Some time back, I read an article about buying properties next to a cemetery. I would think any sane buyer would definitely avoid buying next to the cemetery. However, I have to admit that two of my properties happen to be nearby or opposite a cemetery. The one opposite is separated by a main road of four lanes. How did both of the properties fare thus far? Well one has given me very good returns while another one will be completed 2017. Why did I buy them? Good question. In fact, I have doubts as well. There were so many doubts which I could read online etc. I think there are a few reasons why the potential would be there.
Lower prices per sq ft. Objectively, if the price per sq ft is lower than everywhere else nearby, it meant that the prices would increase to the similar levels of the current projects. The main reason is because if everywhere else is increasing in price, this ‘nearby cemetery’ home would definitely increase too even if it will always be lower than those which are not built nearby or next to a cemetery. Yes, I did buy the place and if I were to sell today, even under current slowdown circumstances, the returns would still be a source of jealousy for those who evaluated but did not buy it a few years back, simply because it was nearby a cemetery.
What about my second property facing the cemetery? Well, I had the same argument in my mind when I paid a deposit to book it. The price psf was still very cheap despite the condo having individual lifts opening ONLY at your doorstep. Based on the selling price currently and the completion in 2017, I believe the price should be higher than the price I paid. The returns remains extremely attractive regardless of the usual investment returns from stocks, Gold and even that safe Fixed Deposit. Reminder, FD is not really that SAFE in the long run.
My final conclusion after owning two these properties? Actually, as long as the view from your condo is not facing it directly and you have really done sufficient homework about the developer, the pricing in the area, the potential appreciation and a host of all the usual like location, price and design, I would think it is safe to buy properties CLOSE BY to cemetery. Of course, if you have to to drive through a cemetery to reach your home, that’s a totally different story altogether! Happy buying.
written on 27 June2016
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