Malaysia offers a wide range of off-plan property for sale at prices that will afford high returns on investment. Below is an overview of the off-plan market in general and how you can make the most of your off-plan purchase in Malaysia.
Off-plan investments in Malaysia offer investors the opportunity to buy at the lowest price and achieve maximum return on investment.
If you keep your property for a long period of time, in the current booming market, excellent rental income can be achieved in popular locations, while you enjoy a beautiful property that is constantly appreciating in value.
Today Malaysia offers many world class off-plan opportunities located in major investment hotspots in the city of Kuala Lumpur and in coastal tourist resorts. The government in Malaysia has facilitated foreign property purchase and all major new resorts under development are based on a 5 star luxury lifestyle, with a related modern infrastructure to support this.
From an investment point of view it is always advisable to purchase new property as near to the initial off-plan stage as possible. As developments are completed, it may be possible to purchase finished property but this will be priced substantially higher as it will be generating a return on investment for the original investor. Buying off-plan property in Malaysia at this time allows property investors to purchase property in areas that will attract major rental demand and optimum capital growth. Off-plan purchase allows you to purchase at the lowest possible price, while taking advantage of the best possible finance options available.
The developer of any project is always exposed to risk. In order to cap this risk as quickly as possible and limit bank loans and other debts, they sell units off-plan at excellent prices as the buyers cannot see a physical property at this stage and rely on the location and artistic impressions, diagrams and computer simulations.
In addition to the excellent price that the investor receives, due to the fact that the property is bought off-plan, he/she also benefits from an excellent finance structure. The investor (this may vary) usually only needs to pay around 20 - 40% of the value of the purchase in the form of a deposit, the rest is payable on completion. This can be financed by a mortgage.
Once you decide to invest in off-plan property in Malaysia, you will need to choose a strategy to adopt in order to achieve your return on investment. Our investment experts will help you choose the most appropriate, creating an investment plan, be it a "Pure Investment" or "Buy-to-Let" strategy.
When the developer is offering units well below market value for the reasons mentioned above. It is also important to buy as soon as possible as, while the market is in its early stages of development, prices are still very competitive but already rising. Investors who invest now will see the greatest profits.
Shrewd investors seek the earliest opportunity to purchase the most sought after properties on any given development. The best units always offer higher capital appreciation in the least amount of time and can demand the greatest rental income. Penthouses are often favorites.
As the development begins to be constructed, the value of the units rises. There is normally a completed show home at this stage and buyers are taking less of a risk as they now do not need to rely entirely on plans.
As units are sold steadily, so demand increases and the price of the remaining units rises. This is due to buyers being able to see current units as mentioned above. Often a phase payment structure is in operation which mirrors the increasing value of the properties. Obviously, to the early investor, this means that should you decide to sell your property it will be worth considerably more at this stage than when you made your initial purchase and paid your 30% deposit.
It is entirely possible to make some excellent investment choices in this arena and we specialize in helping you to pick the correct ones and generate personal wealth through safe and intelligent property investment, basically using the acquisition of off-plan property as our investment vehicle.
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