If you are looking to invest in real estate in Penang, you can try buying an auction property. Auctions are a good way to buy property at a cheaper price. However, it is important to do your homework before bidding on a property. There are many factors that you need to consider, including location, amenities, and public transport. Considering these factors before bidding on a property can help you determine whether the property is worth the price.
First, make sure you can attend the auction. To do this, you need to register for an auction. Then, you must prepare a bank draft for 10% of the reserve price of the property. The reserve price is the lowest price that is acceptable for a property. During the auction, you can negotiate the price, but you need to know what you want before bidding on a property.
For example, many investors want a property near a major shopping mall, such as Simpang Ampat. This area is easily accessible from Federal Route 1 and is close to many private hospitals. Bukit Mertajam Hospital and Klinik Bersatu Bukit Minyak are nearby. Whether you are buying for investment purposes or to rent it out, it will be convenient to buy or rent property near one of these areas.
Another benefit of buying an auction property is the lower price. The price is lower than the subsale market. You can also get a better rental yield. However, there are some risks. You might end up winning a property for more than its worth. It’s advisable to attend multiple auctions so that you have more chances of winning a property.