- March 19, 2019
- Posted by: adrianwee
- Category: 文章 Article
We have all heard if time and again – the “L” factor is extremely important when buying property. What is the “L” in question? No present for guessing it right – it’s the “Location, Location, Location!”
Even so, why the heck is location such an important part of the equation? Today, we will walk you through the FIVE most important things to consider when purchasing a property for investment purpose.
As you would have already known, it is always better to buy a run-down house in a good neighbourhood, rather than a good house in a bad neighbourhood. Hey, you can renovate the house, but you cannot renovate the neighbourhood!
Five Factors That Makes Up A Great Location For Your Property:-
- Millennials (born between 1981 – 1996)
When purchasing a property, always keep this generation in mind as they make up the bulk of the purchase in the property market. If you are buying a property in an area where there is a high concentration of millennials, it will improve on the chances of the property being sold in the near future.
2. Infrastructure (School and Hospital)
Before purchasing a property for investment purpose, it is also equally important to keep an eye on the National Budget and check if there is any schools and hospitals there will be built there in the near future. It is a good indicator that the area will be further developed if there are plans from the government to build such infrastructure there in the near future.
3. Safety Concern
Safety concern is also a vital issue when buying a property. Renters and purchasers alike will tend to shun away areas that are associated with high crime rate and low employment rate. Who would want to stay in an area where their personal safety would be at risk, right?
A housing unit close to public transport is also a huge bonus. Many development projects and housing unit leveraged on the MRT line to bump up their prices. With the convenience of ride-hailing services such as GRAB, many people prefer to use the public transport to work rather than to brave through the jam every day.
Population density in an area also plays a vital role. If the neighbourhood is dense population, you would want to look out for an efficient public transportation system before you buy. However, ideally, you would want to buy in lower density neighbourhood in anticipation of it rising when public transportation and other infrastructure are being developed.
I personally feel that location might not be such an important factor in the future. This is due to internet connectivity becoming more efficient and many corporations today will want to see results rather than attendance in the office. Therefore, many work-from-home jobs will spring up in the future – and this is in tandem with the expectation of the future working generation (the millennials and generation Z.)