We already wrote about whether it is better to buy or rent a home in 2017 and we concluded that rental seems like a more flexible and affordable option for a tenant. The way tenants think is the thing landowner should pay more attention to so as a landowner you should pay attention on how the market breathes.
Just the other day, Datuk Seri Fateh Iskandar Mohamed Mansor, a Rehda (Real Estate and Housing Developers’ Association Malaysia) president spoke at the forum on the outlook for the Malaysian property market in 2017 and implied for all the interested property investors that now is the time to invest because prices are not coming down anytime soon. There were mentions of some key words such as unaffordability, high rejection of loan applications, weaker ringgit, rising living costs and smaller growth in incomes. All of these are the elements that affect the demand. Either way, the general conclusion is that the property prices are remaining the same at the time being and it would be a wise option to invest now because the future does not look very investment friendly when it comes to the Property market.
So property prices will remain flat, just like the desk I’m typing this text on. We may discuss about why the situation is like this all day long but the authorities have spoken, and we might want to listen to those who have some more insight. So if you plan to invest, experts say you should do it now because the more you wait the more the prices will go up and the more you would regret not investing earlier.
But higher rates don’t mean that only investors would lose if the price of the property goes up. This means that the future rental prices would also start increasing which is a reason more for KL rental tenants to move in the potential apartment on a longer term because once the contract is signed, whatever the future market price, the fees for a tenant would remain the same as on the day when they signed the contract on, unless the terms of the agreement say otherwise.
This is also a good opportunity to push the digital contracting option between the tenant and the landowner which is one of the goals Roomz.asia team wants to achieve within 2017.