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Popular to contrary belief, right now could be one of the best periods to purchase a property in Malaysia however, prospective purchasers should understand that one should select properties  consistently in demand, providing future homeowners with increased value and property appreciation.    

Here are some pointers that could make it clearer as to why one should embark on one’s property ownership journey today!


Tailor-Made Offerings

Property purveyors are increasingly forging options that are both priced within buyers reach and packaged more rebates for an ultimate increase in successful sales.

The property scene has also currently welcomed the drop in prices of secondary residential offerings by home owners looking for faster sales while, newly launched abodes are fashioned in a more palatable style – which means the implementation of smaller built areas, packed with an unending list of facilities as well as lifestyle enhancements.

Zerin Properties Urus Harta chief marketing officer Aziz Shah explains, “affordable homes seem to be a hit this season, targeted chiefly to mass buyers. Commonly homeowners from this property bracket actively look for ways to maximise their penny thus, these properties are usually found neighbouring or even appended to public transport connectivity.”

This is the case with several newly launched apartments situated in the Klang Valley priced from RM250,000 till RM450,000.

This in turn offers a wide selection of properties for future homeowners to purchase or even rent, aside from creating investment opportunities that enjoy consistent demand amongst the masses.


Improved Property Placement

Those looking for properties which present greater value for money usually steer their attention towards high-rise transit oriented developments (TOD) that are attached to mixed or integrated developments that are more tenantable, affordable and hold higher capital yield.

This type of property attracts younger generation buyers relying on public transport for the ease of connectivity. As of now many developers are focusing in areas within the Klang Valley such as Kajang, Bangi and Rawang, all satellite cities to Kuala Lumpur’s eco-systems.

“If one would glance through the rapidly transforming locales within the Klang Valley, one would notice that most major developers have placed their mark through affordable housing products that often offer connectivity to at least one public transport option, with some even appended to train stations,” Aziz enlightens.


Introduction of Aiding Policies

Aside from the more familiar policies such as the Malaysia People’s Housing Programme (PR1MA) and Rumah SelangorKu targeted to lower income, there are various policies currently in place to assist first time property buyers in affordable property purchase.

Aziz shares, “The new National Housing Policy (NHP) 2018-2025 provides an opportunity to mend the market mismatch through government and private collaborations that entails the creation of 1,000,000 affordable homes in 10 years with a price cap of RM300,000 per unit, Bank Negara Malaysia’s (BNM) RM1bil funding for property up to RM150k at an interest of 3.5%, increased focus on the rent to own scheme and the implementation of the Residential Tenancy Act (RTA).”

The placement of all affordable housing schemes under one roof is also a great avenue to monitor supply demand dynamics and to clear stocks by identifying demand and increasing successful home ownership. Additionally the NHP 2018-2025 has also included the stamp duty exemption for first time property purchaser for values between RM300,000 to RM1mil till July 2019.

“From a financial point of view, there are various financing schemes introduced by the government, private institutions and private developers such as the MyDeposit and MyHome Scheme, My First Home Scheme, BSN MyHome (Youth Housing Scheme), Malaysian Banking Bhd (Maybank) HouzKEY Scheme, Rent to Own or Stay to Own Scheme by PR1MA and a handful of popular Malaysian property developers as well as the FundMYHome ‘Property Crowdfunding’ Scheme,” Aziz adds.

To those that are unaware, crowdfunding is also an emerging scheme to assist a pool of buyers to purchase property as a collective, commonly referred to as a private Real Estate Investment Trust (REIT) whereby a group of purchasers pool their funds together to purchase property and receive rental income as their dividend.

“Adding to that, parties such as The Securities Commission Malaysia (SC) are working hand-in-hand with the Real Estate and Housing Developer’s Association (REHDA) on a peer-to-peer (P2P) financing framework for affordable homes. This then gives first time property buyers a myriad of options with regard to assisting the process of property ownership,” Aziz concludes.


Conclusion

With the inexhaustible variety of property options available both in the newly launched and sub-sale markets, supported by a seamless public transport network and relevant aiding schemes intended for property ownership, one should not wait any longer and take the leap into the rewarding experience of property investment and home ownership.

(By Viknesh Ashley Clarence, 11 April 2019)

Are you now convinced to begin your investment journey? Do let us know via the comments section below!

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Thanks for listing down all the schemes