Getting your own house: It’s now or neverJune 26, 2020
For many, owning their own house is an achievement. Having your own house is a dream ingrained in many Malaysians since they were young. For some, it is a rite of passage into adulthood. For some, owning a swanky new condominium in KL is a sign that you have made it.
Unfortunately to burst your bubble, owning a house might not be as easy as it seems anymore. For the past few decades, housing prices have soared exponentially especially in urban areas. Furthermore, this trend does not show any sign of slowing down despite the fact that unsold units are getting higher.
Drive through KL or any other major city, you can find plenty of completed or in-construction condominiums up for sale.
More and more property developers are focusing on building units for the high-end market which results in a significant shortage of affordable housing in big cities like KL and Penang. High-end properties usually have lower investment value especially in the sub-sale market. The government have collaborated with many property developers in Malaysia in an effort to push out unsold units.
So, when is the best time for you to get a house? The answer is 10 years ago, and the next best time is today. With property prices not slowing down any time soon, getting a house today is definitely cheaper than a year or two down the road. Everyone is saying how property prices are ridiculously high now, but it is only going to get higher as time goes on.
Let’s look at a condominium for sale in KL today which costs RM400,000. Assuming that you are able to get a 90% loan, it still means that you need to pay a RM 40,000 as the down payment. Additional entry fees such as stamp duty, legal fees, insurance and mortgage payment are all calculated as percentages of the unit price. These entry fees scale up with the unit pricing. This means is that you will be paying much more a few years down the road even if the unit price increased to RM450,000.
Unsold units are bad news for developers because it means that they are not getting returns from their projects. Hence many developers are coming up with attractive schemes and offers to attract buyers. If you are looking to get your dream house, this is the time to take advantage of the various initiatives available. Schemes such as the Rent-To-Own (RTO) Scheme and Youth Housing Scheme will make owning your first home that much easier.
Buying your first home may be hard but it is not going to get easier any time soon. Staying true to our mission of enriching people’s lifestyle through affordable housing, UDA Property supplies quality homes for all budgets. Our developments are designed to deliver practical and sustainable housing for Malaysians.
Click here to check out our latest listings!