Having a targeted property is important, before decision

Whether we decide to buy a new unit or sell an existing unit. It’s important to set targets in advance. A colleague told me that she wanted to sell her commercial unit and use the funds to buy other residential properties. She asked if it’s a good idea. I told her that if it’s me, I would identify what would be my targets first. I do not wish to sell and then park the money in the bank, even if by selling now, I am guaranteed good return. She has yet to identify any. Well, the dilemma currently is that even if she wanted to sell, the total profits she had expected is far lower. In fact one buyer was cheeky enough to offer her a price below what she bought!

The hardest question is thus, do I already have a target to buy? The hardest action would be to start viewing and thus spend some time, effort and petrol money. To be honest, most of the time, those with more than a few properties tend to be lazier. Perhaps there’s just no rush or maybe it’s just not attractive enough, right? Another colleague looking for his second property, an investment for his children said, ‘I am so tired, I might as well just stick to one area instead.’ Haha. I recently started viewing more often, from Sungai Buloh all the way to Ipoh and would most probably view a few more units when I am  in Sandakan in 2 weeks time. There’s NOTHING wrong with viewing more. The decision tend to be better than just simply following.

A few weeks ago, I decided to buy one condo in Sandakan. Read here: Is it good value? Good question, how to answer?  I did not suddenly buy a condo in Sandakan. I wanted a condo which is around RM350,000 with potential to grow and one which I can rent out fully furnished. It met all my expectations and more, that’s why I decided within the same day after viewing it. A target is thus extremely important before we make any decisions at all. It’s not the best time to sell currently BUT it’s a great time to buy. As long as there’s a good target, do sell to free up funds to invest more. Investment is always about maximising potential returns, not letting ‘usable funds’ sit idle. Happy selling or buying.

written on 27 Jan 2016

next suggested article: Buying a renovated unit, why not?

 

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