Property Investment 101: Good News, Bad News, it does not change whether you buy or no buy
Let’s look at some latest news: (positive ones)
Let’s look some latest news: (negative ones)
Which one to believe yeah?
Just need to keep reminding ourselves of this very important fact. The 4Ps of property investment. A good property meeting all the usual reasons such as the reasonable property PRICE, located in a good location (PLACE), to be built by a reliable developer (Property Developer) and the right product meeting our needs. (Product).
If the development is overpriced… is in a location we dislike… may not be completed because the developer seems to be overpromising and last but not least, the house itself is not a design or the type we like, then even good news will not save our investment yeah. If the property meets all the 4Ps, then as long as we could hold during bad news period, everything will still be okay in the end.
Other reasons to buy should be a valid one
If the reason to buy is because the property is next to your parent’s home, whether market good or bad is secondary. Buy it now or lose it forever maybe.
If the reason to buy is because your colleague is selling it at 30% below market because he is leaving Malaysia and not many people know about it, better buy it now.
Market has got nothing to do with it because even assuming after we buy an undervalued property and the market transactions slow down, the prices will recover in the future.
Unless inflation disappears from this world, else prices would continue to move up! Our salary will also be rising too. if it’s not, it’s not the world, it’s something wrong with the person.
Other reasons NOT to buy and to skip it
If you are buying because your best friend said so, better think again, regardless of whether market is good or bad.
If your friend is a real estate agent, then ask for more information before deciding and if the information could not be found, better skip too. Usually your real estate agent friend should be able to give you information so that you can decide.
If you are buying because the discount is high but you do not know if the price is low or high, then skip lah. Higher discount has got nothing to do with whether it’s under or overvalued. One main reason for prices to fall a lot may also due to the prices being too high in the first place. Again, nothing to do with whether market is good or bad.
A wrong purchase will set us back many years in our property investment journey. It may even ‘kill’ all our chances at the next investment opportunity. Investment also does not have to start with property as well. It could be many other choices. Just do not rush into anything we do not yet understand enough. Happy understanding and reading. Decision can be later lah.
All the best in your property investment journey!
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