Three good friends visited me just days ago.I brought them around the park inside my condominium. They asked, ‘I like the park and it’s well maintained. Why is the price still so low?’ I told them that the area is not a hotspot loved by many. It’s Damansara Damai. Read here: Damansara North? Glamour name for Damansara Damai Secondly, the property is a secondary one and they were comparing it to the new launches of today. Truth is, secondary properties which did not join the sudden rise in prices have not caught up with the prices of newer condos of today and even those within the market.
Many associate secondary properties with more hassle, dirtier and inability to do own renovations. Actually, is ‘own renovations’ really so important that we want to pay easily 20-30% extra, if not higher? Plus, the waiting period for the next few years especially for the new launches? Everyone have their own choices of course and no one is right or wrong. However, a check online at propertyguru.com.my would easily show why the prices of secondary properties are easily 20-30 percent cheaper. Look at the price per sq ft. How many new launches in the market today which are not in the middle of nowhere is priced at the same as those in the secondary market? Majority would be easily 10-15% higher if not more.
Secondly, do note that most of these secondary properties would already have been renovated which meant that we would do lesser renovations and save even more. The home I am staying now, the owner left one whole set of IKEA kitchen cabinets, six air-conditioners, a twin-door fridge and the whole home was renovated with built in cabinets. We can do a rough calculation and understand why we may save a lot when we buy such units. Yes, some of these new launches provide renovations etc but when we look at the prices, it would be even higher than those launched without these renovation packages included.
There are lots of reasons why buying a new property is better and I agree with them. In fact I have bought more new properties than secondary properties as at today. However, when we need a place to stay and we are able to know our needs versus thinking that secondary would mean a less attractive choice, then do understand my points again. The three friends who visited me? One happened to be a couple who had just registered (marriage). Another is renting a room in KL and his girlfriend would be joining him in a few months time. Tell me, for the three of them, what would have been a better option? Happy choosing and buying whichever we like.
written on 1 Jan 2016
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