Are Asians Paying Too Much For London Off Plan Properties??

http://youtu.be/_hznBhDILNk

My answer is a resounding "YES". I focus in buying resale properties wherever I go, be it in the US, UK, Australia or Malaysia.

Pros of buying resale properties:
1. You get to choose your preferred unit.
2. No risk of developers failing to complete! This is a very big risk because almost 50% of projects get delayed overseas and 10 - 20% almost never complete! A 30% of them have defects.
3. You can get a good 20 - 40% discount to new builds. In countries like Malaysia where there is no land registry to provide latest transaction figures, the discount can be up to 50%!
4. No new supply! You often hear from agents that it is good to buy next to a new project because it sets a new benchmark. Absolute poppycock! Buy in mature areas with no supply I say.
5. Less competitors when you want to rent your unit, less competitors when you exit.
6. Older projects tend to be less dense and crowded. Roads are less crowded by cars.
7. Sometimes allow you to adopt a buy and fix strategy which gives you instant profit!

Cons of buying resale:
1. Older properties may have defects. Always bargain with seller to account for repair costs.
2. Risk of being gazumped in countries where option to purchase is not available. It is a very stressful event because seller and buyer can change minds between agreeing and completion.
3. Cash is often king. Wherever you go, whether in the US, UK or the rest of Europe, cash buyers are king!

Be wise, Asian investors. A fool and her money are soon parted!