Instead of delaying their house purchase, young homebuyers are urged to plan their acquisition prudently and not wait until the time that they can afford to own a property.
“If you delay buying a house until you can afford it, the housing prices will appreciate. But I would recommend people to buy a house that they can afford instead of a house they ideally want to stay in,” said Real Estate and Housing Developers’ Association of Malaysia (REHDA) Vice president Datuk NK Tong at the media briefing on REHDA Property Industry Survey for 1H 2019.
He cited the example of a buyer looking to acquire a 1,200 sq ft apartment but could not afford it. As such, he should go for an 800 sq ft apartment.
“As their income rise and the apartment’s value appreciates, then they can sell and trade it.”
He revealed that some house buyers were upgrading their acquisitions via sell and trade approach after an improvement in their income, reported New Straits Times.
“To wait until you can afford, the house that you want would go up in prices due to inflation…In future if you resell the first house, the valuation would have increased and thus help you to supplement additional cost require for future dream house,” he added.
Meanwhile, REHDA held a neutral outlook for the property market in 2H 2019, while optimism is anticipated for 1H 2020.
REHDA president Datuk Ir Soam Heng Choon shared that the association hopes the government would lay out an expansionary budget for 2020.
“Given the current global economic scenario, it is difficult for the government but we are hopeful,” he said.
Future properties in supply that are set for launch in the second half of this year and the first half of 2020 include 18,373 landed and strata residential units plus an additional 153 commercial units and 921 units from mixed development projects, said REHDA.
The survey also showed that most states, except Kuala Lumpur, Kelantan, Selangor and Johor, planned to launch housing units priced between RM250,001 and RM500,000.
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