Let’s talk about what’s on a lot of people’s minds lately: property prices. I’ve been getting a lot of questions from folks concerned about the recent news, especially aspiring first-time homebuyers. Articles from The Star like “Burden for new homebuyers” and “Property prices a major concern for homebuyers” highlight the anxieties around rising costs due to the removal of diesel subsidies.
So, what’s going on? Let’s break it down.
The government’s decision to remove subsidies on diesel has sent ripples through the construction industry. Suppliers are raising prices, contractors are feeling the pinch, and everyone is worried about what this means for the final cost of houses. Developers are stuck in a tough spot. They have existing contracts with buyers, but their own costs are going up. Some, like Tony Khoo from Perak Rehda, predict price increases of 10% to 15% for new homes next year [1]. This is a big deal, especially for young Malaysians like Shamir Zulfikri who dream of owning a place but might now have to settle for a longer commute or put their plans on hold.
The impact isn’t limited to buying a house. Renovation dreams are also getting squeezed. Contractor Vincent Tan expects renovation service prices to jump by 20% to 30%! [1]. This is a big deal, especially for young Malaysians who dream of owning a place but might now have to settle for a longer commute or put their plans on hold.
So, what can be done? There are a few ideas. Many are urging the government to step in, perhaps by bringing back schemes that helped middle-income earners, like the MyDeposit program [1]. Others suggest working with the industry to understand the reasons behind the price hikes and ensure transparency [1].
On the flip side, some believe property remains a good investment despite the short-term bumps. This is a valid perspective, but it’s important to remember that not everyone is in a position to weather the storm.
Here’s the thing: owning a home is a big part of the Malaysian dream. It shouldn’t feel out of reach. As someone who works in the real estate industry, I want to see people achieve that dream. While the current situation presents challenges, there are also ways forward. By working together, the government, the industry, and potential homebuyers can find solutions to make sure this dream stays affordable.
In the meantime, if you’re thinking about buying a house, here’s some advice:
Do your research
Understand the market trends and what’s impacting prices – Knowledge is power! Before diving into the house hunt, take some time to understand the current market trends. Look beyond headlines and dig into data on property prices in your desired area. Talk to local agents and get a feel for the specific impact of rising costs in that location. Is the increase primarily affecting new developments or renovations? Are there any upcoming infrastructure projects that might influence prices? The more informed you are, the better equipped you’ll be to make sound decisions.
Be Realistic
Set a budget you’re comfortable with and don’t stretch yourself too thin – Financial literacy is key here. Don’t get swept away by the emotional pull of finding your dream home. Start by building a solid financial foundation. Track your income and expenses for a few months to understand your spending habits. This will help you determine a comfortable amount you can allocate towards a mortgage payment without feeling strapped for cash. There are plenty of resources available online and through banks that can help you determine a healthy mortgage amount. Additionally, factor in not just the purchase price but also potential down payment requirements, monthly instalments, maintenance costs, and yes, even the possibility of slightly higher renovation expenses. Remember, a comfortable home shouldn’t come at the cost of financial strain.
Explore Options
Consider government schemes, different locations, or even sub-sale properties – The Malaysian property market offers a variety of options. Consider venturing outside city centers – sometimes, strategically chosen suburbs can offer excellent value and a great quality of life. Don’t limit yourself to new developments – sub-sale properties, which are previously owned and resold, can be a treasure trove of potential, especially if the owner is motivated to sell quickly.
Talk To An Agent or REN
A good agent can help you navigate the market and find the right property for your needs and budget – A good real estate agent is your partner in this journey. We not only have the experience and market knowledge to help you navigate the complexities of buying a house but can also offer guidance on financial aspects. A good agent will ask you about your financial situation and goals to ensure you’re making a sound investment. We can connect you with properties that fit your budget and needs, negotiate deals on your behalf, and guide you through the entire purchase process. In this current climate, a good agent with financial savviness can be an invaluable resource to ensure you’re getting the best possible deal and making informed decisions.
Embrace Financial Literacy
Financial literacy is an ongoing process – Even after you buy your dream home, it’s important to stay informed about personal finance best practices. There are numerous resources available online and through banks to help you manage your finances effectively. By understanding loan terms, interest rates, and potential investment opportunities, you can make informed decisions about your property and build a secure financial future.
Remember, buying a house is a significant investment, and it’s crucial to approach it strategically, especially in a market with rising costs. By following these steps, leveraging the expertise of a real estate agent, and prioritising financial literacy, you can navigate the current situation and turn your dream of homeownership into a reality.
Article source : Burden for new homebuyers [1] Property prices a major concern for homebuyers [2]
