Show me an example Shelter Over The Head: Price decline in Klang Valley residential property?
Apa kesan pembukaan SKVE seksyen 2 pada prospek pembangunan Kuala Langat?

Tuesday 1 May 2012

Price decline in Klang Valley residential property?




Not only Malaysia that faces the increase in the prices of property over the past many years. This also happens to our neighbours: Vietnam, Indonesia and Singapore. The continuous uptrend of house prices is something we have to live with.

In the midst of gloomy global economy and the implementation of responsible lending practices by the banks on house buyers, among the house buyers, rise this question: Will the price of new single and double storey houses in Klang Valley or Selangor drop? Economic slowdown can be caused by drop in export which Malaysia is very much dependent upon; it can also be caused by drop in domestic consumption or demand caused by the lending policy of Bank Negara.

If the price of single and double storey houses of new launches in Klang Valley and Selangor should drop as a result of the above causes, how much will it be?

Should I wait for it to come down so that I can buy it cheaper? If I don't buy now and wait, will I end up paying more if it doesn't fall?

Let me share some points about buying a house, especially if it is your first house:

 

1. Buy from the perspective of long term investment. In this way, you won't be affected if the price drops in the short term since you don't buy on expectation that the value will increase immediately.

2. The drop in prices of residential properties in Klang Valley and Selangor, if it happens, will be in the form of temporary correction. Especially so in the category of single and double storey terrace houses  for the middle income earners and working class Malaysians at large who need it as a shelter over the head.

3. Increase in household income cannot match the increase in house prices. Buying it early when you can afford it will never go wrong.




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