Would you sell your property at 58 pct discount?

Would you sell your property at 58 pct discount?

As an individual, selling at 58 percent discount?

This is not a question for individual sellers but also developers. As an individual, I would not even sell my property for less than the amount I paid. That’s the reason why when we look at transaction prices, it is more likely to show a moving up trend and not a moving down trend. Except for the financial crisis days, those days, everyone is trying to outdo everyone else in selling lower. Except for those who could hold, then nothing happens and after that price bounced back up.

As a developer, selling at 58 percent discount?

For developers, if they sell at 58 percent discount, then one should be worried because there is no way that their original profit margin was over 60 percent to begin with. So, do imagine all the ‘amazing’ things they may have to do in order to sell the property at 58 percent discount yeah. However, we need to be savvy to the fact that sometimes, there are valid financial reasons why people would sell at a super heavy discount. They may need the money somewhere else.

Article in dimsumdaily.hk Chen Zhuolin, chairman of the beleaguered mainland Chinese developer Agile Group, has offloaded his entire portfolio of nine luxury units in Hong Kong for less than half of their original value, marking a major financial retreat amid a persisting downturn in the property market. The properties, located in Hamburg Villa of Kowloon Tong, were initially valued at HK$213 million but were sold for merely HK$90 million, reflecting an aggregate discount of 58% Do read the article in full here: Article in dimsumdaily.hk

What about the potential property buyers then?

Potential property buyers should wait until they come across these deals lah. Else, why buy? Better buy only when got 58 percent discount, right? I am very sure most potential buyers would have some financially distressed friends who would think of them as soon as they intend to sell their properties at 58 percent discount. Then again, maybe not the best friends since best friend may not take advantage of a best friend’s financially distressed situation?

Or maybe they are not good friends. Maybe when these financially distressed sellers want to sell their properties, they just randomly select one of their friends from the contact list who got lucky… By the way, I am joking yeah.

Potential property buyers should buy good value properties (Always, period)

Please do not wait for your best friend to be financially distressed okay? Please also do not hope that you will be one lucky guy who got the 58 percent discount offer yeah. Both are highlighted unlikely to happen.

One advice is not to buy anything overpriced especially when compared to everything else in the market. Else, we would have to hold for a long time before we could dispose of these properties in the future. So, do our homework and really understand what we are buying. Until today, every now and then a friend would tell me that his / her property investment did not work and after much details later, it’s nothing do to with property investment. Everything to do with everything else or even the sales person who sold him the property. Yeah, blame the sales person! 🙂

Answer to the title above, is, I will not even sell my property below the price I bought.So, happy looking and investing.

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