ABANDONED PROJECT! - PART 2

Further to my sharing on April 15 on "abandoned project", I would wish to share with you a few STEPS you can take to avoid falling victim. 

Everyone will want to avoid buying an abandoned project but the problem is, not many are willing to do their homework before buying what could be say, the LARGEST ticket item in their lives.

STEPS you can take:

1) BUY A COMPLETED PROPERTY
If you are buying your first property, buy a completed property where you can see and touch. This can prevent you to be stuck for many years if your first property happens to turn out to be an abandoned property.

2) CHECK THE DEVELOPER BACKGROUND
Check the developer previous track record, find out more about other completed properties the developer has undertaken. Go and view it yourself. Make sure the company directors are the same. (Explain more in point 4)

3) PROPERTY FORUM
You can view forum like "lowyat" to see what others are commenting about a project. Sometimes, you can find useful info from other users. 

4) AUTHORITIES (SSM)
If the developer is registered under "Sdn Bhd", you can check the company online via SSM (Suruhanjaya Syarikat Malaysia). Just pay not more than rm15 and you can obtain the company details such as:
a) Directors of the company (are the directors the same with other "Sdn Bhd" set up of previous property developments
b) Income Statement
c) Balance Sheet (check its cash position)

5) BURSA MALAYSIA
This would be very much easier if the developer is a listed company. You can check its Annual Report on its previous performance. Besides, you can view its "DEBTS" & "CASH POSITION" from the company's balance sheet. If the company is cash rich, the best if its a "NET CASH COMPANY" (cash > debts), it is very unlikely the company could not complete the project. 

6) COMPETITORS
You can also ask the competitors (staff of other property companies) about the developer reputation and track record. As they are in the same industry, they usually are aware about their competitors actions. You be surprise to receive many vital info from them. 

The above are a few ways you can take to prevent buying an abandoned property. However, it is important to note that there is no such thing as 100% risk-free in investment. 

We can do our best by doing homework, it minimises our risk but it does not eradicate all risk. 

Please PM me if you are interested to learn more about "Stock Investment" and "Property Investment". 

Have blessed day ahead! :)smile emoticoHave a blessed day ahead! :)