In property investment, everyone around you will claim to be an expert. Just because that someone close to you has purchased a property before, that doesn’t make him or her an expert in this field. People tend to make judgements based on their emotions and these judgements may not always be accurate.
So what makes a good investment property? The experts will say location, location, location. That’s very true, but let’s dwell a little deeper, shall we?
Some questions we should be asking are :
How is the surrounding environment?
Have you ever driven through a township or a suburb area and felt good on the surrounding? Makes you feel like … ‘I could live in this area’. The road conditions, the sceneries, the landscape, the space and house designs all form a part of what you have just experienced. And if the township makes you feel like living there, the property developer has done it’s job well. Needless to say, property prices in this area is going to fetch a good value.
A good example of this would be Desa ParkCity. And guess what’s their tagline? The best place to live in Kuala Lumpur.
Is it Gated & Guarded?
Remember those days when you could leave the front gate of your landed homes wide open and not worry a thing about it? Do you recall growing up in neighbourhoods where it’s safe to allow your kids to playing at your neighbours house or at the nearby playground without you having to keep peeking at them?
As time passes, our priorities changed.
Security is a major concern these days hence, gate and guarded communities are very much in demand. But there is a huge difference between gated and guarded community and guarded community.
Are There Any Good Schools Around?
Having a Chinese school in the neighbourhood adds “huge value” to properties nearby. For example, a new Chinese school SJK (C) Union has has been announced to open for registration early 2018 in Cyberjaya. The school was relocated from Taiping, Perak.
With the announcement of this new Chinese school, Cyberjaya will be attracting more families to move in and live in this new city. People want to be nearer to schools not only because they want to send their children there, but also to have a good support system among parents.
“If you want to do home schooling, you are better off in a neighbourhood where there are people with the same interest, for example.
“Another example, a popular Chinese school — Lai Meng — recently moved to Bukit Jalil from KL. Parents who want their children to go to Lai Meng will need to move closer to the school in order to get a better chance of getting a place in the school.
Who’s Your Neighbour?
Knowing your neighbour is crucial because the neighbouring township is an important consideration when buying a home.
“Why Cyberjaya is growing fast, it’s because it is next to Puchong, Putrajaya, Dengkil, Seri Kembangan and Sepang. Cyberjaya is practically a city on the southern park of Greater KL serving these townships. Why PJ can work because the neighbour is KL and why Iskandar Malaysia can work because the neighbour is Singapore.
“In that sense, the neighbour does play a part because you want to have the best of both worlds. Perhaps lower expenses on one side and high income on the other side.
Demographics of the population and job opportunities allows you to understand who will be living next to you.
Whether you prefer a culturally mixed neighbourhood, or one that speaks only a particular language, or what kind of jobs your neighbours do, and if they are mostly tenants or owners… you need to do your homework.
Is The Township Growing?
Well planned township would usually attract more people to move in. And when the population grows, there will also be better supply services such as hypermarkets, clinics, laundry services and restaurants.
It is a chicken and egg situation.
Realistically, the demand for a home is always there. It’s just a matter of time, and price. If the population of a township is growing, so will the value of the property in it. Pay attention to change catalysts such as new shopping malls, major education establishments or major transportation hubs.
Is It Convenient?
Everybody wants to live in the middle of everything or in better words, they want their home to be centrally located. That means easy access to public amenities. And convenience is the keyword.
Because of this, real estate demands has also shifted and developers are building residential units on the top or very close to commercial lots such as shopping malls. These ‘mixed developments’ are usually located in prime real estate areas. Pavilion KL, Publika and Tropics Tropicana City Mall are some very good examples.
But always remember that convenience sometimes comes with a price. Due to the high land cost, chances are property developers will build smaller units to cater to the affordability of buyers and tenants.
How Is The Traffic?
Connectivity is extremely important as more people are moving further away from central locations. Again, affordability is the main culprit here. People are moving to townships like Cyberjaya and Setia Alam because of the highways that now connect to the city.
There are some people who do not want their homes to be too close to business activities to avoid high traffic areas but at the same time, they do not want it to be too far away either, because they need the supply and services to be close.
People are willing to accept if their workplaces are slightly further away, as long as they are well connected by highways or LRT, MRT stops.
Who Built It?
With the ever increasing number of real estate developers, it is sometimes hard to keep track of who are the good ones. A little due diligence might come in handy. Generally, developers with good track records and experience is quite a safe bet.
An experienced real estate developer listen and understand the needs of the buyers. They usually pay attention to even the smallest details of the development and are equally experienced in managing their buildings.
Most reputable developers have a good following and they know how to balance between making good profit and keeping their buyers happy.
In A Nutshell
The property investment market is constantly on the move and the slightest factors will affect it’s trend. So it is really important to keep yourself up-to-date on the latest news if you are considering to venture into this arena. In other words, do you homework well.