Without freebies, should you buy property?

Someone showed me a SMS about a property developer offering any introducer a fee of 0.4% if the deal goes through successfully. Another advertisement stated that special ‘Angpow’ package for all buyers worth RM28,888. During the CNY holidays, there were so many open houses, all offering food, drinks, gifts and lucky draws. So many freebies and offers, which one should you buy? Of course it’s the one with the highest freebie value! Just kidding. With so many cooling measures and so many uncertainty in the market, coupled with the fact that developers who aready to launch cannot delay their launching, the amount of freebies would be quite a lot for 2014.

Thus, I can safely say that for any launches for 2014, you should not buy if there are no freebies. Actually, there are projects which are definitely worth buying, especially if the developer has yet to launch, thus they would have adjusted the price to a level they feel buyers would be comfortable with. Gone are those which is RM750 psf and higher. When you buy at that price level, unless it is for your own stay, you are not going to get good rental yield. If developers are still adamant in launching these Rm750 psf or higher, it better have an amazing concept and a very big brand name. Suddenly, developers who has never ever cared for their branding will feel the pinch this year. Oh yeah, in the market of today, if your project cannot hit 70% threshold in 6 months, I think it will give doubts to buyers as to why not many people wanted to buy your project. If you have marketing budget, spend it wisely and DON’T KEEP IT. Regret is not a good option.

Today, majority of the projects I saw being advertised are those which are RM500 psf or if it’s slightly further away, it will most probably be RM400,000 – RM500,000. For example, I saw a Ken Rimba Condominium in Shah Alam starts from sub RM400,000. I think 2014 is indeed a very good year for those who are still looking for their first property. If you have saved enough, do not delay. Remember, the best time to plant a tree was 20 years ago. You missed it. The second best time is now; today. Rather than paying rental and making the house owner rich, think for yourself. For new launches in 2014, the developers better get ready freebies because if you can’t beat all the rest of the developers who are also offering freebies, join them.

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