Buy A Property That Makes You Money

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hai assalammualaikum


Buy a Property That Makes You Money Buy a Property That Makes You Money - A property purchase is more than just a home. It is one of the greatest investments you will ever make. Definitely, you can buy a property for your own occupation, or you can buy it to let. However, the fact is, all of us want to know if our property will appreciate in value over time. For example, property in Hougang will have higher appreciation value because there is a Hougang MRT station nearby. Here are some tips for you to finding a property that will appreciate in value over time.

1. Check the masterplan
A master plan would typically outline a township’s development in the next one to two decades. It would also showcase the different selected land use and transportation plans within that particular township. An area believed highly desirable will attract businesses and residents. The master plan can hint you in on underdeveloped districts that may soon go through major developments. This is a good way to pick up on potentially undervalued properties. With this in mind, you should find out as much as possible about your new neighbourhood.

2. Check the transport masterplan
Generally, properties close to transportation hubs such as MRT or LRT stations can appreciate a premium of between 5-10% over the long term. This reason is because people generally want to live close to transportation hubs which ease them in carrying out daily activities. This demand translates to the property’s higher capital appreciation. Traffic congestion is foreseeable, and this is the reason that public transport is essential. Furthermore, those who do not own vehicles have an easy travelling option for their daily commute. Nowadays, office goers choose to go to work by using public transport instead of driving in order to avoid being trapped in traffic congestion.

3. Check budget allocation from the government
Government policies do have an indirect impact on property values. For example, a national or state budget allocation for improvements in public infrastructure and new economic drivers will have an impact on the value of new and existing homes in and around the vicinity of an area. Therefore, check where the government is building new hospitals or schools so as to ensure that the value of your property will be rising.

4. Check for economic drivers
You should study the area of the property you are eyeing at. The best strategy is to buy in an area that is underdeveloped but where there are plans for various economic drivers. A government-mooted economic corridor or a trustworthy developer that has experience in building townships are great indicators if the area will ‘succeed’ or not. A developer’s reputation is crucial. Finding a property with a price tag within your budget range is great but do your due diligence on who is developing the property. Conduct research to find out if the developer has been awarded for its projects. A developer with a good reputation will always be recognised and they are more likely to handle buyers with care as they have a reputation to uphold.

5. Check for job creation
You need to check if the township you are eyeing is going to be a ghost town or a happening place. If it is the former, perhaps you should stay away. If it is the latter, more and more workers will be drawn there, becoming a magnet for people and a hive of activity. People are the lifeblood of a neighbourhood. As the area becomes highly desirable, people will naturally want to live and work in and around the neighborhood. As there is an increase in demand, property prices in that area will also appreciate in tandem.

6. Visit the property in person
This should go without saying. One common trick used by marketers is to exaggerate or overstate the proximity of certain amenities, such as schools and train stations. There are developers that advertise a train station as being “less than five minutes away”, but in fact it is not. It is a good idea to visit the property at different times of the day if possible. This will warn you of major nuisances, such as the sun turning your property into a giant microwave at noon.

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