The Beginner Guide of Property for Investment in Malaysia
Are you looking into real estate for the first time? Well, it might seem complicated and daunting at first. Still, property for investment in Malaysia can be rewarding endeavour provided that you take your time to do throughout research on the market.
At here, you will learn about which property is the best suits to your needs, the strategic locations of property, the difference between leasehold and freehold, and how to get your capital.
To get you started, here is the utmost basic of what you should know before signing the dotted line with the top property developer in Malaysia. For more information, please check out Mah Sing Developer website to find out more.
1. Choosing Your Type of Real Estate
While Malaysia’s affordable housing often becomes the first-timer’s choice, you also should consider other types of properties. Many of the local investors cite rental income is the prime reason to invest in property, but commercial properties also could offer better potential earning.
Others than commercial properties, you also can go to extra length in looking into industrial properties or retail investments. Despite the claimed that there is an oversupply of properties in the retail section, demand for these properties still considered quite high.
Nevertheless, it is not about which type is better or the changes in Mah Sing share Price, it’s all about your investment goals. Whether it is for value appreciation or generating passive income, always ensure your goals with your purchase.
2. Location Does Matter
Regardless of whatever type of real estate you choose, you can’t deny that the location is one of the most important considerations. The prime locations are inevitably expensive, this is why real estate investors look for a potential location with upcoming developments instead.
Moreover, having extra diligence also can help you to gauge the property values along with the income for the rental that you could reasonably expect with. In other words, don’t be hasty in following the trends, or you might end up being caught in a property bubble.
3. Leasehold or Freehold?
When it comes to property investment in Malaysia, most people will choose freehold over leasehold, which offer you a much better option. Freehold land can be defined as land which is dispensed to an owner for an indefinite of time. On the flip side, leasehold titles come with a limited time tenure, usually not exceeding 99 years.
If you considered a Malaysian first-time homebuyer, freehold title would be the best choice as you do not need to worry about the tenure of your land expiring. Besides, the renewal of the leasehold title can be quite expensive as well.
For the most part, the properties with leasehold title are much cheaper to acquire, although the process of transfer of ownership can be lengthier and more hassle than the freehold.
4. Getting the Capital
Buying property definitely is costly, and most of the case, you will need a considerable amount of loan to make the purchase. So, your best bet is to apply for a home mortgage loan in Malaysia. For your info, most of the bank will only fund at most 90 per cent for your first two properties and 70 per cent for the subsequent purchase of properties.
Whatever loan that you ended up with, you still need to budget for your house down payment, legal fees and other administrative charges that you might end bearing. If you choose not to buy a new launch property in Malaysia, you will also have to consider any renovation or remodelling costs of your property.