Whether we work in the Klang Valley or Penang or JB or even KK. If we have some money that we would like to invest in property but there is a significant event coming up which we feel may affect our investment. Depending on the outcome or the timing, it may have some effects on our investment. Do we proceed or do we wait for the event to pass first? Well, I think I agree with what was shared by the Malaysian Institute of Estate Agents (MIEA) president Eric Lim who shared that lesser uncertainties would be better for the property market. Full article in Edgeprop here. He said that the property market is expected to improve after the general elections (GE) are held. This is because, “The property market is affected by three significant factors, which are the country’s economy, employment stability and the bank’s lending. The current market is rather stable and moving at the moderate pace. And our banking sector’s NPL (non-performing loan) level is rather manageable. Affordability is the key driver of the property market.”
Then, he mentioned that another reason for the uncertainty is because people are still guessing on the general election date which must be held by August next year. (Frankly, I do not think the property market would change because of elections but as everyone would note, sentiment has great effects on the decisions. Thus, when people are not that positive, they spend less and well, the list continues. This is why even when the market is sky high, people are still buying and developers are still building… ) He shared further that many developers are now shifting into affordable home segment priced between RM300,000 – RM500,000. (Frankly, based on the typical salary and the usual savings per month, I think it may be between RM300,000 – RM400,000 instead. A RM500,000 home, with a 10% downpayment and a tenure of 30 years meant that the mortgage payments per month is still RM2,227. If this is 40% of the person’s pay, then he would have to be earning close to RM6,500 per month.)
Next Eric said something which I think everyone reading this article must be savvy about. Whether the person is from the developer, whether they are a real estate agents or even buyers. He said that it was important for both real estate agents and property developers to embrace technology to reach out to younger homebuyers. (Seriously, nowadays, are there anyone who buys things WITHOUT referring online for some additional readings, reviews or even for more information? Especially something which is a few hundred thousand ringgit or higher? Do people still buy a newspaper, see that full page advertisement, gets so excited over it and quickly call and book a unit? Haha. Embrace technology. Use online to help you in selling and making decisions. Yes, blogs are a great additional marketing tool as well) All the best in your first-home and later, investment journey. General election will come and it will go. The property market and the demand and even the people will still be here. Think about it.
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written on 30 Nov 2017
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