How to invest property in Kuala Lumpur - Part 5

If you follow property news often, you may probably have seen this scenario, when there is source especially like newspaper saying price coming down, lot of self claim investors start to say market no good, when there is source saying good chance can grab cheap sale, you will see them start hunting those advertisements cheapest price for sale.  People always dream of using proton price to buy Mercedes in the investment world.


Part 5 - Must train yourself to understand info from media
I extract a portion from 29 June Nanyang and discuss further here. Not to be over excited when sources said can buy or price coming down.

Point 1 - If cheap sale from speculator, this property likely not easy rent out, are you ready to take over something not easy to find tenant? Most speculator always factor in to find tenant pay for bank loan and free them from cash flow problem, if you think alike, you could be just another speculator  but come in different timing only.

Point 2 - Bought 2~3 years ago and cant sustain now, does it mean those are old condo or mostly are newly handover projects? Personally I think those are new handover projects, those who stuck usually are less experience buyer, less experience usually will have a mentality not happy seller make money from them and thus hardly will invest into secondary market. Also because less experience, they judge the property from nice graphic designed brochure and easily convinced by the project salesman. A lot of buyer make a wrong assumption themselves, they thought project salesman is a property consultant, in fact, they are more alike product introducer, the most they can explain the product features to you only. A really good project, developer doesn't need to engage agent outside to sell on behalf, you hardly see E&O, SP setia, Ecoworld, MKH ask agent to sell their star project isn't it?

Point 3 - Those who stuck likely doesn't understand supply & demand. This really cant blame you, it is a detail topic to study, many bankers and valuer also not understand how supply & demand affect property value and thus they cant give you a right valuation and bank loan always.