Oh… I know why you are not buying, and why you can’t sell your properties
Source: Central Intelligence Agency, USA.
* Article by Freemind Works *
And yes, it has all got to do with GE14 which is around the corner.
To discover how the Malaysia’s 14th General Election affect the property market. Click here.
In many of my talks, I always ask the audience through a survey; and the result is always consistent. The market was and still is filled with fear.
Most people, generally, are taking the “wait and see” strategy, which explains the current soft market. And this is reflected in the data where market was moving sideway or ‘stagnant’.
How the property market will react post-election will be due more to fundamental factors than anything else. Let me elaborate.
POPULATION
Malaysia is a young and growing nation; with healthy and increasing population.
Every year, tens of thousands of graduates’ leaves school and home for work.
Some eventually settles down and start a family. They will need to either rent or buy their own home.
Majority of Malaysian population are aged between 20-44 years old, the working age group who can afford to buy or invest in properties.
Looking at the medium to long term, the property market is very well supported by the locals, especially for properties priced below the RM500K range.
INFLATION
With petrol prices fluctuating and some subsidies removed, inflation is easily more than 4%.
One glass of teh tarik that cost RM1, 5 years ago is now between RM1.50 to RM2.00 at 100% price increase.
So, what has properties got to do with inflation? In fact, inflation is the #One Reason why property price increases over time. Building materials are more expensive; and land and labor cost are escalating.
Therefore, instead of complaining about everything getting more expensive, why not let inflation work in your favor instead of against you.
On average, property prices double every 10 years.
So, my advice to you is to buy property and wait, not wait to buy property.
SUPPLY/ DEMAND
It is important to evaluate the supply and demand in a specific location you want to invest in.
In the current property market sentiment, it may seem like supply is more than demand. Looking from another perspective, it is due to the weak demand in the buyers’ market.
The decision and action of the local and federal government, as well as policies introduced post-election is important to solve the problem of the overhang of properties in certain areas.
Changes and development such as new infrastructures – highways, bridges and LRT/MRT project will improve connectivity and marketability of projects in some area. This will in turn increase the demand and pushing properties prices to increase.
Incentives such as tax relief and stamp duty exemption given to buyers and investors, especially to 1st home buyers, will definitely boost the property market.
Conclusion:
If ‘ubah’ happens, how will the market react? Will there be chaos and uncertainty? I do not have a crystal ball, but the dust eventually will have to settle down.
The other scenario is the current government continues to rule the country; whatever was promised will need to be delivered.
Whichever the GE 14 outcome, whether “ubah” happens or status quo remains, the property market will be uncertain for the next 3 – 6months. Regardless, the 3 factors above are critical in determining the changes to the property market trend:
- Will there be a property bull run similar to that in 2009/2010?
- Or the property market continues its sideway movement with property prices remaining stagnant?
- Or worse, will there be further correction and property prices continue to slump …
To discover more about the different scenarios and how to position yourself to profit in the current market, I will be sharing how can capitalize the post-election market using the Master Key Method® and how you can invest in Property With Under RM1,000 and make RM20,000 to RM60,000 A Year with high ROI, on the following date:
Date: 12 May 2018 (Saturday)
Time: 1pm – 6pm
Venue: Bayan Baru, Penang
It is important to vote for our country’s future and it is equally important to secure your own future for your family and children.
So do block your calendar and reserve your seat.
And now for the good news. For readers of Penang Property Talk, you get to attend this workshop for FREE. But only for the first 17.
As seats are limited, click here NOW to reserve your seat:
– Kaygarn Tan
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