I was happily listening to YouTube music for free when an ad with a PAID video started and it was someone sharing why we should invest into the stock market and avoid property investment. He (the person in the video whom I do not know who) said property investment return is low and it’s also slow and thus when we think of property, it should just be for own stay purpose.
If the government allows you to convert your leasehold land to freehold, would you be rushing to the land office like right now? I am very sure many would be jumping with joy and quickly make the necessary arrangements (including preparing money for the conversion) and then quickly go and queue at the nearest land office, correct? Erm… not really. There was this ‘offer’ to convert but the landowners seem to be still taking their time to think if it’s worth doing it. The Menteri Besar is not too happy and has informed that this offer may not be extended yeah.
According to the chart, the total transactions are actually growing. In fact it is only growing slowly from 2022 to 2023 and from 2023 to 2024. Some can interpret this as a recovery. Some could interpret this as positive for the property market. Some could also interpret this growth as a very slow growth. My personal interpretation is that the market has not reached the attention of enough buyers. In other words, a lot more potential buyers may not know that the total transactions has started to increase.
New data from IQI reveals that Malaysia is an ASEAN leader in successfully expanding access to affordable housing, according to new data compiled for the first time by IQI and released today by the company’s Co-Founder and Group CEO, Kashif Ansari.
Good news for some owners I guess when they read this piece of news. “Klang Valley property prices up 3.2% in 2024: Upscale neighbourhoods in Batu district lead the way.” Klang Valley is huge of course and maybe not all areas may show prices rising. In fact average number do not reflect anything much yeah.
Perhaps some areas are showing double digits increase and some areas are showing low single digit price increase. Perhaps some are even showing a negative number; prices are reducing every passing year. Anyway, let’s look at what the media says.
Too many people have told me that property investment is too risky. They also have no time to read so many articles in kopiandproperty.com and it just take too much time and effort. They are right. Property investment, if we want to start does require a big capital. Please do not believe to much about no need downpayment etc. That downpayment has to come from somewhere. Usually, it comes from the buyer, somewhere and somehow even if the buyer did not have to fork out that downpayment.
These days, there are many personal finance experts in the market. Some do video, some write and somehow for many of them, their advice is always to skip property investment. Erm… Let me tell you this fact yeah. If someone says they are a personal finance expert and are giving personal finance advice about all other investments except for property investment, then it’s important to note the numbers below which will without any doubt affect anyone without a property of their own.
Not everyone loves to buy a property. Many of my friends remain “propertyless”. Many of them are doing fine and I think with or without a property, they are able to earn enough even post-retirement. In fact one have earned so much that she has retired a few years ago and she was not even 50 then. One failed to get a refinance recently despite showing the bank that she is the owner of three fully paid properties. Reason is because she does not have a stable salary. Well…
The first thing we need to know if we intend to sell a property is why do we want to sell in the first place. We may need to sell because we need the funds to do other investments. Maybe there’s an undervalued property at an irresistible price. So do go ahead and sell. However, there are people who may think of renting out the unit for a very long time. Their reasoning is that the tenant is paying for the property anyway, why bother to sell? I have done both and I think it’s a decision we will have to make once we have those goals in mind.
Until today, I continue to have many friends who continue to tell me bad news about the property market. Too many high-rise units… (as if developers can keep building landed units and price them affordably), surely the price is not sustainable…(as if everyone has bought overpriced properties like some people), that area is too far away… (as if Greater Kuala Lumpur’s population is no longer growing) and many more amazing reasons but I want to say that a better way to know what’s really happening is to look at the residential property transactions.
People ask me what is happening to the local property market. Beyond just our property transaction numbers (which is high and rising), I tell them to look at what’s happening overseas for their reference. If all the advanced property markets are now showing that no one wants to buy a property, then that would also be happening in Malaysia in the near future. If you know of such markets, please do let me know too. I would like to read more as well.
Sorry. If it could be made cheap, it’s not possible to be luxurious. The only reason people buy luxury items is for the brand and not just because of the quality yeah. The only reason why people are willing to buy an overpriced property could also be due to the fact that they love that brand too. So, if an advertisement for a property says cheap and luxury, please buy with the understanding that you will get what you pay for.