What comes to mind when you
think about property investments?
To some, it will likely be
buying a house or apartment and waiting for it to appreciate in value. To
others, it would be renting out the property to generate income.
For me personally, I define
property investment as a purchase of a property with the sole purpose of
generating income AND profiting from the appreciation.
In my own definition, it excludes
the properties purchased for self-residency, personal vacation homes (local or
abroad), second residences or semi-stay/semi-rented homes. On top of that, it
must both generate me cash flow and steadily appreciate over time, no two ways
about that.
In my investment philosophy,
flipping property, selling property options and buying homes under construction
are considered speculation. The last example is likely to raise some eyebrows,
but don’t get me wrong, I am not saying that you shouldn’t or you can’t make
money by doing so, it’s simply not a practice that I encourage.
I have made successful
investments in the past; and have made equally foolish decisions. I am still
young (or at least consider myself to be!) and have many active years left.
I started this blog with the
intention of sharing my views, strategies, lessons, errors and also mutual
learning from your feedback.
Signing off,
Wien
ps. Throughout this blog, I will
use the term “property” and “real estate” interchangeably.
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