Personally I believe, there are really plenty homework needs to do in order to get the lowest risk in property investment. I wonder if you don't have time to do all this or not in this field, perhaps the best move will be close half of your eye and just follow the agent you FEEL "can (or try to)" TRUST. I don't intend to make you laugh here, Chinese always say The fool is the lucky one (傻人有傻福). You act fool here, it doesn't mean you are fool or agent will make you a fool eventually.
I wont say my techniques are absolutely right in property investment, but I believe I share something helpful and able to eliminate unnecessary risk in your real estate investment. I believe topics I cover here not only applicable in Kuala Lumpur property market, you may use it as guideline in other places like penang, Johor or even oversea market.
If my topic is over concise here, you may reach me for further discussion (but no guarantee I can reply, I still need to use my time correctly to take care of my rice bowl).
Lets get start the first lesson.
Part 1 - What is the market price?
I suppose to talk several topics in theory before hands on, but I change the sequence to make the lesson more interesting. So many advertisements out there, how do I know what is the current market price?
First step, you need to find several online media agents use to advertise, to get a basic idea of pricing.
I use to go to the following website to check pricing
http://www.iproperty.com.my/
http://www.propwall.my/
http://www.propertyguru.com.my/
Second step, pricing advertised not necessary is a real price, especially those lowest you can see. This could just a fake advertisement agent posted to attract prospects for them to follow up. Some people just feel insulted about this phenomena, in fact, nothing worth to annoy, take it as your practice to filter out those not relevant.
I will show you a sample search result from iproperty as of written point of time here. I take one mont kiara as an example here.
There are few things you may found out from the following screen I capture
- Same agent may have many advertisements in different size
- Many advertisements with lowest price range is 660psf+-
- Many advertisements in 700psf
- 720psf onward are less advertisement
The homework as an investor need to do is to verify what price is actual available. Next step is, you need to draw out a testing requirement,
For example,
1) a build up of 1000~1500sf
2) You will use the space for next 3~6months
3) any other reason can demonstrate you are serious to get an office
Start calling each of the agents, most important is to ask them show you those they advertised accordingly. After you spoke with some of them, you may probably found out agent try not to show you through various excuses such as
- just sold yesterday, last week
- just receive booking waiting bank loan unless you want to pay much higher
- tenanted till long time, don't know take how long to arrange viewing
- .....
After that they will start redirect you to higher pricing or something else, some might even tell you got unit but need time to pursue owner and drag your time.
In this example here, at this point of time (time is very important factor in any investment, price always change), I found out the actual available units are only 1~2 units are 720psf+-, rest are 750psf range and some are 800psf level. If you compare again with the number of advertisements you can see, you may probably realize something is wrong. We will discuss about what's wrong in future, in conclusion, this lesson tells you
- Pricing advertised may not the real one ESPECIALLY those cheapest unit
- You need to draw out your requirement and call more agents to understand price range and units available before you start to go viewing with them.
- If you are ready to purchase something, call some of the agents visit to your office, spend 30mins with each of them just like any of your office supplier.
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