Despite the pandemic breakout, many investors made advances on their property portfolios in 2020.
Based on Property Advisor’s analysis of the late 1990s during the Asian Financial Crisis and Nipah virus outbreak, transactions did indeed drop drastically. “There’s a lot of pent-up demand from investors, investment houses and people who refrained from investing last year. Now, we’re into another lockdown with no end in sight, but generally, people are less spooked now compared to the first lockdown. It’s not such a bad situation, but it will stifle demand ,” he explained.
However, pandemic containment measures such as vaccination will drive economic recovery and thus the property market. Ahyat opined that although it may sound like doom and gloom, there are actually many opportunities waiting to be seized. However, he cautioned potential investors and homebuyers to first reflect on their financial situation. According to him, there are three aspects to consider – personal finances, family, and your team, if you own a business.
For example, if your property is worth RM500,000 and you still owe RM200,000, you have RM300,000 in equity. Taking out RM200,000 could help ease the burden for your new property investment.