Asked by Huah
Is it better to invest after GE13 or before?? Why?
858 views
1 Answer
Hi Huah.
Why is the GE13 such an important date for property investment? Do you think the property prices will fall after GE13 so that you can buy in cheaper? Some of the reasons why property prices increase or fall are highlighted below:-
1. Property prices will hedge against inflation
in the long term. Every 10 years or more the
benchmark prices increased.
2. Prices will fall (not just correction)when
there is a prolonged recession (maybe 2 years
or more)that hurts the domestic demand.
3. Demand and subsequently prices will correct
(not fall) if the Government changes the
policies on property ownership and taxes
negatively.
4. Property demand will dwindle and prices will
adjust lower (not fall) if the bank lending
policies are not favourable and interest rates
are too high.
5. Prices will fall if a country is war torn or
going through civil unrest when investments
dwindle and panic selling occurs.
Your investment decision will depend on what you think will happen after GE13. I know many people who lost out on the opportunity to buy properties at cheaper prices are hoping for a downturn to do so. Please remember during a downturn your resources, lending policies, rental yields may not remain as good as now. Striving forward to be a high income and developed country with consistent GDP growth and open policies for global investments amidst higher inflation, I think property will still be faavourable to many investors before or after GE13.
David Wong
Principal
QUANTUM real estate
mobile+60193330573
www.quantumrealestate.com.my Read More
Why is the GE13 such an important date for property investment? Do you think the property prices will fall after GE13 so that you can buy in cheaper? Some of the reasons why property prices increase or fall are highlighted below:-
1. Property prices will hedge against inflation
in the long term. Every 10 years or more the
benchmark prices increased.
2. Prices will fall (not just correction)when
there is a prolonged recession (maybe 2 years
or more)that hurts the domestic demand.
3. Demand and subsequently prices will correct
(not fall) if the Government changes the
policies on property ownership and taxes
negatively.
4. Property demand will dwindle and prices will
adjust lower (not fall) if the bank lending
policies are not favourable and interest rates
are too high.
5. Prices will fall if a country is war torn or
going through civil unrest when investments
dwindle and panic selling occurs.
Your investment decision will depend on what you think will happen after GE13. I know many people who lost out on the opportunity to buy properties at cheaper prices are hoping for a downturn to do so. Please remember during a downturn your resources, lending policies, rental yields may not remain as good as now. Striving forward to be a high income and developed country with consistent GDP growth and open policies for global investments amidst higher inflation, I think property will still be faavourable to many investors before or after GE13.
David Wong
Principal
QUANTUM real estate
mobile+60193330573
www.quantumrealestate.com.my Read More