As they say, early bird catches the worm. However, it’s more true that a more popular phrase in the investment world would be ‘herd mentality.’ How many of us visits a show gallery and saw no one buying and we decided it may not be such an awesome property. If we happened to visit a very crowded sales gallery and everyone was pointing to a board and choosing their units, we suddenly feel the urge to buy one unit as well? By the way, that’s also the reason why popular areas get ever more popular and the less popular areas always hard to become popular. Here are four reasons why some people are still waiting for that perfect property.
#1 – Perfect property price? It’s usually found 20 years after it was sold. Below RM300,000 for a landed property somewhere within SS2 for example? This is a property within a mature neighbourhood with a good location and full of amenities TODAY. 20 years ago, it was not. Thus, in order to have access to this perfect property, we would need to have the foresight to buy way back in the year 2000. Today, it’s easily RM1.5 million or higher.
#2 – Perfect property location? It’s usually found many years later. Sometimes, 10 years or more. Think Damansara Uptown. Think Bangsar South. Think Desa Parkcity. All these were nowhere next to KL city centre when they first started yeah. Some may even be shunned because it was built on a plantation ground, a village site with many flats and even within a less popular postcode of Kepong.
#3 – Perfect size within perfect location and perfect price? Haha. We want bigger units BUT today, if developers were to build bigger units in some of these awesome locations, there’s no way they could price it anywhere near a price which most of us could afford. Thus, they took an obvious way out. Build it smaller so that even at a high price per sq ft, at least the final price looks achievable to many who just want to stay in that location.
#4 – Waiting but not preparing. I have too many friends who continue to ask me where to buy but at the same time has taken no action whatsoever where savings are concerned. Every now and then, I would see the photos of their latest vacation. They continue to ask me about the best location to buy but when I told them of the price expectations, they will give an excuse of ‘I will save more money first.’ The conversation is soon forgotten and they will repeat their questions.
These are the 4 reasons why it’s super tough to wait for the perfect property and it becomes impossible when we do not follow up with the earning and investing action. Unfortunately, the home prices wait for no men. Drawing a trend line over 20 years for example and we will see property prices rising. It’s only a question of whether it’s above the inflation rate or below the inflation rate. Oh yeah, occasionally a crisis comes to open up a window of opportunity. I am just worried that many people during those times are scared to buy. Happy waiting.
Next suggested article: House prices rising too much, perhaps?