I am no expert but I feel that investing in property nowadays is not a good idea.
I went to see a property few days back and the agent told me the average percentage that the property will appreciate is 8-15% a year. So let's assume it is 10% a years. A pre-launch property priced at 510k have 9% discount, 3% pre-launch discount and another 16k rebate if I don't take the furniture. So total amount to be loan is about 430k.
In 3 years, the housing price will raise to 130%. So from 510k, it will go to about 660k.
660k - 430k, you will earn about 230k.
Here's the problem, there are many assumption here.
Assumption 1 - First thing of course, you will need to get the loan to be approved by bank.
Assumption 2 - The developer doesn't run away. Unlikely to happen if the developer is famous one.
Assumption 3 - It really raise 10% a year.
Assumption 4 - Someone will want to buy the unit at 660k. This is the hardest because 3 years from now, there will be more condo or property being developed. There will be more discount, rebate or voucher to be given if the new property is being launched. I have seen many weird marketing strategy like
- buy house, free car
- buy house, earn 200k
- buy house, no need to pay installment for first 3-6 years
- buy house, free vacation voucher
- buy house, free furniture and 10k voucher.
I believe more and more strategy will be implemented in future to attract people to buy pre-launched or new condo. Second hand condo, doesn't stand a chance at all.
