When you plan to invest into property, I will suggest you check market price by yourself (refer to part 1 how to check) before you make any call to agent to arrange viewing. How important the market price is, we have gone through in previous topic. However, when you change your role into seller, it is even more important you should check market price before you decide price to sell. I have seen so many owners choose an easy way asking agent about price going, if agent drives your selling price, agent becomes the property owner instead of you. Agents always tell you the lowest price they feel shortest time can find buyer, is this the effort your commission pay for?
Apart from buyer checking price like part 1 we discussed, as a seller, you may discuss with me personally some other tactics people used.
Part 3 - Invest into shop?
You will not learn how to find the best shop in this topic, but i will share with you some market conditions that make investors not able to find a good shop literally. There is a valid period for this topic due to it ties with market condition, but i believe this valid period likely will take you 3~5 years easily.
I receive many inquiries about buying shop, but 80% of them never come after i asked a simple question. I wont say it happens the same in other states or other countries, but i believe this is the truth in kuala lumpur especially if you invest into shop or landed properties related.
Are you willing to accept rental yield of less than 4%? 60% of the prospect gone immediately, 20% maybe need me to explain what m I talking about. 95% of the property buyers are using bank loan, in general, bank interests is about 4.3%~4.5% (this refer to current market condition, after getting whatever promotion from bank, this is the estimate interests applicant got to bear) for the loan amount they grant. A 4% or less rental yield means you making loss from interests immediately. Capital gain is yet to foresee, need not to say a lucrative gain. At this stage probably you wont surprise 80% prospects will not keen to explore further.
Another market condition I will tell those who stay, please don't expect you will get a first class shop with the money you spend, likely you will get a 4th class (I will describe quality of the shop in future topic) or maybe you will get a 3rd class if lucky. 2nd class also cant get? Likely you can, but it going to be outskirt area.
At the end of the day, maybe 5~10% of the prospects will continue hunting for shop. Most of the time, these are regular property investors and it is not surprising they could know property more than me.
What is the reason people still want to invest in shop then? Lets discuss this in the coming topic
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