Buying and Selling Properties
What makes a place a home? A home is a sense of belonging, a place that brings comfort and expression of love. If we are to consider, Malaysia may be one. It is a multiracial country. Diversity of races, religions, and cultures is a significant characteristic of their nation. They live harmoniously in a country where there are no wars and conflicts among Malaysians. We can find a home in this place. One of our top priorities is to invest in a place call home. Thankfully, for properties in Kuala Lumpur, you can check out Kuala Lumpur project outlook for all the available properties. The few examples of the properties available are 1 Sentul, Savanna 1, Plaza Damas, Vista Angkasa and Parkview Service Apartment.
We can invest in having a property in Malaysia, such as owning land, residential properties, and commercial buildings. Not many countries in Asia allow foreigners to buy real estate – even condos and apartment buildings. China, India, and most other nations in the region ban foreigners from owning any type of property. A few countries such as Thailand and the Philippines allow condominium ownership with some limits. However, foreign ownership is truly rare when it comes to land. Malaysia is a beacon for land investors because of its simple-to-understand property laws and a general friendliness toward foreign buyers. They don’t have the greatest economy compared to the rest of Asia, but Malaysia’s additional, more-positive attributes help make up for that. According to the IMD Competitiveness Index, the Malaysian economy was the 14th most competitive market in the world and fifth among countries with a population of over 20 million, which placed it above places like Japan, Australia, and the United Kingdom. The World Bank also listed it as the sixth easiest country in the world to do business and the sixth most active country for foreign investment by FPM. Planning to move to Penang? Here are the available properties: Taman Seri Sari (Sunshine Garden), Regency Heights, Reflections, and Vista Gambier.
We must plan thoroughly and decide what type of property we want to buy. Prices vary between different property types, the maintenance and time we need to input will also differ, depending on what we choose. While residential property is often a first-timer’s choice, we should also consider other types of properties. Many investors cite rental income as a reason to invest in housing, but commercial properties could offer better earning potential. Businesses would pay more in rental earnings over the long-term, though of course, the capital outlay would be higher. That would, however, be offset by lower maintenance costs. Besides commercial properties, we can also try retail investments or industrial properties. Despite comments that there is an oversupply of properties in the retail section as of end-2018, demand for these properties are nevertheless still high. Investors should, however, note that retail properties are not meant to be short-term investments, but for those who intend to hang onto a property for the longer term. The attraction of industrial real estate assets is that as far as leases go, rental periods tend to be longer than for residential units and usually require less upkeep and initial outlay. Think warehouses or storage facilities for instance, which are simpler to operate and maintain as compared to an office block. It’s not about which asset type is ‘better’; it’s about our goals. Is it primarily about asset acquisition and value appreciation, or is it about generating income? Ensure that goals align with our purchase. In Johor, check out D’Lagoon, Taman Seri Austin, Vila Seni @ New World Garden, Pangsapuri Desa Siswa and Taman Bukit Indah.
Real estate requires a lot of capital and yet still attracts plenty of investors. Despite the high capital requirement, many still consider real estate a viable means of income generation. One means is via property value appreciation – buying low to sell high. This would require a fair amount of legwork and a keen understanding of the real estate market. Collecting rental income is also a proper strategy, often used as a means for an asset to pay for itself – offsetting loans taken (if any) for its purchase. Which strategy should you go for? It depends entirely on the level of comfort. Both strategies have their strengths and weaknesses, with the inherent risk involved. Do we buy property in hopes it will be more valuable later or do we instead choose to rent it out for lower, but more long-term, return? This will help inform our buying decision. Looking for a property in Selangor? Check out Solace Service Apartment @ Setiawalk and Sri Alam Condominium.
Where investment in property in Malaysia is concerned, leasehold. Freehold land is simply land that is dispensed to an owner for an indefinite time, while leasehold titles come with a limited tenure – usually not exceeding 99 years. Freehold titles mean the owner of said titles do not need to worry about the tenure of their land expiring, unlike leasehold titles. Renewal of leasehold titles once the lease expires can often be an expensive affair. Why then do some people choose to invest in leasehold when starting? Make sure to know what are the food options available everywhere and consider if the food is good for your liver or not. Also, see if the property is near a palm oil estate.
For the most part, leasehold properties are cheaper to acquire although the process of transfer of ownership can be lengthier and more hassle than freehold. The exception is if it is purchased directly from a developer or on the primary market. Freehold titles are often far more expensive and limited in availability, which also makes them extremely desirable. Thus, they could be something to either aspire to later, once we’ve acquired more experience (and assets) in the real estate market.
Property is expensive, and in most cases, we will probably need a loan to make a purchase. Our best bet would likely be a bank loan. Note that in Malaysia, banks will fund at most 90% for our first two properties and only 70% for properties from then on. Whatever loan we’ll end up with, we will need to budget for a down payment, legal fees and other administrative charges we might end up bearing.
It isn’t hard delving into property investment in Malaysia if we’re not local, so long as they meet certain criteria. Compared to the super-high prices in Hong Kong and Singapore, Malaysian real estate can seem like a bargain. Foreigners, while allowed to own 100 percent of a purchased property, have purchased. Property not available for foreign buyers includes low and medium cost residential units, properties valued below RM1 million (in most states), as well as properties built either on Malay Reserved land and real estate deemed as distributed to Bumiputra interests. Apart from those limitations, foreign buyers may purchase any kind of real estate whether residential, commercial, industrial or retail. To sum up, know your priorities as a real estate investor and go in with both eyes open. Know just how much you can afford to invest and make sure you’re not paying too much. In the end, it’s about practicality, pragmatism, and patience. Understand that real estate is about the long game and not about quick returns, and you’re halfway there.
If purchasing a property or a house is the first big step in a person’s life, then selling it off would be the second-biggest. Thinking of upgrading or just looking to cash out? Whatever your reason for selling is, everyone in the property arena is looking at the same goal – reaping the benefits of capital appreciation on their property. It’s a very big decision to make and therefore, it is prudent to know the proper steps to take to reap the rewards you deserve. To sell off your first residential or commercial in Malaysia, there are certain processes and guidelines to be followed.
In selling properties in Malaysia, we can engage in an Independent Investment consultant, the contact point and mass-market the property through a wide network of real estate agents for fast selling at the right price. We will coordinate and arrange to open the property for viewing, arrange booking and negotiate on their behalf the right terms and conditions of selling procedures while we are away Malaysia, back in our home country. Once the selling is confirmed, they will appoint the lawyer on our behalf to process the legal proceeding with the buyer’s lawyer and agent. They manage and co-ordinate the disposal procedure with a hassle-free ensuring all papers work, legal, taxation complies with the rules and regulations of real estate and monitoring the payment schedule of the selling until handover keys to the new buyer. They may opt to engage Property agent to handle your selling. The normal agency commission will be a maximum of 3% of the property price, and this fee is subject to a 6% service tax. They may also handle the selling process on your own without the need of an agent. Once the buyer confirmed taking up your property, he/she will pay you 3% as initial deposit and later 7% upon signing (Sales and Purchase Agreement) SPA. A balance of 90% will be paid upon receiving Land Office consent.
Investing in buying and selling properties in Malaysia is a worth it decision. “Saya suka berada di sini” – or “I like it here” – is a phrase that investors are using more often when referring to Malaysia. A robust economy, supportive government, educated workforce, and developed infrastructure has quietly transformed the Asia-Pacific country into an attractive investment destination for international investors around the world.
Malaysia, aside from belonging and place where one not only feels comfortable but also a place they look forward to opportunely live in every day.