Daily Express, Photo Credit to Daily Express
clock 11-05-2019
hit 1,573
How Migration Affected Sabah Property Prices

The Malaysia property market is stable supported by the growing younger generations.

However, the brain drain from Sabah to Peninsula Malaysia and other countries over the last five decades has affected the property market in the Land Below the Wind.

Not only do the migrated younger generations set roots overseas and buy their homes there but many parents also joined them, some selling off their ancestral homes and lands.

Many grandparents while they were alive sold off properties in Sabah to finance the overseas education costs of their studious children and grandchildren who cannot hope to buy such properties now with their salaries if they work in Sabah or Malaysia.

This was due to the inability and policy of the discriminating and corrupt past government to educate all its citizens who deserve the education to develop their potential to the fullest to benefit the country or to support the industries that provide the employment or business opportunities.

In Malaysia, Kelantan, Pahang, Perlis, Sarawak, Sabah, Kedah, Negeri Sembilan, Terengganu are population donor states to Perak, Johor, Malacca, Penang, Selangor and Kuala Lumpur.

If you buy property in Perak, Johor, Malacca, Penang, Selangor and Kuala Lumpur which are known as receiver states, the gains from your property investment should be better than if you invest in the donor states, according to Dr Daniele Gambero.

He participated at the recent first and longest hologram talk series at Propex2018 organised by Shareda at the Sabah Trade Centre, recently. "Look for scarcity. In real estate, don't wait to buy, but buy and wait!" Dr Daniele said.

The younger generations now look for safety, trendy and conducive lifestyle that is connected to the Internet when searching for a home. He presented an optimistic and rosy outlook for the future property market of Malaysia.

Meanwhile, other speakers touched on most Gen Ys said the first thing they had bought upon getting their first job is a car and other things. While this is a valid reason as public transportation in Malaysia is not as good, this may affect their qualification for a home loan.

If you look at the graph from National Property and Information Centre (Napic), it showed property prices across Malaysia have been on an uptrend.

To enhance your net worth, you should instead invest in a property as it is a good hedge against inflation. The first step to knowing how to target the entry price for your first home is knowing how to do your financial calculations.

As a general guide, your mortgage payment should not be more than one-third your gross income (your take home pay before deducting any expenses). Your first home should be as affordable as possible but with the greatest potential for capital appreciation.

Unavailable openly is a masterplan that is approved and gazetted for Kota Kinabalu, which would typically define a city's development in the next 10 to 20 years. It would also showcase the different designated land use and transportation plans within that particular township.

An area that is deemed highly desirable will attract businesses and residents.

Generally, properties that are located within close proximity to transportation hubs can command a premium of between 5 to 10 percent over the long-term. This is because people generally want to live close to transportation hubs.

A budget that has been set aside for improvements in public infrastructure and new economic drivers will have an impact on new and existing homes in and around the vicinity. Where the government is building new hospitals, roads, expressways, business parks or new investments to develop an economic corridor help to improve the value of the property.

The best strategy is to buy in an area that is not yet developed but where there are plans for various economic drivers. A government mooted economic corridor or a reputable developer that has experience in building township are great indicators if the area will succeed or not.

An area that is highly desirable will naturally draw people to want to live and work in and around the vicinity. As there is an increase in demand, so will the property price in that area. That is how property price appreciates in value.

footer tagline