BUYER'S PROPERTY GUIDE
If you are considering purchasing a house or property, you need to be aware that Property DNA Profiling can be an extremely useful tool to use.
Property DNA Profiling is a technique that analyses properties or homes from a 360 degree viewpoint and comes into play from the moment the decision has been made to invest in the property, up until the selling of the property.
The process of purchasing a property can be a daunting process and if you’re a working individual with little time on your hands, it can be even more stressful, despite digital assistance in this day and age. The final end-user is you, so you had better make sure that the property meets at least most of your property requirements! The PropertyCare.co.za platform has designed a Property DNA Profiling Technique for you as a buyer, in order to make the task not only less daunting, but rather the awesome, exciting experience that it should be!
Let take a look at the following techniques: Purpose Technique, Physical Technique, Intangible Technique and Disposing Technique.
Purpose Technique – What is the purpose behind purchasing a property?
The starting point of Purpose Technique is the understanding of property ownership needs. Will the property be used as a Primary Residence, Investment Portfolio, Family Holiday Home or Rental Income Property? As soon as the purchase purpose has been established and the financial commitments have been met, the hard work then begins!
Physical Technique – What are the physical property requirements?
The physical appearance of your property will not only affect your financial decision but other decisions too.
During this stage, you should be considering the physical property features, like for example: number of bedrooms and bathrooms, car parking, swimming pool, garden space, kitchen, cinema room, bar space, study room, home office etc.
Some features are a necessity for some people and not for others. So consider any features that the property already has and consider the future benefits of these features in the context of a personal/family environment as well as the property value for when you wish to sell up. Although you may envisage having ALL possible features, if these are not beneficial as per the above specifications, you may just be undergoing unnecessary maintenance and overextending the property value.
Consider if any features will require repairs or renovations, because this will affect the after-sales cost and further deplete your financial resources, time and quality of life. Remember to also bear in mind how much the repairs will cost and when they will be completed.
The current physical state of the property could be an opportunity to negotiate a better deal and thereby enhance your own property value.
Intangible Technique – What features are not physical aspects yet still need to fulfil certain needs?
The area or location of your property may offer some needs that are critical to you or your potential tenants, in the form of schools, crime rate in the area, opportunities in the area, including ease of access to shops and other amenities, future development plans for the area and value appreciation. Intangible factors need to be considered before making a property investment - just because they are intangible does not mean they will not affect your property value!
- Your property location may be close to one of the best schools in the country – not only will this offer excellent education for children’s needs, but the value of your property will immediately appreciate. Bear in mind of course that the opposite may also be true should the school happen to have a poor reputation!
– crime rate is a key factor in terms of your property safety and value. Hotspots for crime will depreciate your property value, no matter how cheap and beautiful the property is. No-one wants to live next door to a hotspot for criminal activity. Rather than asking the seller or estate agent their opinion on the crime situation in the area, check with the local police station for vandalism rates, serious crimes, petty crimes, recent crime activity and trends.
– property location may be viewed in terms of business or employment opportunities etc. depending on one’s profession and business sector. If your property is close to your place of employment or close to business opportunities, it indicates ease of finding work close to your place of residence. For rental property owners, the rent income sustainability would be impacted by this factor. When the time comes to sell your property, you will be able to obtain a good sales price.
– a property located close to parks, malls, gyms, sports facility, public transport hubs etc. will appreciate the value of your investment. Tastes differ between various individuals – some may prefer peace and quiet whilst others may wish to be closer to social corners. Refer again to the purpose technique, which will guide you as to whether the location is suitable for you.
- municipal or town planning departments will have information on all new development planned or zoned for the area. Bear in mind the possibility of new development and be on the lookout for property depreciating or property appreciating development work committed to the area, because your property value may be affected by it.
Disposing Technique – What does the future hold for you and your property?
The only thing that is certain about the future is that it is uncertain! We make plans to do things in the future but there is never any guarantee that we will achieve it. The same is true when it comes to property. Here are a few questions you need to be able to answer:
a) What do I do when the time comes to dispose of a property?
b) How will I get value from a investment property in the future?
c) What will my life look like a few years from now?
d) What will happen to my property if my financial circumstance changes for the worse?
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