It’s no secret that Malaysia’s economy has gone through a downward spiral. With 2 major airline incidents in 2014, followed by the steep drop in crude oil prices and political unrest, we aren’t expecting to see an improvement for at least another year to come.
Too many people get immerse with the negativity of the situation and are on the defensive side when it comes to investment and spending. The conservative mentality to “save for a rainy day” and wait for market trends to improve keep them blind towards the potentially fantastic deals in front of them.
One of those such deals is the situation of our real estate market. The trick is educating and training yourself on how to spot good deals, and then acting on these deals as soon as the opportunity arises.
In the past 10 years, property prices have gone nowhere but upwards, and will continue to rise and rise. Should you buy a house now? Or wait for another 1 or 2 years for the economy improves, or in hopes that the property markets reaches a cooling down period with hopes of prices falling even if just by a little?
Don’t wait. The rule of thumb is that the price of a house is always higher next year, than it is this year.
Here are 5 reasons why you should consider investing today.
1. Completion of Mass Rapid Transit (MRT) in 2017
a. Take a look at the trend of property near any LRT station. Prices of such locations have doubled in the last 10 years.
b. Easily accessible public transportation has always been one of the key factors that contribute to a property’s value.
2. Sellers are desperate to sell
a. With the majority of people being cautious in spending and investing, property sellers have suddenly found themselves to be in a tight situation.
b. Consumers are preferring to rent, rather than invest a large sum of money in the purchasing of a house. Even with renting, sellers might not be able to cover the housing loan installments and end up having to top up from their end.
c. Due to this, sellers are desperate to free up their cash flow and eventually will be willing to let go at lower, reasonable prices.
3. Property prices will continue to increase
a. If you think property prices are currently high, you’ll only think it worse in the future.
b. Regardless if you’re renting or you own the home you are living in, you are paying a monthly installment either way. Wouldn’t it be better to be paying a housing loan and end up owning the house at the end of the day?
4. Real Property Gain Tax (RPGT)
a. RPGT is set in place to control sellers and investors, by forcing them to hold properties for a minimum number of years instead of flipping them as soon as they get the keys from the developer.
b. By stopping this, this will reduce the speculation of property prices before sellers unreasonably spike prices whenever they see an opportunity to do so.
5. Future Economy Improvement
a. The economy is bound to recover in the coming years. The ringgit value will increase and people will be more willing to spend then.
b. Do you want to start at the bottom and compete with the majority at that point, or do you want to start off with an advantage, ahead of everyone else with your properties having gained value with the improvements of the economy?
A market slowdown isn’t necessarily a bad thing. Every cloud has a silver lining. Look for those hidden gems, fantastic opportunities are just waiting to be discovered.