Buying a property has become very common these days, but not all investments are fruitful. To obtain an effective investment, prospect buyers should select the right property which has all the important criteria.
Selecting the right property helps to increase leverage, as well as maximise your rental returns. Here are some basic guides for buyers to refer to before purchasing a property.
1. Learn Your Affordability Rate
Property investment is good. However, buying a property that you can afford to pay is vital. The affordability rate differs for each individual, hence, it is a must for a person to know how much he can afford to pay on a monthly basis. Buying an expensive house and struggling with financial issues are not the key aspects of property investment. Buying an affordable house and making leverage out of it are what matters at the end of the day.
2. Invest on time, survey & don't rush!
When purchasing a house, do not overpay! Survey thoroughly the property you are aiming to buy, as well as the properties in the surrounding area. Take your time, and if you think you might lose the property by delaying, bear in mind that there are an array of investment-worthy properties out there to choose from. It is very important to perform a proper research on the property before purchasing. The motive of the survey varies based on the buyer’s needs – for own stay, for rental yield, or for capital appreciation.
3. Location! Location! Location!
Location plays an important role in property investment, as the best properties are always situated in the best location. Again, needs correlate with location, as the preferred location differs based on the needs. An abode near public transportation or education intuitions (depending on the targeted renters) will be the main priority for the need of getting higher rental yields. But when it comes to buying a property for your own stay, the priority should be in a less traffic vicinity, yet with important amenities in the surrounding area.
4. Visit on foot
When you have decided on purchasing a house, walk around the area and try to have a friendly chat with the neighbours. It is always good to familiarise with the surroundings before committing to the house. After all, there are many cases of shifting houses due to the dispute with neighbours. This method works best for subsale houses which are purchased for own stay.
In addition, it is more satisfying to pay a visit and learn the conveniences and amenities yourself, instead of doing online research or getting pointers from others.
5. Trust Your Instinct, and Ask if You Don’t Understand!
Always trust your instinct. If you feel something is not right, or feel fishy about the developer or salesperson, please investigate. Do not invest in a property which fails to convince you.
If there is any uncertainty regarding the procedures, bank loans, or regarding the home itself, always obtain a second opinion from an expert. There are ample sources available for you to refer to and the one commonly used nowadays is Google. You can always search in Google and get the best answer for your doubts.
The ‘Ask Guru’ section in PropertyGuru.com.my offers great help to clarify doubts regarding property and the procedures. The site is user-friendly and the questions will be answered by agents or PropertyGuru experts. Prospect buyers can even look up for previous questions asked on the issue and acquire clarification from there. Another option will include liaising directly with a registered agent.
Happy house-hunting now folks!