Property in the Rabbit Year: A Time for Recovery

If we look at the year 2011 in a Chinese perspective, it will be a year of recovery and a time for us to adopt patience with the arrival of the Rabbit year. In Europe we saw a decline in the property market for the past few years, and experts believe that the market will be laying low for most of the year except for some Eastern European countries. The US saw people who lost their jobs and some are defaulting their mortgages, opting for smaller and more affordable homes, with some homes slashing prices up until 75% of their original asking price when the market was still booming.

What about Malaysia? Developers are optimistic and telling the public about the potential for greater growths despite the problems revolving around the world. More homes are being built, landed homes and luxury condominiums that may take up more than 50% of a person's salary each month just to pay the bank loan for the purchase of the home.

Before the economic bubble burst in the US, we saw a similar trait. Developers were creating homes that costs millions and couples with high earning capabilities grab them up for that luxury lifestyle that they wish for. When jobs become scarce, some are holding on to their homes with the hope of recovery, while others saw that their homes which were once an asset had become a liability, eating up into their savings as jobs are scarce and income is also affected by the bad economic condition.

This does not seem to cross the minds of Malaysian developers, as developers are still interested in building expensive homes and encouraging buyers during launches, collaborating with banks for low bank interests to encourage immediate sign up. Some developers are also throwing in a lot of freebies such as air conditioner, rebates and other things which may seem like a fantastic deal.

Overall, the Rabbit Year may seem like a time of recovery for most countries around the world, with a careful outlook towards property investments. It may be a time to quietly renovate the homes and make it more desirable for sale when the market picks up again in a while. Otherwise, it will be a time to truly investigate which properties are the better investments. After all, it could be a recovery time for your financial recovery as well.


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