IT’S important to keep this in mind: It’s easy to get into properties, but very difficult and costly to get out.
Hence you must get it right the first time and every time. Try to meet as many of the following criteria as you possibly can.
Buy in high-growth areas
These places experience traffic congestion. In many cases, people are forced to relocate closer to their places of work to cut down on travelling time and travelling expenses.
Hence, the demand for such properties is high. Given the limited land supply in choice locations, there will always be upward pressure on prices for these properties.
Buy 10 to 20 per cent below market
You must make money going into properties. The way to do it is to master property negotiating skills and buy from motivated sellers at 10 to 20 per cent lower than the market.
This is especially important when you are buying with the intention to keep forever. If you are planning to sell some time in future, it is still important to buy below market as doing so will ensure that you have made money at the point of purchase.
Buy properties facing the right direction
In a hot tropical country that has 10 to 12 hours of sunshine every day, properties facing the setting sun tend to get very hot after 2pm.
Properties that directly face the setting sun are priced 10 to 20 per cent lower than those facing the morning sun.
Besides properties facing the east, you should also consider north- or south-facing properties as the potential heat impact would be minimal.
Buy properties facing greenery or water
These properties will command a slight premium over others. It is more soothing to face nature in the form of parks and lakes. You will find it windier and cooler too thanks to the open spaces.
Buy corner units if you have the budget
With corner units, you will have much more flexibility than with intermediate units.
For landed properties, you will have far more options with regard to renovations, rebuilding your house and so on.
Excerpted from Milan Doshi’s How You Can Become A Multi Millionaire Real Estate Investor, published by Achievers Resource Centre.
Source : Sunday Times - 18 Nov 2007