Why You Should Consider Buying A Property During This Season of Pandemic
They said that “anytime is a good time to buy a property if you are financially capable”. It may be a tough time for us now as we are in the midst of a pandemic. With the sixth phase plan of battling the Covid-19 virus taking place, it is likely that that homebuyer’s sentiment has further decreased. Hence, if you are considering buying a property right now, it is actually a good time to buy.
According to PropertyGuru Malaysia, more Malaysians are expressing their intention to buy a house for investment purposes post-Covid-19, with 47% of respondents in the first half of 2020, increasing to 53% in the second half 2020.
It is also good news that Bank Negara Malaysia (BNM) has decided to decrease the Overnight Policy Rate (OPR) for the fourth time this year to 1.75%.
Home Loan Experts have shared that there is a reduction in terms of pricing for a lot of luxury or high-end properties at this time, most likely due to the fall in the share market, as many people are not getting their full time salary or having their business affected by the lockdown. It is also stated it is because of job security and financial confidence that determine whether or not someone would purchase a property.
However, it is only recommended that one should purchase a property only when one is financially capable in the long run. Some people may be delaying the purchase of property because of the financial hardships they might face like retrenchment, pay cut, no bonuses and so on.
According to New Straight Times, there is a total 16% of respondents shared that they are not considering property purchases following the pandemic. On the other hand, 47% of respondents from 22 to 29 years of age said they would not delay buying a property due to the impacts of Covid-19.
According to Home Loan Experts, it is predicted that property prices will decrease due to the following reasons:
- As mentioned, financial hardships that potential buyers might face and the uncertainty that they may not be able to take out a house loan and make payment in the long term.
- Due to the lockdown and social distancing measures, people are not able to view properties at showrooms, and there are fewer auctions and inspections. Hence, there is a reduction in property transaction.
So, again, should you buy a house during this season of pandemic? It is said that the low interest rate will not last for long, and the prices of houses will increase to normal again once the pandemic is over and momentum in terms of the economy is gained.
The low interest rate environment will not last for a long time, and property prices will bounce back once the economy gains momentum.
Here are some tips on buying a property during this season of the Covid-19 pandemic:
Due to the low rate of the OPR, it may be a good time to take advantage of this good time of ultra-low interest environment.
- Calculate your budget thoroughly and make sure that you are in a good position to purchase a property. Make sure that retrenchment, pay cut and other financial impacts would not affect you in your long term repayment of your house loans.
- If you are unable to view properties in showrooms, you could request for virtual tours and digital walk-throughs of the houses. Alternatively, you could ask for videos of the property that you are planning to purchase. Feel free to ask your real estate agents.
- However, it is still ideal to schedule an inspection on your own to the property that you are planning to purchase. Be sure to adhere to social distancing enforced by the government.