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Great Bargains Await Savvy Property Buyers During Challenging Times

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Now Is the Best Times

The Malaysian property market is at a challenging time due to plunging oil prices and the falling of the country’s stock market and ringgit. But the good news is that experts are confident that it will pick up by 2017. Reading from their analysis, what really is good news, especially to savvy property buyers is that now is the best time to buy property when property developers are expected to offer great deals to entice buyers.

Here’s the idea: A low performing property market at any given time will sooner or later bounce back and when it does demands for property will soar as economic sentiments improve. And, when demand is up so are prices. Hence, the best time to buy and invest in a property is when the demand is low and the price is starting to stabilise.

Favourable Factors to Look For

Considering the attractiveness of property prices in 2016, there are some factors that should make you think seriously about property investment this year.

First, property appreciates in value over time usually over a 10-year cycle especially those developed by developers with solid reputation and track record. Properties in KL for example, have track records of doubling their value in just within 10 years. Some suburbs near KL also show good property appreciation rate. Areas surrounding Old Klang Road for example recorded property appreciation on their condominiums from 5 to 13 percent in just one year.

Second, if you are looking at locations that are near major highways and have good access to public transport especially the LRT, you can expect a value surge in their property units. In fact, locations near the proposed MRT2 or LRT3 can expect value appreciation of at least 15% for properties developed within the area. These locations include areas like Sri Damansara, Kepong and Kuchai Lama.

Third, a matured residential and commercial areas would have a relatively higher value property as the area would have a substantial number of amenities and infrastructure such as schools, hypermarkets and medical centres that provide convenience. This is an important factor in buying a home for yourself and your family or as an investment property for resale or rental income as it is very appealing to home buyer or renters.

Financing Your Home

In challenging times like this, banks are expected to be stricter in their lending policy, the question is, how do you then better your chances of getting home financing in 2016?

In general, home loan eligibility with any banks are affected by factors like income, employment, credit score, project status, finance margin and property value. It is always a good idea to first find out the eligibility criteria of the bank and then see if you fit in.

Indications that you have a steady income and employment always work to your advantage so work on keeping good records of your income and employment profile. Work on your financial management too. It’s important. The Credit Bureau of Malaysia maintains a credit report for everyone that indicates the individual’s financial situation including cash flow for repayments. Therefore managing your monthly payments during this time is critical and if you do then there should be no reason why the banks will not lend you.

Another factor is the finance margin. Most banks can provide up to 90% financing so you need to come up with a 10% down payment. You may find yourself in a situation where banks are willing to give you a lower finance margin. If your situation is right, you could get a lucky 100%. In any case, this is when you would thank your good savings practices. Good savings practices provide you with the required funds in this sort of situations and make you more flexible in choosing the right home loans.

Last but not least, selection of property is also important. Purchasing property that has high value and backed by good track records of its property developer has high chance of being favoured by the banks for financing.

Choosing property by a reputable developer is important. World class developers don’t just build a place for you to stay. When they develop a property, they transform the area and increase its value as well as your own quality of life. CapitaLand is one such developer and it ranks as one of the largest real estate companies in Asia. Headquartered and listed in Singapore, CapitaLand has an extensive market network and holds a diversified global real estate portfolio that includes integrated developments, shopping malls, serviced residences, offices and homes.

Check out GenKL by CapitaLand that is rising soon in the potentially high income residential and commercial area of Kuchai Lama. To learn more, register here

“Only buy something that you’d be perfectly happy to hold if the market shuts down for 10 years.” ― Warren Buffett ―

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