Why you should stay away from commercial properties now?
Retailers having it tough isn’t much of a surprise. But the knock-on effect means things are going to get much worse for commercial landlords too. Some of their tenants simply won’t be able to pay up. Despite lower oil price and improved inflation rate, falling oil prices, consumer sentiment has remained subdued on fears of Malaysia entering into a recession. Amid fear of a protracted downturn and rising numbers of the unemployed, consumer spending has fallen and affected retailers. And that in turn, means that commercial property prices have much further to fall. We forecast of a 20%-30% fall in commercial property values this year.
Happy Lunar New Year!
Wishing all your dreams come true in this wonderful Ox year. Cheers photo credit: Gio JL
Useful information from Malaysia National House Buyers Association
Malaysia National House Buyers Association provides useful information and resources about what can go wrong in buying a property or real estate in Malaysia through statistics of complaints about strata title, management & maintenance, certificate of fitness, late delivery & LAD claims, abandoned projects, infrastructure, etc. From the website, we can also find other useful information and links about issues/news on Malaysia’s property/housing, housing laws and regulations, court cases, and expert’s views about issues involved in buying a house in Malaysia.
How to find good real estate/property agents?
There are many full-time real estate salespeople who have never been active or have never become knowledgeable in the filed of investment real estate. Since you are about to invest the largest sum of money you have ever spent, you deserve the best. A good property agent should have the basic knowledge in real estate investing, taxation, depreciation, management and financing. A knowledgeable property agent not only understands and practices the many different facets of real estate investing, but he also knows the market.
Is Malaysia already in recession? What can we do now?
Governments hate recession because voters tend to prefer good times to hard times. And government can’t stop the recession – it may make it worse. However, today’s depressed real estate market is the best time to start buying or investing houses and properties, even if credit is tight.
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