Buying a property while on holiday, would you?

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I have never bought a property when I am on a holiday before. I mean, my mind is not on a buying property mode, right. It should be on a holiday mode. However, I have bought a property before I see the brochure. I booked and paid deposit on a Wednesday. The brochure actually arrived two days later, on a Friday. That high-rise unit is still with me and the rental yield continue to be positive because it has been many years that I own the unit. As long as we are not paying too much for a property in the beginning, the rental yield will always be positive.

I have also decided to buy a property within half an hour at the sales gallery and FAILED to get the unit I wanted because someone bought it minutes earlier and had to buy another unit instead. It was a 1,100 sq ft high-rise and the price was RM313,000. I have also had the experience of winning after deciding on a unit just less than 1 minute before another buyer. So, this time, I got the unit and the buyer had to look for another unit instead. It was a RM680,000 high-rise unit.

There’s even this time when I liked one particular unit but did not decide until 3 months later and the same unit was still around! It was a 1,258 sq ft high-rise at RM247,000. Haha… Yea, those very slow years before the booming 2008 – 2013. After the booming years, these units which nobody wanted (3 months nobody wanted until I came back for it) before those years have suddenly become very popular and prices went up.

Actually, the key to buying a property is not whether we were on a holiday or who is faster in decision making. It’s about objectivity and readiness to buy if we have done sufficient due diligence. Please start reading and understanding at least 6 months before we buy. This is not a split-second decision if we have not understood about it earlier. Here’s one where someone bought a high-rise unit when she was on a holiday in Penang!

Article in thestar.com.my It was her third day of her first holiday in Penang and Hong Konger Ginny So decided to buy a RM400,000 condo. She said, “How could I resist? A condo of the same size would have cost RM4mil in Hong Kong. My first one in Penang was just RM400,000.” That was 10 years ago. She has since owned 4 properties in Penang.

it was not just the price alone. She said that Malaysian people are wonderful. She said, “We were about to leave a restaurant when it started raining heavily. The boss gave us umbrellas. When we wondered how we could return it to him later, he told us that we didn’t need to give them back. That would never happen in Hong Kong!” She shared more stories and the article is a long one. Please refer here: Article in thestar.com.my

People and Price were her two major reasons to buy a property. What’s ours? Stay focused on the population growth, especially in the major cities of Malaysia. The demand will continue to grow because Malaysia is still not as urbanised as many developed countries. When we look at the price, there are two things at play here. The absolute price and the current property market.

The property market is still slow. It grew in 2018 versus 2017 but that’s very, very slightly. With a slow market, that means there are many offers in the market. Which one to take? it may be wise to use rental as a determinant and this helps tremendously in the buying decision. This is not the best time to use previously launched property prices as a benchmark yeah. A foreigner could see the potential in our property market. Let’s be savvy to this fact too. Happy investing.

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Next suggested article: Foreigners buying into Penang? RM800,000 may be the price for a limited period of time

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