There are two profiles of property buyers in the market. One who buys with the intention to stay, while the other aspires to reap benefits of the property.
If you fall in one of such category, it is important to understand the major differences when choosing to buy an investment property versus buying one for living in, given the plethora of choices available in the market today.
Purpose of Purchase
Own Stay
The normal components you ought to consider spins around your lifestyle and whether the conveniences, offices, structure and plan of the building, property size, as well as the surrounding can meet your current and future needs.
Therefore, identify what your current and future needs are and how can this be achieved with the property intended to purchase.
So, ask yourself, are you beginning a family anytime soon? Are you planning to have pets? Do you require space for a garden and water features? Will there be space for additional family members? But most importantly, can you see yourself living in that property for the next 10 years or more?
Investment
Investing’s purpose is to earn passive income and gain capital appreciation in the long run. Either way, ask yourself if the intention is deliberate to get the returns on their investment?
Choosing the right type of property and which ones that will work well in today’s economic conditions is important too.
For instance, landed properties are usually harder to sell compared to high-rise properties due to the demand for lifestyle and convenient living that stratified-properties offer.
Location
Own Stay
If you are choosing between a high-rise building or a landed property, the accessibility of the location is important by considering the lifestyle and way of commute.
Ideally, the property should be near to the work location as it is more practical for property buyers to save time commuting. Areas that are easily accessible to highways and expressways are also a plus point.
Take into account access and distance to conveniences such as clinics, schools, eateries inside the area. Consider and evaluate the amenities that are important to you and whether they can meet your current and future needs.
A young and single individual would appreciate vibrant areas with the work, live and play concept while families would favour calm neighbourhoods that are near to schools like matured neighbourhoods.
Investment
Perfect location yields more interests and prospects and that is why location is most crucial when it comes to investing. Always keep an eye on current and future developments as these can greatly influence the value of the property.
Look for properties that are close to city centres, transportation, amenities, education institutions, offices, industrial facilities and conveniences as it would garner more renters. By doing so, you will get more conceivable outcomes to be able to lease rapidly as these days individuals are looking for places that are adjacent these comforts and won’t mind paying higher to enjoy the benefits even if the units are small.
Significant Influences That Matter: Safety, Affordability and Transportation
Own stay and Investment
First and foremost, any property purchaser must identify their affordability and how much can they pay for a property. First-time homebuyers and investors must set a budget and stick to it to avoid financial stress.
Once that is in place, the freedom to enjoy the comforts of owning a home makes it easier for the owner to upgrade in the future. So even if you only can afford a small sized unit now, chances to move onto something larger will be feasible.
Investors looking to receive capital gains must study the locale and future developments to allow the property to appreciate before planning to dispose and reap the gains from the sale. However, investors can also depend on monthly instalments to ensure housing loan commitments are paid-for.
Safety is a top priority when it comes to buying a property irrespective of staying alone, or families with young children. Also, which community you intend to live with makes a difference. Different sorts of property give contrasting levels of security as well. For the most part, high-rise buildings are gated and have more tightly secured surveillance while typical landed properties have the slightest security.
In any case, security implies nothing if break-ins happen always. Subsequently, it is important to check for historical records on criminal activities in the property and neighbourhood.
Transportation is an imperative variable you ought to consider some time prior to obtaining a property. A plus point would be to have a property nearby to public transportations mere it be rail transport, buses and taxis.
Owner-occupier can bank on the conveniences of staying close to transportation to save time and cost while investors would have a higher chance of leasing out the property at higher rental fees.
The above are important steps in selecting the right home for yourself. Let us find you the top projects awarded to only the best developers in Malaysia, and stay tuned for our upcoming Asia Property Awards!