BY: JONATHAN ROBERTS
jonathan@propwall.com

With the economic downturn, markets across the board are facing a slowdown, and the property market is no exception to this. Industry players are expecting the property sector to remain flat throughout 2017.

If the economy does not recover soon, is it wise to invest in a property now or take the wait-and-see approach? There is no right answer to this perennial question; that would depend on one’s goals and financial capabilities.

In a recent roundtable discussion with the topic 'Overcoming Malaysia’s Property Industry Challenges in Budget 2017' held by StarProperty.my, the six panelists were asked if they would personally invest in a property despite the market's uncertainties, and the answer was a unanimous yes.

Real Estate and Housing Developers’ Association (REHDA) Penang chairman Datuk Toh Chin Leong brought us back to the basics of investing in a property.

“If the property is in a good location with the potential to appreciate, then I would buy,” he said, adding that investors should look at properties on a case-to-case basis.

IJM Land Bhd managing director Edward Chong questioned people’s herd mentality.

“People have the tendency to buy when everyone else is buying, but it is actually when everyone stops buying that we should be shopping for a good deal,” he said.

He added that now is a good time to buy because homebuyers are spoilt for choice, and developers are inclined to oblige to requests for discounts and freebies.

He also advised the younger generation to alter their lifestyles in order to take the first step to investing in property.

“Now is probably the right time to own something decent. The property may be a bit smaller, but young people should capitalise on the developers’ discounts,” he said.

When asked if investors should focus on the primary or secondary market, Malaysian Institute of Estate Agents president Erick Kho said both primary and secondary market offers different benefits.

However, he said he would personally opt for a product from the secondary market as he prefers something that is certain and already completed.

“When it comes to a secondary property, what you see is what you get. On top of that, if one is buying for investment, the rental income is a plus point as it can add on to one’s eligibility for further loans,” said Kho.

iWajib Property Sdn Bhd director Datuk Chew Yin Keen pointed out that timing is pivotal when it comes to investing in property. He urged first-time homebuyers to snap up a property before the next hike in property prices.

“Unless there is a change in policy, the compliance cost won’t come down. That, along with the drop in oil prices and the ringgit weakening, property prices will inevitably go up.

“With the prospect of further weakening of the ringgit, buying a property will not only create, but protect our wealth,” added Chew.