What must you know investing in luxury property? | Assalammualaikum readers!. Another good info especially for whom are looking for luxury property....enjoy reading.
Real estate investment is always regarded an asset that can hedge against inflation and tangible especially to those new investors. In general, real estate has promoted capital appreciation in the long term and investors have the option to either rent it out for additional income or to lessen the burden when it comes to loan repayment. While there isn’t any single formula you can follow but there are factors that should make the top of your checklist especially when opting to purchase a luxury property especially in Mont Kiara, Sri Hartamas, Bangsar and others. Here are some of the crucial factors when purchasing premium property.
The famous quote when buying property ‘Location, location, location’ and it has become a mantra for all property investors to follow. The quote itself defines the exclusivity of a property and remains one of the main deciders when it comes to buyer preference. No doubt location is the largest factor in the property pricing. In the elite and prime location, residential property prices tend to appreciate rapidly due to the surrounding developments. Prominent areas like Bukit Bintang, KLCC and Mont Kiara area recorded 4% rise in capital value year-on-year although property market was suffering from the oversupply properties. Despite the depreciating ringgit, homes within these neighbourhood were more attractive than properties in the capital cities of Indonesia and Philippines.
Developer background check
Like any other major decision, failing to do research before finalising your preferred choice could be a downfall of your investment, as it is important to know who is on the other side of the contract. Many potential buyers has recognised the fact that it was reported that developer reputation is among their top concerns. This is due to the horror stories of developers that left buyers dumbfounded and vulnerable after abandoning their projects which is quite common. In order to mitigate risk of being left high and dry by developer, you have to do some research on the developer’s recognition and track record. Being a consumer, you can measure their recognition through their awards as well as the success rates of their previous projects.
There are many aspects besides location that cements property’s high-end build. Firstly, you will hear the ‘density’ term within the selling points of property. When the density gives you an indicator of the privacy, security as well as upkeep of the development in the future. Usually luxury properties have lower density where it is limited to few number of units per block/floor. This makes it exclusive to the residents of the project. On the other hand, if it’s a high density condominium, it also means the longer waiting time for lifts, and possibly of congestion entering and exiting the compound during peak hours.
Finishing and furnishing
There are few reasons why the luxury properties are set at a higher price point and one of the reasons is due to building materials and furnishing equipment used. In short, you pay for the quality product, just like any other purchases you make. For condominiums, quality is reflected in the finishing and furnishing of your living space. Eventually, when purchasing a luxury condominium unit, it is best you zero in on these two factors as you would not want to spend extra on renovations to meet the luxe standards. Although the furniture is attractive but that does not mean the quality of the fixtures and furniture are up to par with its luxury status. So, you should take note of the finer details such as flooring and other fittings or furnishings that come with your purchase.
Timing to purchase
When it is the timing to purchase a property, there are other costs to consider apart from the property price itself and those extra expenses that could mark up your budget by thousands. Most buyers these days, they can save a lot when you buy straight from developers because of their sales package. Usually, developers tend to offer to absorb fees such as the Sales and Purchase Agreement (SPA) and legal fees, so that the buyer does not have to be burdened with the extra exorbitant cost. What we advise is that to catch the timing to purchase the luxe condominium when the developers offer attractive sales packages because there are not a year-round deal.