FREE MALAYSIA TODAY. 26TH NOVEMBER: Buying a home will very likely be the biggest investment decision you make in your life. So, it is important to give this matter careful thought.
Investing in property involves substantial resources, in terms of time and money.
You will need to apply for a loan, be it from a bank or a lending institution. Depending on the size of the down payment, the loan tenure can range from any length of period between 10 to a maximum of 35 years.
Therefore, before you sign on the dotted line, ensure you are buying from a reputable developer in a location that is both accessible and offers a certain degree of good, progressive and forward-thinking amenities.
Tan Ching Meng, General Manager of MCL Land (Malaysia) Sdn Bhd outlines five reasons why it may be worthwhile buying property today.
“Since March 2020, the numerous lockdowns imposed as a result of the Covid-19 pandemic, forced many to work from home. This has led many to realise the importance of having their own home,” Tan said.
1. Low interest rate environment
In addition, Tan said first-time house buyers could also get up to the maximum 90% loan margin. “This is a good start for the younger generation as they have years ahead of them in the job market,” Tan said.
2. Home Ownership Campaign (HOC)
There is support from the government for house buyers under the current housing campaign which ends on Dec 31, 2021.
Under the scheme, buyers will enjoy 100% stamp duty exemption on the Instrument of Transfer for any residential home purchase up to the value of RM1 million and partial exemption for residential properties priced more than RM1 million and up to RM2.5 million.
A home that costs RM500,000 means a savings of RM9,000. The first RM100,000 is taxed at 1% and the next RM400,000 at 2%.
There is also stamp duty exemption on the loan agreement, leading to substantial savings under the Home Ownership Campaign (HOC), Tan said.
3. Long-term growth from a mature neighbourhood
Location is important. For instance, Wangsa Maju is a mature neighbourhood. There is a diversity of retail offerings catering to a middle-class population, all within comfortable and convenient reach.
Access to and around Wangsa Maju is excellent. Better infrastructure means there is potential value growth as well.
Connectivity is just as important and this township is only 8km from the Kuala Lumpur City Centre (KLCC) and about 10km from Tun Razak Exchange, a new financial district.
4. A hedge against inflation
Buying a well-developed property in a good location offers a hedge against inflation. It can also be a safe and steady form of investment, particularly when one considers the volatility in today’s global and uncertain environment.
When it comes to property, there are two sides of the investment coin.
One is the rental that can be derived from it if you choose not to occupy the property yourself. The other is capital appreciation.
Hence, the availability of various facilities within a project coupled with amenities in and around the property adds to this potential capital appreciation over time.