Go Direct, First Time Home Buyers?
If developers OR their marketing agents start offering you goodies like “Move In Cash Allowances”, “rebates', or “free” holiday packages, Rolex watches, raffle tickets for a BMW or luxury car, you know that’s a sign of deepening desperation, right?
Go Direct! Here's a thought for any prospective buyers of $$$ Branded Serviced Residences, courtesy of the #1 property market search engine in Malaysia (see PropertyGuru’s article for a comparison of Valuation Methods for investment properties).
Try asking the Developer or the Real Estate Marketing agency what the Costing Valuation is for their $$$ Branded Serviced Residences in KLCC, TRX, BB or Sentul is... You might be shocked that developers often pay selling fees as high as 10% or even more to real estate agents to market their $$$ New Projects properties, especially those that might be hard to sell for a number of reasons. For example, high density projects in secondary locations or projects in the suburbs with poor connectivity.
With property market sentiment waning after the end of HOC schemes last year and uncertainties surrounding a bounce back in incomes that were battered by the pandemic, developers are under lots of pressure to push unsold inventory. Cutting selling prices in a soft property market is probably not a good idea (might send the wrong signal to potential buyers). So it doesn't come as a surprise to find developers must offer hefty incentives to entice real estate agents to prioritize marketing their New Projects properties instead of the competition's.
OK, so you believe the spiel of property pundits that now is the time to buy before property prices shoot up because construction building material prices have gone up. Then why not go direct to the developer of a high end $$$ New Projects property you are now eyeing and offer to buy it, less a 15% discount. That's how yours truly bought his first high end KL investment property (I got a 10% discount) in 2000.
If you think the developer is really desperate (are they giving hefty "rebates" or "moving in CNY Ang Pows" ) WHY NOT ask for an even BIGGER discount!🤪
Who knows if you get LUCKY in the Year of the Tiger. 🐅
RC says, "If you never ask, you will never know (if the developer will give a discount".
Post Script and Disclaimer
I am not a registered real estate agent. If you are buying an investment property, get advice from a BOVEA valuer.
I am not a registered investment advisor with the relevant authorities in Malaysia. My IA licence in another jurisdiction expired circa 2001.
Before FTHBs buy a property, I suggest they look at how to discover its USPs, Walkability Score, check out capsule reviews at property portals, and look at 5 year trends in capital values in PSF and Rents in PSF for similar or comparable properties. Before contacting a real estate professional.
I have covered useful property investment topics in my two blogs, see here
