Some people asked me what is my preferred way of buying properties. Auction, subsale or buying straight from developer? I’ve heard some people arguing between buying subsale and buying from developer.
In order to give my opinion, there are certain things that i need you to know.
1. I have no experience of buying from developer.
2. I have only 1 year of experience in property investment
For me, in order to give my opinion, we need to know the difference between auction, subsale and buying from developer. We need to know about the process, the advantages and disadvantages. I’m not going to elaborate on that, as i think i should put it in a different entry.
Now the next step in telling you what i think is to go back to our objectives. So what is our main purpose of buying the property. Some people buy as they like the place and want to buy it for their own stay. Some people buy it because it is located close to their home. Some people buy it for investment.
If i buy a house, ill buy it for investment. So, my aim is to get the best offer. Well, we can definitely get a very good offer by just focusing on buying subsale, or auction or from developer. At least we can become specialist in that area. But i think the best way is to open our options to all of them. Given an example, generally in auction you can get better price, but with higher risk of repairing and unable to see the house first. There is one case where I managed to secure an apartment unit for the price rm100k subsale, where it would be very hard to win it at auction at the reserve price of 105k. Well, to make it better, in less than one year, the market value of the property now is at least 135k!
So i think the best answer is to open our option to all possibility. We might be a specialist in certain way of buying, but hey, no harm in learning... but beware... trying might do damage to your asset. So be careful and learn properly.
No comments:
Post a Comment