Property Market Intelligence - 5Ws and How

5 Ws and How in Information Gathering for Making a Decision in Investing Apartments

 

Over my 9 years of marketing international properties to Singaporeans, they have asked me same set of questions in gathering information before they made a decision into property investment of freehold apartments. I am thankful for their many questions. With their input, I have managed to divide these questions into 5 Ws and How, and would like to share with you so that you too could use them for gathering information that you need in order to make an informed decision into real estate investment. 

Where

Needless to say, location is the key. Location will determine if your potential tenant wants to rent the property from you. 

Analyse the location – firstly, the surroundings (i.e. amenities). In my personal opinion, there is a correlation of rentable and amenities. Take a look of any lease listings, any subject property for rent tends to ask for a higher rate relative to those where amenities are far away. Or ask yourself this question, if you are the tenant, will you prefer to have amenities nearer to you or far far away. 

Analyse the location – secondly, any development plans from that local government or council to rejuvenate the area which your property is located. This information will give a clue of how well your asset value will be preserved in years to come. 

Who 

·        Find out the profile of the developer. Do they have a track record of developing properties?

·        Find out who are the possible types of tenants your property can attract to? For example, international students, empty nesters, or interstate employees that need accommodation.

What

Details of the subject property: 

·        How tall and how many units in the whole development?

·        What are the facilities?

·        Any car space or storage titled to the purchase?

·        Look through the floor plan and unit layout that you are only keen at.

·        What are the specifications given in the purchase of the unit?

Costs of acquisition:

·        Ask the marketing agent what are the costs of acquisition? Tip – generally there are 2 on this (negotiate it only when you are ready to purchase).

Recurring costs:

·        What is the annual fee of the body corporate?

·        What is the annual fee of the council and water rates?

·        What is the management fee payable to your property management company?

 

When

 

When is the completion date? This is important as it will prepare you for the cash flow management when it comes to settlement.

 

Why

 

Look at the investment potential of the subject property, that is, development plans from that local government or council. This is critical as it will unlock your asset value when all the deliverables mapped out by the local government or council are been fulfilled. Imagine this, if MRT line is been completed near your home, what is the appreciation value your property will fetch.

 

How

How to get started to purchase and invest in freehold apartments? Though it may look simple to some people, but, the whole process of soliciting, negotiating, signing sales contract, construction updates, settlement matters, inspection, finding tenants, collecting rent and managing tenants is not as easy as it seems, especially if the purchaser has a full time commitment or first time looking into investing in Australian properties.

2 things you can ask – one, do you want to do-it-yourself in the whole process of investing in Australian real estate market, or two, let the marketing agent to hand held you for a while (without paying any commission) to learn as much as possible before you learn to do it by yourself.

Which option do you prefer? 

Feel free to share your thoughts with us.  

Stay safe and keep healthy.