5 Hard Questions to Ask Before you put a deposit on A Great Deal
As my friend and I were discussing the latest marketing and promotion from the ever more desperate developers, I can hardly catch my breath. The promotion is offering discount of 20%, free carpark, free pantry, next to 4 star hotel, low deposit, developer will pay GST etc. The message is almost 5 lines long. Talk about being desperate!
Before you put down your cash and think you got a bargain, please ask some VERY IMPORTANT and Logical Question.
- No right minded developer is going to give a 20% discount if they think their property is Hot Stuff. So even they dont think its HOT Stuff, why are you buying it?(I am not saying all discounted properties are bad but think logically and carefully why such discount are given. If it is because its the last remaining units then its a different story. Developer just want to clear stock)
- Free Carpark, Free Pantry, Developer pay for your GST etc is actually not Free as the Developer already Calculated and recalculated the Cost and ADD it In the Selling Price. You think is so generous or stupid they give you free stuff?
- No matter how many rebates and freebies are given, it had nothing to do the execution ability of the developer. Does the developer have a Good Track record or Strong Management Team? How about their Reputation among the Suppliers and Contractors?
- A Mixed Development requires a different kind of Management Skills and Deep Pockets, especially if its comes with a Mall. Mall business is tough business, went to Megalong or One Place Mall recently? Even Wisma Merdeka is getting lesser crowd because of the New Malls opening left and right.
- Resell Value. Can you sell the property later? If its already reaching 1100psf!! Who is going to buy from you at 1300psf? In KK, you are kidding right?
One of my Good Friend whom is very Knowledgable in property once said,
If you Dive in and Cannot Swim, You will be like Titanic -Always be Remembered. But you still Die.
There is always Another Deal. Look around rather than look at just rebates.
Propertykid. Always Learning. Always Investing.
