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!