If you are not a real-estate guru with any years of experience, it can be difficult to determine when you should flat out buy a place and when you shouldn’t. Here are some guidelines that will make the decision a tad bit easier.
Money, Money, Money
Naturally, the biggest decision will be whether you can afford what you are looking at. Now, some places, like an commercial rental Hong Kong, will pay for itself; after the initial capital you invest into it, most corporates decorate any which way they want and pay you monthly rental fees. This means that you have minimum responsibility or expenditure after the sale.
However, if you cannot get your hands on enough capital for at least a down payment, it might be smarter to seek out office space rental-wise because it will always be cheaper than buying it. In the long run, you may be able to sub-let it and receive an income, or you could house your own businesses there and claim back taxes as fees.
Don’t forget to check how the real-estate market is doing before you invest a chunk of change in it. Dealers and wheelers are always looking to sucker you into the “investment of your lifetime” – it will probably be the last investment in your lifetime. Talk to a friend in the know, or educate yourself about whether or not buildings and land have been getting good prices, whether the market is in decline or on the rise. If it is in decline, do not buy it because you will not be able to sell for more than you bought it, unless prices start going up again in the future. Visit http://www.landvision.com.hk/about/about-us/
Take your own team of inspectors with you when you go to inspect a building, especially if it is bigger than a house. There can be all kinds of problems that can start acting up after you buy the place and it is better to be forewarned. There are plenty of tricks in the building trade that will allow a construction worker or manager to gloss over some of the less serious defects in the space, but things like mould, damp or perennial leaks need to uncovered and examined immediately before you make a decision.
Infrastructure and Facilities
Don’t hold out hopes that a neighbourhood will become prosperous or that it will suddenly develop without an impetus for change – like building a highway close by for instance. If you decide to buy a place, check the neighbourhood carefully and evaluate its trajectory in the next couple of years. Will it be a good place for conducting a business? Are the neighbours likely to complain if there’s a lot of vehicles coming and going? Look into all of the above before you decide whether you want to buy or rent a place.