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Is there really such a thing as BBB today?

Posted in Penang Properties (Island), Property, KL / Selangor, and Starting Property Investing

BBB has nothing to do with Malaysia’s rating. It’s a term in the property market called buy, buy, buy. I think it must have started during the crazy times of yesterday. When queues started days before. Well, I read from  quite a famous Facebook property page that a new property is about to be launched in the Klang Valley. Despite it’s huge number of units which was over 2,000 units, it will be BUY, BUY, BUY. As usual, the entry point is considered affordable as it is around RM500,000.

My question is, are there really still projects where it’s BBB? Truth is, for BBB to happen, it must also be supported by real demand. Those who really want the unit for own stay. If it’s only for the investors, then once the whole block is filled with these ‘investors,’ it becomes a whole block of speculators instead. In terms of demand, it’s still way above what the market can supply sufficiently. However, current situation? There’s way too many negative people who are also affecting everyone within and outside Malaysia. The economy just grew 4.9% in Q 2015 but already the comments are focussing on when is Malaysia going into a recession. So, how could there be BBB today?

Granted, perhaps the concept is really very nice. Perhaps the developer is well known to be a good one. Perhaps the location is also not that bad. Perhaps ever unit comes with 2 car parks which many secondary properties do not provide. However, to anyone who is visiting the property showcase of today, at least know a bit on those who are buying. Understand the prices per sf. The first giveaway is usually a higher price per sf than what you would pay  BUT then the developer would give you a rebate. Come on, BBB situations do not really need big rebates right? Haha. Second giveaway? Very low downpayment. If I am really serious about buying and it’s BBB situation, no developer would want to take a very small downpayment.

Third giveaway? That’s when every agent whom you know and you see in Facebook are telling you about that BBB project. Seriously,if the project is good, there is a need to appoint just one agency since majority of developers do not have a big sales team. However, I would be very wary but two different agents from two different agencies are telling me about the same project. Sorry guys, BBB does not apply for this situation ok. Look at how fast the news travel today. If it’s indeed attractive, it’s known already. Period.

Not true? It’s okay, the prices per sf of new launches today are already considered okay and unless Malaysia really spins into a recession for many years, the prices would still move up slowly. Hopefully when your unit is completed, even if you have paid high price per sf for it, perhaps the market acceptance then is better. As for BBB situation, NO, I do not agree there’s such a thing anymore. However, if you are buying for your own need and you are thinking really objectively, then everything should be just fine whether it’s today or tomorrow. Oh yeah, BBB should just stand for ‘Better Beware Brother’ Haha. Happy buying.

written on 15 Aug 2015

Next suggested article: Are you buying Value or Glamour?

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