When we talked about purchasing or investing in property, what are the things that come across your mind ? For some, it could be an easy stuff. But for most of the first timer, buying a property is really not as easy as 1 2 3.
Here, let me bring you through some of the very basic stuff that you should be considering when you are looking to get a property for your own stay, or planning to invest in a property.
1. Strategic location is always important
Some prefers landed, while some prefer a condominium - It boils down to your own taste and preference. For landed properties in Kuala Lumpur, it will definitely be expensive as land is scarce and limited. Hence, purchaser do not have much option for new landed properties in Kuala Lumpur, except for old township. However, there are a lot of new condominium sprouting out in and surrounding Kuala Lumpur.
It depends on what is your lifestyle. A luxury condominium in Kuala Lumpur will usually comes with facilities such as swimming pool, gym, recreation area, covered parking lots, security features and skyline facilities. Some even comes with badminton court, basketball court and futsal court.
4. Choose under-development or completed property?
Here, let me bring you through some of the very basic stuff that you should be considering when you are looking to get a property for your own stay, or planning to invest in a property.
1. Strategic location is always important
For any reason, location is always and will be always the main priority in the property arena. Popular areas in Malaysia such as the heart of Kuala Lumpur, tourism area such as Penang island , or developing state such as Johor Bahru is always much sought after.
A strategic location will always have an upward trend in population. The bigger the population, the better chance of you getting a higher return
from your property investment, because that will be talking about a better demand with limited supply. Of course, there will be more
activities to support the population, including malls, restaurants and
supermarkets.
With the development of HSR linking Kuala Lumpur to Singapore within a couple of hours, will this big infrastructure in turn put some area into a strategic location?
With the development of HSR linking Kuala Lumpur to Singapore within a couple of hours, will this big infrastructure in turn put some area into a strategic location?
2. How to find a property in Malaysia?
There are many ways that you can find a property in Malaysia. You can purchase a ready unit or under-construction unit from the property developer. You can also get your property from subsales market from existing owner, or you can get a steal from the auction market.
Of all the option, the easiest is to buy from the developer, while getting your property through the subsales market will be a little tedious. Subsales market usually involved real estate negotiator as the medium that links the purchaser and the vendor.
If you are getting your house through a real estate negotiator (REN), make sure that you are dealing with a registered REN. Dealing with unregistered REN can be troublesome especially when things involved with money.
Things to take note is that a purchaser have to always bear in mind that any earnest deposit (cheque, cash or bank transfer) must be placed to the real estate agency as the stake holder, and not the negotiator's name. This is to safeguard the purchaser interest while waiting for the deal to go through the process such as securing the owner confirmation on the deal, or to wait for the loan to be approved.
3. Buy landed or condominium?
Of all the option, the easiest is to buy from the developer, while getting your property through the subsales market will be a little tedious. Subsales market usually involved real estate negotiator as the medium that links the purchaser and the vendor.
If you are getting your house through a real estate negotiator (REN), make sure that you are dealing with a registered REN. Dealing with unregistered REN can be troublesome especially when things involved with money.Things to take note is that a purchaser have to always bear in mind that any earnest deposit (cheque, cash or bank transfer) must be placed to the real estate agency as the stake holder, and not the negotiator's name. This is to safeguard the purchaser interest while waiting for the deal to go through the process such as securing the owner confirmation on the deal, or to wait for the loan to be approved.
3. Buy landed or condominium?
Some prefers landed, while some prefer a condominium - It boils down to your own taste and preference. For landed properties in Kuala Lumpur, it will definitely be expensive as land is scarce and limited. Hence, purchaser do not have much option for new landed properties in Kuala Lumpur, except for old township. However, there are a lot of new condominium sprouting out in and surrounding Kuala Lumpur.It depends on what is your lifestyle. A luxury condominium in Kuala Lumpur will usually comes with facilities such as swimming pool, gym, recreation area, covered parking lots, security features and skyline facilities. Some even comes with badminton court, basketball court and futsal court.
4. Choose under-development or completed property?
Buying
an under-development project means getting a brand-new property when you
receive the keys. Developers often give freebies like free stamp duty, free
legal fees, rebates and others. A combination of free stamp duty and legal fees
basically reduce transaction costs. Coupled with low down payment schemes, the
initial upfront costs can be pretty low. It’s one of the cheapest options to
purchase a property. Sometimes, developer even furnished your unit with furnishing such as kitchen cabinet, wardrobe, air conditioner, bed and mattress.
As for resale
properties, they are not always old and run-down. In fact, you should be able to find
some newly completed properties from owner that want to make a quick flip after vacant possession from the developer. The benefit is that you will be able to see
the actual unit before you commit to purchasing it that includes the proper
layout, quality of furnishing, who are your neighbors and residents of the
development. After the transaction is completed, you
will be able to stay in or rent out the unit immediately.
5. Developer reputation
5. Developer reputation
The reputation of developer is not by overnight success. Developer that are consistent in their workmanship and quality is what gave them the reputation they have today. It is important for purchaser to look out
for developers with good track record, who are committed to delivering
developments on time and with quality. A good developer will save you from future potential problems such as building structural problems and maintenance issues. For high rise development, a good developer can get the strata title within 5 years, while some bad developer will take more than 20 years and yet still unresolved.
6. Foreign entry to Malaysian property market
6. Foreign entry to Malaysian property market
There is
a minimum purchase price for foreign buyers who wish to own real estate in
Malaysia. In most states, such as Kuala Lumpur, Sarawak, Sabah and Johor, the
property must cost at least RM1 million (S$321,800). In Selangor, this figure
stands at RM2 million (S$643,600) and likewise for Penang if you are buying
property on the island. If you are buying property on mainland Penang, the
minimum price is at RM1 million.
However,
the MM2H scheme allows foreigners to live in Malaysia and in certain states to
buy property there for lower prices. In Sabah, Kelantan and Malacca, for instance,
foreign MM2H participants need to spend a minimum of only RM500,000 (S$160,888)
on a property, instead of the minimum other foreigners must spend. The amount
in Perak and Sarawak is even lower, at RM350,000 (S$112,622) and RM300,000
(S$96,538) respectively.
7. Choose a property based on your finances
7. Choose a property based on your finances
Buying a
home is a big decision and is one of the biggest ticket items a person will
purchase in a lifetime. Buyers who purchase based on emotions often find
themselves in debt after such a huge ticket purchase. One of the golden rule is that your property mortgage payment should not exceed 1/3 of your net take home income.
As buying a house is a huge financial decision, a buyer must think of all aspects which include the added responsibility and the finances. Find out the monthly repayment you can comfortably afford and target on properties and location to fit your price range.
Now, if you are now looking to invest in area such as KLCC, we might be able to offer you something that is very interesting where your rental income can generate 10% of return from your investment.
You can register your interest here by clicking on here so that we can get in contact with you.
As buying a house is a huge financial decision, a buyer must think of all aspects which include the added responsibility and the finances. Find out the monthly repayment you can comfortably afford and target on properties and location to fit your price range.
Now, if you are now looking to invest in area such as KLCC, we might be able to offer you something that is very interesting where your rental income can generate 10% of return from your investment.
You can register your interest here by clicking on here so that we can get in contact with you.