Purchasing an auction property is never an easy task. There are indeed various benefits of buying auction property, the most obvious benefit will be the price factor. Nonetheless, purchasing an auctioned property could posses some risk as well.
Many youngsters are considering to purchase a below market value property nowadays due to the economic condition and their lack of income. Here are some of the things that you should do when purchasing an auctioned property.
Experts recommend interest bidder always to check the property beforehand. As one of the disadvantages that come with the auctioned properties is that the bidder won’t get to view the interior of the property.
Why Should You Do It?
Thus, it is making a risky investment as you are not sure about the condition of the house. It is very crucial to perform as much research as possible on the auctioned property. Even you don’t have access to the interior of the property. There are many other factors to investigate. For instance, the picture of the property could show the location.
Knowing the developer is essential as well for the youngster who plan to purchase the Lelong property. A background check on the developer of the property would be recommended. Thus, if the property title is still under the developer name. The bidder should check whether the developer is still an existing company.
Experts suggest that the auction contract always protect the bank instead of the bidders in the first place. Hence, if the developer face bankruptcy issues and the company has been liquidated. You will be in the hassle of transferring the title.
When you are making an investment with property, it is recommended to keep in mind that you are looking at the long-term big picture. As property investment has become a popular choice for passive side income. It is important to remember that it requires individual long-term commitment and advanced knowledge to succeed.
A Good Passive Income Channel
Investment on a property requires many factors to be considered, for instance, the location, type of ownership, the contract itself. Buying the property with lower price and selling it with a higher price in future after the value increase is what usually investors are looking at.
While some prefer one-off trade deals, some also enjoy collecting rentals for the property. The advantage is that the property still belongs to you, under your name but you are using someone to pay for it.
Real estate investment requires an ample amount of money to start off. Although many wants to perform in the property investment sector, it is recommended to prepare a substantial capital to start off in the industry.
Property investment is one of the viable passible income for the generation. Collecting rentals is one of the feasible strategies. Where people use the money collected to pay back the loan, which results in offset in some cases, raising extra income.
Expert suggests that housing prices in Malaysia will continue to appreciate, which means it will grow continually. For the reason that the land will get lesser and lesser and population will continue to grow. Hence, auction property can be acknowledged as a good hedge against inflation.
The annual return for Lelong property is around 8%, which is considered a good hedge. When comparing high-rise residential and landed estates, landed properties yield slightly better results.