A property consultant has advised prospective house buyers to wait until property prices come down, saying making a purchase at current prices and in the face of a bleak economic outlook would be like committing suicide.
Ernest Cheong, who has been a chartered property surveyor and consultant for more than 40 years, said the property market does not exist in isolation and people needed to pay attention to the local and global economic situation.
He advised the public to shed the widespread belief that only house ownership could guarantee a roof over a family’s head. Families could still live in rented homes, he said.
“To make matters worse,” he told FMT, “you have so-called property gurus encouraging families to buy homes they may not be able to pay for in the long run, claiming it is an investment since property prices don’t go down.
“What happens when you can’t afford to pay the instalments and can’t sell the property off, or if rental values can’t cover instalments? You’ll be stuck.”
Cheong was commenting on the result of a recent survey by PropertyGuru.com.my, which said about 58% of Malaysian buyers were likely to make their purchases within the first six months of this year despite sluggishness in the property sector.
He said it would be more sensible to rent a house than to buy one in times of economic uncertainty.