Do you wish to start on a good note when it comes to property investment? Well, it does not start with just a dream. It will also take lots of actions to realise this dream of owning the most expensive thing we will ever buy in our lifetime. Now, let’s say we have saved enough down payment. We also have a stable job which meant that the bank should be able to approve our loan application too. What should be the very next step that we could take?
#1 Goal / Objective:
Understand why we want to buy in the first place. There are so many different objectives that we may have. For example, we just want a roof over your head and wanted to stop paying rental. Maybe we want to buy because our new baby looks very cute and we like to give our baby a better home. Perhaps it could even be a forced saving so that when our baby needs money in future for education that house could be turned into cash.
#2 Decide on a strategy
Focus on property rental income every month or potential capital appreciation many years later? If it’s rental income, then the secondary market will be a better choice because it’s what we see what we get and we are also able to understand how’s the rental market like. If we are thinking of potential capital appreciation, then it’s quite important to look at the price we buy versus the prices of similar properties. This should give us an idea about that potential price when the property is completed in the future. Of course, if we are looking at a longer term, then even that rental income property can still yield capital appreciation yeah.
#3 Homework Time.
If it’s our first time in a swimming pool, would we jump into the pool directly? This is why we should start reading more about the property market. Understand all the potential developments which are being offered so that we could compare the choices we have. Read property magazines, property sites, buy property books (including this one) and many others. LIKE / Follow fb.com/kopiandproperty or sign up for a weekly newsletter too. Please do not think of quick profits from property investments yeah. It is supposed to be a stable and strong investment but not a quick one. Earlier article here about investment here.
#4 View, View, View
Once you are familiar with how property investment works, start to view units. The more the better as you learn a lot during these viewings. Note the surrounding, the route leading to the property, types of properties, what are nearby, what about the traffic condition, is it nearby MRT, etc. My personal opinion, view 20 before deciding when you first started. If you viewed enough, you should be able to decide objectively. If it’s a high rise, then here are some tips on inspecting it.
#5 Offer and Negotiate
If you think you have viewed enough and have decided on a very attractive one from the secondary market, do call the agent and tell the agent to negotiate for the best for you. Tell him specifically that if it hits your target price you would buy. If it’s a new property, then perhaps can also tell developer sales person that you have interest and would like to know everything extra which they could provide. (This is the time where the extra is still possible. In a hot market, maybe it’s harder for this to happen)
What would the future be like?
The best part about property investment is this. We get better in this journey and studies have always shown that the ones who bought their first property usually move on to the next one. It may be an upgrade many years later. It may be the money from capital appreciation which is enough for downpayment to two properties in the future. Just remember that property investment is not a gamble. It has been a rewarding journey for me since I bought my first property in 2002. Happy joining this journey.
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