These saw an increase of 38.68%, 36.36% and 30.32% in median prices, respectively.
Puchong is a well-developed region with all the amenities needed to be a self-sufficient township.
“Over the years, property prices in Puchong have increased marginally. The majority of the landed residential schemes can ensure steady capital value growth in the long run,” said Amy Wong, Savills Malaysia’s director of research and consultancy.
In Kajang, the railway station functions as the interchange for the mass rapid transit (MRT) Sungai Buloh-Kajang line, Seremban line and KTM electric train service.
Kajang’s property value is further boosted by its education and medical centres and lower cost of living compared with the town areas, explained Regina Ng, senior real estate negotiator from The Roof Realty.
Ipoh, meanwhile, is a popular domestic tourist attraction known for its delicious food. Besides being an excellent place to set up a homestay or AirBnb, it appeals to the older generation as the traffic is less congested, making it ideal for retirement.
Once the West Coast Expressway opens, towns like Klebang and Tambun will enjoy better accessibility, leading to expected improvement in property demand in areas along the highway.
Despite the pandemic, Shah Alam, Cheras and Klang have also witnessed positive growth in their median prices. In East Malaysia, Kuching saw the highest appreciation of 27.27% from Q1 2020 to Q1 2021.
Home ownership campaign
The home ownership campaign was initially introduced from Jan 1 to Jun 30, 2019. It was later brought back under the Pemerkasa aid package, and extended until Dec 31 this year.
There is no limit to the number of houses one can buy under the campaign. To qualify, ensure your Sales and Purchase Agreements are stamped between June 1, 2020 and Dec 31, 2021. This applies to all residential properties ranging from RM300,001 to RM2.5 million.
Aside from encouraging those who do not yet own property to purchase their first home, the campaign helps investors who already own residential properties by lifting the 70% margin of financing limit applicable for a third housing loan onwards, for properties valued at RM600,000 and above.
Some financial institutions help investors diversify their portfolios by offering financing terms from as high as 90% plus 5% per annum for the first three homes.
How to finance your home
Before committing to a property purchase, check your debt-to-service ratio (DSR), which is the ratio of total debt to one’s household income. It is calculated by dividing your net income with your total monthly commitments and future mortgage loan.
Your DSR will help determine which financial institution you should take a loan from, as different institutions have different requirements, and their mortgage products vary in terms of interest rates and flexibility.
With the overnight policy rate at an all-time low of 1.75%, this is the right time to take out a housing loan. Or apply for a flexible loan, where you can put additional money into your loan account to reduce the interest on your principal amount.
If you require the excess funds, you can easily withdraw them from your account.
Remember, all investments come with risks. A profitable sale can sometimes take months or years to happen. If you need cash in a hurry, you may find yourself in a bind.
Also consider the upkeep of investment properties. Although you might not be staying at your property, you will still need to keep the place presentable for potential tenants or buyers.
One good way to save is by making sure you get the best housing loan package. Do your research: survey the market, make inquiries, and list down the pros and cons of each housing loan package before deciding which to take up.
