2020 has been one for the books. Many industries are struggling to put the pieces back together. From individuals and families losing their jobs to political strife, the good news is hard to come by.
Purchasing a dream home may sound out of the question right now. But due to unexpected market cuts, property value, and the lowest overnight policy rate seen in years. Malaysia may be the best place for you and your loved ones to buy the property that you've been searching for.
With the lowest overnight policy rate in history, Malaysia is experiencing a home and property buyer's dream. Bank Negara Malaysia cut its OPR to 1.75% on July 7th, 2020, the lowest OPR drop since 2004. This creates a trickle-down effect between property sellers and buyers. Property sellers are looking for a quick turnaround and buyers are looking for a swift deal that won't deviate outside of their financial stability.
Lowest Overnight Policy Rate (OPR)
Many banks may experience a shortage or a surplus depending on what funds they have available and how much their clients withdraw. An overnight policy rate is the interest rate a bank charges another bank borrows funds to balance the shortage or vice versa in case of a surplus.
With Bank Negara Malaysia’s OPR dropping to a historical low, this is the time to be purchasing a property in Malaysia. Your interest earnings will afford you the chance to buy a house and then some.
When Should You Buy Property?
If you decide to take out a loan to buy a home in Malaysia, it will be the cheapest interest rate you’re likely to see for years to come. Cutting OPR means the property market will shift with this positive domino effect. Property charges will trend downward. People will take advantage of this and sales will skyrocket. When buying, be mindful of the timeline. Acting quickly on this decrease in the market is a must. High-quality properties will sell quickly, and many folks will be tempted to buy a property just for its attractive price
Catching the wave of the bottom out effect should arise within 6 to 12 months after a crisis. It's time to start looking for property in Malaysia that will suit you. If you're interested in development living, consider something like Seri Pajam to find a home that meets your needs.
You're looking at a lower monthly instalment for your mortgage loans, demanding a lower deposit. From sustainability to other best practices, there's plenty of living to be done in this beautiful area.
The Good News
While this year has been rough to digest, we've carried some fortune away from it. We became rich with time.
Time to express gratitude for what we have. Time to reflect, to pause, to surrender. Time to look at our futures and paint a picture of what we want it to look like.
Buying a home is the first step in the journey to establishing your roots. And if your roots are growing in a few different places, that's even more of an opportunity for you to navigate travel easily. Take advantage of the lowest overnight policy rate we've seen in years. Connect with us to find out more about your next steps to balanced living.