By Nur Adilah firstname.lastname@example.org
The younger generation is still keen to own their own home despite the current uncertainties that are affecting the property market.
The adverse impacts of the Covid-19 pandemic, which had further dampened the market has not discouraged many potential homebuyers from refraining from their dream.
In fact, there is still relatively strong demand from the younger generation even though statistics show that there has been a slight drop in the volume and value of transactions for residential property. Data from the National Property Information Centre (Napic) for Q1 2020 showed that transactions were still made in Q1 2020.
Given the offers by property developers, coupled with the attractive incentives of the reintroduced Home Ownership Campaign (HOC), this is perhaps the best time to purchase a home.
“I heard that prices of homes had gone down during the pandemic, so I personally feel it is a good time to get a home, providing your job or income is very likely to be still stable despite the pandemic,” said 25-year-old teacher Jonathan Augustine.
Discounts offered by property developers have attracted young potential homebuyers, especially first-time homebuyers who are hard-pressed to come up with the 10% deposit.
Jonathan said his consideration in purchasing a home is for his own stay first and another for future investment.
“Perhaps a cheaper property for investment and a slightly luxurious one for my own stay,” he said.
However, the decision in purchasing a home will hinge on proper financial management. For 25-year-old engineer Mohammad Arif, he plans to invest some of his savings into investment instruments like trust funds to ensure that his savings will grow.
He said the HOC and the Economic Recovery Plan (Penjana) are beneficial for young homebuyers as they will not be limited to buying new projects. The real property gains tax (RPGT) exemption offered by Penjana will encourage homeowners to sell off their property in the secondary market. This increases the options for young buyers.
However, many first-time homebuyers are still struggling to secure a home due to loan-related issues.
“With the escalating cost of living and property prices year-by-year, and while wages are still low, it will be difficult for more people, especially the younger generation in getting a house,” said Jonathan.
He agreed that banks need to play a more vital role in initiating better packages or incentives, especially for first-timers. The stimuli should be prioritised for first-time homebuyers to increase homeownership among the young generation.
“I also feel that more awareness or education on buying a house for the first time should be made. This will be very helpful, especially towards first-time buyers who might not know what to expect when purchasing a home,” Jonathan added.
Mah Sing Group Bhd founder and group managing director Tan Sri Leong Hoy Kum said: “The mid to long-term outlook remains positive supported by strong fundamental demand for property due to the young demography and strong household formation which outstrips annual supply.”
The reintroduced HOC under the Penjana plan and other various property friendly incentives would help to stimulate the property market, he said.
“This also serves as an impetus to promote homeownership, particularly for first time home buyers. We also collaborated with Maybank Islamic to launch HouzKEY, a financing solution under our Eazy to Own campaign for selected Mah Sing projects.
“This home financing solution enables buyers to own their ideal home with easy entry and low monthly instalments,” he added.