When it comes to making one of the most significant financial decisions of our life, such as buying or selling a property, it’s essential to approach the process with intelligence and foresight. We need to do our own analysis properly. Don’t leave this analysis tasks to the property agents because it is a big money to spend or earn. In this article, we will download the property transactions data and analyze it. This will guide us making a smart decision.
First, we can download the property transactions from the government websites. This information is available for most the country. For example,
- in Malaysia, you can download the property transaction data from this website : https://napic.jpph.gov.my/portal/key-statistics ;
- while in Singapore, you can download the data from this website : https://www.ura.gov.sg/property-market-information/pmiResidentialTransactionSearch
Here are some critical points to consider to ensure we make a smart choice:
1. Surrounding Property Prices: One of the first things we should research is the property prices in the area. Are they on the rise, stable, or declining? Understanding the local real estate market’s trends will help us determine whether it’s a good time to buy or sell. Keep an eye on recent sales data and consult with local real estate experts to get a clear picture of the market’s health. From the data that we have downloaded earlier, we could build trend analysis.
To build this chart, we could use Metabase, a Free and powerful Visualization tool. Don’t worry, this tool is very simple to use especially with the guidance from this Udemy Course (Practical Real-World SQL and Data Visualization) . This course open my mind to use data smartly and derive business insight easily. Strongly encourage everyone to take it. Back to our trend analysis, we see that the flat price is increasing from 180k in Quarter 3, 2021 to 220k in Quarter 3, 2022. Now, we know that we shouldn’t sell our flat properties lower than 220k. If buyers would like to bargain with us, we have very strong evidences to stand on our price.
2. Surrounding Rental Fees: If you’re buying property as an investment or planning to rent out your property, it’s crucial to know the prevailing rental rates in the neighborhood. This information will help you estimate potential rental income and assess the property’s investment potential. The rental rate can be found in this website : https://www.ura.gov.sg/property-market-information/pmiResidentialRentalSearch
However, I couldn’t find the rental rate in Malaysia but this information can be easily obtained. WE Just need to ask the neighborhood around the property for us to make estimation. A property in a high-demand area with competitive rental fees can be a lucrative asset. Usually, the high demand area are the area near MRT, famous schools and shopping mall because these area provide conveniences to the residents.
3. Noise Pollution: Noise pollution can significantly impact your quality of life and the property’s resale value. This is very crucial and most of the time, we will miss checking this impact. Before making a decision, visit the property at different times of the day and week to assess noise levels. Take note of traffic noise, nearby construction sites, military sites, or other sources of disturbance. If peace and quiet are essential to you, this should be a top consideration.
4. Building Level: The floor on which a property is located can affect both its price and your daily living experience. Lower floors may be more accessible but could suffer from less natural light and more noise. Besides, events like funerals and weddings will be organized on the wide area of the ground floor as well. Be very cautious on this impact. Higher floors often offer better views and quieter living spaces but might come at a premium price. Consider your preferences, lifestyle, and any physical limitations when choosing the right building level for your needs.
5. Property Age and Condition: Assess the age and condition of the property you’re interested in. Older properties may have more character but may require more maintenance and renovations. One more thing to consider is that older properties are harder to sell due to loan limitation. We need to expect the exit plan for these properties will take longer period. Newer properties might offer modern amenities but could have higher upfront costs. Carefully inspect the property for any structural issues, water damage, or needed repairs to avoid unexpected expenses.
6. Accessibility and Commute Times: Evaluate the property’s proximity to essential amenities such as schools, hospitals, markets, and public transportation. Consider your daily commute to work and other activities. A property that offers convenient access to these services can enhance your quality of life and be more attractive to potential buyers or tenants.
7. Future Development Plans: Research any future development plans in the area. New infrastructure, commercial developments, or zoning changes can significantly impact property values. Knowing what’s on the horizon can help you make an informed decision about the property’s long-term potential. This information is available online as well. This the website : https://www.ura.gov.sg/maps/?service=mp. From the master plan, we could estimate our future property appreciations.
8. Neighborhood Safety and Security: Investigate the safety and security of the neighborhood. Research crime rates and talk to local residents to get a sense of how safe the area is. A safe neighborhood not only provides peace of mind but also adds value to the property.
9. Property Taxes and HOA Fees: Understand the property tax rates and any homeowner association (HOA) fees associated with the property. These ongoing expenses can impact your budget and affect the property’s affordability over time.
10. Resale Value and Appreciation Potential: Consider the property’s potential for appreciation in value over the years. A real estate investment should not only meet your current needs but also offer a promising outlook for the future if you decide to sell.
In conclusion, being smart when buying or selling property requires thorough research and a clear understanding of the local real estate market. Pay close attention to surrounding property prices, rental fees, noise pollution, building level, property age and condition, accessibility, future development plans, neighborhood safety, property taxes, resale value and appraisal to make an informed and strategic decision. The udemy course (Practical Real-World SQL and Data Visualization) will definitely help us deriving useful insights with visualization tool. By doing so, we can ensure that our real estate transaction is a successful and rewarding one.
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