Property Investment 101: Buying near MRT station is sure success?

Property Investment 101: Buying near MRT station is sure success?

No matter who the person is, if the person tells you that buying this property is sure success because it’s near the MRT, please think again. The reason is because if there’s such a thing, everyone would already know and everyone would have been faster than us. In other words, when we learnt about it and we wanted to buy, the price has already moved upwards.

Let’s not forget that when developers are launching a project and it’s within a short walking distance from a MRT station, they usually would already call it a Transit Oriented Development (TOD) and already priced it at a premium versus similar units without access to the MRT. So, if we are buying in when demand has already moved up and price is already higher, how could we expect great returns? There are just that many people who could afford to keep paying higher while other not so near MRT projects remain stagnant in terms of price.

Article in nst.com.my. Experts have warned property investors against trying to get ahead of the game in purchasing property near mega transport projects, citing risks of station cancellation or relocation that can impact property price value.

Future mega infrastructure projects can be a strong selling point for developers and property agents given that such projects tend to significantly increase the property value and rental rates around the projects.

Projects such as Mass Rapid Transit 3 (MRT3) and KL-Singapore high-speed rail (KL-SG HSR) instill a promise of connectivity are also creating the same pattern to the market value as seen in previous projects.

There are however significant risks to making property investments around these projects that may take several years to even get off the ground. There are many more details and examples in the article: Article in nst.com.my.

I prefer to drive, still.

I am someone who will always prefer driving versus taking the MRT no matter HOW EXTENSIVE the MRT network is. Come on, I come out from my home, walk to my car and drove it to the breakfast place, lunch place and even pick up friends for dinner. Super convenient and I could even send my wife and pick up my children from school etc.

Now imagine, walking to the nearest bus stop so that the feeder bus could bring you to the MRT station. This could have taken a few minutes and believe me, if it’s under the sun, you will definitely not feel comfortable yeah. I have to continue the story. After you have got down from the MRT station connected to a mall, you will buy groceries and other things. Erm… you will have to carry these things into the station, into the train and walking back home from the station.

Depending on fit you are, the next time you are in a mall, you will try to buy less because it’s really tiring to carry the shopping bags for a few hundred meters just to take the MRT or the bus and then having to walk another round when we arrive at the station near our home. We have not even begun to talk about family with children. Now do you know even though some countries are rich, they still may not want to have a baby…

Happy understanding.

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