News & Articles 13 Things You Need To Know Before Purchasing a House
13 Things You Need To Know Before Purchasing a House
14 Jul 2016
1. Location
The value of a property increases exponentially in rapidly developing areas and hot spots that have fast population growth and abundant economic activities. This is because the location of a property affects a buyer’s lifestyle.
2. Type of property
If you are buying a property to live in, seek for comfort and space. If you are investing, go for properties that offer high returns. Apartment (Studio) and suites (SOHO) usually bring good returns.
3. Furniture and Decoration
Most buyers that intend to live in the house they buy would prefer a place where they can decorate and transform into the space of their dreams. However, investors usually go for houses that are fully furnished with appliances available, so that they can immediately find tenants.
4. Original price
Most house owners won’t mind spending a little more money into renovation and decoration. For investors, the key to earning profit is to get the lowest price possible.
5. Do not put all eggs into one basket
Some buyers make the mistake of investing all of their savings onto a house, which is a very bad decision that may land them into heavy debts.
6. First hand and second hand property
Usually, house buyers are approached through advertising and exhibition. They are the first hand buyers that are interested to buy a property at a lower price and to move in after completion. Second hand buyers are people who have the need to move in right away or people who only will be in that area for a certain amount of time.
7. Insurance
Many people are unaware about Mortgage Reducing Term Assurance (MRTA). MRTA helps protect the interests of homebuyers. The purpose of MRTA is to offset any of your outstanding loan in the event of Total and Permanent Disability or loss of life, which lessens the burden of your family.
8. Security
Since safety is the priority of every house owner, having guards and fences give people a sense of safety.
9. Financing methods
For investors, they would rather pay 10% down payment and take a bank loan for the rest of the payment. Their aim is to spend least money possible and highest amount of profit by extending the payment duration. As compared to investors, buyers who intend to keep the house, they do not want to bear a huge amount of debt. Hence, they want to pay off the mortgage in the shortest possible time. These owner pay a higher amount of down payment and shorten the period for interest and province.
10. Pay back consistently
Some buyers choose to ignore bank financing regulations, in order to have more cash each month. This is not a wise move because the amount of loan will slowly build up till a point where buyers cannot repay their debts anymore.
11. Choose the right mediator
You need a mediator that prioritises you, who is hard working, gets you the best property with the lowest price tag, sells your property in the shortest amount of time and helps you to secure a good renter.
12. Listen to the advice of professionals
A good agency will give you unbiased recommendations or opinions, so do listen to them. Yet, it is also your duty to confirm the authenticity of the information.
13. Bad neighbourhood
If the house you intend to buy seems fine, yet utterly cheap, you should consider checking out the neighbourhood. The house might be in bad condition, which requires you to spend a lot on renovation. Also, go to an agency or police station to understand the local security situation. There’s usually a reason for a property to be overly cheap.
(中文版请看这里:http://goo.gl/DBssyV)
The value of a property increases exponentially in rapidly developing areas and hot spots that have fast population growth and abundant economic activities. This is because the location of a property affects a buyer’s lifestyle.
2. Type of property
If you are buying a property to live in, seek for comfort and space. If you are investing, go for properties that offer high returns. Apartment (Studio) and suites (SOHO) usually bring good returns.
3. Furniture and Decoration
Most buyers that intend to live in the house they buy would prefer a place where they can decorate and transform into the space of their dreams. However, investors usually go for houses that are fully furnished with appliances available, so that they can immediately find tenants.
4. Original price
Most house owners won’t mind spending a little more money into renovation and decoration. For investors, the key to earning profit is to get the lowest price possible.
5. Do not put all eggs into one basket
Some buyers make the mistake of investing all of their savings onto a house, which is a very bad decision that may land them into heavy debts.
6. First hand and second hand property
Usually, house buyers are approached through advertising and exhibition. They are the first hand buyers that are interested to buy a property at a lower price and to move in after completion. Second hand buyers are people who have the need to move in right away or people who only will be in that area for a certain amount of time.
7. Insurance
Many people are unaware about Mortgage Reducing Term Assurance (MRTA). MRTA helps protect the interests of homebuyers. The purpose of MRTA is to offset any of your outstanding loan in the event of Total and Permanent Disability or loss of life, which lessens the burden of your family.
8. Security
Since safety is the priority of every house owner, having guards and fences give people a sense of safety.
9. Financing methods
For investors, they would rather pay 10% down payment and take a bank loan for the rest of the payment. Their aim is to spend least money possible and highest amount of profit by extending the payment duration. As compared to investors, buyers who intend to keep the house, they do not want to bear a huge amount of debt. Hence, they want to pay off the mortgage in the shortest possible time. These owner pay a higher amount of down payment and shorten the period for interest and province.
10. Pay back consistently
Some buyers choose to ignore bank financing regulations, in order to have more cash each month. This is not a wise move because the amount of loan will slowly build up till a point where buyers cannot repay their debts anymore.
11. Choose the right mediator
You need a mediator that prioritises you, who is hard working, gets you the best property with the lowest price tag, sells your property in the shortest amount of time and helps you to secure a good renter.
12. Listen to the advice of professionals
A good agency will give you unbiased recommendations or opinions, so do listen to them. Yet, it is also your duty to confirm the authenticity of the information.
13. Bad neighbourhood
If the house you intend to buy seems fine, yet utterly cheap, you should consider checking out the neighbourhood. The house might be in bad condition, which requires you to spend a lot on renovation. Also, go to an agency or police station to understand the local security situation. There’s usually a reason for a property to be overly cheap.
(中文版请看这里:http://goo.gl/DBssyV)
Source: DurianProperty.com