- Property market in the year 2020 performed well with 75,000 residential buyers.
- Interest rate decreased to 3% or 3.2% the highest, compared to 6.6% – 7.2%.
- The right moment to buy will never come for a property investor, so it’s important to understand your buying intentions.
- Property investment is a long-term investment that can be rewarding in the long haul.
The year 2020 has brought us on a wild roller coaster ride – one that we’ve all had to ride on and stay seated because it seems to be a never-ending ride. Not only have we been dealing with the COVID-19 outbreak and the country’s political instability, but the drop in crude oil prices has also caused the domestic economy to fall in lockstep with the global economy.
As staying afloat becomes challenging at this period of time, many individuals have turned to the world of investment. Hence you’ve probably heard a lot of financial gurus saying investing in real estate is one of the tried-and-true ways to make money.
Is that the truth though? Let’s address the elephant in the room – property market performance in the year 2020. Was it a good year? Well if we compare it to the years prior, surely, 2020 wasn’t the greatest year for the industry or any other industries for that matter. However, if you put on your positive pants, the property market did quite well during the first half of the year as the property transaction of residential buyers was at 75,000 in total.
That’s great news for those who are considering investing in properties. Why? Because as people are still buying, that also means banks are still open to approving loans. Of course, it may just not be at the same pace as it was before.
On another note, our government has been generous enough to provide some aid, especially for first-time homebuyers. One that I’m absolutely delighted about is the current interest rate that is at its all-time low. I remember 10 years ago, we were still paying 6.6% – 7.2% of interest rate, but at present, the interest rate is only at 3% or 3.2% the highest.
Even so, while I think that the initiative is great, I still reckon that the government should refrain from doing so much for the property sector; let the market do its thing as it is capable of doing so. They should remain as a source that provides and I have no doubt that the market will readjust itself.
On the question of is it still the right moment for you to go ahead with your plan to invest in a property, and hopefully provide a more comfortable future for your family? Take my opinion with a grain of salt, but if you’re going to ‘wait for the right time’, it’ll never come by. Instead, for those who are interested in property investment, go ahead but get into the game only when you have a clearer picture of what you want to do with the property.
Yes – purchasing properties aren’t something to be taken lightly nor is it something you should be getting yourself into just because it’s a trend. At the end of the day, it’s not about which one is the most appealing or the best investment at a given moment. Because regardless of which, it is crucial for you as a buyer to understand what you are investing for; if you don’t understand the market or what you want, all segments are bad for you.
All in all, it is important to note that if someone ever tells you that property is a quicker way of earning money, run! Because that’s too good to be true. Start grasping the idea that property investment is a long-term investment. An investment that can be rewarding in the long haul.
Charles Tan is an avid property investor who often expresses his thoughts about the property industry on his blog kopiandproperty.com – a leading independent property blog in Malaysia. The views expressed here are the writer’s own.