The hard truth is, although there are people who Make A Lot Of Money in the property market, there are also people who Lose Money in it.
This happens when proper analysis and research are not done correctly beforehand.
The right property is gonna cost you but the wrong property will keep costing you.
One of the BIGGEST MISTAKE that many agents have been telling homeowners is that as long as you are the 1st owner and and buy a New Launch, you will definitely make money.
What are my neighboring development’s selling price?
How old are my neighbors?
Density of location affecting my future competition?
First Mover Advantage & Last Mover Disadvantage
Let's touch on the Density of Location affecting your Future Competition and First Mover Advantage & Last Mover Disadvantage Let take properties along LAKESIDE MRT for a comparison.
Why did Caspian made so much money compared to Lake Grande?
Caspian got the First Mover Advantage into this location, reaping the sweetest part of the field as there is no other competition at that point in time. In fact during 2nd quarter of 2014, Caspian owner achieved 113.81% appreciation in their investment!
Lake Grande being the last mover, did not have much appreciation as they are met with other competitors in the location. If you notice, Lakeville did not appreciate much as well. I term this as the Last Mover Disadvantage.
Despite having a good location near the MRT, we still have to compare the neighbouring prices and competition. When a location turned overly dense, I will advise my clients not to proceed unless there is an Upcoming Transformation, Master Plan Changes or Government Investmentin the vincinity. Some examples might be a new MRT line or Business Park.
There are few more factors to be mentioned. In short, these properties will not meet my STREETWISE Framework criteria and I will have have advised my clients not to proceed. How Can You Avoid Such Mistakes? Let's have a coffee and I promise to share more insightful secrets with you! WhatsApp Kelvin today to find out more about the 7 Mistakes you should avoid in a Property Purchase.