Since we launched this blog, we’ve wrote extensively about investing in a pre-selling property in the Philippines. We listed pros and cons, have suggested tips, how it compares against a ready-for-occupancy (RFO) home, and even sent property recommendations every now and then straight to your email.
Naturally, you will have apprehensions. After all, why would you invest in a property that hasn’t been built yet? It also has it share of controversies, with some dubious entities promising to turn over an artist’s rendition but not getting quite what you’ve seen in pictures (or videos).
And being the superstitious folk like we are, we tend to be skeptical about making financial decisions, especially in times where it’s considered bad luck to, like the Ghost Month for example.
Ghost Month and Investments
According to Chinese belief, the Ghost Month, which is the seventh month of every year, is the time where ghosts and spirits, including those of your ancestors, would roam around the Earth to visit their homes. As such, it is discouraged to make any significant decisions during the seventh month of the year, like buying a home for instance.
And because it’s now August, what perfect timing to discuss whether myths about the Ghost Month would really have an effect on real estate investing.
We round up several myths surrounding pre-selling properties and why you shouldn’t worry about making a financial and emotional investment during Ghost Month:
Myth 1: The value of your pre-selling property you’ll invest during Ghost Month will not appreciate in the future.
Myth debunked: Experts believe that investing in a home at this time should be considered as a great deal. This is because home prices are offered at lower prices, and it wouldn’t really hurt your property’s value when the market falls a couple of months each year.
Tip: Check out these 8 tips to assess your pre-selling unit’s property value potential.
Myth 2: Avoid making big decisions (like signing a sales contract) during Ghost Month.
Myth debunked: Contrary to belief, businesses and agreements signed or reached during ghost month will only face challenges if you are not prepared for any contingency.
Tip: Challenges often breed in the fear of unknown. To counter any bad luck during the Ghost Month, play SMART during the homebuying process. Make sure you have every essential document as you go stage after stage, and learn a little bit of legality as you negotiate the terms of your home purchase.
Myth 3: Don’t rely on your feelings when making homebuying decisions.
Myth debunked: It’s okay to be emotional with your home purchase. Whether its for your family or a means to establish financial independence, you have every right to be emotional into the process.
Tip: Be rational when it comes to questions or objections you have with your broker in the homebuying process. If there are certain terms in the contract that was not clear to you, ask your broker to clarify and to provide you an amended one.
Myth 4: Properties undergoing repairs or construction are bad luck.
Myth debunked: Chinese belief dictates that one should not get engaged in projects that are in construction or are undergoing repairs. But there’s really nothing to lose if you will invest in a pre-selling unit as long as you keep tabs with the project building’s construction and repair updates.
Tips: To dismiss any fears, schedule a physical property viewing or a virtual reality tour with your broker. If your property unit is ready for turnover, conduct an inspection using a punch list.
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