The Kuala Lumpur real estate market is very attractive. However, the question is this: when is the best time to buy a property? Below, we outlined some points to help you decide when to invest in Malaysian property.
So is there such a thing as the best time to purchase a Kuala Lumpur property? Here’s what you need to know.
Demand and supply
The main foundation of investing in a property lies on the demand and supply of the Malaysian real estate market. When the demand is high and the supply is low, property prices skyrockets and vice versa.
During the cooling market conditions, the demand is relaxed so the prices are relatively low. The developers keep their prices at the lowest possible cost so they can get rid of as many units as possible.
Back in February, experts predicted that the Malaysian real estate market will stagnate further. This means that 2019 is a year where the inventory of properties increases but the buying rates remain low. What does this mean? Low prices for you.
Understanding the economic cycle
Aside from the real estate market, you should also know the pulse of the country’s economy. Property prices spiral during the recession as more companies and developers seek to liquidate their assets.
However, it’s not every day that Malaysia goes into recession. And as much as the slump can benefit the buyers, it will also bring in tons of other financial burdens that will transcend to you.
Check the location
Regardless of what the economic cycle is, the Malaysian real estate market will depend on the location of the property. A commercialized area near the center of the city will likely have a higher cost. Meanwhile, properties in a rural area with fewer commercial developments would have pocket-friendly costs.
Take the long-term view
Regardless if you’re buying a Malaysian property for sale for investment or personal use, you should consider its long-term value. Would it appreciate or depreciate in 20 years? A good property should increase its price within the next decades.
However, a promising property doesn’t mean you should put all your money into it. Over-leveraging also has its risks
Why over-leveraging isn’t a good idea
The Malaysian real estate market might offer low prices right now, but it doesn’t should mean you should purchase as many properties as your savings will allow.
Sure, you can sell these properties at a higher price when the market gets past the slump. However, if the market crashes further or the prices become even lower, you will lose substantial dollars.
Always leverage what you can afford to risk. The real estate properties listing might have a lot to offer but it doesn’t mean you should grab everything.
The Kuala Lumpur real estate remains stagnant which can be a good thing for buyers. Still, you should do your homework of researching and knowing which property is a good investment. Avoid over-leveraging regardless if the market is perfect for mass buying. In the end, the real estate market continues to fluctuate.