Most of you would know my stand on commercial properties today.
Personally, I have never invested in a big one ( bought few SOVOs, SOFOs here and there) as I dont think the big commercial game is suitable for people like me.
Commercial properties requires plenty of capital, strong holding power, and plenty of patience to hold out until the area reaches maturity point.
The other key reason why I havent looked at commercials until recently is that the valuations in 2013-2015 makes zero sense. I know of many cases where sellers successfully sold properties at less than 3% gross yields.
But in the last 6 months, prices have gone down to a more reasonable levels and today we are looking at commercials that can give anywhere between 4% to 7% gross yields.
Suddenly, a soft market has forced sellers to be more reasonable in their asking prices and some commercial properties today are comparable to decent performing condos especially since condo’s yields now hovers at 4% to 6%.
We think that today, it now makes sense to consider buying decent commercial properties now that the asking prices has gone down to a more realistic level, where the rent isnt to far away from the instalments.
But we still think that despite lower prices for commercial properties, the risk is still very much substantial.
Those who know me will know that I have always advocated education prior to investing in anything.
Thats why when we approachedAdrian Un late last year with this idea of starting an affordable Sarjana Hartanah for commercial properties, we were absolutely thrilled when he agreed to become the master trainer of this program.
He brings over 20 years of investing experience, and has bought plenty of good commercial properties to date. Most importantly, he was the only one we knew that was :
1. Owns a fantastic commercial property portfolio and we deemed as credible enough to be trainer.
2. Willing to share his knowledge in an open forum. ( There are many others who are good but they werent willing/comfortable to share)
3. Willing to teach at a price that we know is ridiculously low for a trainer of his caliber and experience just so that we can maintain Sarjana Hartanah to be the most value-for-money property education platform.
Personally, I cant wait to learn from him myself and if you wanna join me, there’s about 15 seats left for next weekend’s Sarjana commercial. If you wanna join us at this massively undervalued, introductory price, you can do so by registering at : http://faizulridzuan.com/sarjana-hartanah