Apr 20, 2016
Wonderful sights, warm people and a relatively low-cost of living compared to Australia and Singapore makes Malaysia one of the best havens for retirees and expat families in the area looking to move. Whether for foreign or local buyers, though, properties across the country offer a lot of choices. And when it comes to price,the Global Property Guide says that one of the best qualities of Malaysia’s residential properties is the remarkable stability of its prices.
Over the last few years, prices have either fallen by a few percent, or risen by 2 percent or 3 percent. The result? When the market booms or collapses, consumers aren’t in the least bit worried. They know the market will go right back up if it goes down. You can essentially take advantage of the same stable property market prices when you invest in a Malaysian home. Here are some essential tips you need to know as a homeowner:
Available housing options in the market include the following:
- Terraced Houses
- High-rise residential properties
- Detached houses
- Semi-detached houses
There’s also a difference between buying land property and a condominium unit. Landed property will cost you more, should you go with this option. However, while land property prices continue to appreciate, the value of apartments are dependent on local supply and demand changes in the market.
If you’re looking for an apartment for sale, sites like PropertyGuru Malaysia provide a handy list of choices you can explore. This is going to help you tremendously since you no longer need to do an ocular inspection of an area’s potential homes before you can generate a list of all the prospective homes to check.
When you’re buying a home, just like any other shopping experience out there, make sure you set a budget, says CNN Money—and stick to it. You really wouldn’t want to overspend at this point. A home comes with a ton of expenses. It doesn’t stop at your mortgage bill and down payment. You’ll have to sell out money for association dues, worry about insurance premiums, lose sleep over repair and remodeling costs, and more.
There are also plenty of financing options you can look into. Banks are usually the first one on most people’s lists but this only works if you’ve got a good credit history. Banks usually base their approval for your application on your history. If you’ve got a bad one, if you usually end up defaulting on your payments or leaving bad credit card debt behind, you might not get that approval after all. So make sure you aren’t a policy risk. If you’ve got plans to buy property, then invest the time in cleaning up your record. That’s going to help you a lot in getting the loan approval you want from any bank.
Higher Home Loan Interest
Expatgo, though, encourages foreign homebuyers to take out a loan from their original country. That’s because Malaysia’s average interest rate for mortgage loans is set between 4 percent and 5 percent. It’s been that way for the last ten years. And while that rate is low enough, compared to its neighbors in the region, Malaysian has one of the highest interest rates around. So it’s better for foreign nationals to take out home loans from their home country instead.
You’ll also have to prepare to pay for the transaction and closing costs. Expect to shell out even more money for stamp duty, your lawyer’s fees, your real estate agent fees, round trip transaction trips, any more legal fees and more. Be sure you’ve got enough in the bank to handle all these costs.
If you’ve got too many things on your plate, hiring a local real estate agent to help you through the experience is going to be one of the best moves you can make. Engage the services of someone who knows the industry inside and out, who can teach you all about finding your way through the maze. With someone to offer guidance and support, buying a home in Malaysia won’t have to be as stressful as you initially feared.
Rent or Residential
Know beforehand if you’re buying that property as an investment to generate rental income or as a future home. The advantage to buying something that personally appeals to you is that, when the home doesn’t work out as a rental property, you could always move in and turn it into a home. Buying an investment property, though, might mean it isn’t enough for your needs. You’ll have to keep up with the rental instead.
There are quite a lot of things you need to know when you buy property in Malaysia. So research as much as you can so you’ll end up making the best decisions in the end.