The Plus and Minus of Buying Properties in Malaysia

Matters related to investment in real estate call for utmost seriousness on the part of the investor. Thus, if you have decided to invest in Malaysian real estate, you should never leave a corner outside the grasp of your understanding.

The Plus and Minus of Buying Properties in Malaysia

The Pros

  1. The real estate scenario in the neighbouring parts of Singapore and Hong Kong is a bit volatile given the unavailability of properties for the right price. As we know that compared to the land area, the number of people is pretty higher in these 2 places. Thus, the purchase price of a simple 2 BHK flat is more than what is available in Malaysia. For as low as RM 280,000 (68662 USD), you could buy an apartment in the capital city of Kuala Lumpur, Malaysia.
  2. In the context of real estate development, there is no dearth of promising areas in Malaysia. For example, if we consider the Iskandar special economic zone, given the backing of the Government policies, there is a surge of demand for both commercial and residential real estate properties in the neighbouring areas.
  3. The Loan-to-Value ratios along with the base price of the properties, usher in better prospects for the home buyers in Malaysia. While in Singapore, the range of private housing is $1.3 million to $2 million and the borrowers who have outstanding home loans have to pay in the range of 60% to 40% LTV on the loan. On a lighter note, this amount would be easily payable if you work and make savings for 107 years! Whereas as the purchase price of properties in Malaysia is comparatively lower, the 70% to 80% LTV paid on the home loan falls within the reach of the home buyers.
  4. The scarcity of land area in Hong Kong and Singapore is negating the possibility of finding a property with spacious garden areas. As such, one can take the help of a property website in Malaysia to select the landed properties. Not only for the domestic buyers but also the foreigners could explore the opportunities hidden in Klang Valley, Penang, Melaka, Kota Kinabalu, Kuching etc and buy residential properties here.
  5. Compared to the stamp duties levied by the governments of the neighbouring countries, here in Malaysia, you have to pay less in the way of a stamp duty during the time of property registration.

The Cons

  1. Those who are investing in Malaysian real estate for the purpose of gaining quick bucks out of a resale deed would be disappointed as the prices do not rise rapidly. Compared to this, if one decides to give it on a rent, there would be a higher yield in particularly from the areas of Penang, Johor Bahru and not to miss out the scintillating capital city of Kuala Lumpur.
  2. Oversupply of a Malaysia property for sale could bring down the property prices. In one way, this is a good news for the buyers whereas this event acts as a damper for the investors.

In altogether, the prospects of property buyers in Malaysia are bright. Hence, after soliciting the matter with the experts, you could invest here.