Understand why we buy, not why others say must buy

I personally dislike articles with titles such as ‘top 10 hotspots to look for.’ Come on, if I am the writer for that article and I am an investor and I really know these hotspots, why would I share with the world? It’s tough to argue that the writer wants the world to benefit. Or perhaps the writer has some other motives instead? Haha, we should give these writers the benefit of doubt. Anyway, even if we read such articles, does it mean that we can now simply buy anything within those hotspots? Be real, hotspots are already expensive by the time you wanted to buy, else it’s called “undiscovered warmspots”. (my personal term)
My friend, a Penangite naturally argued with me about areas which he loves versus areas which is not loved by Penangites. Well, he has profited from his property purchases in those areas he loves and so did I, from the areas he dislikes. So, who’s right? Well, it boils down to what did we buy and the many valid reasons why we buy in the first place. If it’s for rental, then it’s foolish to buy in places where not many people want to rent, no matter how cheap the property price is. The never ending argument about the best areas? Read here: Tanjung Tokong vs Sungai Ara by a non-Penangite
If it’s rental, then it should be in developments favoured by many, especially the working people. Just days ago, a colleague placed deposit to buy a nice secondary condo for RM730,000 (560 per sq ft). It has good rental and it’s within walking distance to the LRT station. If it’s for his own stay, he said he would prefer landed, even if it’s slightly further away. See the huge difference between deciding only for investment purpose versus for own stay? Always remember, as long as people want to rent, let them rent. Haha. Read here: It’s renter’s market, that’s why best to buy
Another colleague’s brother is doing very well with property investments because he focussed on only the student accommodation type of property developments. As they say, education is a recession proof business. In fact after some people got retrenched, they may choose to further their studies instead. Yes, I am talking about those who used to earn huge money in the oil and gas industry. Read here: Oil and Gas, hard times continuing
Everyone of these property investors above are buying based on what they intend to do. Their intention matters the most. None are buying simply because they read an article about the hotspots to buy. Always note that even during boom periods, there are still people who got cheated by buying the wrong project or paid too high because everyone was ‘crazy’ during those times. During downturns, it’s the best time because sellers become slightly more sane. Read here: In a slowing market, sanity returns. How true. Besides, the buyers are always more cautious and would then be able to evaluate objectively. Remember, understand why we buy and not buy because others shout, ‘Buy!’
written on 26 Feb 2016
Next suggested article: In future, renting is the best option?


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