8 things gen y must consider before buying property young and free
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2017 is a volatile year for Malaysia not just economically but politically and beyond. But it is not just Malaysia, other countries too are affected in regards to economy and political stability etc.. The main concern of Malaysians have long been the affordability of property, especially in major cities like Kuala Lumpur, Johor Bahru and Penang. Although it is not a new issue, the group that will be most directly affected is Generation Y, more commonly known as the Millennials.


Here are the 8 things Millennials should consider or do when buying a property:

1. Keep a checklist of accomplishments to reach the long-term goal

Compiling a checklist of smaller accomplishments to achieve your long-term goal is a vital aspect in making dreams a reality.

As pointed out by an expert from DT Property Management, David Traeger, “You need to kickstart your journey with a positive mindset to cope with volatile outcomes when they arise”.

It can be overwhelming to try to achieve the dream of buying a property. As such, break-down the journey into stages, where each step is marked by a task or achievable (smaller) goal. For instance, step one could be to save RM5,000 in 6 months, followed by to save RM12,000 in a year, and so on and so forth. This will ensure that you can work slowly but surely to your larger goal of owning a home.



2. Do research on the current property trend

Depending on an individual’s capability, research can be an arduous task. No research is without hard sacrifice in terms of energy, time and commitment. The question is what you need to research and what you are looking for. As a start you should think of what type of property you want to invest in or buy. Once you have that, you can start doing some research about the property.

See also: How Can PropSocial’s Features Help You?



3. Start small

Buying property involves risk. Whether you think you have the appetite for high risk in order to gain high returns, it is always a safer bet to go for a slightly more inexpensive property, those which are well underway to completion, and those from more notable developers with proven track records.

Read more: The Risks of “To-Be-Completed” Properties



4. Save more, not spend more

For Millennials, this can be a tricky thing. But it is a matter of habit. If you are serious in buying a property or investing in one, you need to start saving more. Buying a property is much more than just forking out the downpayment and paying the monthly instalment. There are countless other fees and taxes, and even maintenance to consider. As such, it’s important to have some extra money and take into account all other costs before buying a property.

Fresh graduates can typically find employment positions which pay between RM2,000 to RM2,500 salary per month. Saving between RM RM500 to RM1,000 per month can help get you well on the way to buying a property. Those who are earning more should also opt to save more.



5. Attend workshops, seminars, and conferences on property

No mater how you see it, seminars, conferences and workshops are more beneficial than detrimental. Nobody is an expert overnight. As such, Millennials shouldn’t be too much in a rush to clinch titles like “the youngest property expert investor”. Take the time to gain knowledge and hone your skills before buying a property.

Seminars, conferences and workshops on property investment are held throughout Malaysia almost every other time of the year. Some are free, while others may require you to pay a certain fee. Regardless, keep a look out and check out what events may suit your needs. Attending these sessions can help you gain valuable first-hand knowledge about the property market in Malaysia.

If you’d prefer to learn on your own, there are plenty of property investment books in the market. There are even books written by successful Gen Y property investors whose experiences may be much closer to yours.



6. Getting term/life insurance before getting a home loan

There are many types of insurance- life, health, car etc.. But as property investors, term insurance or life insurance will be some of the most essential means of protecting yourself and your family members.

Have you ever thought what would happen if you get a home loan, and something bad like death or total permanent disability happens to you? How you are going to repay the loans that you borrow from bank? Did you know that the loan may automatically have to be repaid by your next of kin?

These types of insurance ensure that should anything happen to you, there will be a sum which can help cover the home loan you have taken.

Learn more about term insurance: MRTA and MLTA: Don’t Let Your Need to Protect Your Home Be Used Against You



7. Get started early with financial planning

There is no harm managing your money from an early stage. Most Gen Y have a tendency to disregard or remain blissfully ignorant about financial planning. If you are 21 years old and just started working, this is the best time to start saving money because by the time you are 60, you will need it for medication and hospitalization, on top of realising that dream of buying a home. It’s not how much you earn that counts, its how much you save that matters at a later stage.

Have a plan on what your monthly expenses may be should you buy a home, and how you’d allocate money to service your home loan and taxes, along with other car loans etc., and even how to allocate certain amounts to other forms of investments and savings. Knowing how to plan your finances now is imperative in ensuring you can handle the complexities of your finances after buying a home.



8. Be a tech-savvy property hunter or investor

Gone are the days of using traditional means to look for property. It’s a digital age now and everyone especially Millennials of all people, need to be tech-savvy. Plenty of property websites and portals focused on the market in Malaysia are available, where everything from basic information to honest reviews from genuine home owners can be found.

Be sure to familiarise yourself with these sites, and use them to your advantage when looking for the ideal property to buy.

Explore: How Can PropSocial’s Features Help You?



Conclusion

Although 2017 is not a good year in general when it comes to currency exchange, political stability, high cost of living and economy, every Millennial who plans to buy a property should remain optimistic with a positive mindset, and maintain a strong will to hurdle all the obstacles. These tips are more than just a guide, they can also help get you to kickstart your journey in buying a property or stepping into the realm of property investment.

Can’t wait to get started on your journey to buying your first property? Join PropSocial to stay up to date with the latest properties, or join in the Discussions with our community of home owners, seasoned investors, and experienced real-estate negotiators who can provide answers to all of your questions!



(Written by: Adrian Chew Tee Loong, 8th May 2017)

Uuqn7014 small

Truly agree with all the recommendation or consideration mentioned. But basically start small, it's already small enough in the klang valley. Haha.

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@JohnL 

Small... do you mean start with studio apartments or town houses?

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I'm not a Gen Y, I'm a Gen X (aunty liao). Haha! But for discussion sake, do you think more of today's younger generation are buying properties as compared to our parents' time? What do you think? Some says our parents' time, young adults buy more properties than younger generation today. But I don't think so. I think younger generation today are more well-informed and educated on the needs to own a property. Of course despite the fact that the property prices are so much higher now as compared to back then.

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@veron 

I believe back in those good old days, our forefathers invest in undeveloped land. There was not a lot of developed buildings to buy then.