Showing posts with label property
hai assalammualaikum

Buy a Property That Makes You Money 

Buy a Property That Makes You Money - A property purchase is more than just a home. It is one of the greatest investments you will ever make. Definitely, you can buy a property for your own occupation, or you can buy it to let. However, the fact is, all of us want to know if our property will appreciate in value over time. For example, property in Hougang will have higher appreciation value because there is a Hougang MRT station nearby. Here are some tips for you to finding a property that will appreciate in value over time.

1. Check the masterplan
A master plan would typically outline a township’s development in the next one to two decades. It would also showcase the different selected land use and transportation plans within that particular township. An area believed highly desirable will attract businesses and residents. The master plan can hint you in on underdeveloped districts that may soon go through major developments. This is a good way to pick up on potentially undervalued properties. With this in mind, you should find out as much as possible about your new neighbourhood.

2. Check the transport masterplan
Generally, properties close to transportation hubs such as MRT or LRT stations can appreciate a premium of between 5-10% over the long term. This reason is because people generally want to live close to transportation hubs which ease them in carrying out daily activities. This demand translates to the property’s higher capital appreciation. Traffic congestion is foreseeable, and this is the reason that public transport is essential. Furthermore, those who do not own vehicles have an easy travelling option for their daily commute. Nowadays, office goers choose to go to work by using public transport instead of driving in order to avoid being trapped in traffic congestion.

3. Check budget allocation from the government
Government policies do have an indirect impact on property values. For example, a national or state budget allocation for improvements in public infrastructure and new economic drivers will have an impact on the value of new and existing homes in and around the vicinity of an area. Therefore, check where the government is building new hospitals or schools so as to ensure that the value of your property will be rising.

4. Check for economic drivers
You should study the area of the property you are eyeing at. The best strategy is to buy in an area that is underdeveloped but where there are plans for various economic drivers. A government-mooted economic corridor or a trustworthy developer that has experience in building townships are great indicators if the area will ‘succeed’ or not. A developer’s reputation is crucial. Finding a property with a price tag within your budget range is great but do your due diligence on who is developing the property. Conduct research to find out if the developer has been awarded for its projects. A developer with a good reputation will always be recognised and they are more likely to handle buyers with care as they have a reputation to uphold.

5. Check for job creation
You need to check if the township you are eyeing is going to be a ghost town or a happening place. If it is the former, perhaps you should stay away. If it is the latter, more and more workers will be drawn there, becoming a magnet for people and a hive of activity. People are the lifeblood of a neighbourhood. As the area becomes highly desirable, people will naturally want to live and work in and around the neighborhood. As there is an increase in demand, property prices in that area will also appreciate in tandem.

6. Visit the property in person
This should go without saying. One common trick used by marketers is to exaggerate or overstate the proximity of certain amenities, such as schools and train stations. There are developers that advertise a train station as being “less than five minutes away”, but in fact it is not. It is a good idea to visit the property at different times of the day if possible. This will warn you of major nuisances, such as the sun turning your property into a giant microwave at noon.

hai all,

With the current economic situation, property investors should always look into bigger picture and aim for their goals. Fret not; house is always a need and people with different lifestyle, various levels of income levels, obligations and other life needs yet they still need to buy or rent a house like Urbana residences. Residential property is always in demand regardless of the economy situation. Based on personal observation, there’s one category in the real estate market that is still moving – high end market, transactions are still happening. Nonetheless, it all depends on the right pricing by setting reasonable pricing as per market demand is crucial.

Let’s all consider the market right now is a buyer’s market and sellers are in the urge to sell their high-end property by settling with realistic market price but lower profit margin. Aspiring buyers will make a move to purchase the property when the price is below the market value or if they ace the good deal. In order to attract more buyers, buyers will need to add in some effort by value adding with some simple touch up or refurbishments like adding carpet in the living room, this does make a difference.

Often investors would want to invest in high-end market but questions like areas or neighbourhoods have high-end properties. In the city of Kuala Lumpur, there are few prime and high-end neighbourhoods like Mont Kiara, Bangsar, Damansara Heights and KL City Centre. But why are they considered high-end areas?

1. Market awareness and mature market – these areas mentioned earlier have been well established as ‘expat’ areas, it is frequently recommended to the foreigners by their friends, relatives or business acquaintances.

2. Established transportation infrastructure and amenities – usually couple with children has the biggest factor in making decision whether to purchase or rent the property. Reason – convenience to commute to their children’s school rather than their workplace. Their most preferred and ideal home is to be near to their children’s school and nearby amenities like groceries, eateries and services centres.

3. Larger market for foreigners – most of the high-end areas mentioned are located in central Kuala Lumpur instead of Selangor state. Let’s take into account of the state’s ruling of the minimum cap for purchase of properties by foreigners where expats are only allow to purchase property with the value of RM1million in KL city centre. Thus, the lower restriction will encourage expats to purchase more than renting.

4. Rise of expat population

5. Residential property located nearby multi-national companies or grade A offices.

There are some tips for consideration when purchase high-end residential unit.

1. Price and value: Do some research and gauge the demand and current price for properties around the area or consult your real estate agent. Check around the latest transaction price for similar projects and compare from areas to areas of their value.

2. Demand: The occupancy rate of the project can tell you something which is the demand for residing around the area. You can check it from property websites or get your real estate agent to get the report for you. Then, you will be able to justify the average rental rates for the project.

3. Maintenance: Keep your property well maintained to brush up the potential of capital appreciation. Speak to the property management committee or the neighbours to understand the efficiency of property management. Get background check on the developer’s background and past project.

4. Developments in the future: Keep yourself abreast to the latest news and happenings around the area. Are there any developments that might degrade or enhance your life or tenants’ quality life? Any new projects surrounding that are going to elevate the value of your property in the same area? Will this improve or worsen the traffic condition of the surrounding?

5. Unit’s condition: Inspect the individual unit which you have the intention to purchase. Make sure there are no defects or minimal defects – cracks on the walls or ceilings, pipe system leakage or even bathroom leakage, flooring’s condition especially if it is timber and others. If there are major defects, please get your property management to look into it and get it fix as soon as possible because you want to lease out to tenants smoothly.