We all know that amidst the excitement
pf purchasing a new home, it could
get a little daunting for the purchaser
(especially first-time-homebuyers. Fret
not, we have you covered. Here is an
essential checklist that would help you
prior to your engagement.
What is the physical condition of the
property?
Is it in a good, habitable condition or is
it nearly falling apart? If so, how much
would you estimate you would need to
repair it before renovations? Is it worth
the price now?
What surrounds the property?
Is the located a place which shows
good potential for improvement over
the years or is it a place that is gradually
being abandoned due to the worsening
conditions surrounding the area? If
so, you need to come to terms and
understand that it may not appeal to
prospective occupants and you may
experience losses from it.
Facilities are important
What facilities does your unit come with?
Are there good amenities surrounding
the development, as this will serve to
attract good tenants. These are factors
that could make or break your real
estate rental business.
Is the property partially or fully
furnished or does it not contain any
furnishings at all?
Furnishings help increase the rental
income that you can get from the
property. If renting out, however –
you may not want to invest in really
expensive furniture (tenants will not be
held liable if its damaged in most cases)
Age isn’t just a number in this
scenario.
How old is the property? Has it been
built recently or has it been in existence
for quite some many years now? You
need to be aware that the older a facility
gets, the more repairs and refurbishing
it would need. Repainting may not
cost much but fixing piping issues and
electrical systems can be quite costly.
So, consider its age before proposing
for marriage!
Has the property been able to attract
a lot of occupants for the past few
years?
Does it have a lot of occupants at the
moment or is it abandoned? To be able
to know this, you should do your own
ocular inspection. You can simply pass
by the property at hours when most
people will be at home. This way, you
can see for yourself if there are more
lights on or more black holes. You
may also get the chance to observe
the type of people that live within the
development.
Municipals are ready to help
You should also drop by the respective
town council / municipal to check if
there are any planned changes in the
area such as additional roads, other
buildings, retail outlets, and other items
that could influence your ability to rent
at a higher rate in time to come.
Check your finances
It is good for you to note that most
banks in Malaysia have a DSR cap of 65-
70%, so it is crucial that you calculate
your repayment ability for your target
home before making the next move.
The last thing you want to be doing is
to utilise your entire salary for housing
expenses.
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