Real estate has always been a high-risk high-return investment channel. There are many property developers in the market, local and international, varying in size. How do investors tell the difference between them, choose a credible developer, and move ahead with their capital? Below are suggestions on how to check their credibility before you decide.
1. Biography and track record
The simplest step is to use search tools to look up the biography and track record of the developer you are interested in. A good developer should have many years of experience in the local market, having introduced great products that won the hearts and sales of many, standing tall and steady over a long period of time.
You can look up the annual financial report of the nearest years to size up their financial capacity and their success probability. You can also check references from your relatives or friends who have transacted with them or their projects. At the same time, you can take a quick look at how they are portrayed in local and international media. This will give you first glimpses of their transparency and credibility.
2. Distribution network
You can judge a developer from the distribution network they choose to work with. A good developer who takes pride in transparency and introduces good products to the market often has a tendency to work with professional and transparent distributors, agencies, or exchanges.
3. Transparency
One first and foremost criteria for a real estate project is its legal status. A good developer should be able to provide adequate documents and permits certified by the local Department of Construction for sale or mortgage.
4. Project visit
It is advised that you should come to visit the project to make sure you do not invest in the wrong one. Getting updated on the progress at the site and asking for further information from the local dwellers.
An actual project visit gives you the actual information you might need to fully judge a project and the infrastructure around it.
5. Management and operation
If you happen to know anyone who has bought from this developer, you should ask for more information from them. How they managed and operated the project after delivery. How the delivery and after-sale services were in any projects they have completed? It can be really helpful to learn about these.
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