Let me explain from my point of view why bumi lot difficult to sale:
1. Even it sale at cheaper price, difficult to re-sale due to restrictions unlike open lot. Bumi lot only can re-sale to another bumi only.
2. According to data from DOSM and EPF, the Bumi population tends to have lower average incomes, which affects their affordability for housing, protection, and investment products.
3. Core inflation is high. Due to slow salary growth, inflation outpace the salary in long run. Thus, compulsory spending getting higher as time goes by. Increasing salary will not help, but reducing housing price and further increase house supplies will make buying house attractive.
4. Increase in obligation spending. No one wants to increase their obligation.
5. Tied to commitment make it unsexy for a person to have a freedom to move around.
6. House is an asset are not moveable and not liquid.
7. It will cause a stress in the long run.
8. Cheap house is usually under construction. Attracted buyers will buy unknown assets especially under construction where the future of property is risky.
9. There are more attractive investment such as REITs that can replace rental business with high liquidity asset.
10. Slow down rate of marriages. Due to woman getting richer and educated, woman are not keen to get married. Thus, the sense of need to buy house is lesser.
11. More than half of working population (59% or 5.7 million) do not have enough emergency saving of 3 month salary.
12. About 45% or 15.3 million Malaysia population do not have basic health insurance coverage.
I not against buy a house. Only buy a house after you have basic downside protection such as emergency fund and insurance coverage.
Buy a house is good after you get married so you can have private time with family, enjoy your own freedom growing and settle down for life. Not all advise need to follow, please have your own way to live happily.
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