Malaysia is a land that freely supports property buyers from foreign countries like China. However, one may definitely feel some uncertainties related to buying a property especially if it is for the first or second time. Here are some guiding tips for the people who are going to purchase the potential Malaysia property.
- Type of property. Mostly, people prefer to go for residential units as this acts as a medium for rental income. However, commercial buildings like retail shops and other industrial properties can also earn more long-term rents that have the additional benefit of lowered maintenance charges. So, wisely decide upon the goals that hold value appreciation and ensure these goals comply with one’s purchase.
- Location is one of the most important concern if one has already decided for the type of real estate to buy. It is sure that the prime areas or city centres are really expensive making it hard for buying. Instead of this, just identify the spot that is gaining importance in terms of upcoming developments and consider buying the best property there.
- The sense of the affordable budget. If one has already decided to invest in a particular area, then the next factor that needs to be analysed is about the amount one is willing to pay for the property. The banks offer loan and will fund almost ninety percent of the amount one needs for buying the first two properties. This includes instalments that come up to less than a quarter portion of your monthly income. Even this does not matter if one has good credit score records and if so, then he needs to pay only half of his net income. Later on, only seventy percent would be granted.
However, one requires to pay more than a thousand ringgits for stamp duty and other related lawful charges. Consider, for example, an RM430,000 house requires RM20,000 to be paid as the extra charges.
Moreover, keep away a certain amount for renovation purpose, if one plans to buy an old building.
- Facts to know as a foreign buyer. Even though this land allows hundred percent titling of the purchased property, there are certain properties that they cannot buy. This includes the low and medium cost residential units and also all those properties that are valued below RM1 million. Excluding these, foreigners can buy any type of real estate including residential, industrial, commercial or retail.
- Obtaining money off your purchase. For making real estate investment, one needs to put in a lot of capital. In spite of this requirement of the huge sum, real estate attracts many investors mainly because of their viable conversion as an income generating source.
- One such method is by means of property value appreciation, which implies the method of buying at a low price to sell the same at a high price. This, in fact, requires a lot of homework and a true understanding of the real estate market trend.
- Another strategy involves collecting rental income. This is useful in setting off loans that are taken due regard to purchase this property.