It’s easy to get carried away with the suggestion that properties are now way too expensive for Malaysians. No one could blame this thought because everyone would usually confine their property thoughts to just the few usual choices; hotspots within Kuala Lumpur for example. When informed about some further away choices, the reply is usually, ‘It’s too far.” When asked when would they buy a property within the hotspot they like, their reply is usually, “It’s too expensive.” Last but not least, if asked on what do they think about an upcoming well-planned township, their answer is, “It will take many more years. I can always buy later…” Well, let’s talk about why new townships represent the A.H.A opportunities.
Affordability – What’s affordable? It depends on the location and the type of property we are looking at as well as the household income today. If we try to equate this to any mature neighbourhoods, RM700,000 or even higher will usually be a high-rise of lower than 1,000 sq ft. These mature neighbourhoods or also known as hotspots would usually be RM700 per sq ft or usually, higher. The reason is because everyone wants to stay there, thus demand (current) is bigger than supply (new). There are not many empty pieces of land left within a mature neighbourhood. If there are, it’s going to be built as high as possible and priced at a level enough for the developer to make a decent profit.
How about if we think about a LANDED property instead then? Fortunately for us, we still could. Greater Kuala Lumpur is also connected to Malaysia Vision Valley and is also connected to KLIA Aeropolis. With the continuous economic growth as well as growing household incomes, the affordability will continue to change and that will continue to drive the property market. It’s about evaluation of the choices we did not yet think about yet.
Home sweet home is not about buying the most expensive home we could afford with our salary. It is about living comfortably and enjoying instead of worrying about the monthly mortgage every end of the month! For someone with a wife and two kids like me, I have accepted the fact that if someone in the family has to change his lifestyle so that all the others could enjoy, the person has to be me. I could wake up earlier everyday to drive to work but at the same time, I hope my wife could send my kids to the nursery nearby, drop by the nearby supermarket for some groceries and after picking up my kids in the late afternoon, all of them could go to the nearby park. My wife can chit-chat with some neighbours and my kids could run around (INSTEAD of looking at the smartphone screen the whole day if they have nowhere to burn their energy) Fortunately for Malaysia, the term ‘Home’ means a lot of choices currently. Expand our search and expand our available choices. Perhaps Bandar Sri Sendayan can be one of those choices.
Appreciation – We could look at buying an affordable home (based on our income) and make it into one home sweet home but the reality is that we may NOT be staying in that home sweet home until we retire. One day, many years down the road, when our incomes have risen to a new level and we are thinking of an upgrade, it’s important to be able to sell our current home to another someone who will be able to enjoy it as their home sweet home. The property prices in Malaysia has been rising by an average of 6.75 percent for the periods from 1990 – 2016. If we take a conservative 4 percent price growth per year, a RM500,000 home today would still become RM608,000 at the end of 5 years. This appreciation is pretty good because how else would be able to save over RM100,000 in 5 years while still having a home sweet home to stay in? Additionally, the savings we get from just RM2k rental per month for 5 years is RM120,000!
I firmly believe that new townships, especially the well planned ones will provide this A.H.A opportunity. The only thing we need to remember is that even the prices of all these new townships will continue to rise over time. Just look at the prices 10 years ago, 5 years ago and today. It’s not rising too fast to become speculative but the continuous rise is a very good sign that demand is growing slowly and the buyers are usually families instead of speculatively. Happy evaluating.
Perhaps a look at a meticulously planned new township for the family?