Failing to buy a property? 7 reasons for failing to buy

Failing to buy a property? 7 reasons for failing to buy

Not everyone loves to buy a property

Some (usually the younger ones) say vacations are better than a property. The former gives FEELING of happiness. The latter merely adds debt and worry of not being able to pay on time. Plus the fact that they can show off to their peers when they post those photos in Facebook. For the younger ones, they post it in Instagram. Many would comment and add comments which seem envious. Thus, the vacations must continue or people may start to think that they could no longer afford to go for vacations. Funny but true. We are going vacations to get more likes too, not just the enjoyment we get or the stress relief benefits.

Here are 10 reasons why we may fail to buy that first property in the near future. They are in no particular order and some people may have more reasons than others.

#1 – Paying too high rental today versus your salary.

Two issues here. One, rental of RM2,000 per month means you are usually staying in a property valued at RM500-600k. (Yes, rental market is not awesome for some owners right now). Two, you will not want to downgrade by buying a property of your own and paying more. RM600,000 property requires a monthly mortgage of RM2,700. We have yet to calculate the renovation and the furnishings… So, paying RM2,000 per month is a much better decision if we prefer to enjoy.

#2 – Spending too much every month

Wants versus needs is usually blurry until you really write it down and categorise them accordingly yeah. Credit card debt can quickly spiral out of control too. Perhaps a new handphone is not yet needed. Perhaps that car could be a cheaper one. Maybe the vacation can be limited to once per year. Sometimes, clothing is about comfort versus about brand recognition. Spending is easy, saving is hard. Money inside wallet is always dangerous too.

#3 – Follow majority; most of my friends don’t have a property anyway.

Since they do not have, I can also afford not to have. If they are renting somewhere nice, I will move to the same development or neighborhood too. However, whatever they have currently, I need to have so that I could be part of the gang too. Peer pressure is working negatively here. Buying that property can wait. I am still young. Frankly, this is quite true.

#4 – Staying with my parents lah. 

They love me very much and I don’t want to move out. Haha. It’s the best opportunity to buy a property, rent it out and still stay with your parents. Many people do not have this option…Alway be grateful with what we have and make it work. However, if we are staying with our parents, we really do not need to buy a property just to move out yeah., Staying with them is a better option.

#5 – Nothing fits me in the market. 

This is a super-duper awesome reason.  The ones we want are too expensive. The ones we don’t want are within what we could afford. However, we don’t want. Well, that first property will not be the perfect property. We will upgrade after a few years anyway. Buy one, start paying and a few years down the road, upgrade to a better unit and sell the current one or rent it out. Few years later, the rental yield is usually already positive. Or at least it will cover the interest part fully and some principal too.

#6 – I hate property lah. I have better investment ideas

Ok, this one particular reason is a very good one. Some people hate property investment because it takes too much time. They also think it’s very complicated. Some people just have a better way to invest their money and they could earn a lot higher returns. If we also have the same thought, then do not buy yeah. Focus on how we can earn good returns. It does not need to be property.

#7 – The banks kept rejecting my loans.

Whoa, if this is the reason, is it the fault of the bank? Are we over-stretched financially and the banks are scared when they look at our record? Actually when banks stop lending, they stop earning profits. They want to lend to you yeah. They just cannot simply lend because there’s a chance you may not continue too pay them because your other expenses are just too high versus your current salary.

No ending, always more reasons

By the way, there are no ending when it comes to reasons not to buy. If you know of other even better reasons, please feel free to comment. If they are ones I missed, I will add it in and credit you too.

Happy thinking and not everyone needs a property, seriously. 

Always stay updated with the latest investment and property news – Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.

Else, follow me on Twitter here.