A reader from KL sent me an email to ask my opinion on the current property market.
The e-mail correspond as below
Mr.C
Hye. It's been awhile.
I have read an article about malaysian economy recently. What is the impact on property in this coming years.
What do u think? Have u attend any seminar about this? Pls find below link.
http://www.beritasemasa.com.my/prof-dr-hoo-ke-ping-kegawatan-ekonomi-malaysia
My Reply to the Mr C as below:
My view the Impact to the property will be as follows:
1) More sellers in the market
2) More bargains can be found in the market
3) More freebies to be given out by the developer
All in all, it will be buyers market.
So what do we do?
a) We have to work harder to source for good deal, what is good deal?
i) Below market price at least 20% to 30%
ii) Positive cash flow
Above are the main criteria for now.
For example, if you buy at RM200K, with positive cashflow say RM100 per month.
Does it matter if the property price drop to RM150K? What is the impact to you?
What if the value of the property value drop to 0, but your property still give u positive cash flow?
Is there any impact to you?
We have to act differently from the market, people will keep given all negative report on economy, housing etc.
We have to read and take it as reference and MUST KNOW WHAT ARE WE DOING.
If we just stay sideline and follow the majority, there is no help for us as well.
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