The new housing rules caught a lot by surprise. Perhaps even politically motivated. You can also say it stops genuine buyers from selling their home but if you are genuine buyers, why would you buy a medium cost house and try to sell it within 5 years? You suddenly become too rich and needed to upgrade to a bigger property? Let’s assume that some of the buyers really did suddenly become super rich. Should policies be set based on the minority interests then? A responsible state government cares for the long term and not the short term speculation.
In short, if you buy any low cost housing, you need to wait 10 years while medium low cost up to RM400,000 in island and RM250,000 meant that you need to wait 5 years. In terms of actual clamping down on overall price increase though, I think the effect is going to be little. This is because the price increase is a combination of many factors and not just because sellers want to sell high, thus buyers want to buy. It continues to be a demand and supply issue. If the state really does want a more orderly increase of the price over long term, then the affordable housing policy must be done right.
To look at Singapore, ‘just launch more and more of those HDB flats until prices stay the same or go down’. Fortunately for Penang, the state is small and thus would be much easier to control. I hate speculators and I hope more of these measures are implemented to stop as much speculation as possible. Especially for buyers who buy one whole floor or more than one unit. There are NO REASONS to do that beyond speculating. Yes, minority would say they are buying for their whole family. Yeah sure, I repeat, since when policies are done to help you, ‘lying speculators’?
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I hate speculators too. Indirectly they cause the property demand selling fast. Maybe last week you see this property in this price, after few days you confirm want buy then go back take a look again, the price might increasing just in this few day time 🙁
These are no longer speculators. They are gamblers!
Previously have a friend share his earn money way with me in property. I think it contain risks, as for me, i prefer secure and when i have confident only i do for it, end up i didn’t use his way. Let me share with you.
He share with me this way: First, we need have down payment. Example, if cash on hand have 100k, we could hold 3 – 5 property range in 200k – 500k. If have about 30k – 50k, we could hold for 2 – 3 property in 100k – 300k range. Some property during promotion just gave less than 10% down payment, some even have rebate, some is need 10%. What to do next?
We apply the bank loan. Once bank loan approve, developers paid the interest for us. We could get free loan during the cooling period about 2 – 3 years until the property is fully built. How to earn money?
First way, sell the property before it fully build, SURE have people want buy, according to him. Reason sell at this stage because want turn cash to buy another attractive with high potential property that could gain more profit. Second way, sell when fully build without renovate and move in, which mean just paid for few month loan only. This moment will gain much profit. Third way, sell the property after some time maybe in one year time. But the best way to sell is on second way as high demand, easy sell.
This is way he share with me. Then i ask him. How about the property unable sell and does you afford to pay all this housing loan. He answered me definitely unable pay for all housing loan and this won’t happen.
After i analyze, i think this contain risk. Haha, i am thinking that when unable afford to paid the loan, chances to get bankrupt is close 😛 End up, i didn’t use this way. My way is, buy when affordable to pay the house loan even the property is unable sell in future when the moment i want sell. Because i am not gamblers ma 😀
Buy within your affordability. There is no need to take unnecessary risks. I hope your friend is lucky all the time but he better watch out. If you think of it as gamble, go casino. It’s faster.
I like your word “Buy within your affordability” 🙂
I don’t think a person we call gambler will win every time and not even facing loss. To be safe, buy within affordability 🙂
Agree. Luck may just run out.