Not many of us have money that we can use to pay for the purchase of a property in one lump amount. Furthermore, even if had those funds but we would like to put it into other uses such as playing the stock market, or expanding our business to reap other financial benefits. To purchase a home you must rely of loans and overdrafts. This is a fact that is widely acknowledged since you will find temporary offices of banks and finance companies set up in sale offices to help facilitate these services.What are the sources to finance an investment in property in Malaysia? This article will seeks to provide you with the solutions. However, what is stated in this article should be regarded as a general guideline only. It is advisable for you to contact your financial institution for specific terms and conditions in force at the time you apply for the loan. Commercial banks and licenced finance companies. The most popular sources of mortgage financing is that from foreign or local banks located in Malaysia. There has been an increasing trend in other financial institution such as insurance companies joining the mortgage bandwagon.Bank Simpanan Nasional (National Savings Bank). This bank gives loans to homeowners but it is selective as who it offers these loans to. It offers loans to property with a value of RM100,000 and less. The applicant must be an Malaysian citizen, with a minimum age of 18 and not more than 55 years at the time of the loan maturity.
Malaysian Building Society Bhd (MBSB). This is the only building social organization in Peninsular Malaysia which gives out mortgages for housing. It has been offering them for years. Only Malaysian above age of 18 are eligible to apply for the loans. However, the loan is for homes in Peninsular Malaysia only.The following are just a few options to help finance an investment in property in Malaysia. Different sources will have their specific guidelines and rules. Make sure to check with the institution for more details prior to signing the agreement.First of all, the place of residence is the most important factor that will affect the property value in Malaysia. If a property is close to a shopping center, school banks, transport facilities or hospital, restaurant, church and temples, airports or any other places that provide convenience to people living in the location, the property will have an appealing property value and is more appealing to buyers than any other property.When you think about real estate, the principle of supply and demand refers to the ability of people to purchase real estate coupled with the shortage of real estate. The value of the property will increase due to the conditions of high demand coupled with the ability to purchase and a short supply due to the dearth of land. In contrast, the properties’ value will decline when consumers demand less of it as more demand arrives on the market.Let’s take for example Penang as the second-smallest state in Malaysia just after Perlis regarding geographic coverage yet is the eighth-highest populous, with 1.56 million residents according to the census of population and housing, Malaysia 2010 which is held every ten years. Penang that has an average of 1, 490 people per square km is the second-highest populated states after Kuala Lumpur. The people living there puts pressure to land use which results in the increase in property prices as developers will put the highest price on their projects due to the cost of land. Besides, the lure as an attractive tourist destination as well as a second home for foreign retirees is another of factors leading to an increased demand for Penang property. This is due to the shortage of land due to the shortage of land, and the high demand from local and foreign buyers is the main reason behind why Penang property prices are higher when compared to, say Kelantan.
In addition to supply and demand, the Feng Shui and Vasthu Sastra, also often referred to as the “science that explains construction” also have to do with the property value in Malaysia. Regardless of you believe or not, recent studies have shown that property prices will Continue Reading to be affected from Feng Shui. The property situated close to an water source can fetch you a handsome price compared to a property that isn’t. A property located near an intersection on the road or near a dead-end street could fetch a better cost compared to a property in the exact same area which is not. A lot of people believe in Feng Shui as they believe that keeping things in line with Feng Shui can bring steady expansion, prosperity, good luck and good health, happiness as well as positive energies to the home as well as the office or being. This way people are more mindful of the placement and position of the property which in turn can make a properly placed or well designed property more attracted and favorable.Next inflation has an impact on property values in Malaysia. In its simplest sense inflation is simply a rise in prices and a decline in the value of the money you buy. Let’s consider an example and again, using Penang where the recent news that “the selling price of properties in Penang will increase in the near future by about 5% to 10% following the recent decision of Lafarge Malayan to raise cement prices by about 6 percent”, according to the Penang developers of homes. A hike in cement price just means that the cost of concrete roofing tiles, cement sand bricks and all the other cement-related products will increase. In the average, 50% of the building materials used in property development comprises cement and cement related products. This result in an increase in construction costs and the buyer is the ones who are ultimately responsible for the price. Furthermore, the rising cost has been caused by the transportation and labor costs that have risen across the country. The rising cost of labor is particularly because of the shortage of labor as a large number of Indonesian are returning to Indonesia and are now facing more stringent laws and standards in the event of a desire to go again to Malaysia. To find further information on this please get redirected here.
The government’s introduction and the revision of its property related policies also played a key role in determining the value of homes. The new exemptions for the real taxes on property (RPGT) has increased the interest of a tiny section of the population in the property market. In addition, the Malaysian government is pushing out an array of incentives to make its property market more appealing for foreign investors, who could eventually attract foreign cash flows. Both of these actions are boosting the value of the property. Furthermore, the build then sell (BTS) concept has been rewritten. It has increased the confidence of buyers and created developers who are more conservative leading to higher value of property.Furthermore, the existences of property agents and Internet such as auctions websites and real estate agent websites help ease the process of selling the properties nowadays. It has made purchase of property more simple and convenient. In this manner, there is a rise in interest in property investments, increasing values of properties.Moreover the mortgage rate, which is a major factor in determining the value of property should not be forgotten. The mortgage rate is also called Base Lending Rate for Malaysia (BLR). BLR is a term refers to the minimum interest rate employed by banks. It is set by the central bank of Malaysia. BLR will fall when the global money market down turn and get higher when the money market is uptrend. If the housing market is weak, lower mortgage rates will help to improve the financial access to home financing, while also reducing the monthly installment for housing loan. Thus, these situations can help to boost the housing demand and then the value of property will rise over time.Last however, the levels of vacancies will play a significant role in the value of properties in Malaysia. As an example, when unemployment is high, the buyers and investors will not have enough money to purchase a home, and result in strong rental sales. Conversely, the low unemployment rate can motivate purchasers and investors to invest themselves in investing in property ultimately leading to greater increase in property values.Above are some of the factors that will affect the property value in Malaysia. However, there are several other significant and pertinent aspects worth taking a look at.
In the past, estate agents and developers focused more on offering stand-alone houses for sale. Now, due to the limitations mentioned earlier, the developers are looking at offering those looking to purchase a home the choice of high-end apartments. It’s been discovered that the need to purchase apartments that fall in the luxury category comes from the Sri Lankan community as well as foreigners. Such investments made in relation to the purchase of properties in Colombo areas have also witnessed a an increase in their popularity. According to the data gathered through 2015 the area has seen around 2600 luxury apartments and it is estimated that this number could be close to 6000 units in the year 2019. These luxurious units are also found to be available to those who want to rent an apartment, creating many apartments with short-term rent being offered.Another alternative to houses available for sale is the availability of real estate in the form of micro apartments. Numerous apartment builders have invested in these projects which are in high demand among those who want to purchase apartments in Colombo. The potential market for this kind of property has seen a lot of interest from wealthy customers who might even want a luxury apartment as well as middle-income individuals who would like to buy such a home for them. Similar to the above category, this type of housing options are also offered as short-term rental apartments lease for those unable to buy home units by making an outright purchase and therefore look to rent apartments instead. This provides the opportunity for more home-buyers to fulfill their goal of owning their own home in an ideal city location.