There are so many new property buyers been frustrated whenever they’re thinking to buy a property. Some of them have no knowledge on property, thus, make some mistakes. We had compiled several mistakes as follows:
1) Buying your dream house as your first property
This often happen to newlyweds that just got married and they over committed in their first purchase. Many not knowing the amount of loan is a burden of RM4-5k in monthly instalment. This will create a lot of pressure on the couple when half of your income goes to the house. What about the car / insurance / coming baby / living? You’ll then be in a situation that you’re trapped. In accordance to Robert Kiyosaki’s theory, this is called “Rat Race”.
Suggestion: Go for a lower price property. After you’ll settle down until you’re really confident in your money making (ability).
2) Herd effect
It means people frequently follow advises and emotions blindly. Developers often use “herd effect” in their property launch to drive sales because it’s very effective to drive emotions. They might buy a property that they don’t even know the name. There are people like this who just follow people’s opinion. Most often fall onto be the person they ask for advice.
3) Not doing anything
Sometime when we go for friend’s gathering, there’ll be the people that talk about property the most. But when you ask them: “Have you buy your first property?” They said “Not yet.” But they thought they know everything about property or investment. These are the people that overthink stuff. If you did not invest, just sit there and missing out on the wave of property that is going on right now. You will regret because the money is getting smaller and smaller in the bank.
In conclusion, it always better to do some research before you purchase a property especially when you’re the new property buyer.