Price of new houses and BTS system

Build-Then-Sell ( BTS ) concept in the property development industry will be made mandatory in 2015. Under this concept, house buyers pay 10% deposit and the balance 90% after the project is completed with certificate of completion and compliance ( CCC ). During the 24 months construction period of all these terrace, link, semi-D and bungalow houses (landed property), the developers have to finance the construction with loan from the bank.

BTS concept is mooted to protect house buyers from abandoned projects. It is believed that the developers have very much more to lose if they do not complete and deliver their housing projects on time and according to other related rules.

What's the effect of BTS concept on the price of new houses at Klang Valley, Selangor? Will BTS concept cause the price of new houses go higher or lower? I believe the price of new houses in Klang Valley, Selangor will not be made lower by the BTS concept.

The capital involved under BTS concept is big, and so too is the risk. The developers may not be able to sell the house after completion - buyers can discontinue with the purchase when the economy turns bad ( buyers forfeit their deposit ). The developers will end up with many unsold units and have to pay off their loan. For high risk, the banks will charge higher interest on the developers; the developers want higher profit margin from the sales of the house. These will translate into higher price to be paid by the house buyers.

I believe the price of new house in Klang Valley, Selangor will face another cost pressure with the implementation of BTS. As of now, the demand for terrace houses from the middle to lower income group in Klang Valley Selangor is much higher than the supply. With the implementation of BTS, the supply will be constricted further. Smaller and newer developers will find it hard to get loan to build houses. The interest on the loan, if approved, will be higher. So we are going to have  a situation of higher interest rate to do business, bigger amount of money involved and lesser developers participation in the building of new houses. All these point to the price going higher ( i.e more expensive houses ) than otherwise.

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.

Harga rumah baru Lembah Klang Selangor jatuh?

Bukan hanya Malaysia sahaja yang menghadapi perningkatan harga hartanah yang tinggi di beberapa tahun yang lepas. Negara negara jiran seperti Vietnam, Indonesia dan Singapura tidak terkecuali. Trend kenaikan harga berterusan pada rumah dan hartanah adalah sesuatu yang kita tidak dapat elakkan dalam kehidupan ini.

Dalam keadaan ekonomi global yang tidak menentu dan perlaksanaan amalan pinjaman bertanggungjawab oleh bank bank pada pembeli rumah, terbangkit soalan ini di kalangan pembeli rumah: Adakah harga rumah baru teres satu dan dua tingkat di Lembah Klang, Selangor akan menjadi lebih murah? Ekonomi Malaysia sangat bergantung kepada eksport dimana penurunannya akan mengakibatkan kelembapan ekonomi; ia juga boleh diakibatkan oleh penurunan penggunaan ataupun permintaan domestik yang disebabkan oleh polisi Bank Negara.

Jika harga rumah teres setingkat dan dua tingkat di perlancaran baru di Lembah Klang, Selangor turun akibat dari sebab sebab di-atas, berapa banyak ia akan turun?

Wajarkah saya tunggu untuk harga itu turun dulu supaya saya dapat beli lebih murah berbanding dengan saudara ataupun kawan saya? Jika saya tangguhkan pembelian, mungkinkah harga jadi lebih mahal nanti?

Izinkan saya kongsi pengetahuan beberapa perkara tentang membeli rumah, lebih lebih lagi jika ia mengenai pembelian rumah pertama anda:

1. Membeli dari perspektif pelaburan jangka panjang. Dengan cara ini, anda tidak akan terjejas jika harga jatuh dalam jangka pendek kerana anda tidak membeli dengan jangkaan bahawa nilai rumah itu akan meningkat dengan serta merta.

2. Penurunan harga hartanah di Lembah Klang dan Selangor, jika ia berlaku, adalah dalam bentuk pembetulan harga sementara. Terutamanya dalam kategori rumah teres setingkat dan dua tingkat untuk golongan berpendapatan sederhana dan makan gaji secara amnya yang memerlukannya sebagai rumah kediaman.

3. Perningkatan pendapatan isi rumah memang tidak dapat menandingi kenaikan harga rumah. Atas sebab ini, anda tidak akan rugi jika anda membeli rumah anda awal, jika anda berkemampuan.