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5 Reasons Why You Should Consider Buying A House Now

Too many people get stuck waiting for market trends to improve and subsequently pass up potentially fantastic real estate deals.

The trick is educating and training yourself on how to spot good deals, and then acting on these deals as soon as the opportunity arises. If you find a piece of prime real estate and have the adequate funds to invest in it, don’t wait or you could be passing up what could be the real estate deal of a life time.

In year 2014, government had introduced many steps to curb this excessive speculation of properties. Such as removable of DIBS, increased of RPGT, foreigner purchasing a house capped at RM1mio above and strict guidelines for obtaining a loan.

So, should we stop buying a house since its getting tougher now?

While, from my personal view the rules are there for a reason. It is to control the investor from continue manipulate the properties market resulting in higher property price. And at the end, we the genuine buyer have to buy a property at higher price. This rules are definitely welcome to control investor from controlling the market but will the property price reduce?

In last 10 years, we didn’t see any proof that property price reducing significantly. Only proof of property price continue rise and rise. Many have become instant millionaire with the increase of property price and yeah is a good things. But, how about for an average income people? What they can expect in this year?

Property price had increases significantly in last 3-4 years, it too drastically until many have call for HELP from government. Because the market are too HOT.

The questions, will the property price keep increasing or falling in this coming 2 or 3 years? Are we at the crossroad of buying?

Should we buy a house now? Or should we wait for the next 2 or 3 years, since the property market is cooling down and hoping the property price will be falling?

Which one you prefer to go with?

Let me tell you my friends, many property expert with their “crystal ball” had anticipate property market will be continue rising, it may not be too drastically but still the property prices will increase.

Another way to say, it will always pricey to buy a house in year 2016 than 2014.

Here are five reasons you should consider buying now:

1. Completion of Mass Rapit Transit (MRT) in year 2016

Yes, my friend. With the completion of MRT by year 2016, property market are expected to be increase again. Have you look at the trend of property that are near to LRT, do you know that the property market have increase at least minimum double prices in last 10 years?

My dad bought a low cost flat in year 1988 for RM25,000.  At that time, we do not know that LRT will be built in this area. We are so happy when it did. After 25 years the price is RM140,000, the point is the increase is about 7 times from the original price. And this is only for a low cost property.

How about if you own a double storey, apartment or condominium, what will happen 25 years later? Have you ever think of it?

Now, a lot of people are aiming for property outside from Kuala Lumpur, most will be aiming nearby Kajang and Bangi. Currently, Kajang still selling quite affordable double storey houses. As we speak, you can get  easily RM300,000 – RM400,000 for a landed property in Kajang.

Do you know Kajang have 3 LRT stations? Do you know the madness in Kajang once it completed?

I guarantee you will see the market price increase because Kajang landed property still have room to growth in their prices. I’m not surprise if the property price will be pegged at RM600,000 to RM700,000 in future.

2. Seller willing to let it go sooner

For the last couple of months, many property that being handover by developer are not doing expectedly well. Seller have really hard time to sell. No buyer is willing to grab it. One of the reason because the property price is way too high for an average income earner. Secondly, people are cautions on buying.

Do you know that based on 2012 per capita income statistics, Kuala Lumpur have average RM6161.00 income , follow by Sarawak RM3368, Penang RM3084 and Selangor RM3084.

Once we view affordability in proportion to “per state income”, surprises are in store. While an average middle- class person residing in Kuala Lumpur can still afford a house priced at RM500,000, a senior administrative employee in Selangor can hardly buy a house above RM250,000. Meanwhile, in Kedah or Kelantan, the affordability level is estimated at approximately RM70,000.

Because of this unaffordability many property end up renting because of unsuccessful of selling. But even with renting, seller are not able to cover the housing loan instalment. Seller have to top up more.

If this continue to happen, some seller will be in desperate state and eventually will let it go with lower or reasonable price. And you want to be there to grab these properties.

The key is patience, wait for the right opportunity and grab.

3. Property price will continue increase

Owning a house can create a family wealth and yeah you know about this.

Property prices will eventually increase from one year to another. Perhaps, it will not increase 20-30%, but may be 5-10% which considerably increase too.

Whether you are renting or you own the home you are living in, you are paying a housing loan to your bank. Either you are paying to bank or your landlord’s. In recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.

4.Real Property Gain Tax ( RPGT ) Increase

RPGT establishment is to control the seller or investor, government want those seller to hold the property and not selling the property right away after developer handover the property. By stopping this, this will reduce the speculation of property price before those seller simply hijacking the property price to the maximum as possible.

 And with this control, some seller will not sell their property instead looking for an option of renting. By not selling, less people to speculate the price.

If you think, seller are renting at a good price, you should think again.

Because, for landed property most of it will never provide a good rental income compare to condominium or apartment.

Recently, i have time to stroll the rental market. I found out a new 3 storey terrace house property with value about RM1.2mio are renting for RM1800 to RM2000 at Kinrara Puchong. This is landed property with condominium facilities. Seller have to pay maintenance fees too.

And the owner are paying, RM4-5k a month and the rental is only RM1800-RM2000? Really?

5. Good & Service Tax is coming in 2015

Yes, we have to accept this reality, whether you like it or against it, GST is coming next year. Mean, the cost of building of house can be very expensive because the price of raw material will increase.

So, its mean your house price will be continue rising.

What we are trying to say here is, if you do found a great house or good offer this year, don’t let it go. You should look for an option to buy it.

And if you never own a house, you definitely should make a move this year. If you have worries and so many questions to ask and no one to turn to, may be you should talk to us.

If you like to contact us, please go to our contact us page or just click here.

 

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By | 2016-11-01T10:40:12+00:00 July 8th, 2014|1st Time Home Buyer, Latest Article/News|Comments Off on 5 Reasons Why You Should Consider Buying A House Now