One major reason why people wait before they buy is because they feel uncertain about their future. A new segment B Japanese brand car of RM70,000? The purchase will not happen until the buyer feels that their job is secure; company should continue doing well. Property first-timers are always unsure, thus they will not buy as long as there are still bad news all around. I know because when it was my first time, it took me 6 months of slowly viewing before I could decide to buy just a RM123k apartment. This is why it seems to take first-time home buyers forever to decide. Well, giving them right education and confidence is pretty important. Nope, not about getting rich quickly with property, that’s not a reality… Let’s look at uncertainty in world’s top 6 largest economy.
Article in freemalaysiatoday.com A luxury home in a trendy neighbourhood is still unsold after a year. The sale prices of top-end homes in London has been falling for nearly four years because of these few reasons; tax hikes, crackdown on money laundering and way too many new properties. Well, these are compounded by Brexit and with the recent announcement that Brexit may only happen end of October meant that now uncertainty continues. According to an index by Knight Frank, home prices in London’s swankiest districts begin falling in August 2015. However, price declines are less dramatic than the past. In prime central London prices are down about 12.9% since August 2015 versus 22.3% drop during the financial crisis and a 20.7% decline in the early 1990s.
Number of unsold homes under construction in London hit a record in March 2019. Developers have started to offer incentives and discounts to attract buyers said Marc von Grundherr, a director at agent Benham & Reeves. Mark Preston, chief executive of the Grosvenor Group, “I’ve always said that what we could not cope with economically in this country is a long, prolonged period of uncertainty.’’ He added, “And that’s now what we have got.’’ Due to the uncertainty, buyers are demanding discounts before they buy. Article in freemalaysiatoday.com
During uncertain times, home upgraders already have a home and does not need to rush their purchase as long as they feel uncertain with the direction of the economy. Meanwhile the super-wealthy have already diversified into lots of investment types and does not need to be too aggressive. They have by far more options that most of us. This is why when times are uncertain, the luxury properties will be the first to face pressure. As for the usual properties which is for the mass market and is not overpriced, do not worry too much. Just hold on and enjoy the stay. Cheers.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
<Featured Image is courtesy of Stock Photos from Ivelin Radkov >
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