When Is The Right Time To Invest In Your Dream Home
It is all about the timing and market sentiment folks!
A house is perhaps the single biggest investment anyone can make during one’s lifetime. For those who plan to buy a property more so a dream home, there is no better time than to act now. Just two decades ago, properties were selling like hotcakes owing to their somewhat low cost and overall affordability. For seasoned property investors, the best time to buy is to when sellers are putting up their properties for sale below market value. The real estate market in Malaysia today is seen as a cash cow with unlimited prospects to amass great wealth and attain financial freedom. Property auctions also represent another avenue for investors to seek and hunt for premium properties with bargain prices. Whatever the solution presented or methodology employed, potential investors are best advised to do their research on local markets and current sentiment.
The Right Timing To Make Your Investments
For first-time homebuyers, making your maiden purchase on your dream home during an upcoming crisis is truly poor judgment. When a crisis looms, the property market experiences a negative sentiment. When this happens, property prices tend to drop or they are bound to depreciate. A property that supposedly costs some RM500,000 several months ago could end costing RM350,000 when it is put on sale today. Ideally, one should wait for the market to stabilize or to recover before proceeding to undertake the purchase. Certain property transactions require strong property acumen and bold risk management to obtain the best deal possible. For instance, a 1,000 sq. ft. condo in Ara Damansara was selling for below RM200k some ten years ago. A few years later, the same piece of property was priced at a staggering sum of RM400,000! If the investor was smart enough, he or she could have purchased more than a single residential unit and his final profit would have effectively doubled!
Market Sentiment Dictates Property Prices
Sometimes it is difficult to predict the market especially if the sentiment is volatile or unstable. This pretty much applies to all kinds of industries with special emphasis on real estate. Properties have always been likened to financial hedges against economic inflations. They seldom depreciate but almost always appreciate in value over time, with the rare exception of political conflicts and market crashes. In reality, we could not accurately predict the outcome of a market’s sentiment without detailed analysis or in-depth research.
In fact, there is no right time or wrong time to venture into the property market. Property investment is all about venture capital gains with associative risk management. The truth remains that property may be the single most important ticket or passport out of poverty. Having a property is an asset and real security to comfortably retire with utter peace of mind. For those who have the means to invest in a reputable piece of property with modest profit margins, they can probably break even in merely thirty years or less provided the property itself consistently appreciates in value throughout the course of the lifetime of their initial investment.