New house in KL

Not many of us have extra funds we could be able to use to fund the purchase of property in one lump sum. In addition, even if had the money but we would like to use it for other uses such as playing the stock market or growing our businesses in order to gain other financial benefits. Hence to purchase a property it is necessary to rely upon loans, or even overdrafts. This is well-known since you will find temporary offices of finance companies and banks set up in sales offices of property developers’ offices to help facilitate these services.What are the best ways for financing a property investment in Malaysia? This article will seeks to provide you with the answer. However, what is stated in this article should be taken as a reference only. It is advisable for you to check with your financial institution for particular terms and conditions applicable at the time of taking the loan. Commercial banks and licensed finance firms. One of the main sources of mortgage loans is locally or from foreign banks in Malaysia. However, there is a growing trend of other financial institution such as insurance companies jumping into the mortgage bandwagon.Bank Simpanan Nasional (National Savings Bank). This bank provides housing loans however, it is selective in regards who it offers those loans to. It offers loans to property with a value of RM100,000 and less. The applicant should be an Malaysian citizen, between the ages of 18 and not more than 55 years old at the time of loan maturity.

Malaysian Building Society Bhd (MBSB). This is the only building society in Peninsular Malaysia which gives out housing loans. It has been doing so for many years. Only Malaysian above age of 18 years can apply for loans, however the loan must be used to purchase properties in Peninsular Malaysia only.The following are only a few sources to fund a property purchase in Malaysia. Each source will have its specific policies and Web Site terms. Contact the institution for details prior to signing the agreement.First of all, place of residence is the most important factor that will affect the property value in Malaysia. If a property is situated close to school, shopping mall, bank, transportation facility and hospital, restaurant, church or temple, airport, and other areas that can provide convenience to people living in the region, that particular property is bound to have an attractive property value that is more appealing to buyers than any other property.When you think about residential real estate, this idea of supply and demand refers to the ability of the people to afford real estate, and the lack of real property. The value of property will be driven up by the fact that there is a high demand coupled with the power of purchasing and a limited supply due to the scarcity of land. However, properties’ value will drop when people demand less of it and more supply is introduced to the market.Let’s consider for instance Penang which is second smallest state in Malaysia next to Perlis according to geographical coverage , yet it is the eighth-highest populated with 1.56 million people living there according to the census of population and housing, Malaysia 2010 which is carried out every 10 years. Penang is home to an average of 490 persons per square kilometer is the second highest populous state, after Kuala Lumpur. This high level of population density places pressure on land use which results in an increase in the cost of property because developers will put higher prices on their projects because of the high cost of land. In addition, the attraction as an attractive tourist destination as well as a second residence for foreign retirees is also one of factors leading to the increased demand for Penang properties. This is due to the limited supply of Penang properties due to scarcity of land and the high demand from both local and foreign buyers is the primary reason Penang properties cost more when compared to, say Kelantan.

Alongside demand and supply In addition, Feng Shui and Vasthu Sastra that is also called”the “science for building” can also be associated with the value of property in Malaysia. Whatever you believe or not, recent studies have shown that the price of a property is still affected by Feng Shui. The property situated close to water bodies can fetch you a handsome price when compared with a property that isn’t. If a property is situated near an intersection or constructed on a dead-end route will have a cheaper cost compared to a property in the same area that isn’t. A large number of people believe in Feng Shui as they believe that keeping things related to Feng Shui can bring steady growth good fortune, prosperity, good health, happiness as well as positive energies to the house as well as the office or being. So the people should consider the position and placements of their properties that makes a well placed or well-designed property attractive and favorable.Next, inflation also has an impact on the property value in Malaysia. In its simplest sense, inflation is simply an increase in price as well as a decline in buying power of money. Let’s consider an example and again, using Penang where there’s recent news that “the selling prices of houses in Penang is expected to increase up to 5%-10% due to the recent decision of Lafarge Malayan Cement to increase prices for cement by 6%”, according to the Penang house developers. A rise in the price of cement will mean that the price of concrete roof tiles, cement sand bricks and all other products related to cement will rise. In the average, 50% of building materials used in property development includes cement and related products. So, the rising cost of cement lead to an increase in construction costs and the purchaser is the ones who are ultimately responsible for the costs. Furthermore, the rising cost is due to cost of transportation and labor which have increased across the nation. The increased labor costs is in particular due to the lack of labor because a lot of Indonesian have returned to Indonesia and face stricter laws and standards in the event of a desire to go again to Malaysia. To find added information on this please website link.

The government’s introduction and the revision of its property related policies has also played an important role in determining the value of property. The exemption revision of the real taxes on property (RPGT) has raised the interest of a small section of the population in the market for property. Furthermore, Malaysian government is offering an array of incentives to make the market for property more attractive for foreign investors, who could eventually generate foreign cash flows. Both of these actions have boosted the value of property. Additionally the build and sell (BTS) concept is being revised. 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. This has made investing in property easier, convenient and favorable. In this way, there is an increase of interest in property investments, raising the value of properties.Moreover, the mortgage rate that also has a significant role to play in influencing the property value should never be forgotten. A mortgage rate is often called the Base Lending Rate in Malaysia (BLR). BLR is a term that refers to the minimum interest rate that banks use. It is defined by the central bank of Malaysia. BLR is expected to decrease as the world’s money market goes turns down and then increase when the market is on uptrend. When the demand for housing is weak and mortgage rates are lower, it will help to improve the access to property financing as well as reducing the monthly cost for mortgages. Therefore, these conditions will aid in strengthen the demand for housing and consequently the value of the property will grow over time.Last but not least the amount of vacant properties will play a significant role in the property value in Malaysia. As an example, if unemployment is high, the investors and buyers won’t have enough capital to purchase a home, which will result in a high rate of rental sales. However, the low unemployment rate can encourage buyers and investors to get involved themselves in investing in property ultimately leading to higher property values.Above are a few aspects that impact property value in Malaysia. However, there are still some other relevant and important aspects worth seeing.

In the past, property developers and estate agents had a focus on providing separate houses for sale. However, now with the limitations highlighted above, the developers have decided at giving those who are looking to buy home units the possibility of selecting from luxury apartments. It has been found that the demand to buy properties that fall in the luxury category comes from the Sri Lankan community as well as foreigners. These investments in relation to the purchase of properties in Colombo are also showing a high increase in popularity. According to statistics between 2015 and 2015 the area has seen more than 2600 luxury apartment units and it is estimated that this number could be close to 6000 units in 2019. These luxury apartments are also found to be accessible to those looking to rent an apartment, leading to the creation of more apartments for short term rental which are offered.Another alternative to houses that are available for sale is the possibility of real estate , in the form micro apartments. A lot of apartment builders have invested in these projects that are highly sought-after among those who want to buy apartment space in Colombo. The ideal market for this kind of property has actually found appeal among the affluent clients who may want a luxury apartment as well as middle-income individuals who are looking to purchase such a home for them. Similar to the preceding category, this type of housing is also available as apartments for short term lease for those incapable of purchasing a house in the form of a direct purchase and therefore look to rent or lease an apartment. This offers the chance for more home seekers to fulfill their dream of owning a house in an ideal city location.

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