What Type of Property Buyer Are You?
Malaysia has 3 types of property buyer. They are:-
- First-timers who are really afraid of buying a property because it entails a huge commitment (especially at the start).
- Second type of property buyer search for an upgrade after having spent four to five years living in a 700 sq ft apartment.
- Then there are those with land that have already gained from it, and are now looking to buy more properties below market value.
There are also those who want to purchase a property but can’t afford–not necessarily due to the price of the home. It could be because they demand far too much i.e. near their place of work, massive in size and low in price.
The government must therefore put in place policies to help them, since it can not be left to the property market alone to work it out itself. Alternatively, the government should also build more affordable homes that tailor to various types of property buyer.
In an ideal situation, everyone is buying properties that suit their earnings. In fact, however, there are those who need a home but can not afford to rent it from seasoned and established buyers who would have bought most of those affordable homes.
Aside from that, there is also the issue of oversupply and unsold units which currently plague the market. This is made even harder by the provision of 30pc downpayment from third-home purchases. So, an RM250,000 home will require a minimum downpayment of RM75,000. For purchase two of these RM500,000 homes one would first need RM150,000 in cash.
Ever wondered why experienced owners are so keen to save more on downpayment? Yeah, they’ve knew how ‘tasty’ of rental income. It is extremely important for first – time home buyers that one has taking the path of owning at least one home and not stuck on constant renting as that only make house owners wealthier so they can purchase more property and leaving the tenants poor because the rent they pay is not going into any down payment for their own property.
As for those who are still not ready for a property’s downpayment, don’t fret, there is still hope. You may consider Rent-To-Own schemes which have been made available in the market. Surely, the monthly commitment carries a premium over the rent but this will be a part of the downpayment for the property in the future.
But, make sure not to rush into it. Be a smart property buyer. Check around the property market and secondary market for affordable homes. Try out for those unsold units and negotiate for additional discounts, rebates and upgraded packages, The property market is not as bad as shown but it may be one day in the distant future. It’s always better to start planning earlier. As always being said, the early bird catches the worm.