7 tips to become a buy-to-let Property Investor

August 23, 2021
September 17, 2021

With the diminishing returns in stocks and shares, many people start to look for alternatives to make the most out of their investments. Property investment is gaining much attention in recent years as it is a tangible asset that brings good returns. Before you invest, it is best to equip yourself with the knowledge so that you can navigate in a better direction. Here are some tips in becoming a buy-to-let investor.

  1. Manage your finance
  • Being a property investor is a huge commitment
  • Settle your personal debt first before adding this commitment to your list, for example, unpaid credit card bills or loans, student loan
  • Ensure you have sufficient cash flow at hand
  • Make sure that you have a strong financial cushion to fall back on in the case of extended vacancy or unexpected damage that require timely repairs
  1. Select a good location
  • Choose a location with low property taxes and low crime rates
  • Accessibility is a major factor to consider too
  • Easy access to amenities such as parks, malls, restaurants, movie theaters, institutions of higher learning, public transport will be a plus point for your property.
  • An established property at a mature location is better than a new one as you can be certain of your property’s value.
  • By selecting a good location, you can rest assured that there will always be a demand for your property.
  1. Buy with a mortgage or cash

Advantages of paying with cash

  • Quicker Buying Process
  • No Debt
  • No Interest Payments
  • Lower Monthly Expenses

Advantages of paying with mortgage

  • Inflation Kills Mortgage Debt
  • To Keep More Liquid Assets in the Bank
  • For Higher Return Potential Using Leverage
  • To Lower Risk
  • Diversify Your Portfolio
  1. Calculate operating expenses and unexpected costs
  • Allocate 20% to 30% of your rental income for unexpected situations or emergency, for example, roof damage or burst pipes
  • This is to ensure that you can repair in a timely manner
  • Operating expenses on your new property will fall between 35% and 80% of your gross operating income
  • Use 50% rule for easier calculation, for example, if you rent out your property at RM4000, you should expect operating expenses of RM2000
  1. Understand your legal obligations
  • Pay the annual property taxes
  • Provide appliances that are in good condition
  • Insure the property and pay premiums
  • Provide basic necessities such as lights, cabinets, air conditioners and curtains
  • Pays the property maintenance fees and for any repairs
  • Maintain major infrastructures such as piping and electrical wiring
  1. Compare the risk and reward


  • Rental income may not cover your total mortgage payment
  • Not a liquid asset
  • Unable to sell instantly to get cash
  • High entry and exit cost
  • If you don’t have a tenant, you still need to bear all the expenses


  • Earn passive income
  • More stable than the stock market
  • A physical asset that you can see and touch
  • Steady cash flow
  • Substantial appreciation
  1. Determine your return, set the right expectation
  • A 6% return in your first year as a landlord is considered healthy


Sound like something you would like to explore? Enquire us today to get more information. Our team of experienced consultants will provide you with the necessary advice in choosing the best investment property.

Provide us with your details and our agent will be in touch with you soon!

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