Dear First Time Buyer...

I have been in property industry for fifteen years. Throughout these years, I have been observing potential clients (herein prospects) who are excitedly looking for a property for own dwelling or for investment purpose. Seasoned buyers have already had pre-determined criteria on what they are looking for, no worries on them. I always send my best wishes and congratulations to their success in their purchases.

However, it is you, the first-time property buyer, that I am worried about.

Being green into first-time property buying, you are either 1) eager to start to finally own a property after so many years; 2) want to learn about property investment; or 3) follow what other people do and buy (herd mentality). Either way, you are in dire needs to be part of the property game. This is also a reason why you are easily fallen prey, as you are putting your hard earned money without detailed study about yourself, your needs, your affordability and also future prospects of the property you are after. Even more surprising to know that in this modern day, with information as easily accessible, you may still get caught buying the property that is not in your favour. Of course, if you are first-time buyer who has done your homework thoroughly and got the yield you wanted, I celebrate and congratulate you.

In my encounter with many first-time property buyers, like yourself, most of them are still observing and do nothing more than observation, because they do not know what they really want. And I sincerely hope you are not one of them. (If you are first-time buyer, and reading this resonates with you, please send in your feedback at the comment below.)

Therefore, the first thing that any first-time property buyer should do, I strongly urge you, is to find out what you really want.

Ask yourself these questions:

a) What is the purpose of buying?

b) Do I want it for own use or investment?

c) Can I afford to pay the down payment and installment?

d) What can I do after I get the keys?

e) What can I do with that property if I decided to upgrade in the future?

f) Does my property has potential yield (capital appreciation or rental returns)?

g) Do I have holding power to maintain that property in the future?

h) Can I secure financing for the property?

i) How much money do I need to prepare in advance to own a property (legal fees, stamp duty, taxes, etc.)

j) What are the catalysts to support my yield for this property that I am buying?

These ten essential questions would help you, the first-timer, determine whether the property you are looking for is suitable to your needs. Once the "WHY" is clear, you will find that whatever that comes your way, will be crystal clear. Do not buy when you have doubt, ask questions to get all the answers you need before deciding.

For own dwelling, please bear in mind, there is NO PERFECT HOME. We do not live in an ideal world, therefore, do not expect the 100% home. It would never happen! Therefore, do a list of the "Must-Haves" that you would love to have in your home. It is okay that out of the ten things on your list, you get 80% of them. Make sure the 20% that you do not get are not the essentials one, which can be detrimental to your purchase. Please know that you can always improvise!

For investor, please bear in mind there is NO PERFECT TENANT. Human beings are diverse, and do not expect everyone is just like you. This would not happen. Assess your tenant's background and understand their WHY could also help you to get to know your prospective tenant's needs. Also, rental yield at the present moment is not as high as our forefathers had garnered. It is okay that the current yield is lower than your expectation; most importantly is what potential of that property that you could do about in the future.

I sincerely hope this simple sharing could somehow add value to you, the first-timer, in your lovely journey of owning a property.

Best wishes and have fun in your journey.

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This article first appeared on Linkedin 10 March 2019.