How to make money from real estate

1. Get educated first--Investors buy property to create wealth, unlike home buyers who do it for their own occupation. Hence it is important to understand the basic of property selection, financing strategies, tax implications and asset protection
2. Buy a positive cashflow property--You should pay nothing more than 50 percent above the local median price of the same type of property in a particular area. That means if the median price of a house in a suburb is RM200,000, you should not pay more than RM300,000. Furthermore, the rent should be higher than your interest repayment. While capital gains can be earned over years of appreciation, recurring income is an important ingredient in making up a property's internal rate of return. However, it is becoming more difficult to find positive cashflow properties with consistently high capital growth over the long term.
   
3. Understand the ripple effect--A real estate boom almost always starts with prime locations. When these places become too expensive for people to afford, they will then move to neighbouring locations where prices are lower. And when these places become more expensive, they will head to the next adjoining area, and so on..hence the ripple effect.
4. Access, access, access--the quicker and easier it takes to commute from a uburb to the city and its fringes, the greater will be the value of that suburb. Accessibility in the form of trains, uses and especially motoways can therefore enhance property values.
5. Identify hot-spots-- These are places that never fail to perform and grow steadily overtime. Usually occupying prime location eitehr within or at the outskirts of a major conurbation, these hot-spots generally have an affluent populations and feature trendy cafe, high-class restaurant, upscale retail outlets, exclusive schools and medical centres. Of course they will also have excellent access.
6. Recognize strong population growth-- The more people want to live in an area, the greater the demand will be for rental properties theres. This makes it easier for owners to secure tenants and attract higher rents.
7. Acknowledge lifestyle factors-- People have always had a fascination with water, be it by the sea, a lake, river or canal. Parks and nearby golf courses are also attractive lifestyle features.
8. Appreciate revitalise areas --Potential for suburb to change, which could be triggered by a government initiative
   
9. Landed properties versus stratified units -- In most cases, landed properties have the edge over stratified units, with the exception of incredibly unique projects such as townvillas and offices that have an outstanding concecpt or location. Aside from allowing an owner to be assured of control over an entire pot of land that a building sits on, hence putting him or her in the position to reap full benefit when the land appreciates in value, landed property also allows the owners to rebuild or refurbish whenever there is a desire to do so, without having to seek the consent of the owners.
10. Use Other People's Money (OPM)--If bank wants to lend u money to make a purchase, take it.