News have been abound in Malaysia lately with the impending announcement of Budget 2014. One particular headline which have been spreading is the one below:
Malaysia’s economic bubble will burst after China’s economy takes a tumble and global and local interest rates continue to rise, warned financial analyst Jesse Colombo in the Forbes online magazine yesterday.
Colombo, credited by the London Times for predicting the global financial crisis, noted that Malaysia’s high government and household debt is contributing to the credit bubble.
“Malaysia’s bubble will most likely pop when China’s economic bubble pops and/or as global and local interest rates continue to rise, which are what caused the country’s credit and asset bubble in the first place,” he wrote in the Forbes article headlined “Malaise Is Ahead For Malaysia’s Bubble Economy”.-Malaysia Kini
With such pessimistic news, it is good time to ask ourselves a few important questions as property investors,
1)How solid is your property portfolio currently? How much impact can you absorb if a property market downturn really occur in the near future?
2) How many months can you survive with negative cash flow properties? Can you hold on to negative cash flow properties for longer than 6 months? What if it remains vacant for a year? Can you hold on?
These are hard questions we need to ask ourselves to be in tune with reality.
Adding to the situation, a trend has been emerging for the past few years, that is bulk purchasing of properties.
Simply put, bulk purchase happens when a group of individuals collaborate to purchase a substantial amount of units of properties at one instant.
Because of this, many developers find it attractive to sell a big number of units at one go, as there would be lesser hassle and time saving.
In return, the bulk purchasers would negotiate a discount for all the units, sometimes up to 10%.
Hence, it seems to be a win-win situation for both parties-the developer side and property investors.
However, do ask yourself this question:
What is YOUR BASIS OF BUYING?
Is it because of the 10% discount? Or are you driven by the hype of bulk purchasing, when you see other investors doing bulk purchase?
Again, if you are already a bulk purchaser or looking to get involved in bulk purchase, ask yourself these few hard questions honestly:
1) What is the actual reason behind your purchase?
2) Does the property fit into your gameplan?
3) What are the numbers for the property? Are they ‘sweet’ enough for you?
4) Have you checked out the demand and supply factor? When it’s about to be completed, are you looking to ‘flip’? If so, how would you compete with many other units also selling at the same time?
Please do not be mistaken that we are against bulk purchase. In Property Fast Track, we always believe in empowering our members to invest in properties that fit with their gameplan.
We believe in making money when buying properties,
Making money holding the properties,
and making money selling the properties over and over again,
without actually giving them away!
Our bold promise and belief is, by going through our 2 day Intensive Workshop, you will be able to buy at least 1 Below Market Value Property that can change your life forever following our system because you will acquire a Lifetime Skill!
We Guarantee that this is DEFINITELY NOT A BULK PURCHASE GROUP…. 🙂
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 !