A foreseeable risk for fresh grads

As the world economy is slowly on the recovery track from the '07-'09 financial crisis owing mainly to US sub-prime mortgage crisis, there's this rush of fresh graduates purchasing properties right after few months joining the workforce in Msia. Such temptation of owning a property is further enhanced by those fancy2 fresh graduate housing loan schemes offered by our local banks. These HL schemes are so flexible that one can easily get a loan with minimal requirements.

Its may be quite a favorable situation for grads who are really in need of a house, but do bear in mind that our still-healthy economy is currently maintained mainly by the people's positive sentiments. There's no solid forecast of how long can the our property bubble lasts b4 it bursts, esp with the Dubai debt crisis on its way. Not to mention that the nation's property market is nearing its peak due to the fact that most Asians assume buying properties will be the best investment all way round. There are many other factors to consider other than just looking at the best interest rates a bank can offer nowadays. Take note that our current Base Lending Rate, 5.55% is actually at one of its lowest point compared to years before, so there's no promise of how long can it be maintained for the coming years ... esp with current economy condition.

Important factors to take note when u're seriously considering of getting a property:

1. accessibility - is the property easily accessible via highways/public transportation? how far is the place from schools, shops, & other basic facilities?
   
2. property type - freehold/leasehold? commonly speaking a landed freehold property is always the best choice, yet nowadays people opt for service residence (condos etc) due to the high market value of landed prop.
3. financial stability - its much better to check if u're can afford the 10% down-payment & +-5% legal fees as most banks nowadays dont cover full loan amount.
4. Project developer - for uncompleted properties, its good to get vital info on the related developer to ensure that ur property will be duly completed. Its wise to go for renowned developers e.g. Sime Darby, IJM, Malton, UMLand, etc ... instead of some newly established co.
5. Pricing - always try to get the best from real-estate agents. Nvr trust 1, manipulate as many as u can. it will be better if u check on the market value of the property from valuers e.g. Regroup, KGV, Raine Horne etc b4 purchasing one. Certain residential areas are really a good catch esp those in Mont Kiara, Kenny Heights, Kinrara, & Damasara. But these areas are usually out of fresh grads' reach as they cant really afford the repayment.
6. Think - dont buy if u dont need to. always take ur steps carefully as 1 bad investment will do some great damage to ur financial standing.

Primo @ The Enclave at Bukit Jelutong (another Sime Darby development)