Just wondering hows property investment works.

Is it work same as buy n sell car?

For example,

If i'm buying a new property rm300k. approved loan for 90% loan 30years with 2% blr. so it makes total property amounting to rm432k.

If lets say property increase by 30% after a year.. and makes it rm390k. I still can't be able to sell it cos after deducting the loan amount, I still owe bank right.

Usually how property investment works? Cos from what I see, people tend to put down a booking fees for example rm3k. Loan approved, but don't want to sign S&P.. but whenever all units sold out, and prices increases, then they sell it and earn the difference??

Sorry, cos I'm quite confuse how it works. Or am I wrong on the basic of property investment??

FREE SOLID REAL ESTATE RELATED ADVICE (Investment)
http://forum.lowyat.net/index.php?showtopic=717298&hl=

How to get started to invest in property?
http://forum.lowyat.net/index.php?showtopic=1093104&hl=

To use an example, you buy an condo for 260K. you take loan from bank for 30 years, and pay all the lawyer fees and etc (should be less than 10K). Depending on bank loan rate, say you have to pay monthly RM900 to the bank for the loan.

Some property collect money from people then only start building, so you might have to wait a couple of years before it is ready. During this time you have to pay the bank loan out of your pockets.

When your property is ready, then the fun starts. The price should have appreciated already, maybe reach 290K, and you can rent it out. Rental rates depends on location of house, lets say RM1500.

This time you'll be earning back your money, you pay bank RM900, tenant pay you RM1500, keep in mind rental rate will go up, as well as property price, but the amount you pay to bank will remain fixed at RM900.

If you're happy with rental returns then you can keep it forever, otherwise just sell off property for a huge lump sum and look for new property, and do the same thing all over again.

But you got to be careful buying property, look through all the old threads and participate in discussions here, coz if you buy a bad property it'll totally mess you up.

We have existing thread as jasonhanjk posted.