When is best time for property investment?
1998: Is this Best Time or Worst Time
If someone invests in the worst time, such as the ASEAN financial crisis in 1998, whether that person is buying the stock market (some profit-making counters), real estate (prices in 1998 or today?) unit trusts.
It is approximately 23 years from 1998 to today. Her investment can easily triple or more. Is that the worst time? For those who invested, they said the best time.
2008 – 2013: Best or Worst Time?
If someone buys a property during the boom, and she happens to buy it at the end of the boom, then that person may need to have the power to hold.
This is because after 2013, property prices are different from the five years before 2013. This means that investing in a boom may not have a good return.
Well, unless someone manages to invest in some undervalued properties even during the economic boom.
2021: Best time?
Actually, no matter what is the timing, property investment should not be in short term, where buy and flip speculations is unhealthy.
But when it come into minimum 5 years for example, the total numbers is always up. Unless you are buying without understanding.
Best time for property investment is when we are ready
First, looking around for opportunities
For people who have not bought a property, the best time may yet to come, it can be very soon especially you had started to read around and you are here with me — Cheston Choo
Charles Tan, Founder of kopiandproperty.com, my favourite speaker who frequently speak over the property event out there. His favour quote of best time is “20 years ago; the second best time may just be today”
That’s why, start to look around for opportunities is the key to grab the best time and not wait until the best time arrive.
Second, do not stretch to buy
Yeah! Got a fantastic deal which below market value for 40%? But we need to stretch ourselves because it is a “best deal”, if not we will lose the chance.
That’s not clever anytime, no matter good time or best time, it can be just worst time.
Simply because any unforeseen circumstances happened, recovery need time, if we need to sell urgently, it can be even lower than the 40% where we bought.
This is why if we did not over-stretch ourselves, we should able to hold until the recovery.
Past crises have shown that recovery is a certainty here in Malaysia. From the 1980s to the 2008 US subprime mortgage crisis, nothing has bothered our property market for more than a year or two.
Last, be ready or go for next
For a property investor, the worst time is when we could have bought but couldn’t make it. I still remember the time I bought my first apartment in Sungai Ara, the size of 700 sq.ft. and the price was RM132,800.
After buying that one, actually my ex interested to buy another unit for RM142,000 in Relau. However in the end we did not proceed.
For the apartment in Sungai Ara, it sold at 310,000 7 years later, what if we bought the other unit too…
Then, there was this condo purchase in Simpang Ampat during 2019 before COVID-19 hits. The units come with 802 sq.ft., 2 bedrooms and 1 long car park which car park two cars front and back.
The price we bought at RM367,690 where this is for rental return, and the instalment is RM1,288.49 per month and we managed to rent out for RM1,200 quite immediately upon CCC.
The tenant who had decided and paid their booking fee without our furniture move in, just see the unit and the photos of furniture we booked. And this is during COVID-19 pandemic.
What if I could bought with a second unit there? Right? It’s okay, not to worry “Missed Opportunities”, be ready and grab the deal; else go for next.
Best time for property investment
The best time to buy is when we are ready to buy, looking around for opportunities and do not stretch to buy.
The worst time is when our buying budget is actually need to stretch on our commitments, it could be very painful when we found the property we’d love to buy but have to give up because we could not afford it.
Sometime, this may result in “property investment phobia” and will not dare to buy without the right way.
Please discard “when is best time” thought and focus on making that first-time property purchase a success. Be ready for the time, when the time comes.
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Besides finding a best deal, here 7 tips to spot a reliable real estate negotiators .