hi there, to buy property need a proper planning to achieve the goal to own it, and it is good to be knowledgeable when or how to buy property. Let's read the article that might helps you for better understanding buying a property.
If you have been following Malaysia’s news, you are well aware that the recent Malaysia economic outlook for 2018 and beyond brings plenty of good news for property investors. Over the last couple of years, global recession coupled with two national tragedies and political instability, it has left our country’s economy into a tumultuous state; while this hasn’t shortened the Starbucks line nationwide, it has considerably reduced the queue for new launches like house for sale in Semenyih that you have been eyeing for some time and avid investors’ grin faces.
A paper presented by Professor Yeah Kim Leng at the 27th National Real Estate Convention, titled ‘Economic Outlook for 2018 and Beyond’ gave us few reasons to smile again this year moving forward. According to the Professor of Economics at Sunway University Business Schools, things started slowly looking relatively positive in year 2017, as for the first time after long period, the country saw a strong and synchronized growth. The trend saw a positive incline from 4.2% to 5.9% that very year; top it up with robust growth we experienced at the beginning of this year, the numbers suggest that we are on an upward trajectory for year 2018 and beyond.
Some of the key areas that saw a positive increase are agriculture, manufacturing and services sectors, while the construction sector had moderate growth. Although the growth in the real estate industry is also moderate, many are still seeing this as a silver lining as the situation can improve in years to come. This shows that the property you’ve had your eyes on may not be that out of reach. Now, let’s look at the four key factors that indicate it’s time to part with your cash.
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| Factors that you should start saving to buy property in year 2018 |
1. Upward trend to continue in year 2018
Let’s take reference on the post global financial crisis, there are couple of of imbalances and vulnerability have been more or less removed. The truth is the global economy saw a good improvement for the first time after eight to nine years. This suggests that an expanding trend in the global market and Malaysia will also see a positive outcome. Apart from that, the country’s GDP growth, supported by improving external demand, it is expected to grow at the higher end of 5.5% to 6.0% range in 2018. Then again, it is important to take note that strong financial system can cope with volatile short term capital flows but overcoming long term structural challenges such as insufficient high skills workforce, industrial upgrading and productivity-led growth will need greater policy effectiveness. Therefore, this is something that Malaysia needs to seriously look at.
2. Inflation to get rid of long term average
Another good news for everyone, it is forecasted that the inflation rate is about to reduce this year. In year 2017, the Consumer Price Index (CPI) inflation of 3.7% in 2017 is projected to normalise between 1.8% to 2.5% in 2018 as subsidy begin rasionalisation and energy price shocks subside. Some analysts are saying we are on the sweet spot, which means that we are on a high strong growth with low inflation. Although the forecast says that inflation will be reduce, but the low income household remains vulnerable as this group are at high exposure to debt even though the relative proportion has declined slightly.
3. Mixed real estate outlook
Property industry often drive construction activities that can be continue to be driven by civil engineering works particularly in the large infrastructure and industrial projects as well as selective property development. Apart from that, the property market is also continuing to cool off after few rough years. The speculative demand has evaporated but no major correction is expected as the economy remains healthy. As for the property demand and prices, the next few years will see a moderately strong GDP growth and full employment that causes and increase in income and expansion in working age population. Though it will be slower but still a positive credit growth underpinned by strong domestic liquidity and continuing credit flows as banks remain healthy.
4. Strengthen Ringgit further
As for our currency, it has not been the strongest currency in the recent years. Yet, the Ringgit is slowly recovering and strengthen, which in fact has emerged as one of the top performing currencies. However, the Ringgit still remained as the most undervalued currency in ASEAN.
and also read article about >>> Eight guides to sell your property <<<
have a great day everyone.
cheers.
