15/02/2017
THE DON'T WHEN YOU PURCHASE A RESIDENTIAL PROPERTY
FOR OWNSTAY PURPOSE - GENERAL OBSERVATION
• Don’t choose west or east facing if possible, for landed investment. It takes longer time to sell normally. Time = Money.
Homework: Orientation is the first thing to check for landed property investment.
• Don’t buy those projects that besides or near sewerage pond. Although these days some sewerage ponds are odorless to some extent, but the price appreciation might not be shared with your future sub sale buyer.
Homework: Site visit. See it and smell it.
• Don’t assume that “unwelcome foreigner” or students will not be your neighbour even though currently no sign of having it. When market is slow, investor can be desperate, no matter how luxury or high end is the property.
Homework: Understand the demographic in your interested location and talk to management office. The rest will be out of your control.
• Don’t over subscribe on the readiness of broadband services promised by developer, most likely than not, they are not ready at VP. In many cases, it take months for TM or Maxis to set up the infrastructure.
Homework: If it is so important to you or always want to move in very early, check around the fiber optic infrastructure nearby your interested property. Nowadays, developer will use second tier broadband service providers as they are more keen to expand the business.
• Don’t assume nothing will change in the surrounding of your property. Be wary of buying property next to main artery road as it might turned to highway or lrt/mrt track built on it.
Homework: Check with local council or any other source that has the planning in this area.
• Don’t buy property in the view of “moving in” without consider all other factors in longer time horizon. The change of scenario (p/s: trust us, the only constant factor in life is ‘constant changing’) in few years’ time such as growing family structure or taking live-in ageing parent(s) may cause the property stuck in not so rental friendly segment/area.
Homework: Make longer term planning, especial it is for new under-construction property.
• Don’t buy property with a restricted master bedroom’s space that have no room to fit a king size bed. Ageing, snoring and horizon expansion of body sizes will make it very uncomfortable to share the matrimony bed for life with your partner (to someone it does matter. Lol). Serious note, master bedroom always need more space for other reason e.g. to put in baby cot in future or add in more cupboard etc.
Homework: Always check the scale and size of master bedroom.
• Don’t buy property that besides an under-construction project as it will bring u pain of noise and dust pollution, not to mention possible of break in crime. Of course, if you love the place so much and this issue is secondary to you then ignore this.
Homework: Nothing beat site visit and check out with local council on the empty lands besides your property.
• Don’t buy property that too far away from the parent or in-law’s house. With a baby or kid, it becomes very taxing on travelling time for all families to visit each other for bonding and emergency purposes.
Homework: Weigh up the need of being near to your parent or in-law/relatives and privacy. Some prefer to be away to maintain a better relationship in long term. It works both ways.
• Don’t believe fully what sale agent says, data don’t lie. Do your homework, trust your instincts and facts.
Homework: Take back the information and check with Mr. Google then only ask relevant and important or specific question from property investors. Asking question of whether this X project a good buy, is a rubbish question!
• Don’t believe fully in artist’s impression. That is how they make their living on painting your dream home. To play safe, discount 50% on what the “artist” is trying to sell to you.
Homework: Check out the developer’s previous project and its brochure.
• Don’t buy property that join name with your girlfriend, boyfriend or relatives to avoid any future complication should your relationship went sour in near future.
Homework: Take the worst case scenario and put in black and white on the action with the persons if you really intend to do it. No point to predict the future relationship as it will always change.
• Don’t buy too near to river or monsoon drainage system to avoid flash flood or stagnant waterway during drought season. It’s a breeding ground for mosquito too.
Homework: Site visit, site visit, site visit!
• Don’t let Feng Shui master to choose the property for you. You are the one who stays there not him. And you can only blame yourself when everything doesn’t go right, with or without Feng Shui master.
Homework: Go to the unit and feel it. All human comes with special talent. When you step into the unit, you will know whether it fits you or not. Save the cost of Feng Shui master to renovate your house nicer!
• Don’t sign SPA before obtaining at least a loan offer from bank, no matter what sort of promise the SA told you so, such as obligation free cancellation and etc. (Unless you plan to buy with cash )
Homework: Apply loans to 3 banks if you are not confidence on your affordability. Pre-loan check is possible too. Make more friends from mortgage sales.
• Don’t wait for the property price to come down only to buy for ownstay. Try to get yourself always ready to buy but to press the price down. There is difference between waiting for price drop and pressing for price drop.
Homework: Always put an eye on the price of the property that you are interested to understand the market price, not to wait for the “durian runtuh”.
• Don’t hope a miracle will happen in a brand new township to have full pop**ation and amenities in short term. Usually township needs time to mature and comes vibrant approximately 10 years!
Homework: Understand the master plan of the township and developer planning. Add another 5 to 7 years on top of developer’s plan.
• Don’t think of buying a property if you can’t afford to at least pay for the down payment of 10% of the property price, and needed some sort of zero entry or installments arrangement in order to afford to buy from developer for own stay. Even with the help of family, you may struggle to maintain or renovate it. Some also wrongly estimate the affordability, after the help of family, when he takes over the keys. Disaster may happen.
Homework: You know the best on your financial capability. If you FAMA decided to chip in, make sure can handle the future “cost” of having a property.
• Don’t buy property that come with haunted stories/murder/suicidal case for own stay, no matter how much below the market price. Especially, those do not dare to watch haunted movie.
Homework: Key word search (ghost, haunted, murdered incident etc) on google to the property that you intend to buy from subsales.
• Don’t make your own decision, if you intend to buy own stay property to setup family, do let your wife be the decision maker (well, mostly). A happy wife is a happy life.
Homework: Bring her to view the property or sales gallery. Make sure she is ok on all aspects that she would be expected for a family home. Make sure she is fine with open kitchen if no wet kitchen, size of bedroom and living hall. Sometimes, if the house is too big and too many staircases or split areas, make sure she is ok too!
• Don’t discount the family plan if you are planning to have children in near future (say within 2 years). Make sure you factor in the “family grow factor” and look for suitable size property and not start hunting for new abode when it’s happened. It’s usually quite stressful to having to relocate your family after short period of time.
Homework: Family plan!
• Don’t wait for show unit to be ready in order to make decision. It’s usually translates into higher price when compared to the earlier entries.
Homework: Learn how to visualize based on layout and scale model. Visit more completed properties to learn the skills.
• Don’t overly impressed on the artist’s impression video, brochure, master plan and show unit but ignore the track records of the developer to deliver as promised.
Homework: Visit more sites and properties from the developer.
• Don’t buy the property too close to mosque or temple or church if you cannot take the noise, jam, illegal carparks, and crowds during specific day/time.
Homework: Site visit to “test” your tolerance level.
• Don’t expect perfect home. Each home will have some imperfection. It’s up to owners to turn the negative energy into positive force.
Homework: Don’t rush to make decision for ownstay purpose. Multiple visits will help. If the more you go, the least you like it, means you need to visit another unit or properties.
• Don’t underestimate the noise (and dust) pollutions from the main road or highway. Not everyone can bear this imperfection on longer term.
Homework: Site visit to “test” your tolerance level.
• Don’t just look at the actual distance or time distance mentioned in the brochure. When buy for own stay, make sure amenities are close by and not have to drive 15mins to 30 mins just to enjoy your breakfast, lunch or dinner in restaurants or café. Life is short, make sure it’s productive.
Homework: Again, nothing beat site visit. If you cannot even stand on the visit, forget it to do on daily basis.
• Don’t over excited on buying new “HOME”. When buying new home off the plan for own stay, make sure the floor plan suit your requirement, and not carry out major renovation when vped. It does cost significant move in budget.
Homework: Go through every aspects on the layout and estimate the cost to renovate if major changes are required before you make up your mind. Knock this wall down or revamp the house is “no no” as it doesn’t add any value when you intend to sell it in future. Sometimes, you own taste of layout can be a disaster in subsales market when you want to upgrade.
