6 Myths About Real Estate In Malaysia

May 22, 2023

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6 Myths About Real Estate In Malaysia

Do some Malaysians, especially the young first-time buyers, feel a little bit of confusion and confusion about the real estate market? Rumours are often circulated on the Internet, such as the real estate market is facing a bubble phenomenon, and house prices are about to plummet. If you want to buy a house, do you feel flustered and dare not take the first step to buy a house after hearing these rumours? Here we have sorted out the 6 myths of real estate buyers about real estate for everyone, to help you avoid misconceptions about buying a house, and buy a house with more peace of mind with a correct understanding!

a. The Bigger The House The Better

Buying a house is not about buying the bigger the better, but to decide according to the size of your budget, as long as it is enough.
Rather than buying a large house in a large suburban area, buyers should first choose a small-sized house within the scope to meet their housing needs according to their own economic capabilities and budget.
If the number of family members increases and the economy is more stable in the future, it will not be too late to change the small house to a bigger one!
For example, if you have a savings of RM800,000, instead of using the money to buy a big house, you can use RM400,000 to buy a house that suits you, and then use the remaining RM400,000 to invest in real estate and use money to make money. This will help you get a higher return on investment in the future.

b. Once In Place

When many people plan to buy a house, they plan to buy a house that is sufficient to meet the needs of getting married and having children, going to school, taking care of their parents, and even retiring, and invest all their assets in buying this house.
However, the plan can’t keep up with the changes, you can’t predict what may happen in the future. Perhaps your career will improve, the economy will get better, you want to change to a better house, or a few years later you will be sent by your company to work in other areas, and various changes cause you to have to sell the house you bought.

c. Only Buy Homes In Prime Locations

The location of a home is a key element in your decision to buy.
You must understand the purpose of buying a house, whether it is investment or self-occupation.
If you are self-occupied, you must buy a house according to your own needs.
You might end up buying a house in a prime location, but it does not meet your daily needs. What you should do is buy in a location that meets your needs.
If you invest in real estate, it is recommended that you find a location with high demand, so that you will not worry about not getting the expected rate of return in the future.

d. Malaysia Housing Prices Are Too High

Housing prices in many areas in Kuala Lumpur, Malaysia, such as the Klang Valley area, are on the rise, making house buyers consider whether they can afford the expensive housing prices.
Rising house prices are actually a good thing, proving the appreciation potential of houses.
When you think the house price is too high and you decide not to buy it, you want to wait for the price to drop before you buy it. But if you want to buy the house you were thinking about in a few years, the house price will only rise even higher.

e. The Real Estate Bubble Is About To Appear, and House Prices Are About To Plummet

Before deciding to buy a house, many people worry about whether the house price will plummet after buying, and they give up the idea of planning to buy a house.
The country’s economic development is the main reason driving housing prices. If the tourism industry continues to increase and attract more foreign tourists to visit, as long as the country’s economic level is in a healthy state, in the long run, real estate prices will only rise.
Of course, there are times when house prices fall, but they don’t last long and only occupy a small amount of time.

f. Never Invest In Real Estate During A Recession

Due to the 2020 epidemic, everyone is discussing whether they should buy houses during the economic downturn, and will house prices fall soon? It is believed that most investors will adopt a more cautious attitude to wait and see, because they are worried that the occupancy rate of investment properties will not achieve ideal performance.
But in fact, no matter how bad the economy is, the house rental market will not stop because of this. There is no reason for tenants not to continue renting because of the epidemic and choose to live on the streets, right? Therefore, there will still be market demand for investment houses and then renting them out.
Regardless of the economic boom or not, it is a wise choice to resist the pressure of inflation by investing in real estate. After all, real estate is an investment project with stable income and low risk.

In summary, I advise everyone not to miss the good opportunity to buy real estate because of real estate myths.

As long as you clearly understand your purpose of buying real estate and do your homework, the real estate you buy will definitely have a considerable rate of return after many years! Malaysia does have many properties worth investing in, and it has also attracted many foreign investors.

If you are interested in learning more about homes worth investing in, you are welcome to click on the following WhatsApp Chat Now link to contact us, and please stay tuned to Aunty Caroll Property’s social media.

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