Before you continue reading what I personally think about the viral news about the possibility of property price falling by 70%, do read this important view from FIABCI Malaysian Chapter President Michael Geh about the property market of Malaysia: Malaysia property market in one word? Resilient. Once you have finished, then do read this prediction from International Monetary Fund (IMF): GDP 2021 Malaysia is as high as 9%.
A reader of kopiandproperty.my wrote to me with this message and he attached that 70% property price reduction article. If you know Mandarin, click here then. Somewhere in the article was an example that a property sold for RM1 million in 2019 may drop to RM300,000 to RM400,000 in a few years. The one who predicted was also careful to mention SOME property types and he definitely is not talking about the whole property market yeah.
So, what are my thoughts? Perhaps we look at three groups of buyers shall we? If you need a home because you are currently renting and you are buying your very first home, please do due diligence. Heavy discount does not mean the property price is cheap. Do actual comparison before deciding. Get to know what were the earlier transacted prices first. Here’s one site to get to know more the price before you buy. Buying a property with reference to transacted prices is possible . Also, no harm in considering the secondary market because what you see is what you get and there’s always that better negotiation power currently.
If you already have a few properties which you are struggling to rent out today, be realistic. Even assuming property prices do fall, please think twice, maybe thrice before even deciding to buy okay. No one can predict how long this COVID-19 pandemic is going to be because truth is, there are no vaccines yet and the number of infections continue to rise by over one hundred thousand new cases every day… The only positive may be that the worst countries seem to show a slowing trend of new infections. Plus some countries have started reopening their lockdowns too. Some countries have started their reopening
If you have some spare cash but has still not found that property to buy, do not just save that money and do nothing simply because you want to wait for SOME property type which will reduce in price by 70% in a FEW YEARS’ time. If not property, perhaps one of the blue chip stocks where worse case scenario, you get dividends higher than the FD rate? Frankly, the FD rate is more likely to be going down slightly lower yeah. It is part of the monetary policy to help the economy.
So, there you have it, if you are within these 3 groups, here are my thoughts for you even after reading that ‘terrible’ news article. Yes, I will still be buying property after the MCO but I need to view it first yeah, definitely will not be buying any property by looking at some online videos… Happy understanding.
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