Property Investment 101: Good News, Bad News, it does not change whether you buy or no buy

Property Investment 101: Good News, Bad News, it does not change whether you buy or no buy

Used to be so hard to find good news

Seriously, during the Covid-19 times, even the news were all negative. As usual, kopiandproperty.my was one of the few media continuing to write from an objective point of view. 🙂 Haha. Nevertheless, it was tough because no one likes good news and the number of clicks when it is good news is much lower than when it’s bad news. I knew about this long time ago but will not resort to writing bad news, sorry.

In fact if there are some ‘foolish’ bad news comment, I will write about it so that people understand that the perspective may be very wrong. One real example? Ringgit is depreciating so much it is worst in the world. This is a ‘bodoh’ statement. Here’s the actual number. Ringgit versus major currencies By the way, US$ has risen versus any currency you know. That’s a fact. Period.

Now, everything seems to be positive news

Just google ‘property market Malaysia’ and you get something like below. generally all are positive news yeah. Seems like I do not need to write much. However… look beyond this image to the next paragraph please…

The reason to buy should be a valid one

If the reason to buy is because the property is next to your parent’s home, whether market good or bad is secondary. Buy it now or lose it forever maybe. If the reason to buy is because your colleague is selling it at 30% below market because he is leaving Malaysia and not many people know about it, better buy it now. Market has got nothing to do with it because even assuming after we buy an undervalued property and the market transactions slow down, the prices will recover in the future. Unless inflation disappears from this world, else prices would continue to move up! Our salary will also be rising too. if it’s not, it’s not the world, it’s something wrong with the person.

If the reason is not a valid one, then skip the buying and do something else

If you are buying because your best friend said so, better think again, regardless of whether market is good or bad. If your friend is a real estate agent, then ask for more information before deciding and if the information could not be found, better skip too. Usually your real estate agent friend should be able to give you information so that you can decide.

If you are buying because the discount is high but you do not know if the price is low or high, then skip lah. Higher discount has got nothing to do with whether it’s under or overvalued. One main reason for prices to fall a lot may also due to the prices being too high in the first place. Again, nothing to do with whether market is good or bad.

A wrong purchase will set us back many years in our property investment journey. It may even ‘kill’ all our chances at the next investment opportunity. Investment also does not have to start with property as well. It could be many other choices. Just do not rush into anything we do not yet understand enough. Happy understanding and reading. Decision can be later lah.

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