Buying a condominium property entails a big investment, so its important that you arm yourself with as much
knowledge about the property that you want to buy. Here are some quick tips that may help you make your investment decision a less painful one:
1. Consider Location - Determine the proximity of the condo-building to the places that you frequently go to. Is it near schools, a hospital, or work? These considerations are especially important if you plan to use it as a place of residence or to rent it out. Renters will usually come from the employee population that work within close proximity from your building. If your condo unit is within walking distance, it will command a better price than one a ride away.
2. Research The Company - There have been some developers that have failed to deliver on their customers by delaying or suspending the construction of their condominium project. This is usually due to bad cash-flow on part of the company. They no longer have the money to continue construction of the project. So, as part of your due-diligence, you should research on what companies have had a track record of not being able to deliver to their clients. But my recommendation is for you to buy your condo unit from a company that clearly has a solid financial condition and is a well known 'brand". The bigger, the better.
A well-known company would also make the extra efforts to construct their buildings well since they know that any low-quality work will eventually show and affect their brand.
3. Consider Pricing and Payment Scheme - It may be a Zero-Interest Deferred Down Payment for the next 2-3 years, but also consider the monthly you will have to pay afterwards when its already bank-financed. Or do you project that you will already have enough money to pay the balance at that time? It is very important to match your property purchase to your capacity to pay since you won't want to default in the end and lose the money you've already initially invested.
4. Consider Your Agent - In my opinion, your agent should, as much as possible, be directly connected or employed by the development company. This is to ensure that you will have all the knowledge and support in regards with your condo purchase. Brokers who carry multiple products from different developers might not have the same focus as one who's and "insider". This will be especially important when you need to have some legal processes done in the future. The developer's agent can work on your case and will know who to approach within the company.
I hope these few tips have enriched your knowledge about condominium investment. If you have any questions and suggestions, please do email me.
Thanks and have a Nice Day!
Tony
1. Consider Location - Determine the proximity of the condo-building to the places that you frequently go to. Is it near schools, a hospital, or work? These considerations are especially important if you plan to use it as a place of residence or to rent it out. Renters will usually come from the employee population that work within close proximity from your building. If your condo unit is within walking distance, it will command a better price than one a ride away.
2. Research The Company - There have been some developers that have failed to deliver on their customers by delaying or suspending the construction of their condominium project. This is usually due to bad cash-flow on part of the company. They no longer have the money to continue construction of the project. So, as part of your due-diligence, you should research on what companies have had a track record of not being able to deliver to their clients. But my recommendation is for you to buy your condo unit from a company that clearly has a solid financial condition and is a well known 'brand". The bigger, the better.
A well-known company would also make the extra efforts to construct their buildings well since they know that any low-quality work will eventually show and affect their brand.
3. Consider Pricing and Payment Scheme - It may be a Zero-Interest Deferred Down Payment for the next 2-3 years, but also consider the monthly you will have to pay afterwards when its already bank-financed. Or do you project that you will already have enough money to pay the balance at that time? It is very important to match your property purchase to your capacity to pay since you won't want to default in the end and lose the money you've already initially invested.
4. Consider Your Agent - In my opinion, your agent should, as much as possible, be directly connected or employed by the development company. This is to ensure that you will have all the knowledge and support in regards with your condo purchase. Brokers who carry multiple products from different developers might not have the same focus as one who's and "insider". This will be especially important when you need to have some legal processes done in the future. The developer's agent can work on your case and will know who to approach within the company.
I hope these few tips have enriched your knowledge about condominium investment. If you have any questions and suggestions, please do email me.
Thanks and have a Nice Day!
Tony
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