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Whose fault when you can’t buy your own house?

When it come to the topic of home ownership, there could be a lot of arguments. 101 excuses of why property no longer a desired investment, where renting is better than owning and currently a hotter topic, whose fault it is when one unable to own a property. Is it the developer fault for selling at higher price? Is it the property investors fault to cause the price to increase or is it the government fault for not controlling the price of the property?

Here are some of the common reasons people are not able to buy a property of their own.

home ownership

NOW NOT A GOOD TIME TO BUY FOR HOME OWNERSHIP.

The most common reason why people unable to own a property. They always wait for the best/perfect time. In real estate, there’s a saying the best time to buy is yesterday. But this group of people insist on the believe the best time to buy is coming soon. And like it or not, the best advice for this group is “Ok. You wait long long ah. See you long life enough to wait for the best time to come”.

NO MONEY NOW. NEED TO SAVE MORE FIRST.

A penny saved is still a penny in value. The value will not increase. With the current interest rates bank are offering you, it will never allow you to save enough. Make your money work for you. Start investing and let your penny grow. With some googling or socializing, you might find better alternatives to let your saved penny to multiplies.

PROPERTY PRICE VERY EXPENSIVE LAH. HOW TO BUY?

Have you ever heard any property owner telling you that property is cheap? I heard comparisons, saying how cheap is the property they bought 20 years ago compared to the current market, but they have never say it’s cheap during that time when they purchase it.

I bought my condo for RM320K back in 2011. Back then, everyone tell me it’s very expensive and I should not buy it. Today, the property value increased to about RM600K and people are saying it’s crazy expensive. They told me that last time it’s so cheap at RM320K. Got what I mean? Property never cheap, if it’s cheap, then no one will even consider property as investment anymore.

STILL YOUNG. CAN BUY LATER.

Try ask all the property investors you known. What would be their biggest regret? Probably most of them will tell you that they should have start investing as early as possible. Being young means you have longer loan repayment period. Being young means you have the opportunities to cash out sooner and reinvest.

BANK DOESN’T WANT TO GIVE ME LOAN. VERY STRICT

If you are using this as an excuse, then you can only have yourself to blame. Have you ever look at your own credit report? CCRIS? CTOS? Understand that when you are applying a loan from the bank, you need to provide proof that you actually have the ability to pay them on time. If you can’t prove it to the bank, it’s only natural that they reject your loan application.

Let’s put it in another scenario. Try going to your best friend and asked him/her for a loan of RM10,000. Being your best friend, he/she probably reject you on the spot or agreed to lend you the money. This is because they knew you personally and your ability to return the money to them.

Next try approaching a stranger and ask him/her for a loan of the same amount.

As a financial institution, one of a bank income is from the interests they are charging their clients. If they are not convinced that you are able to pay them back, it’s just normal that they reject your loan application. Instead of blaming bank to be very strict, learn more about your personal finances and credit rating, improve it and try again.

CONCLUSION

There are more EXCUSES when it comes to home ownership. We can argue until the until the cows come home, but it will never improve the situation. If you have been reading up to now and would like to know on how to change the mindset. Try to absorb the essence of the following.

  1. There’s never a perfect time to buy. You buy when you are ready financially and mentally prepared. And to prepare yourself, read and learn more about the industry. The good and bad and knowing what you are getting into. Once you are ready, that’s the good time for you.
  2. One never have a savings issue, they have income issues. Instead of trying to save every hard earned money, set aside a small portion and start to invest. The best investment is yourself. Learn new skills and you get extra options when it comes to getting a better job with better pay.
  3. If you can’t afford your dream house now, just get one that you can afford and slowly move on. A lot of the rich property investors started their journey with a small property they can afford, not a mega size bungalow as a start. Start first and slowly build. Rome is not build in one day.
  4. Start young, build a good credit rating for yourself. The easiest way is to get a credit card, ensuring you pay the full amount you use on time and your CCRIS and CTOS will look like a beauty pageant when you are applying for your first bank loan.

Home ownership ain’t easy but it’s not the hardest thing in the world too. As long as you know what you want, you can surely walk your way through. Start with one, then if you are interested to invest more in the future, you can slowly do it. But at least by owning one, you know that there’s always a roof on top of your head during your golden years.

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