Ernest Cheong, a chartered property surveyor with 40-odd years of experience behind him, said no one without credentials as a property evaluator or estate agent should be giving advice on the purchase of properties.
He told FMT he was particularly concerned over advice on prices and locations and he cited a recent news article quoting an investment writer as saying that previously owned properties in Kuala Lumpur could be bought for prices lower than RM200,000.
Cheong warned that such claims would add to the confusion already plaguing potential home buyers without experience.
“Yes, you can still purchase a piece of property below RM200,000, but it definitely isn’t a landed property, and neither will it be located in the Klang Valley,” he said.
“What’s worse, it could be in a dilapidated condition with much repair work needed and is likely located in slum areas, where you have no guarantee of security and safety.
“Do you want to live in such a location, where even the lift doesn’t operate properly? Furthermore, the area could be infested with social problems.”
He urged young working adults to moderate their expectations, saying it was no longer practical to “show off” to others that they could own and live in attractive homes.
“Gone are the days where one can pay off a housing loan in 15 years,” he said.
“Losing one’s job is also common these days, and no one can guarantee that you can keep a job that pays RM8,000 a month in order for you to service a home loan for the next 30 years.
“By the time you are done with the loan, you’ll be 60 or 70. Will you be able to enjoy the house then?”
He also urged those harbouring hopes of purchasing properties costing RM500,000 or more to give up their dreams.
He said he was now living in a rented house, having sold his bungalow when he realised that the Malaysian economy was heading for trouble.
“With a rented property, you can downgrade if you are not doing so good with your finances,” he said. “But if you have committed to servicing a housing loan, can you back down on it?
“These days, banks have no mercy. If you can’t pay up, they will take it away from you. You will not get back any of the money that you have forked out in the years that you have been paying.”
Go for cheaper ‘second-hand’ houses instead, house buyers told