You’re ready to buy a home and have shortlisted some really amazing options. You might have your heart set on a particular subsale house, but you want to ensure it ticks all the right boxes, without springing any surprises on you down the road.
Doing some research and hiring the right team of people to look into a second hand house will help you make a better-informed decision. Your future self will also thank you, for the peace of mind!
When it comes to buying a house, especially a subsale property, there are a few things you need to take into consideration. To help guide you through the process, we take a look at some top tips on buying a second-hand home.
1) Get Information
One of the first few things you’d want to do, is to get as much information as possible about the subsale house you’re looking at.
It’s important to know the legal status of a property, to avoid any ownership disputes in the future. A quick land title search will be able to reveal the following:
- Ownership and title details
- Whether the property is subject to any restrictions or limitation
- Status and tenure (freehold or leasehold)
- Area and built-up size of the land
- Any other conditions affecting the use of the property
You can go the route of hiring a lawyer to conduct the search at the relevant Land Office, or you can do it yourself online.
Ensure all financial matters related to the property is made known to you. This includes up-to-date payments for utilities, quit rent, assessment rates, and Indah Water fees.
2) Inspection
Hiring the right professionals will help give you peace of mind in the long run. Inspecting a house for potential problems like leaky roofs or faulty wiring is best left to the experts. So get them in, to help you check for the following:
- Pipes and plumbing system – Look for signs of water/moisture damage inside and outside the property. Turn on taps and flush toilets to ensure they’re working properly. Check the drains for clogs. Fresh cement or paint could be hiding major flaws, so make sure to ask.
- Roof – Check for leaks or broken tiles.
- Wooden doors and window frames – Look for signs of termites or decay.
- Mould and/or mildew – Check for any mould/mildew in corners, cupboards and damp areas of a property.
- Layout of wiring – Ask for the layout of the wiring and if any modifications were made.
If there are any problems, the professionals will be able to tell you the extent of the damage, and this will help you assess if it is worth paying the price to get it fixed.
3) Assess The Environment
Climate change is increasingly taking a toll on us, and we’re experiencing the effects of it! Don’t believe us? There’s already an increase in floods and heat islands, plus a shift in the monsoon seasons.
A prudent buyer knows that purchasing a property is a long term investment. So, it pays to check the area for potential environmental impacts, such as flood risks or landslides.
Knowing the surrounding terrain and looking into safeguards like adequate drainage, will help you determine how potential developments in the area might affect the property.
Doing a simple online search can take you a long way in understanding if there are any potential risks you need to consider.
This will also help you understand the type of insurance coverage you should get for your home, of which there are three main types: Basic fire policy, houseowner policy, and householder policy.
4) Talk To The Neighbours
Speaking to your future neighbours is extremely helpful in understanding them, and the issues the neighbourhood faces (if any).
Not only does it set the tone for a healthy relationship with them, but these neighbours will be your best allies when times are tough.
Want an easier way to connect with them and find out what they talk about? Then simply search for the respective community groups on Facebook!
Communities with active Facebook pages will give you an idea of hot topics up for discussion, and how the community conducts itself.
This can be very beneficial, especially if it shows the community displays the ability to be proactive in matters such as security, environmental, and social.
Buying a house isn’t just about a building. You’re also buying into the neighbourhood, which has the power to influence your children’s experiences and opportunities, thus impacting their life chances. So, be sure to choose wisely!
5) Future Developments
Check for upcoming infrastructure or transportation projects in the area. Depending on the type of development and its location, the price of the property may be affected.
A future MRT station nearby would definitely help increase the price of your property. But a high-density condo in an underdeveloped neighbourhood may make the location undesirable, due to massive congestion.
And, what about the amenities nearby the property, if any? Would all your basic needs be within easy reach, or would you need to drive a great distance just to get your groceries?
At the end of the day, you’re going to want to choose a property that’s not just a home right now, but will also serve as a great asset in the future that will yield good capital returns!
The Importance of Due Diligence
Doing your due diligence from the beginning and maintaining a healthy relationship with all parties involved, from the seller to the plumber, will make the whole process a lot smoother and pleasant.
Just remember that a few small cracks or a rusty fence, does not mean you should turn down a house immediately.
Assess the issue and determine if it is worth your time and money. If the pros still outweigh the cons, you might be able to renegotiate the purchase price with the current owner, to secure a better deal.
However, if there is a serious issue, such as a land ownership dispute, don’t stay married to the house. Move on to your next option!
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