KELANA JAYA: Young buyers are urged to buy properties within their budget rather than delaying their purchases to reach certain income to buy their dream houses.
Real Estate And Housing Developers’ Association of Malaysia (REHDA) Vice president Datuk NK Tong said homebuyers should plan their purchases prudently and not wait until they could afford to own a property.
"If you delay buying a house till 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,” he said at a media briefing on REHDA Property Industry Survey for the first-half (1H) of 2019, here today.
He said some people chose to rent houses because they were uncertain about their future yet but owning a house should have been a priority.
Quoting as an example, he said a buyer might be buying a 1,200 sq ft apartment but he could not afford it. Hence, he should opt for a 800 sq ft apartment to buy.
“As their income rise and the apartment’s value appreciates, then they can sell and trade it,” he added.
He said some homebuyers were upgrading their purchases via sell and trade approach after their income rise.
“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 said.
Bank Negara Malaysia (BNM) gad recently announced a RM1 billion Fund for Affordable Homes to help home buyers from the lower income group nationwide to finance the purchase of their first homes.
The fund will be available for two years from January 2, 2019 or until the RM1 billion fund is fully utilised.
Under this fund, eligible home buyers could obtain financing (conventional or Islamic) at a concessionary rate at participating financial institutions.
Meanwhile, REHDA has recommended a ‘neutral’ outlook for the property market in the second half (2H) of 2019 with optimism is anticipated for the first-half (1H) of 2020.
Its president Datuk Ir Soam Heng Choon said the association was hopeful the government would introduce an expansionary budget for 2020 in spurring more local spendings and economic activities.
“Given the current global economic scenario, it is difficult for the government but we are hopeful,” he said.
Soam said the association would continue embarking on aggressive participation in online/social media marketing and property portals, assisting with first-time homebuyers with a 10 per cent down payment, while promoting units within affordable threshold.
REHDA said future properties in supply are expected to be launched in the 2H of 2019 and 1H of 2020 include 18,373 strata and landed residential units with an additional 921 units from mixed development projects and 153 commercial units.
The survey also revealed that most states except for Kelantan, Kuala Lumpur, Johor and Selangor planned to launch residential units within the RM250,001 - RM500,000 price range.
However, Selangor is the only state to have mostly units priced between RM700,001 and RM1 million in the pipeline.