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Relevance of top 5 future home trends in UK vs Malaysia.

I read an informational article in The Star Online today. ‘Top 5 Future Home Trends’. I would not say its findings are extremely surprising but it’s really relevant to anyone and everyone who’s thinking about investing in property. It reinforces the idea that property investment is for the long term further. If we assume UK to be an advanced market and Malaysia as a developing one going towards advanced, thus we may see the same situation happening in Malaysia in the very near future. Malaysia’s property market is also considered very established and safe and it follows the Torrens system. Read more here. Torrens System. 

The Five Trends are as follows:

1. The lifestyle delay

First-timers are buying property later.

The article said that single young adults are likely to stay in their parent’s homes or rent instead of buying a home. Personally, I think another potential reason might also be that the type of properties that the first timers want today does not commensurate with their take home pay. Thus, they may need more time before they are able to have sufficient money or perhaps share the mortgage when they get married. Be objective, what kind of properties do you think a 28 year old Degree Holder senior executive wants today? Flat? Low Medium Apartments? Get real….

2. Risk-free society

Risk-aversion impacts choice of place

A safe environment is critical. With the availability of information, everyone knows about the latest happenings and typically negative news spread much faster. Thus, everyone wants to buy where everyone else wants to buy. That’s why these days you see Condos becoming ever more popular and their advertisements typically comes with ‘4 levels of security’ or ‘Limited Card Access with CCTV’ etc. Be reminded that landed properties which are gated and guarded may be loved by majority but not everyone can afford such a property these days, at a hotspot area nonetheless.

3. Heavy Meddle parents

The article mentioned that 1/3 of UK’s Gen-Y buyers expect handouts from parents.

I seriously think for Malaysia, this is not an expectation but more of a certainty. Many parents who worked hard previously are now wealthier and thus are able to assist their sons and daughters in their first purchase. Perhaps even buying a property as nearby as possible to them. Thus, we can see certain popular areas becoming even more popular. If I am a parent paying for my children, I would not want them to buy a place which is VERY FAR away from me, certainly.

4. Maximising behaviour
Buying with mobile shopping tools

I actually written an article about this before. You can read it here: Why technology is changing property buying behaviours. Information are now available at the tip of a finger. No one buys without knowing more, knowing what others think, knowing what others they look up to buys.

5. Unique belonging
Gen-Yers want to stand out as individuals

Personally, I have worked with many awesome Gen-Ys who is smart and form their own strong opinions. They want to establish something for themselves by themselves. Thus, if you notice the newer projects are becoming ever more sophisticated, ever more special. You cannot sell just a  ‘Condo’ anymore. You need ‘The first one with a garden overlooking the best KL nights has to offer’ or ‘Why settle for the ordinary when you are special’?

As you can see the findings are hardly something you heard for the first time. Yet, it helps you to understand what you are buying today and how it may affect you when you want to sell it later. Are you buying in advance so that when the Gen-Ys are ready and have more money and wants to upgrade, they can buy from you? Or are you buying something which the Gen-Y likes and yet could not afford but they are okay to pay you good rentals for it? Investment requires you to make informed decisions.

written on 24 March 2014

Next suggested article: 30 Million population, urbanisation and new properties – long term view

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kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

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