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Buying A Home During Covid-19

Great property deals everywhere!

If you are still on the fence about buying your own home, this is the golden moment to start shopping as developers start to be creative in attracting potential home buyers through their online initiatives – offering vouchers, gifts, discounts, deals (did I miss any?). If you are thinking about buying a house within the next 12 months, this may just be the right moment to start thinking seriously.

Gamuda Gardens Joya

Is this the right time to buy?

I can’t deny that with uncertainties looming ahead and everyone feeling anxious about the economic impact of this pandemic, it does seem like making a huge purchasing decision is the last thing on your mind. However, we did a quick review of the situation and here are our thoughts:

1. Attractive Prices & Discounts

If you have been looking at properties circa 2003-2005, you will realize that during the economic growth, prices are high and developers will not offer any discounts or deals. To purchase any property, you will need to put aside 15%-20% purchase price as entry cost. So for every RM100K, you need RM15K. Duplicate that by 5 times and you have a huge sum of money to shell out! Fast forward to the last few years and you will notice that there are always offers such as “0% downpayment”, “RM5K downpayment”, “Free S&P, Lawyers fees, etc”.

What does this mean? Developers are providing you with incentives to buy when the economy is not so encouraging, which means you pay much less when you purchase during this time. When times are good, developers will let you foot the bill for everything, so that means you will have to pay much more.

So now, with the current situation, you can actually get very good deals if you are ready to purchase your own home. Get direct discounts, low down-payments, instant gifts and I even saw a developer giving cash if you lose your job during this season! I am not sure how that works, but always remember to read the fine prints before signing. The point I am trying to make is that, if you are ready to purchase and still holding back – the timing is now.

2. Well-Planned Townships

If you are thinking of buying, check out properties in good townships built by prominent developers. Most of the time, these properties are well-maintained with a good neighborhood and good amenities, which makes them high-in-demand irrespective of the economic situation. If you are thinking of staying in the house you’ve bought, you would also want to live in a nice neighborhood with all the amenities you need. Check out Gamuda Gardens, which offers you a 50-acre central park flanked by cascading lakes and jogging/cycling trail around the lakes plus fully gated & guarded residential enclaves comprising of Terrace houses, Superlink terraces and Linked Semi-Ds. Or check out Gamuda Cove which is a stone’s throw away from Putrajaya and Cyberjaya, with theme parks, CBD with its own tramp (ala San Francisco), a smart city in the making with choices of Waterfront Villas, Terrace Houses, Serviced Apartments. If you want to immediately move in and not wait, then check out Kundang Estates, completed properties with private lake, fully gated and guarded, with community farming plots and a plethora of facilities within the community grounds.

3. Your Home = Your Life

As everyone is confined to their homes at the moment, it also goes to show the importance of your home. Investing in your home essentially is one of the best decision you can make. Your home is the place you can return to every single day, the place you can relax and let your hair down, and to enjoy the beauty of life.

Your home is a place you can seek solace at all times, good or bad. Invest in a home that you can grow with your family. There should be open spaces for the family to enjoy a brisk walk, a cycle around or even just a stroll around to enjoy the nature. If there is a clubhouse, it would be ideal as the kids and family can enjoy a swim, sauna, exercise at the gym or play badminton. Gamuda Garden offers its residents the conveniences of all the above with the Gamuda Gardens Wellness Centre – so residents can enjoy all the facilities similar to living in a service apartment or condominium.

4. Buy New

Buying new means less cash outlay at the beginning of the purchase, which helps you to conserve cash. Imagine if you are purchasing a second-hand property at a good price, you will still end up spending quite a fair bit of money to perform basic renovations in order to make the place livable. If the place is well maintained, you will still need to repaint, replace some old cabinets and maybe replace broken fixtures if any. All these would be costly, especially when you already have spent 10% on down-payment and also other legal costs to purchase the property.

Comparatively buying a new home wouldn’t require repair works to be done. There might be a need to put up new fixtures, but there will be no need for tear down (which will cost money). If the new house comes with basic fixtures (air-conditioning, kitchen cabinet, auto-gate, etc), it would be a bonus as you can save up on those purchases. Thus buying a new property is a plus point at this point, if you are thinking of getting some savings from your property purchase.

5. Property is an asset

Compared to a vehicle (cars, for most of us), properties are an asset. I know a lot of people are going to challenge my statement by saying that property that we live in is a liability because there is a maintenance cost that we need to shoulder. Fair argument. However, a property is still an asset that can give you return in the short, mid and long term if you have your strategies right.

Even if you decided to live in the property and sell it off sometime later, the value of the property remains. With the proceeds, you can choose to upgrade to a better home or cash out and retire. So I still think a property is an asset – no matter what the naysayers say.

Should you buy a property now?

Property purchase is a decision that requires thorough thinking through with all information made available to you. If you are purchasing the property with your spouse or a family member, be sure to involve them in the discussion. Below are steps you should take prior to making any property purchase:

  1. Check your home loan eligibility (we have a simple home loan calculator that gives you a rough idea of monthly installment)
  2. Research on home loans – tenure, terms & conditions
  3. Check out insurance options – MLTA, MRTA
  4. Check out the entry cost – what is the down-payment and other cost
  5. Identify property to consider and speak to authorized sales person to get accurate information at the time of purchase (information can change rapidly, so it is always ideal to get fresh info from the authorized sales person)
  6. Get as much information on the property of choice

Buying property is a very personal decision, so sometimes following your heart may be a good move. If you would like to consider any of the properties we have listed on our website, drop us a note and we will get the authorized person to reach out to you.