Property, to buy or not to buy now in year 2021? Seven (7) points to look at.

Everybody need a roof that is for sure. Currently the younger generations feel that to own a property is a burden. They prefer renting as they feel that they can pack their belonging and move to another property anywhere they like after the lease expire, be it lower lease or higher lease.

And we are not Germans. German prefer to rent than to buy as their government encourage property renting instead.

 Based on Q3 2020 Malaysia National Property Information Center (NAPIC), there are 16,765 units of high rise residential as in apartment or condominium which are overhanging.

If you prefer landed property instead, there are 8,607 units available. Service apartment which hold commercial title, has 24,267 units overhang in Malaysia.

 

 

To give a summary of this property report, based on popular price range they are:

1a) High rise condominium / apartment : RM500K - RM700K = 4,473 units

1b) High rise condominium / apartment : RM300K - RM500K = 3,871units

1c) High rise condominium / apartment : RM200K - 300K = 3,474 units

2a) Service apartment : RM700K - RM1 million = 8,905 units

2b) Service apartment : RM500K - RM700K = 5,517 units

2c) Service apartment : RM300K - RM500K = 2,307 units

So come back to this main question. To buy or not to buy property in year in 2021?

Before you jump into property buying, check this out.

1) The location you are looking at, what are the potential to rent out or sell in the future?  Are there many empty residential nearby?

2) Are you buying a new property or second hand property? For second hand property, try to rectify and check the property first before you commit. For new property, most developers will usually give grace period of warranty so it should be fine.

3) Is the environment easy access to transport, school, shopping center and amenities?

4) What is the surrounding area? Are there any empty land nearby which may build future high rise buildings, a mosque or a public school? You need to be careful with those nice looking forest!

5) Are you looking for own stay or investment? Do you have extra money that you can invest and wait for the market to pick up?

6) What is your age? Can you try to pay more deposit? The younger you are, of course it will be better too.

7) Where can you get your funding? Can your EPF and/or your parents help you on bigger chunk of deposit so your monthly installment can be lower?

 

  

To be honest, based on the current market situation whereby the pandemic is half the battle, it is better to look at property as your first property if you do not own one yet. The current situation do not favor on investment unless you have extra money to wait for the world economy to escalate. The present market price should be slightly lower than normal as this is the time some property owners are willing to go down on their expected price. As for the new units, developer are giving out more freebies.

We know that to own a property is better end of the day. The bank interest rate is lower too and our Malaysia government is encouraging people to purchase anything just to make the economy moving forward.

Take a look of the above Malaysia NAPIC report, there are many choices based on your budget. This report does not include the second hand market yet! So go around and scout for your property now based on your budget!

 

 

We have a property to rent out. 9 points to look at!

 We have a property to rent. Which scenario am I?

a) We have been staying in this property for awhile. Then one day, my wife and our family went shopping and there is a property show at the shopping center. We see different properties from various developer and then one nice salesman made an appointment with us and brought us to see the showroom. The beautiful interior design caught our eyes, and after some calculation, we decided to purchase this new property.

b) My wife and I have some extra money and we thought why not we buy another one for investment?  We have friends who have properties not just here in Malaysia, but in overseas too. That is how many property and real estate moguls make money like Donald Trump, Robert Kuok, and our very own Malaysian property developers. Unless you a an IT geek like Facebook Mark Zuckerberg and Alibaba's Jack Ma, then most probably property is one way  to make money since everyone needs a roof. 

So finally one day my agent called me and she found a new tenant for us! We need to pay the property agent 1 month commission, and the rest of the rent we collected shall be our income. That is pretty much a good deal.

 

But the tenant disappeared without paying my rentals. 2 months rentals!  Why we did not check the payment online regularly is because the tenant were so prompt in their initial monthly rental payments. So it does not occur for me to check the bank online. They did not pay the electricity too and the TNB supply was terminated. Look at the mess they did before they left. The house need 2 whole days and 2 cleaners to clean. On the bright side, there isn't much in the fridge before the TNB was cut off 😓

Year 2020 is an unforgettable year for the world. The coronavirus pandemic caused many in the world lost their jobs due to this unprecedented event.  Tenants may suddenly have problems to pay their rental. If you are lucky, you may encounter someone who just ask for discount. What is the discount that shall depends on you. What about those that really cannot afford anymore because he lost his job and the wife runaway too? This a true story from a property agent. The nice owner actually did not ask for rental and instead allow the tenant to stay on until he find a job or look for a cheaper unit elsewhere.

So what to do during this pandemic? It is difficult to get new tenants now. So instead of fretting and being upset about it, why not look into refurbishment and seek for new tenants later?

How to make my property to be attractive to potential tenants?

1) Painting

This is the most inexpensive way to make the whole house look nice and new. Everyone likes a fresh coat of paint. Your previous tenant may left some children's drawing on the wall or there are some cracks which you have not fix. Take this time to rectify and fix it while giving a fresh coat of paint is always good.

2) Wallpaper in the living room or in the master bedroom can always give a good impression. It maybe slightly more expensive than paint, but wallpaper always give a very nice feel and since there are tons of design to select, take your time to think!

3) This is the time to check all the cupboards and timber floor. Check if there are any loose or disappeared hinges, any drawers that are stiff, doors that are cracked, or any timber floor that need to be fix. Get the contractor in to do all these jobs and check all the room doors too!

 

4) Get the electrician to check all the switches, sockets and change the burnt bulbs. Unless you know how to do yourself, it is better to leave to the expert. 

 

5)  Check the house appliances. The oven, stove, microwave, are they working well? Are they dirty and need to clean up? Are the lighting working still?

 

6) Air conditioner is one of the most important item in homes since we are staying in a tropical country. Get the air cond man to come in to do the services. When was the last time the air conditioner was serviced? It is best to service the air cond every 6 months to keep the life of air conditioner. 

7) Take the curtains to wash. Most of the time, heavy draperies and curtain need the expert. There are professional curtain cleaner which can do dry cleaning. They will come to your place to dismantle, take to their shop to clean and bring back to hang up for you. Great!
 

 8) Check all the furniture. Are the sofa, dining table and dining chairs still ok? What about the bedroom bed frames, mattress and side tables? Are they still alright or need to change? You can always get the contractor to fix the minor problem without buying new ones..

 

9) Cleaning. This shall be the final part. Send in from the cleaning company to do this job and not your maid at home. The cleaning company will come in and do the entire place for you with a fixed price and you can just come back later.

 

Now is the time to do the final touch up. Lay clean bed sheets, place some soft cushion, place a mat, hang some picture, display some flowers, and now is ready for photo shoot. Grab your phone and take photos with good angle and forward to your property agent. 

Good photos always get attention. A newly touch up property is great when you are seeking in the competitive world of looking for tenant . Good luck!