In Real Estate Investment

Three areas of consideration that new house buyer gives attention before buying property in Malaysia.

Product

This refers to the type of property that the buyer is acquiring. Different type of property have varies demand and its growth rate high depends on the supply and demand. Buying a condo able to give a higher rental return, but the investment growth rate may slower compare to landed property. Reason being, the landed property is scarce. Further more, if the property has land surrounding it such as semi-detached or corner lot terrace, these will add more value in term of a usable space for family or friend gathering. Those are highly sought after property. The demand comes from matured family or mid age buyer, who have higher buying power. lnd the value of reselling price be higher if the property is free hold.

Price

When come to acquire a valuable investment, price factor comes in two form:

Firstly, if the asking price is too high, the buyer unable to secure a higher percentage loan for the house mortgage. As a result, the buyer will have to put higher down payment to cover the difference between the bank mortgage and the purchase price. This higher down payment maybe a future hurdler when the owner has to liquidate the property in future for other buyers. The future buyer will have this same problem also. Pro-tips, new development project normally able to get a full 100% loan these days to help new graduates or young family to own their first home.

Secondly, for an investor who bought a piece of investment, he or she is either aim for long-term value appreciation or short-term income from collecting rent or for both. Hence, the Return on Investment (ROI) is an important yardstick for their decision making whether to buy the property. ROI = (Net Profit / Cost of Investment) x 100. Let’s imagine given a scenario where two properties offer at the same price, but their ROI is different. Property A generates 5% annual return while property B generates only 2.5% a year. Higher chance buyer will pick the first property for your next investment.

ROI = (Net Profit / Cost of Investment) x 100.

Let’s imagine given a scenario where two properties offer at the same price, but their ROI is different. Property A generates 5% annual return while property B generates only 2.5% a year. Higher chance buyer will pick the first property for your next investment.

buying house

Why your house producer is important when buying a new house.

Producer

Believe it or not, the brand does exist in pricing a property. A well-established developer will have more capability to build a “township” rather than just the house. They will able to ensure the surrounding infrastructures are well-planned and improved as an added convenience for residents such as the widening of the major road and additional access points to ease traffic congestion. For example, Matrix group able to build a good township in Bandar Sri Sendayan, where they translate agriculture land to a residential township. Their residence able to enjoy the club house facilities, International school and others. This same applied to Setia group where they build Setia Mall, Setia convention and the almost each Setia Alam residence area have access to its connecting leisure park.

 

We hope the information above will able to give you some pointer about what to consider before buying a house in Malaysia. What do you think? Like, share & comment your thoughts. Subscribe for latest updates.

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