So imagine this. You heard of a developer that is going to
launch a new project. After doing your due diligence and researching all the
facts about the project, you come to the conclusion that this is definitely a
good investment propery. You expect the project to appreciate in value and you
can make money as soon as the project is completed or even sooner, by selling
to the secondary market, assuming you don’t decide to rent it out for income.
So bright and early on the day when investors and buyers
flock to the developer’s office to get their hands on the offer you arrive to
find many other people there, all equally enthusiastic about the project.
And because the number of available units is limited, you
find yourself having to fight with these other people just to buy a unit. In
all likelihood, you probably end up paying more than you intended to in the
first place, which breaks the #1 rule in property investing which is to always
buy below market value.
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