Hi everyone, i just want to hear your opinion when it comes to property investing. How do you guys make an investment decision for an investment for RE businesses.
I found it somewhat complicated, Afaik, the very basis of the business model goes like this:
pre sales (received down payment cash and contract liabilities) as you build u received cash from 3 big installment from banks and contract liabilities increase when you hand over the unit, contract liabilities gone and revenue is recognized.
Question is, how to find a good property stock? do you guys/girls based it simply on NAV? this kind of accounting also makes it tough to know (atleast for me) how profitable the business actually are during the process of building. also if the project is big enough, i find it tough to know if their cost is sustainable or not.
well, tldr; i found it hard to understand this business model and its key input to differentiate between good or bad developer.
If anyone is knowledgeable in this area i would appreciate if you are willing to share some tips within this sector.
