Have you been considering investing in real estate? It’s paramount to acquaint yourself with the right information, to make an informed decision.
Things to know before making a real estate investment
Make a list of your requirements before viewing properties
Knowing what you when it comes to Singapore real estate is essential as it helps you get the best returns on your investment. Real estate agents are trained to sell, and you might end up buying something that you didn’t want in the first place. Come up with a list of your needs and expectations such as;
- Price range
Stick to your needs and do not compromise until you find what you’re looking for or something close.
A better deal is not always around the corner
Not to sound like you should rush to buy a property, don’t take too much time either. Remember that you’re not the only buyer looking to buy the property, and the seller will sell to the person that shows the most commitment.
It’s essential also to note that property value appreciates rather than depreciates, hence time hence very time-sensitive. If for instance, a property is worth $$ today, it could be worth $$$ tomorrow.
Have your real estate agent take you around to view a variety of properties before you make the final decision.
You might need to hire a financial advisor
If you have a sound financial background, you’re in luck because you can do the financials yourself. However, if your knowledge of financial analysis is limited, you might need a certified financial advisor to help you.
Your advisor will help you analyze different properties to see which ones make more sense regarding returns and in what time frame. Your advisor will also know real figures when it comes to using pro-forma data and will, therefore, advise you accordingly.
Things to evaluate carefully during the analysis are;
- Property tax bills
- Tax returns for the previous year
- Maintainance records
If a seller is not ready to sell, leave the property alone
At times, you might find a property that is ideal for you, but the seller may not be motivated to sell. As appealing as the property might be, you might end up buying it a higher price than you had planned.
Look out for properties that have been on the market for over a year, and the price has remained constant. There are reasons why other sellers have bought the property them main one being that it’s over-priced.
If the seller has reduced the price several times, this is your time to close in on the property. You stand a chance of bargaining the price even further down, to your advantage.
Investing in real estate Singapore is not as obvious as it seems. Knowing a few things beforehand is advantageous as it helps you make the best decision.
Know your financials inside out and if you don’t, hire a professional and certified financial advisor to help you. Don’t wait too long before deciding as you might end up losing a deal of a lifetime.