Property Investment 101: Property price update. Going up or coming down?
The below scenario will not change then, now and forever
Typical Homeowner: I want to sell as high as I could. My property is a very good property.
Typical Homebuyer: Please sell me at a lower price. Market is slow, I want better prices before I buy.
Homeowner with an overpriced property: If I sell at this price, I will lose money. If I do not sell, then I have to keep paying the monthly mortgage. Property investment is such a bad investment.
Homeowner with an in-demand property: I prefer to have that extra RM50,000 even if I know if I reduce it by RM50,000 I could sell quickly. Let’s look at some of the offers first.
The right mindset, maybe?
Homeowner need to focus on what they intend to do with the money once they sold the property. If it could be used to generate further returns, then delaying this also mean ‘losses’ too and not just whether the price is higher or lower.
Homebuyer would need to focus on what they really need. By the way, just because the area is loved by all has no meaning to everyone else whose office may not be nearby or that the price is just too high. Paying monthly mortgage means only part of the payment is ‘lost’ to interest. Paying rental means the WHOLE payment is ‘lost’ forever. There are no gains at all.
Now, let’s look at some latest property price update
First up, Sydney in Australia. Seems like prices are climbing again after 13 months.
Meanwhile UK house price is falling at fastest rate since 2012.
Meanwhile in Malaysia, this is being reported. It seems that prices are rising and yet demand from buyers remain weak? Okay, means what yeah. Means going up or actually coming down? Well, as usual, the situation which I explained above is still happening yeah. Homeowners always want higher prices and potential buyers always want lower prices.
As per the article, data analysis showed that home prices being demanded by owners will be rising BUT demand for the properties remains weak. By the way, if we think this means prices are going down, then think again yeah. For certain neighbourhoods, prices will rise and demand will have to surrender to the higher prices being demanded. In some other areas, whether prices rise or fall, demand will still be low and that means prices will remain subdued unless the whole property market rises which will lift all prices. I personally do not see that happening in 2023 but I also hope I am wrong for my sake. Haha.
Happy buying or selling depending on which side you are on. I am on both sides.
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: It’s not an investment if we know nothing about it
You must log in to post a comment.