What buyer should know

Buying a property

Buying a real estate property, whether for investment or for own use, is not a small stuff. It may be a once in a lifetime important decision to make. You have to consider a lot of factors which can enable you to come up a satisfied deal.

 

Location, use and price are the basic considerations which you have to decide.

 

Location –

Prime location can uphold the value of your property with fast appreciation rate. We all know that once the spot is sold, we can never have it again except the owner is will to sell it. Certainly it will be sold in a higher price. Inside a densely populated location, because of limited supply of available space, you can be assured of property value appreciation which rate will be affected by supply and demand principle. Certainly, ease of accessibility can also greatly affect the salability and appreciation value of the property. The choice of location will be determined by the use of the property. Is it for your own use which you are limited to a certain area or for investment which more options can be considered?

 

Use –

If the purchase of the property is for your own use, you have to consider if it is accessible to your working place or business or places where you frequently have to visit like school, supermarket, shops, hospital, etc. The ease of accessibility will be advantageous to save transportation time and cost and spare you more leisure time. If you purchase the property for investment, then you have to determine what type of property, like condo unit, house and lot, commercial space, etc. which is suitable for your investment in a chosen location. Certainly a commercial property inside a densely populated residential area is more ideal than having in next to a cemetery.

 

Price –

It will depend on your appetite of investment within your capacity. A prime location will not be cheap but you may realize higher appreciation rate when you will sell it in the future. Invest high and sell much higher. But if you have limited financial capacity, then you have to compromise a little bit for the location or type of property you are going to purchase in order to fit in your budget.

 

Nowadays, you can find a lot of options online. Most of the advertisements are put up by brokers or salespersons, some are licensed and some are not, instead by owners themselves. Be prudent in choosing the right licensed brokers or salespersons to assist your property purchase. Dealing with unlicensed brokers or salespersons will have lesser protection since they can easily disappeared without a trace because they may not have formal business office for you to file a complaint. Better safe than sorry.

 

An experience licensed broker or salesperson does not only provide professional service but also relevant information relating to the sale such as financing options and process of documents advice. To make your purchase hassle free, do procure the service of a licensed broker or salesperson whose objective is to close a satisfied deal professionally instead of only aiming the commission and disregard the benefit of both parties. If you find a broker or salesperson practicing pressure selling, better watch out.

Raymond Ong

Global Investment Director – Land Asia Global Properties Network