February 26, 2018
EdgeProp has this article, “Can’t afford a home? Turn to the sub-sale market.” I think this makes a lot of sense and has written on this topic a couple of times. One earlier article: Secondary property not necessary a secondary choice Quoted in the Edgeprop’s article was real estate and investment writer Dr Azizul Azli Ahmad who said that prices of sub-sale units are often cheaper than their primary market counterparts. He shared an example by sharing, “For example, a secondary condominium unit in Bangsar is sold for between RM600 and RM1,000 per sq ft, compared with a newly-developed condominium unit that sells for RM1,500 to RM2,200 per sq ft.” Then, Edgeprop quoted a search in their own listings to yield listings such as a 758 sq ft freehold apartment at Taman Sri Kuching, Jalan Kuching, with an asking price of RM200,000 and even a 950 sq ft leasehold two-storey terraced house at Jalan Rejang 10, Setapak, with an asking price of RM180,000.
Dr Azizul also said, “In addition, secondary or sub-sale homes are ready to be occupied, have easy access to facilities such as shops, and they [the buyer] can also deal directly with the original owner if there is damage to the house during the buying and selling process.” The next comment by Komuniti Pejuang Hartanah founder Ahyat Ishak is something which I think is affecting most potential buyers all over the world and not just Malaysia. I have just learnt about a distant relative who started working in Hong Kong last year and has been using her earnings to travel to many places. The salary she is earning in Hong Kong is definitely high because both my ex-staffs based there has a higher salary than me; the one who signed their offer letters. However, all these spending meant that this young relative has no savings at all despite earning such a high pay (when converted to Ringgit). Coming back to Ahyat’s comments. He said major reasons for these younger folk’s inability to buy property is because of their expensive lifestyles, where the latest gadgets, fashions, and travelling took precedence over savings for the future. BINGO. This is the full article in Edgeprop.
Beyond Malaysia, we also have some property experts in Australia saying the same thing about how the young are spending their money today. ‘Luxurious’ coffee and avocado toasts? Skip it to be rich! Oh yeah, a search via iproperty.com.my would reveal that choices are definitely still aplenty. The question is always based on ‘acceptability’ once the affordability part has been solved. Remember also that buying secondary meant that we can move in and make it a home sweet home soonest too. Yea, my first property was also a secondary one and I stayed there for 4 years. During that time, my brother, my sister and even my brother-in-law stayed rented a room from me for different periods of time. Happy considering and remember, secondary property can still be a primary choice for many. Just get ready the money part too. Cheers.
written on 22 Feb 2018
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