5 Layer Sandwich Vs 3 Layer Burger? Which One Would You Buy?
Here’s an interesting scenario, followed by a question..
Imagine if you are really hungry right now, and you are at a food stall.. the food seller offers you 2 options:
A 5 Layer Sandwich at Rm3.20 or A 3 Layer Burger Rm 3.70. Which One WOULD YOU CHOOSE?
While you are deciding which one to buy, the food seller then says “Since You Are Really hungry now, buy the 5 Layer Sandwich la! It’s cheaper and has more layers. More ‘DAI” (worth it)!
Question is: Which one would you buy then? And why?
And how does it all relate to property investment? 🙂
Simply put, this is a simple analogy of a real life situation looking for the right property to buy.
Recently, we were viewing a particular commercial property in a prime location and we were presented with 2 choices by the agent.
One, a 5 Storey Commercial Shop @ RM3.2million and the other, A 3 Storey Commercial Shop @ RM3.7million,both located near to one another.
The agent kept on trying to persuade us to buy the 5 storey commercial shop as it’s cheaper and has 5 storeys compared to 3.
At firs glance, it may seem so… However, is it really ‘more’ worth it?
Answer: NOT NECESSARILY!
Because as you do more research on the properties, you many discover a few interesting points to ponder on.
For the 2 commercial shops that were offered to us, it turned out that, the more expensive shop (3 storey) was actually in a better location with a lot more traffic passing by everyday whereas the 5 storey shop had lesser traffic.
Knowing this, will it help you to make a better decision?
OF COURSE! 🙂
Key point here to take note is to always look further and not just the numbers. The numbers of any property deal must be attractive, but never neglect other important factors.
In our seminars, we empower our graduates to look at the possible boost factors for a property and how to make sense of the numbers for any property deals.
Up till now, we already have a few members who have purchased Below Market Value(BMV) properties
27% BMV less than 7 days after attending the course!
Many others have bought minimum 15% below market with yields 6% and above! Some even bought 26%, 31% and 50% Below market!
And many of them are first time investors with no prior experience !