apartments. Many investors speculate in land and make money by holding the land until new development in the area increases the value.
Examine your financial situation along with your long term goals. You could get started by flipping properties every two years, move onto income properties, and then make larger profits with investment properties.
You might end up using a combination of all three strategies to make money investing in real estate.

Juliet Risdon is a Director of JML Property and a property investor.
Having established the company in 1994, JML Property offers Investment Property & Homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.

www.JMLProperty.com
info@JMLProperty.com