If we ask 10 of our friends without a property to their name if they would like to buy a property this year, I think more than half would say, YES.
The next few questions will reveal if they will ACTUALLY buy.
- Where will you be buying?
- What’s the type of property you intend to buy?
- Do you already have a targeted name of the kind of development you want to buy? and last but not least,
- What’s your budget to buy and renovate?
If these four questions are asked and the person could answer convincingly, then I think they could really be buying. Else, it’s more of a ‘dream.’ As for the few who said NO, they are pretty objective. Probing further would reveal some of the reasons in the 4 questions above or more. Here’s another survey for everyone to understand the minds of those surveyed.
Article in NST.com.my here. A Malaysian Home Survey was conducted from 27th December until 25th January and the conclusion is that 7 out of 10 people would consider buying a home in 2019. Nevertheless, a third of them said they were not ready for a lifestyle change. One of the comments, “I am turning 28 this year, I do own a car and pay monthly installment. After work I usually hang out with my friends and on weekends, we take long drives to Port Dickson or Ipoh. I don’t think I am ready to give up my lifestyle just to own a house. Even if someday I get married, it will take me a few years to buy a house as I don’t think my income would have increased that much.” Another said, that he could not get a property in the RM500-700k range near KLCC, Bangsar or Petaling Jaya.
Other notable conclusions from the survey include the following: (My comments in bracket)
- One in five respondents said they’re worried about making the wrong decision on home ownership. (lacking in right information will definitely increase the chance of buying the wrong property for one’s purpose)
- 23% of the respondents said they couldn’t afford the down payment and 13% couldn’t get the desired loan margin. (this is one major reason why financial management literacy is needed, actually)
- 69% of Malaysians want a home for the sense of ownership. (sense of ownership is valid for all items, not just property. People love owning branded handbags too…)
- Most respondents prefer landed property over high-rise ones. (will be true for some time still. However preference and price will play a ‘changing’ role.)
- The top priority when looking for a home is location and connectivity. (more often, it’s also ‘acceptability of a new area’ because that location everyone wants is likely to be super expensive…)
- Design, security, amenities and neighbourhood matter when looking for a home. (Agree. Developers of new townships always have this in mind when they plan and build)
For a full reference of the all the other conclusions, please do refer to the Article in NST.com.my here.
Long time ago, people used to think one home is enough to last forever. Earlier article here. These days, it’s more of buying first, upgrade later. If the mindset is still to buy the best ever property one could afford at that point in time, then the chances of getting a loan rejection is high. Property will continue to be a natural hedge against inflation because when salaries go up, it does not mean that money is appreciating. However, when salaries go up it will push property prices up. Thus, when one has no property but the salaries and property prices continue to go up, it will result in poverty in the future.
Earlier article here: Own property and skip poverty Happy understanding. Surveys may not tell the whole story but we should still be able to draw some conclusions from it.
News article summarised by Dina Batrisyia. Article written and edited by Charles.
written on 1 Mar 2019
Next suggested article: Low income equals to low savings? Do something about it.