Property Investment Musings

1. Property investment can be a high stakes game and sometimes when the opportunity presents itself, a fast decision, albeit with risk attached, can be very rewarding.
   
2. A case in hand relates to our client who had to make a snap decision when the situation arose. Many would have gone home to think or even sleep over it when big ticket items come by. We are of the opinion that to be extraordinary, one needs to act and live extraordinarily.
   
3. It was a Sunday afternoon in August 2010 and everyone at home was in deep slumber. Unable to join in the siesta, he dropped by SP Setia’s sales office in Bukit Indah to kill time. On display was the mock-up of the then latest offering known as Indah Walk 3 Lifestyle Offices. It was a 5-storey retail and office block with around 140 units in various sizes.
4. On enquiry, some units were still available especially inner ones that were not facing the main road. Since this was an office block with lifts, the general rule of getting ground/lower units may not apply. Higher may actually be better.
   
5. However, being a commercial entity, ground floor units are the most valuable due to ease of access, but the developer was only renting them out. This automatically made the highest floor, especially the main road facing corner unit as the most valuable.
   
6. On display was a building plan of all the units available with coloured stickers on them indicating those that have been sold and those that are still available. Naturally, he eyed the blank units and spoke to the sales staff with regards to pricing and financing matters.
   
7. This went on for a good one hour and what was supposed to be a casual visit to the developer’s office is slowly morphing into a potential unplanned purchase. With his interest piqued, he needed a second opinion from a trustworthy party.
   
8. He then phoned his business partner to drop by and join-in the enquiry. Upon arriving, the partner re-visited the display sheet and noticed that the top floor corner unit facing main road had a different coloured sticker from all other units that were already sold.
   
9. When asked, it turned out to be a previously booked unit where the purchaser failed to secure a loan. The best saleable unit was now available for the picking! However, for a 2,000 sq ft office, it was priced at a steep RM426k.
   
10. Back then, this was a relatively high number even for a commercial unit. Today, at RM213/sq ft, it’s practically a steal. Many residential condominiums are priced between RM500 – RM1,000/sqft, what more commercial lots.
    
11. Back to our case. A decision would have to be made and it has to be made fast. Just about anyone can place a booking fee as the thinking and talking process is going on.
    
12. Since it was just a casual visit, no money was brought for the RM3k booking fee. Going to the ATM machine risked the unit being intercepted by another lucky buyer.
    
13. To his surprise, the partner had the exact RM3k in his pocket. It was the prior day’s takings from their mini market that has yet to be banked in. Talk about luck. Getting a cool unit and having the exact amount of booking fee!
    
14. The transaction was done and with the loan kicking in around 3 weeks later, he was the proud owner of a nice office unit. Today, that unit is leased out to Dason & Dason and we have prominently displayed our signboards in the most elevated and advantageous position as seen from our profile picture above.
    
15. Despite our persuasion, he is unwilling to part with the unit, citing that he was destined to be its owner with such series of occurrences. We suppose so too.
    
16. When presented with an opportunity, a quick decision may sometimes be needed. We reckon, the Greek poet Homer was right when he wrote, “Fortune favours the Brave”. In this case, we suppose luck played a big part in being brave.
    
17. Always be on the lookout for such deals. Opportunity knocks on everyone’s door. The question is, are we ready to welcome it in?
    
18. Happy investing!