ASKING SEAN #043 | LOCATION HOT SPOTS FOR INVESTMENT?

In this episode, we will address a question regarding hot spots for investment. Would it be better to invest in the CBD areas? or Suburbs?
Before covid, I would suggest to follow the development of infrastructure. Follow the highway constructions, the MRT and LRT tracks, the initiatives from the government and etc. Because the performance of real estate is highly dependent on population, convenience, and job opportunities.
However, my answer kinda changed after this covid incident. The behaviour of tenants might shift to prioritize safety. Plus the working from home experience might escalate companies to adopt flexi-working patterns in their workplace, resulting in workers to start working from their home. This means there won't be as high of a demand to be located within the CBD anymore. Hence, people will go for areas with lower rental rates.
Tier 2 &3 locations will then pick up as people will start to move away from the city. In this moment, community oriented areas will then be attractive for tenants.

[CatREM]

I buy highrise for own stay because of better security.

[blurjsjason]

Hi Sean, greetings !

Wish to ask how to determine tier 1, 2, 3 location? And do you foresee places that are outskirts (30mins) driving distance to kl will start increasing in terms in demand? Appreciate for the reply

[jbenz]

Thanx Sean.
After i watched this great & lovely vid...
We moved to Jalan Kebun lorhh
Hiks :)

[kevinwong]

Hi Sean, now that covid is somewhat manageable, it will be greatly appreciated if you may share your thoughts on this topic, post covid era. Thanks in advance!

[hafizidonya]

Tq Iherng for the very good advise... Btw i have something that bugging me in my head to getting a new house.... I found property which is very close to my workplace, however im not afford to buy 3 Bedroom (SPA price RM413K) in this property becoz my DSR already burst which is 65%, then this property also offered me 2 bedroom (SPA price RM358K) which is suitable with my current DSR which is less than 60%.... I really want this property coz the location is near to my workplace the problem is my parent n my friend they seem to against with my decision becoz this house only offered you 2 bedroom, the question is should i go for two bedroom and later i put partition to add more room? considering the size of the house is 910sqf not too big or not too small i think.... & What do you think about firsthome buyer buy 2 bedroom house.... Fyi i still not married.... Tq

[angsiaokim]

It's a great sharing, Sean. Thank you!

[NplusO]

how does an area qualify as tier 1, 2, 3 location? Is there any website or guidelines?

[ytl]

Hii Sean, just a suggestion, probably while u read the question, can type it out on the screen as well, love your videos! 👍

[fionachouardy]

May i get your opinion on goodwood residence by oug? This is for investment as first time buyer.

[maxleong]

1:00 "who buy highrise for own stay" - 🙋🏻‍♂️ me as of my current age age and for the convenience for my folks at home... maybe i have different thoughts when i'm closer to retirement, maybe buy a farm and live faraway from the city 😂

[brienroshian]

where can i get real estate news from properties guru or who else to follow ...Superb content btw ! keep up the good work!

[goldenroofproperty]

Thanks for the sharing Sean. Always love your video, practical and easy to understand. Haha. As an investor myself, now I rather choose suburbs than city centre because suburbs has higher potential growing than city centre. The price in city centre is already too high for any future increase in value. Condo's in city centre, except to collect rent, may not be easy to sell in the future. Where in suburbs can still get big freehold units with monthly installment of only RM1K++. In future those places will definitely grow, then can rent can sell 👍

[kjmok]

hi Sean - around 11:07 onwards you speculate that 2nd and 3rd tier locations will enjoy increased rental demand etc. what about the tier 1 properties - would there be downward pressure in terms of rental rates as there might be a reduced demand by the tenants?

[patoises]

what a good prediction - after covid, people will think more of space as a premium, rather than just proximity to office. Actually the trends are all pointing towards more flexible working from home

[xoxowifluvelle]

1) I never factor the closeness to LRT/MRT stations as a good property because everyone I know got cars.
2) Everyone move nearer to their jobs. So the more jobs a place has got to offer, the more people want to go in.
3) Safety n security are really the highest priorities now. And this will be the main decision factor. Management companies got to up their game!
KL city centre will always be popular in demand because of the main bulk of jobs and business are in there. Unless the government want to destroy KL lor. Just my few cents.

[vineshrajoo]

Some really good and interesting opinions from you.

[MrHTCfan]

Once the virus issue is over, i don’t think people will still be afraid about it

[thoongchinglee]

Sean, I wish that thought process of preference to requirement like yours are as wide spread. As a contrarion investors, human are bad at remembering all these bad things when they look at convenience. All those old rules will continue to apply, maybe not now but maybe in 2 to 3 years.