Uncertainties really do mean opportunities? Are you sure?

IF ONLY. “If only I listened to you and bought that unit a few years back.” Actual sentence from a primary school mate a few years after he failed to buy a condo unit at RM295,000. I told him RM295,000 is a very good price and it is unlikely that he could find such a unit at such a price because most listings were RM350,000. He disagreed. He said he wants to view a few more units because he could see many agents listing at similar prices.

OH NO… Alas… all the listings were the SAME unit. The owner who owns just 1 unit were getting many real estate negotiators to sell for him. The unit was actually sold a few days after my conversation with him. It does not end yet. When I wanted to move to Kuala Lumpur, I asked if he was still interested to buy my unit and move over. He replied, “Yes.” So I told him to offer me first before I engage anyone to sell. For 2 weeks, there were no reply. I sold my unit at RM640,000 to a cash buyer. Many months later, he asked, “Oh you sold already? I thought I wanted to do some research before I offer.”

EVERYONE KNOWS, NO ACTION though. Many times, we could wait forever for that so-called opportunity. In fact, if we were to ask anyone at all, they will be able to say things like, ‘downturn is a great time to buy.’ ‘Now is buyer’s market.’ Or “uncertainty means more motivated sellers.’ However, one more question further and we realise that many people are N.A.T.O (No Action, Talk Only). They did not know what to invest and has no knowledge about it at all…

Uncertainties not stopping. Covid-19 still does not have a vaccine… savvy? There may be some nations finding excuses to start another round of a terrible trade war. The oil price continue to be ever so volatile. One supreme leader is under lots of speculation currently. Some say that he is facing a serious health issue. Some say all those are rumours and that their side of the rumour says everything is just fine. Oh yeah, let’s not forget that elephant in the room. The world is entering a recession because every country has stopped their economies and only now that we start to see some nations relaxing some of these measures because they realise it’s such a tough thing to balance between economic growth and a potential new phase of COVID-19 resurgence.

Better question to ask? Are there certainties in these uncertainties? For example, good properties do exist whether in good or bad market situation. Use rental yield as a benchmark. There are certainly companies still doing well currently yeah. Think medical related for example. Of course, this is not the time to think about tourism. So, the question to be asked is NOT how long will the uncertainty be. It may be forever. It is to IDENTIFY the potential investments instead during this period. It is to know whether that property is a Below Market Value (BMV) or not.

Uncertainties really do mean opportunities, right? You decide yeah. No one could tell you anything that you do not believe. Happy deciding.

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