This document presents a detailed flowchart on the process of property development in Malaysia, from land purchase application to construction to delivery of the property to purchasers.
This document presents a detailed flowchart on the process of property development in Malaysia, from land purchase application to construction to delivery of the property to purchasers.
– Two golden rules
Look for the potential upside, and always calculate the amount of risk involved in the investment
– Don’t believe the hype
Always refer to facts and figures and not the hype surrounding the property or your own hopes and emotions.
– Enter at the right price
When choosing the right property, nothing is as critical as the right entry price. Cross-check the property price against surrounding properties; if it is lower than its neighbours, you’re taking less of a risk and have the potential to make more profit.
– Popularity counts
Popularity needs consideration. The property has to be sizeable enough. Reasonably well-known areas and architect’s brand name give a strong publicity push. These are the properties which prices will escalate.
– Look for uncertain times
If the market isn’t good, there will be buying opportunities, and interest rates will have to stay low. Do your calculations don’t speculate and take advantage of the opportunities.
The most important thing need to keep in mind when buying your first house is your affordable budget. This is because most important thing when come to buying a property is “Money”, rather “with house with cash” and “no house with cash”, are not “with house but no cash” or worst to worst is “no house no cash”. Everyone need to avoid buy a house and turn your status into a “with house but no cash”, that’s the reason why you need to understand how much you are able to afford.
Here is a simple formula to find out your property purchase budget:
property purchase budget = annual household income * (3-6 times) + rich dad rich mum financial support
Buying a property may be a most expensive product that every one going to purchase, so before you actually make such important decision, here are some of the guide line and tips that you may go through.
Make sure you visit the area where you plan to buy. It sounds obvious, but many people are pressured into buying at property shows before even setting foot in Malaysia. Don’t be seduced by promises of rising prices. Just because developers are raising the prices of new flats it does not mean there is a genuine market in second-hand properties. Indeed, they may actually be changing hands for substantially less money than off-plan ones
Talk to people who have already bought in the development or in the area to see if they are happy. Internet chatrooms can be a source of useful information — although bear in mind some contributors may have axes to grind.
Choose your property carefully. Be prepared to pay a little more to buy a flat on the beachfront or in a better location. It will hold its value better and be far easier to let than a property in the middle of nowhere
Beware of so-called ‘rental guarantees’. Be sure of who is making the guarantee and what you can do if they don’t honour it. Some unscrupulous developers will offer a 10% return for the first few years to make the property look more attractive — and will have simply inflated the sale price accordingly. Some developers even offer ‘rental guarantees’ for up to 13 years at 8% and you need to be aware that these offers cannot make sense for anyone except the developer.
See the check list below: