Many years ago, my sister happily told me that she has placed deposit for a condo in Penang. I knew about the project. I asked her to cancel it. She asked me why. I said I prefer more reputable developers because it is a new property that you want to stay. She cancelled it and bought Summer Place instead which is smaller. Two things vindicated my advice to her. Summer Place was completed on time. The other project, despite being launched earlier was completed one and a half year later. Secondly, perhaps it is just plain bad luck but I got to know that a friend who bought that project suffered a leaking bathroom ceiling within less than one year.
It is true, buying from top developers may incur additional premiums but there is a reason why it would be safer. Assuming you bought a unit from IOI property in Penang. Do you think they would delay the completion or do such a shoddy work that its name is widely talked about online? Think how it would also affect its other projects elsewhere. I am not talking about a premium of 50%, ok. My acceptable premium threshold is max 15%. Anything higher, please rethink the pros and cons.
However if your sole purpose is just to earn profits and you do not mind waiting, you may buy from any developer. I told another friend about a developer with a reputation to delay completion time, ‘this developer is always late but they never fail to complete. Your money is safe’ I am using IOI as example because it is now one of the top property development listed company and I bought a very good property from them before. Completed well on time and acceptable quality. However I do not know if they are launching any new projects currently.
This is not applicable for secondary properties though because by then you can view the actual build quality. There is also no delay possible because it is already completed. Buy with your eyes open. Complain when you need to but if you were to buy from a developer which are used to take a long time to complete, just stay happy and drink coffee. Very few developers run away with your money these days. Delays are however a common issue.
written on 18 Jan 2014
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