Still buying property? There are lots of bad news, actually.

These days, when people talk about property, they point to the lower transaction numbers. They point to the potential oversupply in Iskandar. They talk about the units without lights at night which meant that potentially prices will fall. Everything seemed to happen domestically. Have we forgotten about the world? How about the war in Middle East. The one by Islamic State (IS) which is attracting fanatics from all over the world to join their war against everyone who does not conform to their beliefs? Arrests in many countries including Malaysia. There are definitely the possibilities of terrorist attacks in many of these countries which are in confrontations with the IS.
China is trying to warm up its way too cold property market which is killing the weaker developers and threaten to bring down its economy. Success of such a measure is not a certainty though as everyone knows, China has the largest reserves in the world and is considered the world’s engine. I am not so sure if any country would want them to fail. US grew 4% last quarter. What an amazing growth for a developed nation but annually, the growth is expected to be just marginal and the 4% is unlikely to continue in Q3. Singapore’s property market has already dropped where prices are concerned. HDB prices expected to drop close to double digit by end of this year versus one year ago while the luxury condos has already seen double digit drop. All these three are closely related to Malaysia. So, if they are not doing that well, should we not be worried?
chinaMalaysian stock market has fallen for past few weeks. Foreign funds are dumping shares weekly. Fortunately, these positions are supported by domestic funds and even people like you and me. Yes, recently I have bought a few more stocks that I like. All these are bad news, actually. So, are you still buying property? Well, my friend asked me the other day if I am still buying properties. I told him my answer remained the same. When you buy objectively, anytime is a good time to buy. I am not sure if I am right but I think when markets are slow, that’s when you may find bargains and not the other way round. At this moment, I am still saving but hopefully I can buy another secondary property within the next few months.
Never stop reading and knowing what is happening. If all the bad news above become worse news, you may want to take precautionary and defensive actions. Happy reading.
written on 16 Oct 2014
Next suggested article: China’s Property Market Rescue Package Deployed


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