It’s so hard to ask someone who loves his home and is still staying in it to sell his home. It’s even harder to ask him to sell it for lower than the price he bought. He is happy there and he does NOT care what state of the property market it is today. Well, how about selling your home with a discount of RM2 million from your asking price then? The answer is not a surprising one. It depends on whether you want to sell and the reason you want to sell, right?
Assuming I am about to move overseas, of course I will sell it as soon as I could. I would hate to fly back and sign those documents yeah. Well, if I have a new place to stay, of course I would also sell because I may not want to rent it out and have all those issues an owner will face with some ‘amazing’ tenants. Let’s look at what happened to the house of UK Prime Minister Boris Johnson. He actually sold it for RM2.05 million lower than his original asking price.
Article in dailymail.co.uk The house was bought by Mr Johnson together with his then-second wife barrister Marina Wheeler for £2.3 million (RM11.78 million). He put up the five-storey, Grade II-listed house for sale in May 2019 for £3.75 million (RM19.72 million) and it has been sold to a partner at management consultants McKinsey & Co for £3.35 million. (RM17.15 million). This is £400,000 (RM2.05 million) below the asking price. Please do read the article for more details yeah. Article in dailymail.co.uk
I do not think he is going to be too sad over selling the home lower than his asking price because it is still much higher than the price he paid for. Currently, he stays at the Prime Minister’s residence and according to this article in thesun.co.uk, his annual salary as the Prime Minister is £158,000 (RM809,000). He actually took a huge pay cut to become UK’s Prime Minister. From £750,000 (RM3.84 million) the year before to current £158,000. WOW.
What this tells us is that property investment works even for a Prime Minister, if he bought a good property. Secondly, the house price do not go up simply because it used to belong to the Prime Minister. Earlier article here on the effects of a Prime Minister on the property market. Third point which is very important is that if it’s the house is not being occupied and your job may keep you too busy to handle tenants, the other option is also to sell okay. Assuming he splits the money with his ex-wife, it will still be a cool £1.675 million. If I have RM1 million from selling a home, I will go for a holiday, well, after COVID-19 is no longer a threat. Cheers.
Next suggested article: Jobs, Jobs and Jobs. Foundation of property investment