Purchasing property has always been considered a good investment. This investment is generally considered an asset as one will see a growth in funds without placing them in unstable banks. Unfortunately, if the property being purchased is unsound and has structural damage, the property could be considered more of a liability than an asset. This being the case, it is vitally important that one take some points into account before purchasing any property. This article will provide a brief discussion into the various considerations which must be made before buying property in Singapore.
1. The Correct Area
To invest in profitable property, it is important to examine the geographical area in which one is conducting the purchase. New and recently built properties are always considered a better option; however, the value may deteriorate if the area is dangerous and unsound. To ensure real estate agents are not deceiving one, it is recommended that one takes a visit to the property and examine the area for oneself. It is best to head to the property before the day of viewing to ensure you have a good idea of the potential investment.
2. Finding High Rental Yield
When discussing a rental yield one will be referring to the rate of income return associated with price for which the property was bought. A property with high rental yield will be positive as it shows a profit; however, lower rental yields can cause the individual to experience a damaging financial loss. As is mentioned above, the geographical location of a property can influence its worth and purchasing properties in troubling areas can turn the Singapore property into a liability.
3. The Correct Units
The most popular type of Singapore property to purchase is the condominium apartments. Due to the high paced lifestyle in Singapore, many people prefer to live in small units with little gardens or no garden at all. This will decrease the responsibilities to the tenant, such as maintaining an outdoor area. The different units present with different prices dependent on the area and size of the apartment. Larger units in secure sites are more likely to produce large profits; therefore, it is important to take this into consideration before making a purchase.
Final Words On The Matter
As can be seen, purchasing a property can be a worthwhile venture; however, one must take the area and size of unit into account before signing on the dotted line.