25 April 2011

When is the BEST time to buy House? (25 Apr 2011)

Last year 2010, Malaysia property market recorded the BEST year ever. Will it be another record breaking year in 2011? Many economist and property analysts opine that this year, the property market will appreciates by another 10-15%. So, should we wait some more?

Recently, many of my friends keeps on asking the same bold questions.
  • Should I buy house now?
  • Or, should I wait some more?
  • But, when is the property downturn?
Modern Design: Swimming pool in the house.
Good questions though, but if you ask me when is the property downturn, I really do not know. As a rule of thumb, I will rely on the stock market to give me the indication. Commonly, property market will take a blow one year after the crashing of stock market. Example, the 2008 financial crisis gave us a good timing to invest in property market. For those who buy house during that time, you should know what I am talking about and smile.

So what? How about now?

Before answering your question, I would like to throw you back a question "Are you looking for your first house?". If YES, anytime is the best time to own a house, forget about the timing factor. Your objective to own it, not invest for return. Why bother waiting for the best time? Otherwise, you are renting while waiting, and money still running out of your pocket every month.

But if your answer is NO, and you treat it as an investment, I do not think this is a good time. Why? As you already know, the valuations is rich enough to swallow your future potential return. Given the risk reward profile, it is not worth to invest at current high level to exchange for a reasonable return. If you're renting it out, sure this is not wise move. Please bare in mind that the rental is very hard to go hand-in-hand. Prices are going way too fast for rental to catch up now.

6 comments:

  1. I am starting to become very fond of buying this during the off periods. I am sure I will utilize this list in the future once I get a job.

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  2. Hello,
    thanks a lot for your interesting article about the best time to buy a house. You are right it´s always a good time to purchase your first home. But the tip with the crashing of stock market is very useful.

    ReplyDelete
  3. At this time is important if you money then you invest the property like in the main road of the main city property rates increase day by day and you get benefits after one month.

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  4. Even though it's the best time to buy a house. Making smart home buying decisions will make the home-buying process less stressful and more rewarding.

    ReplyDelete
  5. There are things we need to consider before buying a house. We should think about the location, water supply, line of electricity, if its accessible to market, church, or public transportation, if the neighborhood is safe? We should also consider our lifestyle beforebuying a property.

    ReplyDelete
  6. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles.Keep up the good work!
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    ReplyDelete

Finance Malaysia Blog appreciates your comment. Cheers!

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