Why I only buy 2nd hand properties

Here are some of the possible reasons behind this practice:

• New products are usually marketed in nice settings with attractive gimmicks.

• Acquiring new things make one feel proud, especially when there’re chances to show-off.

• People feel great when they buy things brand new. They feel awkward if they tell people things are pre-owned by strangers.

• The concepts of reuse, recycle and refurbish are not common here as in western countries.

I hold a contrary view here. Anything which is used also means that it is tested and proven. It gives me peace of mind.

What I know about Emery Point

This is especially true when we are talking about properties. Just look at the story of Emery Point told by the media earlier this month.

I went to the showflat of Emery Point before its TOP. Except the penthouse, all units are 3-bedders selling at around $800K at that time.

It stated in the sales brochure that the roof comes with “reinforced concrete flat roof with waterproofing and insulation for roof above apartment units”.

Under waterproofing, it reads “shall be provided at bathrooms, W.C., kitchen, yard, planters, balcony, roof terrace, open landscaped deck and driveway at 1st storey, swimming pool and pool deck, changing rooms and r.c. flat roofs”.

Soon after TOP in 2003, a third of the 51 units suffer from rainwater leakage. The carpark has 280 points of leakage and the swimming pool has dangerous sharp edges.

Regardless of the complaints over the years, the developer only pointed fingers at the contractors and used silicone to temporarily stop the leaks.

How can investors deal with defects

If I were one of the unfortunate buyers of Emery Point, what could I do?

I could only cross my fingers that the developer would get the defects fixed one day so I didn’t have to dig into my own pocket.

But I couldn’t wait for years (in fact not even months!) for the developer to fix the leaks while I was paying for the monthly mortgage. I would pay for a contractor to fix it so that I could rent out the unit as soon as possible. As an investor, time is money.

I would never talk to the media for fear that the value of my property would drop significantly when the story leaked out (that’s much worse than water leak!).

Nor would I bring it up to court. You know the best deal is just for the developer to fix the defects. The owners would never receive any compensation. So why waste time and money hiring a lawyer?

I remember I once went for flat viewing in a condo just TOP a year ago. After the viewing, the owner came out and said,

“I would buy the unit if I were you. For one thing, I’ve already fixed all the defects in this house in the past one year. You don’t have to do anything at all!”

What are the advantages of buying 2nd hand

When you buy a condo from a developer, you are only one out of hundreds or a thousand of owners. Your bargaining power is low.

When you buy a unit from an owner, you are the only one who is buying the unit. Your bargaining power is high.

If you find any defect (e.g. signs of water seepage) in the unit, you can state in the letter of intent that the owner must rectify the problem before handover. Your lawyer will help you to seek compensation if the seller fails to do so.

There’s also one big reason why I only bought 2nd hand properties so far: I don’t have to waste time fixing the necessary in a brand new flat.

A 2nd hand unit already comes with aircon, lights, curtains, interior design, furniture and appliances that is ready to tenant out the day I get the key.

I love 2nd hand projects. What you see is what you get!