Published on August 18th, 2013 | by Muhd Erfan
4 Reasons why Malaysian Properties are better investment compared to Spore’s
Malaysians always have this thought that Singapore’s property are better and same goes to the Singaporeans whereby Malaysia is a better investment. Well, below are four reasons on why Malaysia is a more profitable hub to invest.
The Loan
Home loan interest in Msia and Spore are 4-6% and 1-3% respectively. That’s a lot of difference. Of course the lower the interest you pay the higher the capital gains when you resell the property, however, in Malaysia that’s not really an issue. Many borrowers here are only needed to put up a 10% down-payment whereas in Spore, they are required to pay up to 40-60% which is based on the number of housing loans under their name.
On the other side, we also have the DPS or also known as Deferred Payment Scheme whereby borrowers are able to put the loan installment payments on hold until the date you get the keys and able to move in. This could let you safe a lot of time and money if you make a purchase of a home which has just started developing. By the time the construction completed (which could take up to 2-3 years), you already made some good investments.
Resale
Malaysia is a potential goldmine unlike Singapore. And Why is that? Well, Singapore has already been one of the best property investment hub long time ago, however, the market had been thoroughly searched and resale values are very predictable.
Malaysian property market are just getting started for example the Iskandar project which is going on right now in Johor. What would be the property value be like around that area in 10-15 years time? It’s a complete mystery! Similar to other sections or states in Malaysia as there are many “undiscovered goldmines”.
Rental
First of all, Malaysian properties are much more cheaper compared to Singapore. And that’s very good because the lower the price of a unit, the higher the rental yield. Simple!
Oversupply
We in FM know oversupply of properties could be bad but the question here is whether the properties are enough in Singapore? Malaysia is much more bigger compared to Spore and this mean that Msia has much more city which leads to much more city center areas. This is very obvious! There is always a demand for apartment, condominiums and houses in city center areas in Msia. And that’s one of the basic property rules, “It’s about the location, location and location + a little numbers”.
Like Reading?
About the Author
Muhd Erfan The Founder of FM (FunnyMalaysia.Net), one of the leading media company in Malaysia for the social age, intensely focused on delivering high quality original reporting, insights and viral contents.