Can You Save Money While Owning Properties?
You Can Earn An Income Through Properties
One of the greatest investments we can make is to own a property. It will be our source of income aside from using it as our residential property. We can buy property for rental and you’ll have passive earnings with that. When you buy it and own it you need not worry about your monthly rental fee and will reduce your cost.
You will get the reward in the end with proper guidance in investing in a property, there may be pros and cons but earning a profit is much greater than that. For example, you bought land. After a hundred years it value appreciates especially if you are in a good location. You can farm the land and produce agricultural products. You will have additional income aside from owning the land. Even if you do nothing at all the land will always increase its value. When population increases land will be the most important thing to invest. The more the infrastructure is well developed the higher the price they will pay for you. Supply and demand will be higher especially in shelter, goods, and services. If the place is nearby shopping malls, workplaces, and convenient to all places then you can sell it expensive. You just need the right attitude for yourself like patience and be more creative in improving your property.
Investing in Houses
Let’s discuss investing in houses. Investing houses is growing because it is the first need of every family and even individuals. We have a condominium, rowhouse, townhouse, detached and semi-detached units, shared compounds, apartments, and many others. You will be paying this property for years and may even get a loan to finance the down payment.
Prices of a house in Malaysia continue to rise slowly while the demand for residential property is stable. Take fraser place kuala lumpur condo for instance, they have a very high value. Even if they have slow economic growth houses still are high in value with high stamp duty. The terraced house and Semi-detached house increased by 6.5 percent and 2 percent, respectively. The inflation rates push the price of houses higher.
Investing in property is encouraged if you are a foreigner in Malaysia. Comparing the structures of the house in Malaysia from Singapore, aside from it is lower in cost, houses are more attractive from it. The price of the expensive house in Kuala Lumpur amounted to MYR 786,800. Cheap houses can be found in Kelantan, Perlis and Melaka totaling to MYR 200,000 only. You just have to look for a place that will suit your budget.
When you bought the properties and held for rent it is certain that you will be earning money from that but also spending. You must maintain the facility and you’ll have to include this as part of your recurring cost. Sometimes you may also incur one-time costs like legal fees, assessment taxes, and appraiser fees. Monthly fixed cost includes the amount of tax you will pay. It is exhausting to buy and sell properties and you need to consume time. If it will be your first-time buyer you need to hire experts like lawyers to manage legal documentation, brokers or real estate agents to process transactions and mortgage advisors to manage your budget properly.
It may be for your own home or investing it for business, you will need a strategy in buying properties. You can conduct first research on the location you are interested to buy. Know if it is a developing place or highly urbanized. You must check the trend if it is improving if you plan to sell your property. How do we know if the trend is moving upward? Then you may want to look at if there is a construction of commercial buildings, housing communities, highways, malls, supermarkets, and convenient access to transportation and communication infrastructure. You must also research the upcoming projects on that area and the income of that place
If you will find property in Malaysia, you will need an Agent. The agent fee will be two to three percent of the property purchase price. There is a specialist agent for the first-time buyer. They will give you advice on all your transactions and the local market. You may have a hard time understanding your transaction if it is your first time, the agent will be the one to explain and provide those. You may get a broker that is registered in the Malaysian Institute of Estate Agents. Review the packages they offer and be careful not to be scammed. One thing to consider if looking for an agent is their track record, make sure that they have clean titles. You will not want to spend money on a bad reputation. This will only cause you problems in the future. Your property may also be in the bad shot if an agent has a bad record. Then you will not be able to sell or buy one.
Another consideration in buying a property is to establish your purpose in buying. Would you need it for your own use such as a residential home, a future business location, merchandise to renovate and resell, or an asset that you will eventually sell when the price appreciates? No matter what your purpose is, be sure about it and consider the length of time that you will be using your property. Knowing what you need will narrow down your choices and help you focus on your alternatives.
You can also buy under-developed properties. Developers often give freebies such as free stamp duty and legal fees to reduce transaction costs. This is good if you have plans on reselling the property since you can renovate it or complete it at a lower cost and have it appraised. You may opt to rent it out or sell it at a higher price once completed. Do not underestimate a good restoration or remodelling of a property. The price might excite you such as a property in Regalia Residences condo.
There will be an underdeveloped property that will be for sale during its construction. We call this pre-selling property; its price is lower compared to the full price when it is completed.
Foreign buyers have a special law. The minimum purchase price of a sale to a foreigner should be check and understand. When buying a property make sure to check your financial capacity. It is a heavy decision to make. This will have a big impact on your finances. Create a price range and make sure to stay within that range. Evaluate your financial leverage and balance your options. You must forecast your future payment and have backup money to cover it. You may choose to have a housing loan in Malaysia. For foreigners, the banks can offer eighty-five percent and ninety percent to locals. It has an interest rate of four to five percent.
Special laws cover foreign buyers. Check and understand the minimum purchase price of properties for sale to a foreigner. Also, since buying a house is a huge financial decision, always base it on your financial capacity. Decide on a price range and follow it. Be prudent in weighing your options and properly evaluate your financial leverage. You need to plan your future payments and how will you be able to cover it. You can take up housing loans in Malaysia or in Singapore. Malaysian banks offer loans at around 4 to 5 percent. It makes sense to borrow in MYR.
With profit in mind, the next step after buying properties in Malaysia will be selling it. First, you have to know the value of your property. Properties that have high value are G Residen, Seni mont kiara, and Pantai HillPark. A higher value is expected after you did a beautification in your property, maintenance, and renovation. You can get a certified appraiser for the current market value of your property. Charges will be the duty of the seller.
You can watch this video on more property investment tips:
Your property should be advertised. There a lot of means to do it. Like posting it online in the property listing but you will pay for it. Publish it in the newspaper. If you want a hassle-free, then get a real estate to the agent to do it for you. Just prepare for two to three percent of the purchase price as their commission.
In selling or buying properties make sure to always remembered that there must be clean titles and paid-up taxes. The documents should be complete, accessible and no outstanding balances to pay. If you don’t want to have delays and want easy transactions, prepare the required set of documents. Delays may give you trouble and your buyer to back out. To guide in your transaction, have a lawyer on your side.
Your buyer should pay the deposit of two to three percent and sign the letter of the offer once you have already agreed with the price. After two to three weeks your SPA should be ready to be signed by the buyer. The remaining balance of the purchase price should be paid within three months. After finalizing the sale, you must be paying the real property gain tax. If you take a loan, there are two stages. First is the redemption stage, the bank of the buyer will pay the bank of the seller to redeem the property. After you have completed all the documents needed the second stage of the loan will be the disbursement.
Property investment requires money and time. You can invest in educating first yourself for you to come up with a sound decision. Choose experts wisely and practice due diligence. You need good management in investing in property. Have a back-up plan for any circumstances that may occur.