PROPCAFE founders are not property gurus but a bunch of crazy property enthusiasts who just cannot stop sharing property information and experiences among each other. We have a 24/7 PROPCAFE’s founders’ Whatsapp group chat ON (YES, we have founders who just do not sleep at night) and over years, we have accumulated many discussions on properties.
Many situations, there were many strong statements come out from PROPCAFE founders. This article combines most of the statements which could be helpful to many.
Bear in mind, don’t apply it “buta-buta and bulat-bulat” to yourself as some may not necessary help in your situation. Read it as a novel, if you like the quote, please use and apply it and of course remember to quote us. If you think it is bullocks, then just skip it. No right or wrong! If you cannot finish reading it (how can you finish any dictionary in one go?), please come back again!
A1. For Investment Purpose (General Observation)
1. Don’t buy what you want, buy what the mass wants when it comes to investment. It has proven to be easier to rent and sell in future instead of investing in high-end properties. Niche market play, you need a different level of holding power. Why try to make yourself stuck when you can roll your money?
Homework: What is the mass market entry for your target area? Remember, different areas come with a different level of mass market.
2. Don’t wait! Anytime is a good time to buy property for investment (or own stay) especially if it’s a good buy. Good and liquid properties hardly suffer from significant price drops.
Homework: What level is considered a good buy? Many sources to refer to nowadays.
3. Don’t be overexcited to buy a subsale property that is way below market value!
Homework: Always check if there are any caveat charges before plunging in. It might already be an auction property.
4. Don’t buy property types that you are not familiar with. Don’t just buy different types of properties for the sake of portfolio diversification.
Homework: Understand your own financial and exit strategy well.
5. Don’t make a decision solely based on the price tag and market value (over/under). Some properties and locations can stir emotional feelings in purchasers, especially in a matured area with limited supplies.
Homework: Matured location comes with more transaction data, find out the supply and demand there!
6. Don’t buy a property without a visit to the site. It is like choosing a wife from the cinema with the lights off.
Homework: Visit the site, day and night. Of course, peak and off peak period too.
7. Don’t buy a property with cemetery view! Although to some it could be WONG (brings good luck) but to the majority, it is likely to be SUI (unsightly, brings bad luck).
Homework: Mr Google will help. To be 100% sure, please check with local authorities to know the future plan on the vacant land surrounding your property.
8. Don’t be too engrossed with your rental income in the same building. It depends on luck (and to some extent, the agent you appointed) when someone can rent out higher or lower.
Homework: Understand the market rental in your building, set a range. Hit it then just take it.
9. Don’t attend all property seminars just to find out how to buy more beyond your means and use smart financing to beat the system. While you are beating the system, you may dig yourself a graveyard. Don’t bet but invest!
Homework: Always buy within your means.
10. Don’t bargain for 5k or 10k to close the deal if you really intend to buy or sell the project and get trap into penny wise pound foolish behaviour.
Homework: Set your own price range, not price!
11. Don’t be a sheep. Make a stand and have a view. If the deal goes lemon, you have no one to blame but yourself
Homework: Do homework by yourself! No short cut.
12. Don’t be stingy on lawyer fees or squeeze them for a better discount. Get a good one and pay them reasonably and make them your long term partner if you want to remain in the property investment game for long term.
Homework: Check with seasoned investors to get one to start with.
13. Don’t be superstitious on house no.8 over no.4 when picking property. No.4 which faces N/S could carry more value than No.8 but facing West.
Homework: Moral of the story, don’t overpay the premium due to No. of the Unit. Make sure the premium paid will not make your unit lose out on its competitiveness.
14. Don’t be too particular on the quality of recently developed unit and demand perfection and with full rectification from the developer if your unit is meant for rental investment. Every minute wasted on rectification costs you money.
Homework: Be friends with defect workers and supervisors, there is a way to get the defects rectified much faster. Scolding, yelling, and complaining does not help.
15. Don’t believe in GRR schemes. A good deal does not need any incentive to sell.
Homework: Study and find out the “actual” value of the property. Most of the time, you will be surprised to find that you are actually paying the GRR yourself.
This article is contributed by PROPCAFE. Click here to read the remaining DON’Ts when purchasing a residential property and do like us on Facebook to get more updates.
