Property Investment 101: If you bought at high price, don’t blame the market lah
Seriously, that’s the price you paid for? They promised you? They gave you rebates?
Sorry in advance. Siapa makan cili dia rasa pedas. Property price does NOT go up because the market looks to be moving again. Especially when you have bought at a high price because of an amazing sales presentation from the sales person or because of a huge rebate / discount from the developer from their advertised selling price or “that area is super popular mah, sure many people want to buy…”
Furthermore, all the money you received from the property you bought, you used it to buy things and not invest it or save it up. By the way, this is why people kept saying they could not afford the property downpayment yeah. They follow some personal finance advice on how to save money… but these savings were then used to buy things. Plus some ‘clever’ people also advocate that renting is definitely better than buying. Well, you are reading kopiandproperty.com and I say “renting is forever.”
Renting is a better option? Here are some news for all of us
What all these news are telling us is that renting is very popular. It is confirmed. Many people are renting. Maybe a small number are renting to save money for downpayment in the future. As many people are moving to cities for work and they are looking to rent versus buying, demand for rental property would continue to rise. Even after working for many years, due to the popularity of Buy Now Pay later trend, these salary earning professionals would prefer to continue renting so that they have money to buy more things they want. This is why more and more people would prefer to rent yeah.
Aiya… renting issues only happen in Malaysia
No, this trend of renting versus buying is not just happening just in Malaysia. Some examples below:
In case you say, wah… London rental market is falling… do read the article yeah. Renting a room is over 1 thousand pound and the median salary for someone working in London is 44,000 Pounds or 3,667 Pounds per month of which close to 30% goes to rental of a ROOM yeah. Not one apartment yeah.
Be careful and know what you buy
One easy way to know if you are buying an overpriced place is to look at the property price versus similar properties (secondary market) in the area. If these properties in the secondary market are not showing any increasing signs and the rental seems stagnant, then that whole neighbourhood may be an issue too. This is why when we buy, we need to know what we are buying. The discount percentage alone must not be a reason to buy yeah. There’s a reason why a huge discount is given too.
Happy understanding.
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