In previous posts, how to calculate the value of a Real Estate Property? We have already shared how to evaluate liquidity liquidity. This time, I would like to share some tips on how to get income from a real estate property. First of all, let me tell you a little bit about the basics of real estate investing.
My first real estate investment was as a second-year student at Myanmar Merchant Marine College. As a second-year student, my nine-year-old sister-in-law got married and started investing in small plots of land in South Dagon 55 that my husband and I started buying. At that time, small plots of land in South Dagon 55 cost around 10 lakh kyats for 20 to 60 feet. You can also buy 10ft by 60ft plots that are subdivided into 20ft. I remember the price was less than 500,000.
I remember putting a hundred thousand loaves of bread in the 10-by-60-foot box we were buying at the time. The value of the small plot of land is only about 400,000, which means that about a quarter of the shares are owned. As a student, I only got 2,000 kyat a day for food at that time. In the year 2000, there was a bus fare to and from school. Breakfast Lunch I remember it took a Fri time to save 100,000 kyats because I had to spend all the money on food.
Shortly after six months, we resold it, and as the price of land soared, it doubled and saved 100,000 to 200,000. From there, I started to invest in the small plots that I bought and sold. However, they could not afford to sell it later. As a sailor, I went abroad. When I came back, I had to work hard to get a place on the ground, so I lost contact with the real estate again.
Real Estate Price
Of course, real estate prices do not always fluctuate. Not just real estate, but any business’s. Peak time The period of decline; Business cycles are often run during the worst of times. Businesses need to maintain a range of ups and downs in a variety of ways, while shortening down and downs to grow.
The same is true of real estate prices. People’s economic well-being; Supply of new housing development; Housing Demand; Availability of bank loans; Low interest rates on bank loans; Installment payment; National projects; Population density; Fluctuations often occur depending on factors such as:
Roughly, prices fluctuate depending on supply and demand. The question here is that the plots are not printable and the supply is weak, which is not entirely true. Although plots cannot be printed like factories, there are apartments and houses that can be used as substitute products. Condominiums; High-rise housing; Shop houses can be rebuilt every year. For example, if a house is built on a 40-by-60-foot plot of land, only one family can live in it, but if a contract is built, there will be 14 rooms, so a plot of land will be divided into ten families per family. Therefore, these new constructions need to be considered as supply side of Real Estate. If there is more supply, the demand will decrease and the price will decrease.
In addition, there may be times when land prices fall and prices rise during the year. For example, in the rainy season, the fields are flooded. It is difficult for people to travel. Land prices tend to fall slightly due to the fact that more people are getting married and less divorced.
Therefore, according to the above business cycle, if you buy at the time of falling and falling, you can make a profit during the ups and downs of the business cycle. Next time, real estate can be profitable if you buy at a higher price and wait for a higher cycle time, even if the price goes down.
In other countries, the real estate market fluctuates on average every six years or so. In Burma, real estate prices rose to record highs under Thein Sein’s government.
So why are prices soaring?
The first answer to this question is that prices are going up because people really live there. For example, if an area is economically prosperous and easier to travel to, population density will increase. As the population grows, so will the demand for housing. For example, even when downtown real estate prices stagnated, land prices in some parts of East Dagon continued to fluctuate and there were many buyers. This means that places where people actually buy do not always go down in price, even if they do not always go up.
The real estate market, which is a real estate investment, is often volatile. For example, a bridge is about to be built. Road construction Airport Real estate prices, which are the result of projects and development information such as new cities, tend to fluctuate rapidly. My advice to you is to start investing if you find such information in a place that is accessible to everyone, such as newspapers and social media, from then on. Because you are almost certain to be late and expensive. Therefore, in some places, people do not change. You may be surprised to find that even though there are no roads or lampposts, the plots of land are more expensive than the market.
Another factor is inflation. When I bought my land in South Dagon, the price was 220 lakh kyats. A year later, the plot of land was sold for 240 lakhs for another investment. In that sense, it is better to buy at 220 and sell at 240. However, Myanmar’s annual inflation rate is 10%, so last year’s 100 lakhs was equal to 110 lakhs this year. In fact, the land worth 220 lakhs was inflated by 10%, making it worth 242 lakhs. So even 200,000 is a loss. In the meantime, if I do not get a year’s rent, I will have to add another loss profile under my heading Guide 4 You Editor Team Real Estate Business.
For this reason, land prices are often thought to be rising every year. If there is inflation and people are actually living in real estate, it is possible that prices are always going up and people are not buying land.
Land for Sale
In a city, the original inhabitants often know which way the neighborhood is expanding. For example, in Yangon, which ward is increasing? Hmawbi Continent? Dagon Myothit (New Town)? Thanlyin side? (In the pictures, you can see three types of township expansion and township planning)
The expansion of the township has resulted in the relocation of people due to good living conditions and good economic conditions. It can also be connected due to factors such as. Roughly speaking, it is possible to expand the ward in the future.
But when it comes to urban sprawl, why do people live there? What kind of people live there? We also need to think about that. For example, let’s say an industrial zone is set up by the government and the neighborhood is overcrowded with workers coming in. However, since the industrial zone is inhabited, it will be a kind of rent and there will be more dormitory and house rent. Then your land in that area will be the most valuable in the dormitory area.
For example, land prices have risen by the hundreds of thousands as North Dagon has become more like a quiet, secluded area with more houses now. Which do you think is more expensive in the same population as the land in the upper dormitory and the land in the quiet neighborhood?
It has been mentioned in previous posts that real estate properties can have two benefits: rental income and capital gain. You need to know which of the two is the most important of you. Suppose you have 100,000 lakhs… For example, do you want to take that long-term income after renting? Or you could buy land and build a dormitory in a densely populated industrial area.
If you want capital gains (leverage) to increase prices, it is more likely to invest in one hundred thousand or five hundred ton plots of land in a central area than in the construction of apartments.
This means that once the hostel is built, it cannot be resold at the house price. So you need to know what kind of income you want. Knowing this will make the difference.
I look at the map before I buy. What is the best place to go? Then we went to the field. Overcrowding What kind of people live there? What businesses are there? Transportation; It depends on the information available to you. Then, without hesitation, remove the emotion and take the time to check as many boxes as you can.
This sharing is to share tips for those who want to earn rental income. But I will stop sharing because the message is too long to say what I think is necessary. In the next part, I will talk about Rental Income. More Get Quotes Here…
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