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  • Writer's pictureAaron Lin

Property Is Hard To Liquidate? Property Is A Bad Investment?

Summary

Good investment units are easy to liquidate because there will be demand on the resale market.


The pros and cons of a resale unit will be amplified during the buying process.


You must visualise the new launch unit from the resale buyer’s perspective to determine the quality of investment.

Article

Some people believe that property is a bad investment because it is hard to liquidate.


I agree and disagree.


A good unit to invest in will be easy to liquidate. A unit that fails to sell on the market is a failed investment. The least valuable unit will be the most difficult to liquidate. There is always a reason for a low price tag on some units - buying these units will be troublesome because you will have to sell cheap eventually.


When you buy the unit today, you may not see the disadvantages of the unit. When the unit goes on the resale market, prospective buyers will see the problems. Hence, when you buy a new launch unit, you need to visualise it from the resale buyer’s perspective. Pros and cons are amplified during the resale viewing process, some of which you may have neglected during the new launch buying process. For example, you might not have noticed the rubbish chute, hear the sound of the highway or smell the nearby barbeque pit during the new launch process. These factors cannot be hidden.


Good investment units are highly liquid. It is possible to sell good HDB flats in one day.




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