Many think that in order to be a successful property investor, they need to make it a full-time endeavour. In actuality, there are plenty of benefits to having a full-time day job while being an investor, such as financial security and easier loan approvals.
Becoming a property investor in Malaysia and having a full-time day job doesn’t have to be mutually exclusive.
In fact, staying employed while embarking on your property investment journey in Malaysia can actually be very beneficial.
Property investment is a pretty big commitment - it’s not easy and takes time and dedication to see it bear fruit.
Once you get to a point where you have the desired surplus cash flow from your real estate investments, then keeping your day job can become an option.
Let’s look at the benefits of investing while holding down a full-time job.
1) Your Income Helps Grow Your Investments
When you have a full-time job, the income that you earn helps fuel your investment ventures.
In contrast, someone who pursues investing full-time might have slower portfolio growth, because his or her investment returns will have to go towards paying living expenses.
2) You Have Financial Security, And It’s Easier To Get Approval For Loans
Having a source of stable income provides you with an extra layer of protection against unforeseen financial circumstances, such as the market taking a nosedive, or when you have extended property vacancies.
Steady income also means you have the ability to plan exactly how much you can save and set aside for your future investments.
This additional source of income also benefits you when you need to get loans. To get a bank loan, you’ll need to show the bank proof that you can pay back that loan.
That proof involves evidence that you have a stable income and a healthy credit score. If you have a full-time job, that means steady income, and banks are more likely to approve you for financing.
Investors who do real estate full-time can struggle to get bank loans - either because they haven’t generated enough income yet, or they lack several years’ proof of steady income.
3) Start Investing Early
Through proper planning and execution of your property investments, your day job could someday become an option instead of a need
One of the most commonly heard pieces of advice pertaining to investing is “start as young as you can”.
When you’re young, you have more flexibility in life - you can take bigger risks, and you have fewer commitments.
When you’re older, you might have family or heavier job commitments, making it harder for you to invest time in property.
Plus, if you’re investing in rental property, the longer you own one, the more valuable they can become as investments.
4) You Learn How To Make The Most Of Your Time
Property investment is like a business, and owning a business isn’t just a stroll in the park.
If you’re going to invest while holding down a full-time job, then be prepared to make some sacrifices. You’ll have more on your plate to handle, so that means less time for leisure activities.
You’ll have to learn how to prioritise - perhaps instead of watching Netflix, you’ll need to spend that time doing financial analysis, studying market trends, or looking for properties to invest in.
Making sacrifices doesn’t necessarily mean you have to do everything by yourself, though. Learning how to delegate your business properly is also key to using your time effectively.
For example, you can engage a property management company in Malaysia to help you with your property investments.
These companies can manage tenants, find contractors, handle eviction notices and maintenance requests, and collect rent on your behalf. The key is to work smarter, not harder!
So, How Do I Invest Effectively While Holding Down My Day Job?
Now, you may be wondering, with all the positive stuff about having a full-time job - how do you actually do the investing bit of it all? Let's take a closer look.
1) Commitment And Discipline
If you want to get into real estate investment, you need to have commitment. The amount of commitment an investor has for their portfolio is what sets them apart from the rest.
Start by getting into the habit of setting aside half an hour each day to complete targeted actions that will help you progress in your property investment effort.
This could include analysing potential deals, and could even be as simple as reading an investment book.
2) Quality Over Quantity
While having goals are great, working towards acquiring a specific number of properties can do more harm than good.
Getting fixated on closing a specific number of deals within a specific time ruins the point of purposeful investing.
Your focus should be on acquiring good deals, rather than many deals that aren't making money! Does the property have good value for the money you’re putting in it?
It’d be pointless to invest in many different types of property if they are low-quality assets likely to under-perform in the long run. Take the time to find deals that are best for you. Invest according to your needs and choose investments that will actually help you reach your goals.
3) Invest With A Clear Plan And Purpose
Your time is precious - most of your day is taken up by your day job. You don’t have the luxury of trying a lot of different strategies or taking a scattershot approach to investing.
Ask yourself: What’s your goal? Why are you investing? Do you want to earn a certain amount of money by a certain time? Do you perhaps plan to quit your job in 3 years, 5 years or 10 years?
Or maybe you want to pad out your retirement. Do you want to have long term wealth that passes through generations?
There is no one best strategy, but there is a strategy that’s best for you. Do your due diligence and work out which one is best for your own goals.
So, hold onto your full-time job for now - at least, until you’ve amassed enough wealth to live comfortably off your investment returns.
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