Helpful tips for property investment 2022
Summaries of tips for property investment from MIEA President Chan Ai Cheng which is reported on Thursday 24th February 2022 by themalaysianreserve.com
Report on Thursday, February 24th, 2022 at themalaysianreserve.com Property prices not likely to ease any time soon. Hence, interested individuals should purchase them based on needs and financial ability, industry stakeholders say
Summaries of tips for property investment 2022
Property purchase based on personal needs and financial ability
It is the right time to buy properties for “own occupation” largely
Financially ready to pay the instalment now and be ready for the instalment amount to increase by up to 20%.
Property prices have adjusted due to the pandemic and barring any unforeseen circumstances, MIEA doesn’t envisage the prices going down further.
The building materials cost index rose 0.3% to 3.1%, pushing up construction costs, and a labor shortage will put pressure on prices.
Real estate prices are known to rise and fluctuate over time and are now at one of the lowest points.
We believe now is a good time to buy if you need it and can afford it. The longer you wait, the higher the price, then it will be out of reach for many.
According to the Economic Report 2022, the Malaysian economy is expected to grow by 5.5% to 6.5%. “This gives confidence to the market and we foresee that many new purchasers will enter the market as they have waited for two years now, many have saved money for this purpose and most importantly they have a need for a roof over their head.”
Buying a property is never a good or bad time, all it takes is enough money to lay down the initial capital, get a loan and have the courage and commitment to see the payments.
Always let data guide your decisions.
Property investment is long term also compulsory needs
If we overextend financially, we take very high risks. I don’t think it’s necessary to take such a high risk in order to buy a property. Manage it by knowing what we can really afford. Once we buy, it’s a monthly repayment for the next 360 months or more. Please be aware of this.
Renting is absolutely fine. Just don’t spend as much money in the rent we pay. This will mean that we will rent, rent and rent forever. By the way, even if the owner is currently suffering from negative yields, the owner’s long-term financial future will be brighter than his/her tenant’s. This has been demonstrated in all advanced real estate markets to date.
It’s not easy for house prices to fall because the owners don’t want it, neither do the banks that technically own the property, and not even the government wants it to happen. Even home buyers, they want prices to fall, but once they buy a property, they don’t want prices to fall…
The economy will be a factor in confidence, as well as the ability to buy or not to buy because they have a job or a higher paying job.
Don’t believe what non-buyers say. They always talk about doom and gloom. Don’t believe what the real estate sales/developers say. They will always talk about zoom and boom. Frankly, back to basics. Search for typical rents to find out if the property price is right. Search the last transaction price to see the actual price and what people think. As MIEA President Chan said, “Always let data guide your decisions.”
Best wishes!
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