Property Investment 101: You hate that property last year, will you like the same property this year??

Property Investment 101: You hate that property last year, will you like the same property this year??

I was speaking in REHDA Selangor’s MAPEX (Malaysia Property Expo) and I guess the crowd was pretty okay or maybe my sharing was okay? Haha. Does not matter, as long as people have gained from my sharing. I shared something about overhang property and I asked everyone this pertinent question. Let’s say we went to view a unit last year and we simply hated it tremendously. The design was bad, the location was bad, the color used was bad and basically even the price was bad.

Unsold last year, what about this year? (I meant that same unit)

Thus, it remained unsold last year and this year you went to the same unit. Do you think you will now fall in love with it? Chances are, unlikely. Well, unless if the price is down by 50 percent maybe? Then the price to value balance is now better versus bad design and high price… right? This is why once a particular property falls into overhang, chances are that property will be in the overhang statistics for a very long time lah. Take a look at the below to understand what I meant.

What is overhang by the way?

“In Malaysia, property overhang refers to completed residential units that remain unsold for more than nine months after their launch date. This definition is used by the National Property Information Centre (NAPIC), the authority on Malaysian property data. It signifies a mismatch between housing supply and demand, where completed properties are not being purchased by buyers.” This is by NAPIC yeah, so this is the official one. Briefly, after keys are handed over to buyers and all the remaining units which remain unsold for the next 9 months. Look at the data below to know that it’s been unsold for way over 9 months.

How many units are in the overhang category anyway

There are a total of 23,515 units under OVERHANG. Out of these only 6,011 units are below 3 years. The rest, or over 74 percent are all 3 years or higher! In fact, 50 percent are 5 years or higher! Hope you get the picture now yeah. If you still look at the overhang numbers as you main criteria to decide whether or not to invest into property, do think again.

A better way?

Know about property investment. Know about the price per square foot ft for the type of property you want to buy. Know the reason why you are buying it. Understand totally about the potential pitfalls; over-stretching, overpriced, over-thinking and lost a great deal and more. Read kopiandproperty.com lah. We will update you on all the necessary too. Changes in policies for example. New trends for example. How to decide on which to buy for example and more. Happy buying!

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