Feeling excited searching for a new property development, but unsure whether to put your money down?
After all, this is one of the biggest financial decisions you will ever make.
Fret not. We have put together a list of 16 things you should look for in a property development. Download your eBook now.
One of our contributors is Ahyat Ishak. He first began property investing for more than a decade ago and became a property millionaire before the age of 30, having started from humble beginnings.
Below is an excerpt from the eBook.
1. IS THERE A DEVELOPER MASTER PLAN?
I like it when the property is part of a bigger township.
Not to say that I wouldn’t purchase standalone projects, which I do, but property, which is part of a masterplan is fantastic.
Imagine a standalone 5-acre neighbourhood of linked houses as compared to a 500-acre township. You could expect it to be a whole lot different.
With the township, you should expect better planning. Residential, commercial and other components of the townships would be planned nicely.
2. WHAT IS THE DEVELOPER’S TRACK RECORD?
So this is a tricky one. What about track record? It is important and it is not important.
Why? Because past performance does not guarantee future performance.
What has happened before? There was once a developer with several projects delivered successfully, suddenly had their many projects abandoned. So yes, in this case, track record wasn’t able to help much with such a tragedy that those buyers faced.
But then again, there are some developers who are thriving in tough times because of their great track record.
So what is a great track record?
It doesn’t mean perfect delivery. It means that they have honoured what they needed to when delivering vacant possession to their buyers. So if there are defects, they honour them. If there are any shortcomings, they would rectify. That’s what I mean by good track record.
And what if a developer doesn’t have much track record?
Buyers can look at the directors of this new developer. Look at their background. Were they involved in development activities before like being contractors or architects? This would be important to take note of in a developer.
Ahyat Ishak is the founder of the Strategic Property Investor program. He is an international speaker, active in the property investment speaking circuit, having spoken in the largest property events in the region.
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