Buying your first Malaysia property is an exciting process that can also be intimidating if you don’t know what you’re doing. No matter what your reasoning for purchasing the property, knowing how to properly maneuver through the process will save you time and money.
Before you begin searching for property, you must determine what type of an investment you are making. Are you buying the property for your own use as a second or vacation home? Are you looking for something you can rent? Or are you wanting property for capital appreciation, which means the property increase and you can sell it in the future to make a profit. Once you have determined how you will use the property, you can begin your search.
Finding a Loan
When looking for properties, most people will find the property they want first and then seek financing. Most financial experts agree that this is a big mistake. Instead, you should always look for financing first as this will determine how much you can borrow from a financial institute. Finding financing can be accomplished by walking into the banks you want to build a relationship with and speak to their loan officers, or you can use a loan calculator like this one. Make sure to apply to several banks. This will give you a better chance of receiving a competitive rate.
Do your Homework
If you are buying the property for income, know whom your target tenants or buyers will be. For example, if you are purchasing a property near a tourist attraction, are you trying to attract tourists as your potential tenant? If so, you need to take into account any serviced apartments or hotels nearby as this will greatly affect your ability to sale or rent the property.
You should never do business with a person or company without first researching them. This is especially true when searching for property developers in Malaysia. Most research can be done from the comfort of your home by simply searching online. Look at the developer’s track record and portfolio before deciding which one to go with. Remember though that just because you haven’t heard of them doesn’t mean they’re not trustworthy. It is vital, however, that the housing developer has a valid license and valid sales and advertisement permit.
Too many people merely take into consideration the amount of the property, and forget about other fees and charges such as state approval and Memorandum of Transfer. That is why it is extremely important to do a final financial calculation before you commit to buying the property.