You just visited the show gallery. From the moment you walk into the compound you are Mesmerised. The huge gallery, the impressive show house, the 3 meters scale model, not to mention the Beautiful Sales Girl all convinced you should buy into this project right now. Some more it came with Zero Down, what else do you want?

Sounds familiar? Next time if you see a super deal, don’t buy Just Yet. Sales is down, the pressure is on, so Developers would come up many many incentives to make that deal more irresistible.

Recently one of my friend ask me about the city development near the airport. It came with many rebates and future promise of malls and hotels the works. I told him flat out its not a good buy. I lists out plenty of reasons too, no car park, no pantry(more renovation cost), unproven location, overpriced (800psf), wrong product for the market etc but he insisted. “But it came with almost zero down” was the argument.

Yes, zero down is attractive, but that doesn’t makes its a good property. The fact that it needs to have that many rebates and discount after releasing in the market for so long its already a sign of caution.

Besides, if you have the cash, you can always look into NOT INVESTING first and Look for Another Deal. There is ALWAYS another deal.

Investing in a wrong property can drag you back by years especially if you are just starting out – if you are lucky. Some never recovered. I have a friend who invested in a development in Klang that boost “Guaranteed returns”. Sure enough, 1 year later, the whole project went into limbo and was abandoned. 

Bottomline here is Dont Invest because it sounds good and looks good. Invest because its a Great Property, A Developer with Strong Track record and Great Location and Good Price.

PropertyKid. Always Learning. Always Investing.