Are you looking to buy a piece of property?
If you are, perhaps, you may ask:
– Is the property situated in an excellent location?
– How do I tell a good location from a bad one?
– What do I look for in assessing the quality of a site?
For a start, we must understand the purpose of buying a property. Your purpose will determine your approach to searching for a suitable location. For instance, if you purchase to:
The assessment is based on your current lifestyle and how accessible you are to your conveniences of life.
The assessment is based on whether the location has a consistent flow of potential tenants to ensure sustainable collection of rental income.
c. Enjoy Capital Gain
The assessment would be built on the growth potential of a location.
Having a clear purpose helps you to narrow down your search to a few suitable locations. Then, you check out amenities which are existing and upcoming surrounding these neighbourhoods. These amenities are known as ‘Area Boosters’.
Here, I’ll share five Area Boosters that would potentially add value to property over the long-term. They are:
#1: Commercial Hubs
In general, people are attracted to locations that present ample of job and business opportunities. Commercial hubs are among these places as they continuously draw a unique blend of employees and business owners for work-related purposes.
There are several benefits to owning a property close to a commercial hub. Firstly, banks are easily accessible. Secondly, branded and specialty coffee houses and restaurants are plentiful. Thirdly, your property enjoys higher perceived value as it is associated with people of higher levels of affluence which populates the area. These pluses are applicable if you are an aspiring landlord as you would attract tenants of better quality for your property.
Most people would choose to reside in a property which is reasonably connected. Some may prefer a property located as closely as possible to their workplace. Today, many prefer to live further away as long as the property is accessible by major highways and public transportations. In the context of a person residing in the Klang Valley, public transit refers to accessibility via the LRT and the MRT.
Presently, it is convenient to assess the accessibility of a location as we have online property websites. The information provided is quite comprehensive.
If you use PropertyGuru.com.my, there are two ways to go about it. It depends on whether you are buying a property which is:
PropertyGuru.com.my has included a Google Map for every property listed on the website. You can check how accessible a property is to highways, railway stations, commercial hubs, education centers, food & beverage outlets and places of worship.
B. Under Construction
You may want to check out the collection of Project Reviews compiled within PropertyGuru.com.my. It has a detailed write-up on the location where the new project is situated. It saves time as we don’t need to visit showrooms after showrooms to check out the current and upcoming infrastructures to be developed to improve the accessibility of these new projects.
Hospitals, both public and private, do add value to the local community residing within the vicinity. Properties which are located close to a hospital are desirable. If you are a resident, you may enjoy a sense of security to have access to healthcare treatments when needed.
However, the advantages are more apparent if you are a landlord. Firstly, in most cases, hospitals operate for the long-term once they are established. Secondly, these hospitals would attract high-quality tenants such as doctors, nurses and other related medical workers. Thus, properties closely located to a hospital are potentially good investments as they are capable of bringing in sustainable rental income to landlords for many years. This would boost the value of these properties.
#4: Shopping Malls
Shopping malls remain popular as a destination to visit among Malaysians. They are great places to meet, dine, shop and relax. Evidently, some argue that shopping malls are becoming redundant due to e-commerce. Personally, I believe otherwise. Even if a visitor is not a shopper, shopping malls are still great places to hang out as they are air-conditioned. They will remain as crowd pullers and be assets to properties located in the vicinity.
Presently, the trend is shifting towards neighbourhood lifestyle malls. They are smaller in sizes. But, they serve as a nice meeting place for residents. Most would appreciate and patronise these lifestyle malls as visiting larger shopping malls can be a hassle due to the distance of travelling, traffic congestions and difficulty in finding a parking space. Thus, it is a plus point if your property situated close to a lifestyle mall.
There are two primary considerations that one can make to assess the impact of this Area Booster on your property. They are completely different in nature. It greatly depends on your purpose for buying a property. Let me elaborate.
Firstly, you have an intention to buy a property to collect rental income from college students. In this case, you should consider the reputation of the college or the university. How long has it been in operation? Often, the prominent ones with a long history and proven track record of excellence would have created sustainable rental demand for properties within the vicinity and thus, have potential to be good investments.
Second, you may have a family with school children. Thus, you will be searching for properties near International Schools or high-performing public Chinese Schools. This enables you to enroll your kids in these schools. Alternatively, you may be targeting families with school children as your potential tenants. Often, these parents make good quality tenants as they are willing to pay to find shelter close to these schools as they are perceived to uphold better quality in education.
So, what’s a good location?
In short, the five Area Boosters serve as a quick guide to assist you in evaluating the quality of a place. Here’s a golden nugget. A good location is one that possesses most, if not all, of the five Area Boosters mentioned above. It is risky to buy a property in a place which has and solely depends on just one Area Booster.
Announcing the ‘My Dream Home’ Campaign
Presently, PropertyGuru.com.my has launched the ‘My Dream Home’ Campaign. It is to assist you in buying the right piece of property by using the search functions, independent reviews, market outlooks, guides and some user-friendly tools by PropertyGuru.com.my.
This campaign allows you to win up to RM 50,000 in prize money from PropertyGuru.com.my to finance your purchase of a brand new property. The contest period is for a limited time only and would end on October 31, 2017. For more information: