5 Things to Know If You’re a First-Time Property Buyer in Malaysia

Buying a property in Malaysia is an investment that will benefit you both short-term and long-term.

Whether you are buying a residential or commercial property, it’s wise to do some research to determine if the property is a good buy.

Are you looking to acquire your first property in Malaysia? Read on to find out the things you need to know before making up your mind.

 

  1. Choose the right location

Location always matters when choosing a property. Most of us prefer to live in urban areas because of well-connected transport systems, exposure, and accessibility to big shopping malls, stadiums, recreational centres, and more.

However, properties in smaller cities in Malaysia are also worth consideration. For example, housing projects in Melaka offer the residents benefits such as abundant space, safety and budding amenities similar to those available in the city.

If you are looking for a place where you can relax and feel at home, consider smaller cities. If you crave the excitement of big cities and do not mind the city hustle and bustle, go for properties in big cities such as Kuala Lumpur.

 

  1. The types of property

What type of property do you intend to buy? Are you interested in buying a landed property or a high-rise property? Here’s what you need to know. Both high-rise property and landed property have their benefits and downsides.

Most high-rise properties come with amenities such as swimming pools, gyms, tennis courts, soccer fields, children’s playgrounds and more. However, space can be a challenge.

On the other hand, most landed properties have abundant spaces which make them ideal for starting a medium or big family. The ample space leaves freedom for movement.

 

  1. Compare a potential property to recently sold properties

If you are not sure of the selling price of the property that you want to buy, comparing against recently sold properties can help you determine its estimated value.

Remember, not all cheap properties are the best deal. If the property you intend to buy is cheaper than the market price, you may want to find out the reasons.

When making your evaluation, ensure that you compare based on location, size, and the condition of the property.

If you are inexperienced in this regard, hire an established real estate company that can assist you from A – Z, including house hunting, property viewing, negotiation, the sales and purchase agreement and more.

If you are looking to purchase new properties in Malaysia, you could get in touch directly with the developers, who will be able to provide professional advice and recommendation.

 

  1. Remember the 1% Rule

The 1% rule in real estate states that the property you are buying should give you around 1% of the rental return of the property’s selling price every month.

For example, if you buy a property for RM1.5 million, then the property should ideally fetch around RM15,000 monthly rent.

 

  1. Secure appropriate financing

Before you buy your first property, ensure you are financially prepared. In fact, there are several affordable home schemes designed to support first-time homebuyers to secure financing for a property purchase.

For example, BSN MyHome allows eligible applicants to obtain up to 100% home financing. This is to encourage first-time homebuyers to acquire their property in Malaysia.

In addition, first-time homeowners can also take advantage of home loans that span up to 35 years. This is a good opportunity for homebuyers as the monthly instalment will be much affordable.

 

Final Thoughts

With a much lower interest rate and higher financing amount, it’s now the best time for first-time property buyers to own a property. When hunting for your first property, it’s best to consider properties that have a good price appreciation potential.

Look beyond properties that are located in big cities like Kuala Lumpur. For example, Melaka property for sale is always sought after by first-time homebuyers. With well-established residential areas and excellent road network accessibility, many property owners in Melaka have been enjoying a high return on investment.

Visit our on-going projects in Malaysia and contact us if need more advise to buy your first home.

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