Now is the time for investors and homebuyers to start buying the property because property prices are expected to rise this coming year. The increasing costs of building materials in most building categories are mainly what will contribute to the rise in property prices as this will have to affect the selling prices of property. When there is an increase in costs of construction or material it will always affect the selling price. The developer will have to include the cost one way or the other to respect buyers or consumers.
What Is The Implication of This In The Market?
Both the primary and secondary markets will have to react when there are any changes in demand or the value of a property. This implies that we should anticipate a gradual increase in the prices of property with the rising costs of construction or material. Based on the data from the department of statistics Malaysia as of October 2021, the building material cost index with or without steel bars had increased.
What Is The Possible Cause of an Increase In The Price of Building Material According to Tey Yong Qing?
The global increase in the price of petroleum and coal products is the reason for the rise in the price of building materials like steel, iron, and cement. According to the department of statistics Malaysia, the four phases of the national recovery plan and the implementation of the movement control order by the government in 2021 contributed to the price hike of building materials. Because after the resumption of construction-related activities in October 2021 building materials became more expensive. With the look of things, the real estate market will be performing better next year as there is repressed demand for property from potential investors and homebuyers.
With The Present Situation, What Can You Do As an Investor or Homebuyer?
With the situation right now as an investor or homebuyer buying property is the best thing to do. Because right now the market is bottoming out but before entering the market is good you consider your financial situation. Now seems to be the best time to buy because of the current low-interest rate and the deals developers are offering. Taking advantage of this opportunity to buy property will be a wise decision but that doesn’t mean you should overleverage yourself as a home buyer or investor. The focus here is not for you to buy for buying sake because it might be difficult for you to overcome a pitfall during a downturn. As an investor when buying a property you should always consider the long term instead of the short term, says Tey Yong Qing.
There is a possibility of doubling your property price if you allow it to stay for a longer period like a decade of course location will contribute heavily to that. So let’s say you invested ten years ago in the right location you would have gained double or more on your property price.
Will The Omicron Variant Discourage Buyers in 2022?
The Omicron variant will not stop or discourage property buyers in 2022 because it won’t last long. Even if new or other viruses emerge in the future we will always find a way to deal with them. This should not discourage you from buying property and as stated earlier now is the best time to buy. Now is not the time to be considering future requirements because buying property is on your needs and wants. Now is the time if there is a need for you to invest in real estate. In real estate, you make money when you buy and not when you sell. The reason is that when you buy you will be buying at a low entry price which will appreciate over time. But you must put into consideration the current market conditions and your financial situation. If every condition is good then now is the time to buy.
Few Things to Note
Property buyers are encouraged to buy based on their ability and to sell based on market demand. You should never buy a property based on impulse or for buying sake. You should take advantage of the low-interest rate and the adjusted price if you are buying based on need and your ability. Waiting too long is not advisable as you can miss the present opportunity. Before buying any property you should make proper research or survey to gather all the necessary information you need. In case you are planning to sell your property now you should consider whether to still hold on a little longer or to sell.
The rising cost of building materials will affect the price of properties which means the value of your property will also increase. You should not just sell or buy based on hearsay or impulse rather do your research and get your facts straight if you want to be profitable in real estate. If you don’t see the need to sell any property now why not keep it.