We are all familiar with Goldilocks’ story – a little girl chanced upon a house in the woods, where she discovers three bowls of porridge. Being greedy, she selected to go for the biggest bowl first. Upon sampling it, she found it too hot and moved to the second largest one; which was too cold, and finally, she tried the third one, which was perfect, hence she gobbled it all up. The moral gleaned from this fairy tale (casting aside the trespassing issue, of course) is the search or persistence for the ‘just right’ outcome.
Doom and gloom aside, the 2016 property market is said to be a buyers’ market and it might just be the right time for you to apply the Goldilocks concept. Not only do aspiring homebuyers have more options now but they also are at the disposal of emerging good deals in the market.
One of the reasons being is that some developers are now more than ever willing to offer discounts to entice purchasers. This is because just the other day my colleague attended the launching of a developer’s reward campaign where buyers will enjoy cash rebates on selective projects. Even in the recent weekly property market update that I received from Knight Frank Malaysia included an excerpt on another developer’s programme which was offering various inducements (from cash rebates to complimentary fixtures) in various projects with unsold stocks.
It goes without saying that slashed prices do not necessarily mean it is the best option. However, many people are very much influenced by emotion when making purchasing decisions. Case in point, Goldilocks was lured by the ‘bigger is best’ doctrine when deciding which porridge to eat – and she burnt her tongue!
It matters not if a product is at a bargain if it fails to deliver any economic value in return. A ‘bargain’ property in the wrong location or of the wrong type will cause you headaches in terms of commute and amenities outreach; or if bought for investment purposes, it would fail to attract a renter or buyer.
I had the chance to attend a market outlook event this month, where one of the speakers opined that when the market drops, that is when millionaires (and billionaires) are made, as these select few go against the conventional wisdom of ‘staying low’. The key word being a select few as scoring the best property/ (investment) takes considerable dedication and willingness to research.
Gone were the days of making a quick buck, where you can never go wrong as long as you buy a piece of property thinking that it will definitely appreciate in value anyway.
It is up to you really – are you going to lament on how challenging it is or are will you be venturing out on your property investment journey this year?