Getting your house or property will almost certainly be the biggest acquisition you will make during your life and it is essential to keep away from the downsides when making a property purchase. Therefore, you will find that it is significant to make sure that all things are considered to make sure that your property investment is safe by following the factors below.
- What can you afford to buy?
- Besides monthly payment, don’t forget the down payment, legal fees, stamp duty, miscellaneous payments, maintenance, renovation cost
- Your monthly loan payment for your first property must not take up more than 1/3 of your income.
- Your second property however, financial institutions will look at your overall income to ensure thay you will be able to repay both loans.
- You can withdraw from your EPF Account 2 (ref: kwsp) for housing loan.
- You are NOT allowed to withdraw money from your EPF for second property.
- The Golden rules of buying a property is always “Location, Location, Location“
- This is your real selling point. Areas commanding a premium value, even in an economic downturn.
- Check the area where the potential property is located. such as areas with highly populated areas, near city, employment centres. These areas are more easily to
- Observe yourself if it has a potential market or not. Such as future developments on the area that will vastly boost the property intrinsic value. Such as having a hypermarket or a mall that will be develop in the near future.
- In addition try to search out the place by visiting it. This way, you are able to set your hopes on how the property is capable to do as far as rental is concerned.
- Call and research the to understand the rental price.
- In addition take note of the presence (or short of) of schools, libraries, shopping centres and other amenities that you would need in the area.
- Good transportation facilities (bus) may also lead to greater population and better rental opportunities.
- You might not want to stay too close to the school where it will cause traffic havoc in front of your house.
- You need to make sure which area is best suited for your way of life and job.
- It will keep you linked and in the centre of it all. You should make sure that you do not experience long hour’s travelling just to reach to your office and back to your house.
- You also have to ensure that the location that you wish is calm and peaceful. You have to feel protected at your own home. You must check if your neighbours are quiet and tidy.
- Checking the garden of your potential neighbours can provide you an idea on how they care about their house and property.
- Is there a Community that is governing the area, or if the place is gated with security guards. (although security guards sometime may not be very reliable but at least better than nothing)
- Check with the local residents and police station regarding the crime rate in the area.
- Keep your eyes open for vacant land and developments going on in the area which could encourage incidents of criminal activity.
Posted: June 12th, 2011 | Author: Melissa | Filed under: For The Noob | Tags: Buying Guide, Tips | No Comments »