What is an undervalued property? It is a property which we like and is being sold at a price lower than the market value. If we do not like the property, then undervalued or overvalued has no meaning to us anyway. Emotions aside, undervalued property means for the same amount of money, we can buy a bigger and better place. Yes, this is just my personal opinion. This place should also be similar in terms of travelling distance to our working place. There’s no point in buying too far simply because we wanted a much bigger place. An earlier article here: It’s the duration, not the distance, ok?
Of course, as soon as we put back emotions into the calculation, then we may not consider some of these secondary areas of today. We would then go back to the usual choices and pray that someone would suddenly wanted to sell their property to us below the market price. Hopefully, a few thousand Ringgit lower. For those properties worth a few millions, we would hope for a few hundred thousand Ringgit below market rate. Actually, it is for this reason that so many who could afford to buy are still not buying, yet. They are still waiting for an undervalued property in an area where the demand far exceeds the supply! Why not venture outside the box?
Secondary properties are already undervalued compared to new properties today. It’s also available almost immediately versus having to wait for the new property to complete and in the mean time kept paying rental which is a total loss anyway. Read here: Sometimes, secondary property is a better choice
Properties in less favourable and newer areas or further away are already undervalued compared to properties in hotspots today. Imagine more flats, some factories, dusty roads etc. Read here: Staying further is a fact of life, everywhere
Older properties in need of a make-up is already undervalued when compared to a modern looking new property of today. The ‘make-up’ is going to be much lower than having to buy a totally new place and yet still spending to renovate it! Read here: Buying a renovated unit, why not?
Undervalued properties are all around us and yet we may not see them. Buy properties which others have not yet discovered yet. Read here: Buy what others did not think, see, view yet Of course, we can also ask our best friend to sell to us their home at below market rate. That is also another way to get undervalued properties. However, how many of such friends do we have anyway. Main point is, there is no need to confine ourselves to the usual choices of the majority. If the majority are always right, why are the wealth in majority of all countries being concentrated in a small percentage of the population? Invest is not the same as buying what others are buying. All the best in understanding why and taking actions.
written on 26 Mar 2016
Next suggested article: Having a targeted property is important, before decision