Property Investment? Some good advice for property buyers from Malaysia Institute of Estate Agents (MIEA) President Chan Ai Cheng
Happy learning from her experience yeah.
The full article in themalaysianreserve.com. Summary of her sharing as below.
#1 – Purchase must be based on needs and financial capability
#2 – Purchasers could rent first if they are not sure of their job and financial stability
#3 – MIEA does not think property prices will be going down further. Building material cost has gone up.
#4 – “It is our view that it’s an opportune moment to purchase if you have the need and ability to do so. The longer you wait the higher the price will be, then it will be out of reach for many.”
#5 – The Malaysian economy is expected to strengthen between 5.5% and 6.5% as per the Economic Report 2022. “This gives confidence to the market and we foresee that many new purchasers will enter the market as they have waited for two years now, many have saved money for this purpose and most importantly they have a need for a roof over their head.”
#6 – There has never been a good or bad time to purchase a property. It really depends on whether buyer has sufficient funds to lay the initial capital, secure a loan and have the heart and commitment to see through the payments
#7 – Always let data guide your decisions
The full article in themalaysianreserve.com
Property Investment is long-term. It’s also compulsory.
If we over-stretch ourselves financially, we will be taking up a very high risk. I do not think there is a need to take such a high risk just to buy a property. Manage it well by understanding what we could really afford. Once we buy, it’s monthly repayment for the next 360 months or more. Be aware of this.
Renting is perfectly fine. Just do not spend as much as we could afford to buy in the rental we pay. That would mean we will be renting and renting and renting forever. By the way, even if the owner is suffering from negative yield for now, the long term financial prospect for a landlord is going to be brighter versus his / her tenant. This is proven in all advanced property markets thus far.
It’s not easy for property price to go down because owners will not want, banks which technically also owns the property also will not want and even the government will not prefer for that to happen. Even property buyers, they want the property price to go down but as soon as they buy a property they will also not want the price to go down…
Economy will be the one factor determining confidence and also the ability to buy or not to buy in terms of people with salaries because they have a job or higher paying jobs.
Stop believing what non-buyers say. They will always talk about doom and gloom. Do not believe what property sales / developers say. They will always talk about zoom and boom. Frankly, go back to basics. Search out the typical rental to understand if the property price is okay. Search out the last transacted prices to know the actual price versus what people think. As President Chan has said, “Always let data guide your decisions.”
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