Malaysians loves discounts, don’t we? Sometimes, it’s also because of the opportunities given to us to get discounts and more discounts. How much discount should we expect before we actually buy?
Summons (Fine). A few of my friends said that there’s no need to pay police / JPJ summons because there will be discounts being offered later on. Those paying earlier would lose the most because of the time value of money! We pay RM300 today. 3 years later, discount of 50% is given. We do not just lose RM150. We lost more because RM150 3 years later is already smaller in value than RM150 of today! (inflation ate some of it of course). Our Transport Minister Anthony Loke said that JPJ has STOPPED offering discounts and he will speak to the police on the issue of discounts too. I think he is serious and going his job well. Here’s his favourite move for me.
Cars. I have not yet purchased a second-hand car. I love the smell of a new car. I love the excitement of buying and owning one. Haha. However, my next one may be a second-hand one. It will not have the smell of a new car or the bragging rights but it’s 30, 40 and sometimes 50 percent lower despite the car being less than 5 years on the road. My good friend has never purchased a new car. His rationale? Huge savings but he reminded me to stay focused on cars with low number of problems. Else, it’s going to be a nightmare.
Homes. I said HOMES and not property because homes are really for the long term. Reasons to buy early? Usually lower prices as the next block is usually more expensive. We get to choose the units we wanted, first. Usually, the leftover units towards the end are less attractive; direction of the sun, facing another block, could see the cemetery etc. However, what happens if the prices actually become cheaper? Here’s one Letter to TheStar about such a case. Briefly, the buyer lamented the fact that the newer buyers get to enjoy the 10 percent discount under the Home Ownership Campaign (HOC) while he did not. I do not think PR1MA will have a solution for this. This is more of a policy matter, decided by the minister based on the market condition. What’s relevant is that over a longer period of time, the home prices will go up. Returns on investment will be okay too. Earlier article about property prices.
The question of buying earlier or later? The question of waiting for discounts for everything we should have paid earlier? I will still choose earlier whether it’s for homes of for summons. Be a good Malaysia please. Is that not what we wanted for Malaysia in the first place? Happy understanding.
written on 25 March 2019
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