Right time to invest in properties?

Stevie Chan — Fri, 03 Oct 2014 13:41:01 +0800

I am in the properties market for quite some time and had face a lot of question from my clients. The common question for the past few years are 'will the bubble burst?' or ' is it right time to invest?' Well, we cant predict the future but if we look into current situation including tighten bank approving criteria, higher cost of living etc etc.... yes, the bubble might burst and what if really comes. What will happen? and is that means we cant buy properties now? or shall we wait until it burst and grab some properties that below market or go for auction properties?
Well, i would say everytime is the right time to invest and only matter on how you invest or what to invest? depends on what you think. For me, I would say is the right time to invest into new launch properties now. The current properties market, for my opinion is quite stagnant and every life cycle come to stagnant it either drop or going up and if it is drop it take how long to come up again? I would say 3-4 years. Why 3-4 years you might ask? Let takes KL and lets take a tour, the state government is very ambitious and would like to make KL become KL METROPOLITAN OR GREATER KL with 300 buildings by 2020 and of course with solid plan. Current on going giant project by government including Tun Razak Exchanged, Warisan Merdeka and up coming Bandar Malaysia and KL-Singapore 90 minutes high speed rail way. Beside that, private company like NAZA also part of the plan and they have Metropolis in some where near Mont Kiara.
Lets cut it short and brief, TuN Razak Exchanged (TRX) is a financial district some say Malaysia Wall Street. Benefit that operating in this area - 10 years tax free. TAX FREE.... everybody will come. I mean foreign financial company.
Warisan Merdeka is 118 storey tall bulding that build next to Stadium Merdeka. This building is world number 2 tallest building and tallest in Malaysia. Yes, taller than KLCC. Hotel on the top floor, office in the middle and shopping mall on the ground.
Bandar Malaysia. sorry, not quite sure.
KL - Singapore high speed railway.
Metropolis - International Trade and Exhibition Center.
With all of this gigantic project which will be completing in between year 2018 - 2020, KL population will increase to how much? and how many expatriate will leave in KL? that's including Spore, will Singaporean live in KL with lover cost of living compare Spore.

Come back to my advice on investing into new launch project. Every development they need about 2 - 4 years to complete depends on what kind of development and how big is the development. Try imagine, if we buying a property now that will be completing in 3 years down the road and upon completion those gigantic project also start running. How much will your properties worth?

You might ask why new launch properties and who will buy?
The reason is we buy new launch properties we will only serve interest and not the full amount of loan repayment until completion and in the same time we will safely gone though so call properties bubbles or properties cooling period. By the time comes, we will be selling our properties to foreigner or renting it to them.

Part 1 - thank you. Stevie Chan.

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Right time to invest in properties?