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Dreaming of Easy Money ?

Good times bring great tidings. This was the case years ago when the property market was booming and prices of properties continued to chart steady growth. In today’s market scenario though things are hanging in the balance with many issues having to be rectified before they get better.

To quote John Stuart Mill – one of the most influential thinkers in the history of liberalism – while his notion of “Landlords go rich in their sleep without working, risking or economising” may hold water in better times – during periods of consolidation of the economy – this may not altogether be true.

This is because – as witnessed of late – not all investors have had easy sleep – worrying about the lacklustre state of the property market where oversupply seems to be the order of the day. This is also true of the office market that is literally swamped with an oversupply of space – with coworking spaces also upping the ante in terms of added and unwanted competition to an already saturated market space.

Even though property has been traditionally hailed as the nucleus of real wealth creation as people everywhere need a roof over their heads – the imbalance of demand and supply of late have cause some serious lack of sleep problems in terms of getting the desired rental rates or returns in capital appreciation.

This issue is not only faced by consumers but also developers who – faced with an onslaught of issues, are finding their profit margins being squeezed even further while issues of affordable housing continue to plague the nation.

The Real Estate and Housing Developers’ Association Malaysia (REHDA) Institute – faced with challenges on the property front – invited members of the media on a Saturday morning to hear out its proposed solutions outlined in a list of detailed suggestions and outlines for the government to work hand in hand to address this problem of affordable housing.

Suffice to say, the hey day of soaring capital appreciation remains a distant dream for now – optimists would say. And, from these situations, sleepless nights it would seem – are not altogether the exception but rather- may be the norm for the time being until the market recovers for sure.

Ultimately, price and value go hand in hand in the real estate game. And, as seasoned players can testify – property indeed remains a long term game plan, and so ultimately – holding power is certainly needed to weather the storms before the good times roll back in.

The property market – touted as being cyclical in nature has already undergone the uncertain momentum. As the saying goes – what goes down can only come up so it may just be a matter of time for the property market to pick up again.

So, although the days of landlords sleeping and waking up to gain may be a dream in the making for now – it is time to continue to plough until the harvest makes its bountiful way around. Only then, can one sleep and dream one’s way into capital appreciation and increased rental income. Happy investing and waiting for the turnaround till then!

BY DATO’ KK CHUA

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