4 ELEMENTS TO CONSIDER BEFORE BUYING PROPERTY FOR OWN STAY

First and foremost, is this property an investment? Or will it be purchased for the owner’s stay? If it’s the former, do take a look at Key Consideration In Buying Property For Investments . For this article, we’ll be focusing on key considerations for properties purchased for the owner’s own occupancy.

Now that that’s out of the way, we can focus on the most important factor of all. You. Yes, the most important factor when purchasing a property to stay in means that you will most likely be staying in this property for quite some time. This means that you have to seriously think and decide based on factors that suit your needs, lifestyle and future plans.

Although every individual has their own preference and criteria for selecting a home, there are a few key elements that every home buyer should refer to regardless of their age or preference.

1) Affordability

The most important factor when purchasing a property is the price tag. This is true for first time house buyers as they do not have the extra capital obtained from selling a previous property. Even when there are other factors such as personal preference, building size and neighbourhood environment, all these are meaningless if the purchaser cannot afford to pay for it.

Affordability is always number one when purchasing a property. Potential buyers should set a budget and stick to it. Nowadays, many youngsters in Malaysia are too hurried when it comes to property purchases. Although the ambition is a good thing, the unrealistic expectation could bring unnecessary financial stress.

The main thing to consider when you assess whether you can afford a certain property is the down payment. Usually the down payment is 10% of the price of the property along with any legal fees, stamp duty and valuation fees (depends if it’s a new or sub sale). Next is the monthly instalment, whether the purchaser is able to continue paying the amount every month moving forward.

When the financials are under control, the purchaser has more freedom to enjoy the comforts of owning a home, which makes it easier to plan for upgrade in the future.

2) Location

Regardless of whether you are choosing to live in a high-rise building or a landed property, the accessibility of the location is extremely important. Of course, this also depends on the lifestyle and transport frequently used. Ideally, the property would be situated close to the work location of the homeowner as it would certainly reduce monthly expenses. However, the trend of an individual working in the same company for decades is gradually disappearing. As such, it is more realistic for homeowners to look at the distance between the property and public transport stations; if you are a person who prefers driving, it is a good idea to look for access into highways or expressways.

Apart from that, you should also take into account access and distance to amenities such as clinics, schools, eateries within the area.  Consider and assess the amenities important to you and whether they can meet your current and future needs. For example, a young and single person would enjoy entertainment facilities whereas a small and young family would prefer quiet areas close to school.

Last but not least is the property’s potential for capital appreciation and overall growth potential. You should always keep an eye on current and future developments as these can greatly influence the value of the property. The oversupply of property not only can affect the appreciation rate of the property but the overall traffic of the area as well, so always keep a broad view and avoid developing tunnel vision when looking at a property.

3) Present And Future Needs

Although it is impossible to predict what will happen in the next 10 years, it is always better to purchase a property that can not only meet your current needs but also your future needs as well.

The usual factors you should consider revolves around your lifestyle and whether the amenities, facilities, structure and design of the building, property size, as well as surrounding environment can meet your current and future needs.

Some of the questions that may arise. Are you planning on starting a family anytime soon? If you urgently need a place to stay, consider subsale. Else you can consider buying new launch. Is your parents staying with you? How many children you planned to have. Do you intend to have pets?

The most important question of all is simply whether you can see yourself living in that property for the next 10 years. The questions will gradually emerge as you try to imagine yourself living in the place, creating a story of your life within that house, with as much detail as possible.

4) Security & Safety 

Security and safety is an important issue, whether you are staying alone, or families with young children. The community you stay with helps build a safe environment.

Different types of property provides differing levels of security as well. Generally, high-rise buildings are gated and have tighter security and surveillance while normal landed terrace properties have the least security. Although there are high end landed property areas that are gated and possess tight security, however it is certainly easier for thieves and robbers to target a landed property than a condominium.

Nevertheless, security means nothing if break-ins happen constantly.  Therefore, it is important to check the historical records of the property and look out for history of break-ins. On this note, it is important to check the performance history of the building or community management, if their records are bad, it might be best for you to avoid that property.

Conclusion:

Amongst the many factors and criteria that purchasers must take note of, the abovementioned four factors are musts and should never be overlooked regardless if it’s your first or your tenth property purchase.