These figures, particularly, the expected income may change when the market is down. Personal Inspection Personally inspect the property before buying. The value of a property is affected by its site, physical structure and surrounding neighbourhood. Without an inspection, it may be difficult to ensure that the physical environment is suitable for occupation or investment. For instance, a large vacant plot next to the subject property may eventually be built up blocking your view or vista.
Location Look for good location.
It should be remembered that a well-maintained property in a good location ensures its ability to produce a periodic income or a good price at the end of the investment. Future maintenance Emphasise on proper management. For residential property, a condominium unit will reduce the amount maintenance required as the common property is taken care of by the management corporation, just as in the case of HDB flats where the maintenance of the common areas are taken care of by the town council. Sinking fund Keep some of the income from your property as a reserve fund to maintain, restore or eventually replace the property. The building is likely to depreciate with time because of the physical wear and tear.