This topic crops up frequently – when will property prices drop even more?
Say for example that last year you viewed a property. The location was bad. It was deep inside a congested main road, which meant exiting during peak hours would take half an hour, after which you would join the heavy traffic along the main road.
The developer’s staff at the sales gallery were rude and not knowledgeable about the project and worse, gave you the wrong information.
The layout of the unit was not well thought out and was impractical. Lastly it was priced above all other new projects in the same area.
Naturally you left the show gallery and decided not to buy the property because it was unsuitable.
This year, that same property which you viewed and disliked is now being offered at a 15% discount. Of course the location remains the same as does the traffic jam.
Out of curiosity you drop by the show gallery and the sales people are still ignorant and rude. The property’s layout has definitely not changed too.
So the question now is – will you consider buying that same property when the price is discounted 15%?
We need to remain objective and understand that just because the price is discounted, an unsuitable property remains an unsuitable property.
When we buy a home, it will remain with us for a long time and the mortgage payments are usually over the next 30 years. Are we prepared to overlook all the disadvantages for the sake of a discount?
There’s also the fact that the property market has been slow for the last couple of years. Obviously there will be some good projects that were affected by slow sales and now with the Home Ownership Campaign 2019, those developers are willing to offer discounts so that they can finish selling and move on to their next project.
These are the projects worth considering and buying.
You have to remember that the purpose of buying a property is not because of the discount but rather because the property meets your needs.
If you need a home and the property meets nearly all of your needs and it comes with a discount plus stamp duty exemptions, then this is the best time to buy.
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.