Hartanah: Jual Sekarang atau Tunggu Lagi?
Artikel menarik drp StarProperty yg saya ingin kongsi bersama pembaca blog ni.
Q&A: How would you know if it is the right time to sell?
Dear Azizi Ali,
I purchased a condo unit in SS2 some 15 years ago. The property hasn’t appreciated until recently, about 70% from the purchase price. I’m considering selling it before prices might drop as indicated by some of my friends, and use that money to get property when the price is right.
Right now, I’m unsure whether to sell it or not as the property is freehold and this place is centralised. Moreover, there’ll be a mall coming up soon. The reason of my indecisiveness is because I’m afraid that the price of my property might increase further. Thus, I will lose if I sell it now. So I’m in a very confused state.
How do you tell if this is the right time to sell or not? I’ve been holding on for so long and I don’t want to make a mistake again.
Looking forward to hear from you.
From what you have written, prices remained flat for many years and only shot up in recent years. That is probably because the value of most other properties in PJ (Petaling Jaya) rose in the last couple of years. Actually, the rise of 70 percent in 15 years translates into an annual growth of only 3.6 percent! This is hardly a stellar performance.
So, you could certainly do better elsewhere. At the same time, you are also concerned that prices may rise further because of the freehold status, centralised location and the upcoming mall. So if you sell now, you would probably be kicking yourself if the prices shot up after that! Your indecision is not unusual, Annie. Actually, it happens to basically all of us.
One reason for this is because we are getting conflicting signs from different sources. For example, some people are saying that there is a property bubble in Malaysia now. Others are saying otherwise. Now, both camps can prove their points with facts and figures. This being the case, it is little wonder that it confuses a lot of innocent bystanders.
So, this is very much like real life – the planets are never properly aligned. The lights are never all green or all red; it is always a combination of both. The best we can do is to weigh the options and then make the decisions based on our knowledge, experience, research and perhaps even gut feel.
If you want a more direct answer, then perhaps you should consider selling as you (1) already made money; (2) can settle your mortgage (assuming you still have one, of course); (3) free yourself from interest rate rises; (4) are exiting an overheating market; (5) accumulate capital for your next investment.
In case you missed it, sell not because your friends advised you to, but because it looks to be the better decision. I need to add a couple more points: The first is that you can never sell right at the top, so stop thinking about it. The few people that did so had luck on their side. Next, after you sell, don’t look at the property anymore. Detach it from your mind and move on. You’ll be a happier person by doing so. Instead, concentrate your thoughts on your next investment.
Anyway, the worst case scenario is that the price may rise further after you sell. Since you already made your money from the purchase, I think you can live with that.