LONG QUEUE = GOOD INVESTMENT?
Actually, plenty of interest and long queues should mean nothing to any real investor.
It just means there is a lot of interest towards that property, and nothing else.
A lot of interest and a long queue doesn’t guarantee that everyone who buys it will make money.
DPC does have plenty of die-hard fans. And it’s not a surprise that there’s a long queue and genuine interest as DPC Park Place launch yesterday.
Honestly, I think PP will be the best highrise in DPC when it’s completed later, and it is fairly priced in today’s environment.
How do I come to this conclusion? Did a bit of research today and I basically summarised how will it perform later upon completion. PP will be great for own stay 👍
If you are buying PP today, I don’t recommend you to follow the 7 criteria we normally use to evaluate investments. Those criterias takes away most emotions from the equation. Its uses data, and it’ll tell you the honest, hard truth.
So we compared PP to a grade B and grade A property that we are buying today.
The result is pretty clear as we only want to buy investment properties that meet the following criteria :
1.- Below median so that we can sell the property later for a profit (Buy undervalued)
2- Paying cheaper than older property – So that we enjoy capital gains
3- Priced at a discount VS its area tier – So that we enjoy capital gains.
4- The more booster the better so that capital gains and rentals becomes better
5- Controllable supply VS job creation so that there’s enough demand for the property for rental later
6- We don’t have to wait many years to get breakeven rentals and positive cashflow. So property maturity point cant be more than 5 years. (in our case it should be breakeven from year 1)
7- We want to buy properties with multiple rental options – PP will be largely targeting young couples and families, so a lot of other rental options like Airbnb and co-living will be almost impossible.
It has no LRT or MRT nearby as well so the catchment of tenant will be smaller compared to the other 2 property.
In our last webinar, people ask me what if I’m wrong?
My reply was he is right and smart, that he shouldn’t blindly trust what anyone says.
Don’t trust the queue you see, me, the developer, or anyone else for that matter.
Trust the data for investments, for own stay just buy anything that you like as long as you don’t pay too much of a premium VS median of the area.
This is what Demmings said many years ago –> “In God we trust, all others must bring data.” – W. Edwards Deming.