Who Says New Launch Cannot Buy ??
Someone asked me in class (webinar) that day, “Coach Marko, why in all the previous case studies , you recommend NEW launch, and then hor, for me, you tell me go buy resale property ? Why you no tell me to buy new-launch ?? ”
I paused for a while, smiled and asked, “ Miss Tan, in your case, do you want to retire now or retire later ?”.
She replied “now lor”.
Can you guys see the problem ?
Miss Tan wanted to retire now. How can buying a property that is not being built yet, cannot be sold, cannot be rented , help her retire now or soon?
To retire soon, one must buy properties (at low prices) and rent (at high prices).
If Miss Tan buys a new property, she has to service her bank loans every month until the property can be rented out. And meanwhile, she has to pray hard that the company does not put her head on the chopping board. Many people are going to lose their jobs very very soon.
In today’s market, unless the buyer is well-trained to do her homework before buying, most properties usually takes one year to find a tenant upon collecting keys.
That means Miss Tan has to pay and pay from now till one year after collect keys. Looking at the market, we can safely assume that it means a good 36 to 48 months of installments, of pay and pay. According to Robert Kiyosaki, this mean that the property is a liability, because its eating her.
When she can rent her property out for higher dollar than the installments, then her property transform into an “asset” because it is feeding her.
I have seen many people going down the same road. They want to retire today and yet they buy properties that are not built yet. I have been rolling my eyes as much as my car tyres.
With that, who are the people who I recommend to buy new launch properties ?
People who do not have much money, much bank loans and still working (contributing CPF) and wanting to build their first pot of gold, usually young couples in their 20’s.
People who already have passive income more than expenses and wanted to “gamble” on capital gains.
I myself have bought new launch properties and make good profits. That being said, not all those who queued under the hot sun, squeezed into hot tent, being labelled VIP will make money.
There are cases where buying later is cheaper than those who queued three years earlier.
There are many ways to make money out of properties.
And the safest way is to observe the rich and imitate them.
Problem is, most people accept suggestions from the poor and hope to be rich. I see this a lot and it saddens me.
Always, learn from someone who has been there, done that.
So, should you buy new launch ?
Love Marko
Investor, Practitioner and Full-Time Coach
