BUY, BUY, BUY. Since the end of 2009, we are catered by aplenty of new property launches. From Gombak to Nilai, Cyberjaya and Shah Alam, there are at least 5 property launches per month. If you have some experiences attending some new launches, you will be surprised that there are plenty of buyers who place bookings immediately as the door open.
‘Buy, Buy, Buy’ phenomenon, or popularly known as ‘BBB Mode’ is a buying-craze phenomenon among buyers whereby buyers buy properties immediately once they are available for them (pre-launch and official launch). Most of these buyers follow the ‘buy now, think later’ philosophy. BBB Mode is a popular term among property forumers and investors for this kind of buyers.
Obviously, these BBB Mode buyers are driven to be among the earliest to take advantage of the early birds discount offered and the ability to choose the best unit. Besides that, these buyers are also driven by the promotions offered.
Perhaps, you should be familiar with marketing statements (read: craps) such as ‘Phase 1 sold-out in 1 day’, ‘Last phase has appreciated by 100% in just 1 year upon completion’ and ‘Targeted yield from 10%’. Even though some of them are true, these claims are actually derived from just a limited few units to buyers – who received great discounts from developer.
However, not all buyers who place bookings immediately are the ones who buy without any initial homework made. This group of buyers is the one that we shall follow. They have done all the necessary studies before they proceed with their purchase. How can they do that as the property is just launched? Let me explain how.
Most properties are available in the market months or years before their official launch date
You must be among the earliest ones to know upcoming property developments before they are launched. The best way to get this information is via internet. All you have to do is to follow and subscribe to property blogs and forums.
Start your study by getting as much information as possible
Who says study is hard nowadays? All you have to do is just google the name of property.
Visit the actual site
Perhaps, you should be interested in a few upcoming launches after reading a few blogs and forums. Start your study by visiting the actual site of the property. Make sure you understand the flow of the access roads during peak and normal hours.
Know your surrounding
Besides accessibility, your study should also stress on the surrounding. Look for bad points instead of good ones – because the developer will always hide the bad points – cemetery, ‘pasar malam’ et cetera.
Know your neighbours
You should look for nearby properties that have similar characteristics to the one you are interested in. For example, if you are eyeing for a condominium, then you should compare it with nearby condominiums. Make sure you can estimate how old the condominiums are from the look – just make a rough estimation, either less or more than 5 years old. Only compare the property with properties that age no older than 5 years.
Who’s the developer?
As you are going to buy a new property, you should examine the developer’s past track records. Do visit its last projects to check the conditions and workmanships.
Estimate the launch price
Based on the findings, you should be able to estimate the appropriate launch price for investment. If there is a newly completed property in the same area, the new one that you are eyeing should not be priced more than 30% from it. Besides that, you can give plus or minus points based on the surrounding of the location.
Register with the developer
Once you have estimated the ceiling price for investment, you should register yourself with the developer. Afterwards, all you have to do is just lay back and wait for the invitation for the pre-launch or official launch date. If the launch price (after adding any discount given) is below your estimated price, then you should take out that cheque book and place your booking immediate. Or else, just enjoy the foods and drinks at the launch, and ready to leave.
No matter how great the response is during the launch day, you should never follow the bandwagon. Never trust your guts or instinct. Make sure all studies have been made before you make any decision.
By: Azril Arif
Posted: June 14th, 2011 | Author: Azril Arif | Filed under: Personal Thoughts, Warning | Tags: Personal Thoughts, Warnings | No Comments »