8 Things You Should Know Before Turning Around Investment Property in Macau
Many people fantasize about making a quick easy buck on the property market.
‘Flipping’ a property is when a person buys and sells a property within a short space of time for profit, but is it possible in Macau ?
Here are a few insights to help make it an easier and more profitable experience should you be interested in doing it.
- Money is made at the buy, not the sell of your flip.
- Get an inspection on the property
- Renovation – time and money.
- Be aware of the rules in Macau.
- When the time comes place the property 1 to 2 percent below market value:
- Use a real estate agent
- Make yourself aware of the tax position on the property i.e. Stamp Duty rates
- Find good tenants until you are ready to sell the property.
So many times people buy a house with the intension of making a huge profit, only to find out that they could not make any money after all the effort because the purchase price of the house was too high.
By, spending a few hundred dollars on this expense you can save thousands in problems that you cannot see. Structural, Pest, Wood Rot, Etc...
By doing the inspection mentioned above you should be able to work out a budget..and stick to it!
A contractor or several sub-contractors can have the work done quickly so that you can have a tenant in as soon as possible and spend time looking for the next deal. Make sure that the cost of purchase and renovations does not add up to more than the property will be worth given the constraints of it’s location, the property market etc.
Once you buy a property you must hold on to it for at least 2 years before you are able to sell it again without paying a tax penalty. Factor this in to your plan.
If try to sell a property at top dollar to make and extra couple of thousand dollars and end up holding it empty for 6 months, you are loosing money. Get the house on the market at a price that is going to generate interest and maybe a quick completion.
Harness the power of a real estate agent actively marketing your property to get it sold. Once again this will free up more time for you to look for new great deals.
Regular rent payments will reduce your mortgage liability and increase your equity.
I hope this article has been helpful with the basics needs of turning your property around.
Doing your homework before you purchase a property helps to ensure that you can pull a profit on your deal, and then repeat the same process again !