PROPERTY Q&A

Publication: NST

Date of publication: Oct 11, 2013

Section heading: Real Estate & Decor

Page number: 011

Q/A1

Kenneth L .@Old Klang Road: I understand the property market may experience panic buying in 2014 by investors if the goods and services tax (GST) was implemented in 2015. Experience from other countries had seen such trends in anticipation of an inflationary push on asset prices.Should I start buying now even before the Budget 2014 is announced on Oct 25?

RED: Bear in mind inflation is always there and prices of property will go up in the long run despite the up and down cycles. The GST will definitely increase the overall cost of buying but capital appreciation and increased rental may offset the increased cost. You should never panic buy whatever the circumstances are. You should buy only when your own personal circumstances are right for you, not in reaction to the market.

Remember you are getting into a long-term commitment of at least 20 years, so don't rush into it. You should do your own homework first in particular with regards to the location, developer, condition of property, loan amount you could borrow and the conditions, value of surrounding property, future development in the area, ease of access, nearby amenities and facilities as well as transportation links.

On a plus note, in a booming or depressed market, there are always distressed properties up for auction. So, there are always cheaper options out there irrespective of market conditions.

Also, it's getting harder to get financing so fewer people are in competition to buy so if your personal financial circumstances are sound, you are ahead of the pack when it comes to getting financing.

Remember that if you'd lost a property you really wanted, there is always a better one around the corner. By Jan Yong, Editor, NST RED

Q/A2

Tee GP@Penang: My father has four properties worth a few million ringgit and two wives. I am the youngest child of his second wife. I have another older sister and three step-siblings from my father's first wife. My father is dying in hospital and he doesn't have a will. Should I get him to sign a will now bequeathing all his assets equally among all of us?

RED: Yes, better a will than none. Dying without a will (intestacy) causes a lot of delay to the surviving next-of-kin. But in order to avoid a dispute later among all the heirs, better to get all of them to agree to an equal share as well as who the executor of the will would be. Get two independent friends or relatives with no vested interest to sign as witnesses. It's easier said than done of course, but not doing it spells more hassle later on. By Jan Yong, Editor, NST RED