Property Buying Tips
Buying a property is and can be a big decision. We also believe it’s one that should be made with a clear mindset and a certain level of comfort. Check out our top Property Buying tips to get you underway:
- Get Professional Help
It can save you 100’s of thousands and make the entire process not only hustle free but also as risk free as possible. Also remember using the services of a registered buyers agent does NOT add any additional cost to the fees already payable.
- Know your reasons for buying a property
Are you buying a property to live in or an investment property?
The answer to this question will make all the difference in your decision-making process. Buying a property to live in is predominantly a personal and emotional decision. As the end of the day you have to have some sort of a connection to the place you will call home. Buying a property for investment purposes whether that be capital appreciation or rental returns on the other hand is the complete opposite. This requires a business like decision making process with no emotional attachment.
If you are buying for investment reasons then the next questions you have to ask your self is – Are you investing for capital appreciation, immediate income/returns or mixture of both? Deciding on this right from the start is crucial as your reason for investing will ultimately have an impact on not only the type of property you purchase but also the location.
- Know exactly what you are buying
It’s important to know as much as possible about not only the actual property you are looking to purchase but also the entire development should you be purchasing an apartment or community in the case of a villa. Take your time to familiarize yourself with who developer is, how well the building/community is maintained, what the service charges are and also what amenities are available. This is a great way to ensure you make an informed decision and end up with no hidden surprises.
- Know the area
The very first question you need to ask is whether the area you are considering is Freehold or Leasehold as the 2 offer contrasting forms of ownership. Form or ownership aside , whether buying to live in or as an investment it is crucial to be informed on the area in which your property is located in. Understand exactly what is and isn’t located close by. Are there shops and supermarkets nearby? Are there parks or other places of interest nearby? How is easy is road access and are there any public transport services in the area? What are the threats of any future development?
These are just some of factors which will have a lasting impact on both your enjoyment of living in the property as well as the future value of the property.
- Additional Buying Costs – Budget Correctly
When buying any product or services it is important to be aware of all the fees and charges involved and ensure there are no hidden surprises. This is even truer when making a relatively high cost purchase such as property. In addition to the agreed purchase price there are several other fees and costs associated with a property purchase transaction. Some of the more significant costs include the 4% transfer fee payable to the Land Department as well as the 2% agency fees. To be on the safe side we recommend allowing for 7% of total property purchase price.
- Know Your Ongoing Costs
What are the ongoing costs associated with holding onto your property. The more significant expenses include; service charges, insurance and mortgage costs if finance is involved. Make sure you are aware of these before you buy.
Now that you are well familiar with our Property Buying Tips find out about the Buying Process and what the process looks like once you buy a property.