Just last week, I was writing about how the Home Ownership Campaign needs to move beyond just the incentive part because truth is, HOC 2019 will be able to touch those who already know about property investment. For many first-time home buyers, they continue to have a negative perception about the property market currently due to the prevailing negative sentiment. Briefly, they could qualify for loans and they need a home but they may not be buying because of these three issues most of the time. People say prices already too high. Places I want, the prices still high. Not so attractive places, I don’t want. Haha… Let’s not even start about the first-timers who got attracted by the many get-rich-quick schemes out there. Buy this year, get money this year and sell for profits when get key. Sounds familiar?
Hopefully, I think they no longer think the market is about to crash. Read about the signs before property bubble bursts are here. Anyway, let’s take a look at what has happened thus far after 6 months of the Home Ownership Campaign 2019 (which was launched after the RPGT news was announced to the market earlier…)
Article in themalaysianreserve.com Housing and Local Development Minister Zuraida Kamaruddin said that the Home Ownership Campaign (HOC) recorded sales of 1,144 property units valued at RM650.87 million as at June 7 this year. The target set earlier by the Real Estate and Housing Developers’ Association of Malaysia (REHDA) was RM3 billion. This meant that the current sales figure was just 20 percent of the target.
Some reasons stated in the article why it has not been successful was because borrowers could not get the loans they wanted to get. Bank Negara Malaysia’s drive to drive down the household debts and this meant that the requirements to borrow is not going to qualify everyone. It says that BNM is fearing a financial crisis will repeat the debt fiasco during the East Asian financial crisis of 1997/98.
It says that besides the prices, some other reasons why buyers are not buying is because of poor locations and lacking of infrastructure and there were also complaints that the discounts offered by the developers were very small. As for the developers, it seems that they were able top hold on to the properties without resorting to fire sale as they have cash pile to survive the downturn. Please do read the long article in Article in themalaysianreserve.com
Perhaps it’s very important to tell everyone to STOP buying only in those few areas where everyone kept mentioning and thus has pushed up its prices tremendously. Perhaps it’s also good to educate people that just 2 lattes per week x 1 year x 10 years = 1/2 downpayment for a RM300,000 home? Plus that tendency to change to the most expensive handphone every year? RM2,000 x 10 years? WOW… Perhaps it’s important that buyers stop believing that a development right next to a MRT / LRT stop is compulsory because truth is, buying slightly further away meant huge price advantage and there’s the MRT Transit buses too? Anyway, lots of perhaps. Perhaps the current extension to the HOC 2019 may bring surprises? (Read here) Happy believing.
<Featured Image is courtesy of Stock Photos from pathdoc>
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