Best to invest in properties during tough times
PAPAR: Tough times are the best time to invest in properties, said property developer Datuk Susan Wong.
She told the Borneo Post that the present time is considered as the “buyer market” citing that buyers who take advantage of the tough economic situation, such as the present sluggish economic trend, will see the rewards or benefits of their purchase after several years.
“They will then realise that they have made the right decision,” she said.
Susan said that a similar economic situation occurred in 1997.
“During the financial turmoil, whoever dared to invest (in property) or had cash in hand (to buy property), earned. That is why those who possessed the eligibility to buy should buy now, while the economy is still down,” she advised.
In the case of property developers such as herself, it was imperative to ensure that buyers could afford what they were selling during tough economic situations.
“I remember at that time, in 1997, during the financial crisis. During that time, we launched our Beverly Hills 3 and we set the price at affordable home. It became very saleable. It was important that we do something that people can afford to buy,” she explained.
Nevertheless, she is expecting better times ahead.
“The government is trying hard to revive the economy, but this takes time. Last year and this year were a bit tough, but we are optimistic of seeing (better) results next year,” she said.
Among the efforts undertaken by the government that she views positively is the effort to inject back money into the market, the effort to create more jobs for the locals and the exemption of stamp duties to house buyers to encourage more home ownership.
She added that gauging from the efforts of the government to improve the economy, Sabahans may be able to see an improvement in the economy next year.
However, a better economy will mean the prices of the properties now will become more expensive.
“We may not give the 10 percent discount to buyers as we are doing now, and may instead only give five percent. During the good times, businesses earn back what they have lost during the bad times. Business is just like that. It is like when you oversupply, irrespective of whether or not you lose, you still have to sell because you cannot keep too much stock. This is a business cycle,” she explained.
Susan, who is also WSG Group Managing Director, presently they are providing 10 percent discount and stressed that although they will have a lower profit margin, they are optimistic of their property project at Benoni Papar.
The decision to provide the large discount, she said, was because of the difficulties for house buyers to get housing loans.
“Even though it is only between RM280,000 and RM320,000, people are still unable to get loan, hence the discount. We also encourage them to visit several banks. If one bank rejects you, you can always try another bank. We help our buyers get financing and we also give 10 percent discount. If they get 90 percent loan, then it will ease their burden,” she said.
Her aim is for her project to become a satellite town for Papar, which is located at Benoni, three kilometers away from the Papar town.