Everybody wants to get into the property game – either as a flipper or a keeper. If you not familiar with the terms, a “flipper” is a property investor who buys properties for the sole purpose of turning a quick resale profit, usually within a year. But a “keeper” is a buyer who holds the property for at least a year.
The comparison table below outlines the differences between the two:
However, there are also those who have a foot in both camps by employing both strategies for different types of property – depending on their investment personality, investment goals and/or opportunities presented by the existing market.
The determination of what type of property buyer you are depends on your objectives. If you veer more towards property keeper, with a good strategy in place, it is possible that rental income can be the highest monthly wage you will ever earn.
However, when a property flipper stumbles onto a good deal, it can be the fastest way to recover their investment and earn a profit – allowing them to use that cash to buy more properties.
The bottom line is, set your objectives (steady monthly income or a one-time quick profit) and decide on your strategy before choosing the right type of properties.
So, which type of property buyer are you – keeper or flipper?
Want to get started? Buy a starter home first to kick-start your property dream.
Looking for stable rental income but not keen on dealing with the tenants? Consider investing in dividend-payout REIT. Learn how to earn an attractive income through REIT.
Contributed by iMoney.my, Malaysia’s leading financial comparison website, you can view the original article here. To compare and apply for the best financial products, such as fixed deposits, home loans, personal loans and credit cards, visit www.iMoney.my