Why are people still buying properties?

Actually, the question can also be, why are people NOT buying properties? This is because in any discussion at all, especially with one group which has not yet purchased their first property, the question is always, when should we enter. However, if we are in a discussion with a group of seasoned property investors, the question would always be where is the next potential area / development to buy. Two extremes they may be but they reflect the situation in most markets, except for the over-heated ones. Anyway, why are people still buying properties? Some reasons below.
Can’t rent forever. Okay, maybe some would prefer to rent forever. Not everyone thinks like that and many love the feeling of opening the door to their own home. Some may even have father-in-laws who would insist the new couple to own their own home and not rent just a room.
Urbanization. I was just speaking to a Penangite the other day. He asked for the property prospects of Penang vs KL. I think we need to understand that all major cities in the developing world would always be attractive to people from smaller towns. They want job / business opportunities and only the city may provide them that chance to be rich.
Repeat. Every time we are successful in our investments, we tend to repeat them. As long as we did not buy the wrong property, the prices of the property we bought would definitely be on the way up. Some slower, some faster but the trend is simple. Under normal circumstances, the only way is up. In fact, who wants the prices to come down?
Asset. Investment portfolios are changing and property is fast becoming a darling for many. It’s however very safe to say that property investment is solid (you can touch it), clear (you can see it) and safe (most of them, anyway). So, have you included real estate as part of your portfolio yet? Please don’t tell me that you have yet to start investing.……………..
So, the above would be just four simple reasons to answer the question many people have asked me. Nope, I have not gone into other factors such as demographics (we are a very young country), new public transportations such as LRTs, MRTs (soon), buying for upgrades and even affordability. In case we did not notice the cheap ones, actually they remain available and unlike the luxury ones, Malaysia has yet to reach the stage where a 500 sq ft apartment would be used to rent out to over 10 pax! Okay, why are people still buying properties? Please answer………….
written on 1 September 2016
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