Somehow I pretty much missed the boat with regards to taking advantage of the recent surge in property prices in Malaysia, specifically in the Klang Valley.
Since year 2000, I saw many properties. And most (if not all) of the ones I saw had seen remarkable appreciation in their prices. Sometimes I cannot help but to rue my misses, but I believe I had reasons for not writing the checks.
I did buy a condo back in 2003, but that was for my own use. So I did not evaluate the purchase from an investing stand point. As a result, the unit experienced only nominal price increase (I am in the process of selling it). It also became apparent that my choice of dwelling did not conform with the general public’s preference (as with my many other life choices). When I make unpopular choices, I will become… unpopular. So demand for my condo suffers, hence the price.
I suppose I was not meant to make money from the real estate boom. Takda rezeki, people like to say and I am perfectly fine with that as I am still doing okay with rezeki from other sources.
However, now that I am back, I have a need for a house, again for my own use. Finding one proves to be challenging, especially due to the sky high price. I read many a blog and articles promulgating the same messages:
1. Price is ridiculously high.
2. Demand is not real i.e. speculative in nature.
3. Income has not increased for the past few years.
4. Even developers are getting greedy and speculate.
5. Loans are still easy to obtain — often beyond the ability of the lenders to repay them.
6. Developers make it too easy for people to buy several units at once.
7. Investors (or rather speculators) are still buying properties by the dozens, each!
8. People buy not based on value, but on fear that the price will go up further.
These are all signs of a bubble. But bubbles take time to burst. I remember reading about US property market glut back in 2002, when people were buying houses without knowing where they were located.
These “investors” saw only maps, coordinates, and pictures, but still, they bought few properties at once, sometimes in a different state far from their own. It’s like shooting in the dark or while blindfolded. But greed reigned supreme and all sensibilities were lost.
Granted, people were making a lot of money back then, by re-selling the houses they bought only one or two years (maybe months) earlier. When did the market go bust? Only 5-6 years later and here lies my dilemma.
Should I plough through the glut and get myself a house now (if I could find one that’s suitable and affordable) or should I wait? Five years is a long time to wait, especially when I am paying rent. Plus, there’s no guarantee that the prices will drop.
go buy one nice bungalow in Klang valley bro! :)
Still looking… next year insyallah.