Just had a 1-on-1 session with this super nice chap who is a doctor.
He has done pretty well by investing in 4 properties already. However, out of the 4 properties he purchased, one of it worries me as I felt he might have overpaid for the property.
I shared with him some strategies on how to deal with the property when it completes this year.
Here’s my general thought to anyone who overpaid buying a property or in BM, kes-sontot-hartanah. This applies especially for those who plans to flip their properties :
1. THE UNDERSELL STRATEGY
– If holding the property isnt an option at all, one should cut their losses or settle for a minimal profit and sell cheaper than everyone else.
Basically you want to get out first.
Those who have attended 1-on-1 will know the reason for this and there are numerous cases that has indicated that this strategy works if you can get out before the lull period starts.
2. THE MAKEOVER STRATEGY
– My personal favorite. This means you renovate and furnish your unit to get maximum possible rental, hopefully more than enough to cover your installments today.
Again, speed is the key here as this has to be done ASAP before the lull period starts. .
3. THE OWN STAY STRATEGY
– Pretty straight forward. You use this as your home for a while waiting for things to get better or for a booster to come.
Anyhow you’ll need a roof over your head right? I have known a few investors who has been doing this and their results has been more than decent.
Their strategy was to use the worst performing unit they own as own use. Pretty nice back up plan as you get to enjoy a brand new property while renting out your older place.
FYI, the lull period differs from one property to another so normally during 1-on-1 we can estimate when the lull period starts and ends.
The worst thing you can do is to sell or rent during this lull time, so do whatever you need to do before this lull period starts.