Almost every Malaysian has aspirations of owning his own property here in his home country. Some dream of having a nice, cozy place that they can call home, whereas others are just looking for the best investment opportunity.
However, with the ever-rising prices, especially in areas like Penang Island and Kuala Lumpur, acquiring a property is no easy feat for those who have just started working. Indeed, it would be nearly impossible for fresh graduates who are on a basic salary.
The idea of choosing and purchasing a property may be daunting, and most become overwhelmed by the procedures and steps involved in the process. With that being said, here are some of the key things potential property owners should take note of before making any purchase.
Of course, the most crucial part of purchasing any property is paying it off. Unless you are wealthy enough to pay the full amount on the spot, you will most probably need to apply for a loan. Different banks have different terms for their housing and property loans, so it is extremely important to consult with a bank representative to have a clear understanding of the loan before agreeing to anything. Take every single detail such as monthly installment, repayment period and interest into careful consideration.
Once you have a clear understanding of the loan, it is advisable to come up with a sound budget plan that covers the entire duration of the mortgage. While most people are under the impression that you should approach a bank after you have a piece of property in mind, the other way around works actually better. It is wiser to check how much you are allowed to borrow before choosing a property.
Type of property
Understanding what type of property you intend to purchase is also of paramount importance. Depending on the type of property and its location, different banks might opt to finance it differently. This is especially true for property loans, as most banks are not that particular when it comes to home loans. It is also important to check if the property is a freehold or leasehold. For those who are unfamiliar with such terminology, freehold is when you have permanent and exclusive tenure of a particular property, whereas leasehold means that you only have a lease from the freeholder to use the property for a set amount of time. The standard lease is usually ninety-nine years, although that is not always the case.
It does not matter if you are looking to purchase a property for personal use or for investment purposes, it is always a good idea to analyse and conduct sufficient research about the location. Any residential property should have easy accessibility to basic amenities and facilities. If you are looking at a commercial property, you would want to consider the daily flow of potential customers into the area, and see if the location is the right fit for your business. If you want to have maximum profit through property investment, then observing the appreciation and depreciation rates in that area should give you an estimation of how valuable the property might be in the future.
Malaysians are great at bargaining and they are always looking for the best deal. If you are purchasing a property, do not agree upon the first price offered to you. Try asking a better price. Your goal should be purchasing a property and pay less than its market price. Look at it this way: if the property you intend to buy costs RM400,000 on the market, and you have managed to acquire it for RM370,000, you have indirectly earned RM30,000 yet.
These are the few basic things that every potential property owner should know.
Nowadays, most developers start selling units even prior to completion, and usually at a lower price. Purchasing a property in its early phases can certainly save you a great amount of money. Nevertheless, there are downsides to purchasing a property before its official completion, as there will be certain risks that you need to take into account, one of the major ones being delays.
Unfortunately, that was exactly the case for Axis Crown Pandan. Initially developed by Zaj Properties, formerly known as RK Group Holdings Sdn. Bhd., the project only reached 90% completion due to various reasons. Three out of four phases were successfully handed over to the buyers. Most, if not all, units in these phases are currently occupied. Many buyers have also managed to almost double their initial investment, thanks to the healthy appreciation rate of the property.
Of course, the disappointment of the buyers who opted for the incomplete phase was understandable. At one point, Axis Crown was even one of the major topics of discussion on Lowyat, as many people took their opinions to the famous Malaysian forum.
Luckily, not all is lost. Convergent Solutions Sdn. Bhd. (CSSB)* has come to an agreement with Zaj Properties, the owner of RCSB, and has picked up the final incomplete Axis Crown project. Understanding the upset caused by the Axis Crown delay, CSSB hopes to restore the buyer’s and investor’s confidence. The management at CSSB has put in the effort to study the project and finish the remaining 10% of Axis Crown.
CSSB is an experienced company that has a clear understanding of the Malaysian property industry. Under the very capable leadership of General Manager Ms Yusni Khan, CSSB aims to successfully complete delayed, stalled or abandoned projects all over Malaysia. CSSB operates under the belief that projects that are currently abandoned or sick, such as the incomplete phase of Axis Crown Pandan can and should be revived.
CSSB is currently working hard on the Axis Crown Pandan’s completion date, and despite the initial disappointment, buyers and investors can look forward to owning a piece of prime property with appreciating value, once it is completed.
Convergent Solutions Sdn Bhd (CSSB) is an experienced company in the property sector, currently led by Ms. Yusni Khan, who has more than twenty years of experience in this industry. The company aims to help purchasers and investors realise the value of their investment in property development projects. CSSB main goal is to successfully complete delayed projects all over the country by reaching out to affected buyers of more than 200 projects. CSSB resurrects the projects that are declared ‘abandoned’ to their fullest potential. With the support from stakeholders, CSSB believes that they would be able to deal with Axis Crown Pandan’s physical completion within a year’s time.