Yea, this was what many friends are saying today. There are just too many condos. Stop buying condos. May I ask if I do not buy a condo, then what do I buy. Buy an apartment? There are even MORE apartments. Buy a flat? Are you sure? There are even MORE flats. Or I should only rent? If rent should I rent condo or apartment or flat. How about this, why not buy a condo of 3 rooms and rent out two rooms? Then, your monthly payment might be just a rental for a room in a condo? Haha.
Someone actually told me that as there are so many condos, the prices would drop in future. If buy landed, then it is very safe. I laughed and ask, how many landed have you bought. He smiled and said, soon. Then, I asked, how much would condo prices drop? He smiled and said he has no idea but this is what his other friends are telling him. Until today, when you search online, there are condos which are priced so high it can almost touch the sky. There are also condos which when you look at the price, you would think this must be a haunted place.
Actually, the expensive one just happened to be in a hotspot, somehow everyone loves it and demand exceeds supply and prices went up. The cheaper ones are all secondary ones, maintenance was not that awesome or other issues. Most of the time, with the right management committees, it can get better. So, the expensive ones are already so high, even if the price drop a bit, can the majority afford? The lower priced ones are already just already at the prices of the affordable homes that is being built today, you think it will go even lower?
Think objectively. If you are buying to flip, NOTHING is safe. If you are buying to stay instead of paying for rental, anything considered affordable would always be safe. It meant everyone can still afford it. If you can buy and rent out one room like what my close friend in Penang is doing, well the monthly payment becomes more manageable. The worst is of course the refusal to consider the affordable ones but willing to rent a room in the high-end ones. That’s the best combination. Too many condos, so stop buying condos? Think again.
written on 24 June 2015
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