indepth

Checklist before committing to property purchase

Hold up! Before signing on the dotted line (and ensuring the purchase is not a gila one), do heed the advice from these three panellists.

Reapfield Properties CEO Jonathan Lee shared that it is important for homebuyers to understand the market trends of a particular location. “A good buy for this location may not be the same for another. It differs from location to location. For instance, a RM5,000 [price] adjustment could be a good buy in areas of high demand,” said Lee.

Read also
Buy a house now? It’s not that crazy actually
Affordable homes: Let's be clear!

Click here to visit VPEX 2021

“Request data or information from estate agents or conduct your own research of the market for the past 12 months. Be clear on what you want … speak with the professionals, make peace with your decision and be ready to commit. What is a good deal to you? Do it with data and logic,” stressed Lee.

He also advised homebuyers to establish a trusting relationship with the professionals such as lawyers and real estate agents to make informed decisions. “Go to them for the fiduciary services. Do not do this alone. With their experience and foresight, they are a critical part in your journey [of buying a property],” he added.

On the other hand, Lee mentioned that the notion of catching the market when it has bottomed out is a myth. “You can only find the bottom when the market has trended upwards. Hence, make a call and you will likely be in a better position in perhaps five to 10 years, when the market eventually finds its footing,” he said.

Additionally, for investors seeking value appreciation, Lee has a saying that goes, “if it has no traffic jam, better stay away.”

“The jam is an indication of the high impact of economic activity in the area. Go where the population is. It may not be the most beautiful property in the area but it is in high demand. You may not get any opportunity in previous seasons, but now if you can get it at a corrected price, that’s a good deal,” Lee advised.

Meanwhile, Malaysian Muslim Real Estate Consultants Association (PEHAM) president Ishak Ismail added that young graduates especially, should brush up on their knowledge of the property market.

“To buy a property, you need to have information – to know about the laws and how to obtain the right deals. And there are many registered agents around who would be willing to help. Engage and learn from them,” said Ishak, adding that one must also understand his or her present financial situation before making decisions.

Nevertheless, Ishak noted that this is the ideal time to purchase a property – be it in the primary or secondary market – due to incentives such as the Home Ownership Campaign (HOC) and low interest rates for example.

He also encouraged homebuyers to consider and learn about the auction market for there could be good deals there as well.

Echoing similar sentiments, Zerin Properties CEO Previndran Singhe said with the low cost of entry, this is a great time to consider buying a property.

Previndran added that if it is for investment purposes, look at the demand and supply. If it is for your own stay, consider your lifestyle needs and wants.

“Don’t be shy to ask questions. Leverage services provided by the professionals. With the low interest rates and other incentives, the timing is perfect, so make that call. If you have the money, I’d say, go for it,” said Previndran.

This story first appeared in the EdgeProp.my E-weekly on Oct 1, 2021. You can access back issues here.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories

RELATED POSTS
  1. Home renovation: The danger zones to steer clear from
  2. Costly interior design mistakes you must avoid!
  3. Industrial property overhang dipping