After someone read this article: Waiting for cheaper properties, March 2019, he asked a simple question. “So, this means I should wait till March 2019 to buy?
In brief, NO. The reason is simple, if you have found a place you like in a mature neighbourhood and somehow the price is 10% below the usual market price, I think it’s best to buy rather than wait till March 2019.
If you found nothing because you have not viewed anything and does not even know which area you like to buy, then you can wait till March or beyond, I think you are still not going to buy. 😛
There are reasons why the completed properties were still NOT sold yeah.
One major reason, the price might have been too high previously and people just could not afford or does not think it’s attractively priced enough.
So perhaps a 10 percent reduction could make it cheaper.
How cheaper? Let’s use a RM500,000 property as a benchmark. The mortgage per month as per the image above is RM2,214.
Please refer image above.
Now what happens when the property price is reduced by 10%? RM500,000 will become RM450,000.
Assuming everything stays exactly the same, then the monthly mortgage will drop to RM1,992 per month.
The difference is RM222. That’s about RM7.40 per day. What this tells us is that actually, it’s not really that super substantial.
Not drinking Starbucks latte everyday would have saved much more.
Then again, any savings is welcomed because now we have extra RM222 for over 100 cups of Kopi-O?
So, if there are properties which we have identified as completed but unsold, it’s worth waiting till March.
We must also note that another reason why the property was completed and not sold was because people just do not like it.
Perhaps it’s the design, maybe it’s the location or maybe it’s next to some sewerage pond etc.
If it was not attractive previously due to some of these reasons, is 10 percent enough to make it attractive?
Well, it’s RM7.40 savings per day to make us like the property by March 2019 if we did not like it previously (only if it’s RM500,000 or higher).
Decision is definitely ours to make. The answer is therefore, waiting till March or not really depends on many factors but the savings is definitely not substantial if the property we are looking at is sub RM300,000 for example.
The savings will be just slightly more than RM100. Happy understanding.
written on 10 Jan 2019
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