“When the market goes up, you buy;
When the market goes down, you sell.”
This is the generic adage commonly shared within the investment community.
There is no doubt an understanding of the market movement plays a vital role in determining when to commit to a particular investment. However, if you pay close attention to the actions of the big corporate investors, monies are continually flowing in and out in spite of market sentiments.
Because making smart investments will always trump the timing of said investments. If you make investment decisions purely based on market movements, it should be called “speculations” instead.
This logic carries forward to property investment as well. While the general consensus that the market is stagnating, or the “bubble” is bursting, that does not necessarily mean you can’t strike a good deal as long as you know where to look.
Here are a few reasons why:
1. Extension of Home Ownership Campaign
The Home Ownership Campaign (HOC) is an initiative by the Ministry of Finance, where Malaysian home-buyers are exempted from stamp duties for residential unit purchases made between January to December 2019.
This campaign was initially planned to end on June 2019 but has been extended to 31st December 2019 due to the overwhelming response. This campaign alone can easily net homebuyers RM20,000 – RM30,000 worth of savings on their purchase, which is inclusive of the mandatory 10% discount imposed by property developers.
Do note that not all new launches fall under the Home Ownership Campaign by default, and it is best to clarify with the respective sales representatives. However, if a project falls under the HOC, the developer would generally proudly display it prominently on their project marketing materials.
2. Developer incentives
With heavy competition during this HOC period, developers would gladly throw in plenty of incentives to entice new homebuyers. Incentives may range from offering better loan financing, fully furnished units, or even unconventional rental and payment schemes.
Notable campaigns to look out for are Sime Darby’s Spotlight 8 campaign, offering homebuyers better deals and prime member discounts during “weekend superdeals”, and Mah Sing’s 25th Anniversary Lock & Win Campaign.
Plus, Ohmyhome is here to make your life easier, by offering you a free ride directly to the project’s showroom! With these measures in place, it is increasingly difficult to justify not buying property within this campaign period. But the benefits do not end there,
3. First-time homebuyer status
If HOC is not enough, our Ministry of Finance has also provided waivers and exemptions on property transfers and loan agreement stamp duties for first-time homebuyers.
For loan agreement stamp duties, local first-time homebuyers are entitled to a 0.5% waiver on the total loan amount on your property, and there is an additional waiver on the property transfer stamp duties capped at a maximum amount of RM5,000.
In fact, the government launched the My First Home Scheme (MFHS), or Skim Rumah Pertamaku (SRP) way back in 2011, which is still on-going to this day.
The scheme allows homebuyers to obtain 100% financing from a selection of banks, eliminating the need to fork out 10% down payment. This scheme is made available to a single borrower earning a monthly gross income of less than RM5,000, or RM10,000 per month for joint borrowers.
4. Buyer’s market
As long as you have a good credit score and have the ability to secure a hefty housing loan, you have the upper hand when it comes to negotiating for deals. If you turn back time ten years ago, back when properties are sold like hotcakes, each individual buyer has not gotten the proper attention he/she deserves due to the excellent property sales.
But now when the market is softening, developers have to heavily compete with each other to secure an ever-decreasing pool of potential buyers. With that, developers would provide better offerings and services to those who can afford them, giving you, the buyer, the upper hand.
Property gems can always be found in the market, regardless of market movements. It would not be surprising if a particular development project will get sold out on the launching date itself even during a recession, provided that their offerings are attractive enough.
What is essential for us as home buyers, is to have a comprehensive understanding of our own personal finances, and aggressively save for a hefty war chest, ready for the right time for us to buy into a good deal.
Need help in your home buying journey? Check out our reliable Buyer Agent Services. Our professional, in-house agents will help you find your dream home free of charge.