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Lots of good advice for 2019 real estate goals.

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First of all, 2018 has been a pretty subdued year for everything, not just property market. Somehow, majority of everyone seem to carry a negative sentiment in whatever they think and do. Many say they could not spend more when they travel overseas because ringgit kept depreciating. Actually, it has only depreciated a little this year, much lower than 5 percent PLUS the fact that these Malaysians could still TRAVEL OVERSEAS should say a lot about their earning power right? Anyway, many would agree that 9th May 2018 should be a turning point. Well, if so, then why still do negative? 🙂 Instead of listening to me, how about listening to all the prominent property people in the property world?

Article in EdgeProp.my here. I will just cut and paste one which I agree nearly 100 percent of what he said. This is the view of Lim Boon Ping MIEA’s President Elect.

Top three challenges for the property market in 2019
1.    How to keep the property market vibrant while managing price hikes. It’s always a tug of war between the two. When the market gets vibrant, property prices increase, leading to affordability issues. On the other hand, too many cooling measures may affect many other industries related to real estate. 

2.    How to ease the lending process, but still ensure that only those who can afford to, obtain bank loans. While many complain about the stringency of the current lending policy, the bank has to ensure that the people who borrow are truly qualified. 

3.    The reach of affordable housing to those who need them. Although there are many so-called affordable housing projects in the market, are they really ‘affordable’? 

Market catalysts
Technological innovation and crowdfunding will change the way properties are transacted or owned. For instance, developers have started to sell their properties through online shopping portals like Lazada and through the FundMyHome scheme. Developers are trying to incorporate Real Estate Investment Trusts, or issue bonds through Special Purpose Vehicles into home ownership in Malaysia. All these will bring a paradigm shift to the property landscape. 

Advice for investors
It doesn’t matter when you bought your property, it matters when you sell. As long as you hold your property long enough, it’s almost an assurance that you will make a profit out of it.

Describe 2018 in one word:

Describe what 2019 would be like in one word:
Recovery: The property market has actually started to shrink since 2012. We believe the market has hit rock bottom in 2018, in light of the weakened market sentiment and uncertainties from the change in government and its new policies. In 2019, people will have a better and clearer direction as to how the new government is going to run the country, including the policies affecting the property sector. Business confidence will improve as a result of greater transparency and better governance.

— end of Lim’s view — Full article in EdgeProp.my here. (lots of other views too)

I would just like to point out that we should help Malaysians own a home but we should never ever relaxed the rules that those who could not qualify are also approved to borrow. Remember the history of how Sub-Prime Mortgage crisis in 2008 and learn from it. If downpayment is needed, the owner MUST somehow be disciplined enough to save for it instead of paying nothing and still get to own a home! So, it should be a question of how to get these people to save more, either through earning more or changing their consumption habits. Happy reading that very informative article yeah. Cheers.

written on 29 Dec 2018

Next suggested article: Property market declining and recovering within 2019

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