No economy, no salary, no property.
Imagine many people without a stable job. Would they think of buying a property? Would the banks approve their loan applications? I think if we do not have a stable salary, we will come back to reality. It’s definitely not property. To have a stable job, it has to be supported by the economy. By the way, how is the economy doing here in Malaysia? Bad? Take action. Good? Take action. Basic idea is a simple one. Find opportunities or miss them. Keeping the money idle without doing anything is a wrong move.
No economy, no salary, no property
Never get this fact wrong. Property prices cannot rise if people do not have stable jobs. Stable jobs cannot appear if the economy is unhealthy. This is why if people kept telling you how bad the economy is and then try to sell you property and say prices will rise, that person is definitely lying and has zero knowledge about how property and the economy will always be related. Now, let’s look at the economy of that largest economy in the world, today. It may be exceeded by another nation but it seems that for now, the U.S. economy is roaring back to life.
Here’s that news about how positive the economic growth in the U.S
Article here in themalaysianreserve.com “US growth seen outpacing China’s for first time since 1976” This meant that the US economy will grow faster than China for the very first time since 1976. By the way, it also meant that since 1976, China’s economic growth has always been above that of the US. Sobering fact yeah and explains why China’s economy is now the second largest and second to just the US today. Here’s the full article: themalaysianreserve.com
Despite this positive news, there’s also this gloomy news.
It’s about that potential for a recession in the U.S. too. Cracks in US Economy Start to Show as Recession Warnings Mount. With the decades-high inflation and at the same time climbing interest rates, American households are taking on record amounts of debts to make ends meet. They are squeezed by higher prices for gasoline and food. Small firms are also struggling with rising business costs and difficulties in hiring or retaining workers. Here’s the full article: Cracks in US Economy Start to Show as Recession Warnings Mount.
What does this tell us?
There are always the other perspective which we may not see. You can see very clearly, some writers painting a rosy America and some writers painting a gloomy America. Both are just trying to get their points across. Read both and decide based on your own understanding yeah.
As bad as someone may paint the picture to us, as great as an opportunity it could be. A rising number of property transactions does not mean it’s good or bad. Who knows this rise is purely speculative in nature and we may be buying at the very highest peak? That would be disastrous yeah.
At the same time, a rising number of transactions may also mean that the market is now finally roaring back to life after being subdued by the many restrictions due to Covid-19 movement control orders. At the same time, a property market rising does not mean it lifts all properties, all areas and all cities or states in Malaysia.
Property demand and supply has never been total supply nationwide versus total demand nationwide. The reason for price movements is because of SPECIFIC area demand and SPECIFIC area supply and this is why during good times, property prices rise higher in some areas and in bad times, property prices barely moved in some popular areas too.
My 2 sen advice?
No economy, no salary and no property. Malaysia is not in a financial crisis, that’s for sure. That’s why people could afford to buy and then keep complaining about prices rising. Continue to look for opportunities. Low price does not mean it’s an opportunity or it may be an opportunity. Haha.
Happy hunting for one.
Property News Malaysia? 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.
Next suggested article: True cost of a property is not when we are young
