These days, there are many articles about what 2019 would be for the property market. I think most are skewed towards being positive about the property market. However, some are a little too high end for first-time home buyers. I know because I was once a first-time home buyer and I do not understand what is property clock or even potential property bubble bursting. However, every time I read about these stuffs, it made me worry and well, I take no action. Imagine if we are buying something which is RM500,000 first time in our lives, are we NOT worried? So, many try to wait for the perfect timing to buy…
#When to buy? – Honestly, for first-time home buyers, stop worrying about when is the market going to recover or when will the market reaches the bottom. Property buying is LONG-TERM. This is not buying this year and sell next year! Always understand that when we buy that first property and use it for own-stay, we save on rental which will likely be HUGE if we are to calculate them for a few years. Earlier article here.
#When is the crisis coming? – Second understanding is this. Every time there’s a crisis, home prices will drop. This happens in ALL markets. From the 1998 to the 2008 and even when we look at all advanced property markets, the same things happen! However, it will soon recover once the economy moves again and well, prices are usually up because salaries tend to rise with time. Earlier article here.
#What’s the future like? – Third most important understanding is this; Malaysia is a young enough country which meant that growth in demand for properties will continue and not going down when compared to some countries which are already in the ageing category. Earlier article here. Median age is still below 30. However, it has got nothing to do with buying in the youngest country yeah.
#Where to buy? – That mantra of location, location and location is a correct one. However, for first-time home buyers, if we buy based on the mantra of WHY, our choices will suddenly expand and the price range will drop. Everyone must remember that once upon a time, there were only those few mature neighbourhoods. Today, there are so many new emerging neighbourhoods. Buy one which meets many of what we like, not when we find one that is PERFECT because it’s likely to be EXPENSIVE too.
Happy reading and please feel free to write in to share. Let’s help as many first-time home buyers as possible to understand that opportunities do not exist only for the super-wealthy or those buying to speculate. It exists for all Malaysians but some just do not have enough information to make their decision yet.