Property News Malaysia. Buy before price rises in 2022?
Every now and then, there would be some articles quoting some property experts telling the world that it’s better to buy a property now because when the property market recovers, then the prices would rise and we would miss the opportunity to buy at the lowest possible price. There would be some predictions. For example, in 2020, when we started to recover from Covid-19, there was a prediction that property market Malaysia will rise in 2021. Then, Covid-19 returned with a vengeance. (By the way, it is NOT clever to allow inter-state too early yeah. Sharing facts here)
Another prediction for 2022 for property market Malaysia
Now, there’s the prediction under property news Malaysia for a recovery in property price increase. 2022 is the year of property market recovery. Actually, if we look at the property market of countries which had managed to control the Covid-19 situation, property prices are rising. For example, U.S., the UK, Australia and even New Zealand. Their prices are generally rising in double digits. In fact, Australia’s home price has risen too fast for comfort and has received a warning from the International Monetary Fund (IMF) Please read here for the article.
So is it true then that 2022 will be a year of recovery for property market Malaysia? We also need to know that the government has also announced another 500,000 homes to be built within 5 years yeah. (Read here for details)
How about looking at property investment as an investment and not a speculation?
Well, let me tell you this little secret (from someone who’s not from the developer, not from any real estate agency and certainly not someone with a course to sell at the end of this article).
Actually property prices do rise if we take a long term approach to property investment. Plus, opportunities will always exist whether yesterday, today and definitely tomorrow and beyond too. Please take a look at the Malaysia House Price Index by type below. Look closely at the lines and note that 5% and the -5% and the middle point of these two would be ZERO. Hope we could see that most of the time, the lines are above zero yeah.
How about looking at it over a longer period then?
If we use 2010 as the base year, then we can see that on a 10 year basis, the property price has been rising. It does NOT rise every quarter as we could see the trend in the chart above. However, overall trend is a positive one. This is the most IMPORTANT FACT There’s little need to try and game the market when it comes to property investment. The HUGE discount does not mean the best buy or the SMALL discount does not mean a bad buy. Buying the WRONG property is the one which will affect us the most. Thus, due diligence is required yeah.
Focus on WHY, it will be a better decision versus on TIME
If we need a new place because we want to have a bigger space for a growing family, then stop focusing on just new properties but extend the choices into the secondary property market too. This gives us more choices too.
If we are single and we prefer to have an easy working life (wake up at 8am and in office by 830am), then stop thinking about buying further away just because someone told us to buy a bigger place further away from city centre.
If we are buying our first property, then focus on affordability and not dream home. Our dream home will keep changing as our income and circumstances change over the years. No point in over-stretching financially and having sleepless nights every month!
This is why we must focus on WHY instead of being too influenced by some articles quoting some experts that we better buy a property soonest because price will be rising a lot in 2022. Rushing to buy may just be that wrong decision we will regret later. Hope everyone gets to own a home they could turn into their home sweet home.
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