Sorry, I do not believe in buy, buy, buy (BBB) mode regardless of the property market. For some of us who bought because we saw a huge group of people buying, let’s hope we are lucky. A few friends asked if the market is recovering since there has been a few launches which received overwhelming responses. Please be reminded that there are reasons why people bought. It may be their third or fourth property investments. Some of the older folks may even be buying for their children who’s studying nearby and needs place to stay. One day in future, I would also want my daughter to stay nearer to her university and not having to travel 50km daily or stuck in 1.5 hour jam daily to reach her university, right? For some of these buyers with a totally different reasons to buy from some of us, should the property price stay stagnant, they can hold.
Assuming it’s our first property purchase and when the whole development of over 1,000 units are completed, how long can we hold in a slow market? That is a question some of us should answer first instead of jumping into the pool. Many of those who jumped into the pool may be capable swimmers. Alternatively, are we prepared to stay in the property we bought and stop renting the current place or even selling off our current home? If the answer is no, better be prepared for this potential happening. Some of my colleagues hate travelling. Everyday when they arrive at work, they would complain about the never ending jams. Yet, they are still buying into some hot areas because they said everyone likes that place, so it should increase in price. They chose to ignore the thousands of new units coming up. When I asked if they would choose the public transport instead since there are now even more stations, their answer is a strong, ‘NO.’ Haha.
Actually the days when the property prices can increase fast is over. For a RM250,000 condo to rise to RM500,000 in 5 years, it is possible because we still have many couples who can jointly purchase the RM500,000 property. Moving forward, the only ones who can afford to buy our RM500,000 property for RM1,000,000 would be the top few percent of the working population. The question is, would they? If they are knowledgeable about the property market and are willing to change their lifestyle and buy further away, then the chances for them to pay ever higher for a property in a hotspot becomes even lower. The number of areas which is becoming ever more accessible within KL and Selangor is increasing and not reducing. Be reminded that many of the hotspots today were not favourite spots some time back. BBB should still stand for Better Beware Brother. Luck comes only to those who prepare well. Else, hope for one.
written on 10 Jan 2017
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