Anytime, to me, is a good time to buy, even in the worst of times – not just good times, not just bad times, any time. I’ll give you an example: In 2009 there was a global economy crisis. People are very scared to buy. But that was the best time to buy. I bought about five properties, I think, that year alone, simply because the prices were lot more reasonable.
For example I bought Titiwangsa Sentral that was next to the Monorail and LRT, literally a two-minute walk, for RM250,000 3-bedroom unit. Then I also bought the Tropics which was on top of completed shopping mall. It was only RM250,000. Those prices are only available, you know, when people are not buying. So, don’t wait. As long as you can find a good property that fits your objective, I think you should just pull the trigger.
Today, if you ask me tips on what to look for, I’m very conservative by the way. I only go for things that I’m very, very sure that I’m going to make very good money out of for very little risk.
I believe older properties are your best bet, as of today, because valuation wise, it’s still a lot more reasonable than new, under construction properties. In OUG, for example, developer’s asking price for under construction units go for about close to RM400 per square foot, but an older development next door is going for less than RM200 per square foot. It doesn’t make sense. For me, the gap is too big, and I would rather bet on the old one instead of the new one.
That wraps up March’s property investing tips from Faizul Ridzuan. Faizul is the author of “WTF? 23 Properties by 30.” A regular employee until September 2013, he quit his job to fully become an investor and a businessman. We hope you learned from his insights.
If you know about property investors who have a lot of insights to share, let us know. Everyone will benefit from it.
