PSF and Prata

PSF is like Roti Prata.

If you think a bigger prata is always a better investment, think again.

At first, you may think a bigger house is going to have a higher PSF.

But, on the contrary, due to simple economies of scale, a 3 BEDROOM apartment in the same project, on the same level, is in fact going to be at a LOWER PSF than a 1 BEDROOM.

Let's just say you bought a XL prata at 3 bucks. 

You could have bought 2 L prata at 1.50 each. And that, would possibly feed two.

So if you have money to buy a 3 BEDROOM, why not spend the same amount on TWO 1 BEDROOM's.

For one, you can fetch a higher rental yield on them vs a single 3-bedder. (Note: Privacy has its privileges and thus, you can monetize that off two separate tenants)

In the same vein, if you were to resell those two L prata, you could have earned a neat 1.00 each if you sell them for 2.50 each. Imagine if you were to sell the XL prata at 5 bucks? Would that be easier?

Not to mention keeping to the ethos 'not keeping your eggs in one basket', if you buy TWO 1-bedders in separate development projects. If one of the project's developer goes bust, or workers' quarters start sprouting around it and undermine its value, you still have the other to milk to its full worth.

In the prata case, if you had bought two L prata and taken a bite of one of them, establishing that it is not fresh - or worse, saw (half) a flattened cockroach - at least you could return this and even if not, you might be luckier on the other piece. Imagine if this happened with the XL prata?