Real Estate Matters | 25 property questions we were asked this year – part IV
Juliet Risdon
10. Question: Should we invest in an older building or a newer one?
There are pros and cons with each of these investments.
Both people and banks prefer newer buildings. Banks find it easier to loan on new developments, although they do also finance older properties of course. However, new properties tend to be more expensive, smaller, and carry higher management fees whilst rents are not significantly higher. As such, the rental yield tends to be much lower.
Alternatively, older buildings tend to be cheaper, larger and charge less money for management fees. They also return a higher rental yield, especially if the apartment has been renovated. However, they may be harder to sell when the time comes simply because banks are more reluctant to loan on older properties.
9. Question: Who is responsible for looking after my rental apartment?
The tenant is responsible for the safekeeping and care of the contents of the apartment, and returning the apartment in the same condition that it was handed over with an allowance for reasonable wear and tear.
The owner is responsible for the infrastructure of the apartment such as the shell of the apartment itself, the plumbing, the provision of power etc. In other words, providing reasonable and safe conditions for habitation.
Under Macau Law the owner has minimal responsibility, which is why many tenants find themselves with landlords with are not concerned with the upkeep of the apartment.
8. Question: I have a family, where’s the best place to live?
With a family, the best place to live is in a complex that provides a club facility.
As Macau suffers from a lack of space, the absence of a garden or recreational areas make a club facility extremely important.
Complexes such as Nova City or Ocean Gardens have large club areas, whilst buildings such as The Manhattan and The Buckingham also have club facilities such as a swimming pool and gym.
7. Question: I’m alone, where’s the best place to live?
If you have access to recreation facilities through your work, or have joined a recreation club such as The Grand Lappa, then an older block in Taipa is probably the best place to reside as a single person.
You have convenient access to stores and restaurants, you are central to Macau, Cotai or Coloane, and there is a bigger choice of accommodation than you might find in Macau.
6. Question: Is it a good time to buy property in Macau?
If you are buying with the long term in mind, it’s still a good time to buy in Macau.
As more new Casinos and resorts take shape on Cotai, the demand for housing will increase as the population grows. Property of a ‘livable’ quality is in short supply, and basic economics tell us that prices will continue to rise.
However, rising prices cannot continue indefinitely, and we are currently experiencing a slowdown of course. But we have to live somewhere, and it makes good financial sense to own the property we live in.
Apart from anything else, we are at least in control of our living arrangements, and not looking for a new place to live every 2 years.
Next week look out for our Top 5 and final part of the 25 Questions We Are Asked About Macau Property.
Juliet Risdon is a Director of JML Property and a property investor.
Having been established in 1994, JML Property offers investment property & homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
info@JMLProperty.com
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