Part 1: Buying home during turbulent times: Ten mistakes to avoid
Part 2: Buying home during turbulent times (2): Ten mistakes to avoid
Part 3: Buying home during turbulent times (3): Ten mistakes to avoid
Part 4: Buying home during turbulent times (4): Ten mistakes to avoid
Part 5: Buying home during turbulent times (5): Ten mistakes to avoid
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7. Types/ classes of home & areas
a. For the sake of investment, today, I would choose landed property over condominium or apartment as my home. Land is a scarce resource. Its price goes up when demand increases. Prices of condominiums or apartments may stay as demand can be easily fulfilled by further supply built. This may be different for other countries where land for bungalows is abundant but with limited sea view city condominiums. But the principle is the same - the force of supply and demand.
b. First choose area, then specific property within the area. We cannot change area but we can improve our house. Growth usually leads to appreciation of house prices of the entire area. So choose growth area, choose hot development area, choose high quality neighbourhood, etc. Even if you buy a lower end house at a good area, your house price will go up when the area's prices go up.
c. Within your budget, choose low end of higher range property over high end of lower range property. For instance, choose a small landed house over big apartment.
We made all 3 mistakes above. We chose condominium over landed property. We did not choose a good neighbourhood, but a good unit within a so-so neighbourhood. We chose higher end of lower range property, i.e. a big condominium (instead of lower end of a higher range property, i.e. a small landed house). Our condo price had never gone back to the price we paid for. Don't get me wrong, it is in fact a lovely place as home. However, it was a bad choice as investment.
Believe me, there is nothing stopping you to get a lovely place as your dream home AND at the same time this place becomes your best ever financial investment as the house price doubled in one year. Therefore, when you choose your dream home, chose those that can also give you a good investment return few years down the road.
8. Feng Shui and other beliefs
Even if you don't believe in Feng Shui, if a big part of your culture believe in it, your home value will be affected by Feng Shui and local beliefs.
We bought the 14th Floor unit. In Cantonese, 14 is pronounced as "sure die". In Malaysia and probably Hong Kong, most Chinese don't buy houses, apartments or cars with number 4 ("die").
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Part 1: Buying home during turbulent times: Ten mistakes to avoid
Part 2: Buying home during turbulent times (2): Ten mistakes to avoid
Part 3: Buying home during turbulent times (3): Ten mistakes to avoid
Part 4: Buying home during turbulent times (4): Ten mistakes to avoid
Part 5: Buying home during turbulent times (5): Ten mistakes to avoid
