Matters needing attention in buying a house with mortgage loan in Malaysia

With more and more people choosing to invest in overseas real estate. Malaysia's low housing prices have become the first choice for global investors. However, due to the differences in the real estate market environment and policies between China and Malaysia, many investors have misunderstandings about buying a house in Malaysia. Let's talk about the precautions for buying a house with a mortgage loan in Malaysia.

Myth 1: I like to pay the house price in one lump sum.

Due to abundant funds, many domestic high-asset buyers like to pay in one lump sum when buying property in Malaysia.

Expert advice: Malaysia has low down payment, interest-free installment, security and low financial pressure. Property buyers can take money to do financial management and revitalize funds, which is better than staying in the building at once. Therefore, choosing a one-time payment for buying a house in Malaysia will greatly reduce the cash flow and correspondingly reduce the profit due.

Myth 2: Blind pursuit of luxury decoration

Because China people more or less have the complex of "love me, love my dog", even if they invest in real estate overseas, they will attach great importance to the internal environment and decoration of the house. Malaysia's real estate is generally well-decorated, and some property buyers will even give up the "fine decoration" provided by developers and replace it with "luxury decoration" with extra money. Some buyers will give priority to properties with large gardens and swimming pools.

Expert advice: for most investors, unless there is an immigration plan, most houses do not need luxury decoration if they are only rented for a short period of time. Because foreign tenants will not pay more rent because their houses have luxurious decoration or big gardens, they pay more attention to the location, price, transportation and surrounding living environment. Instead of improving the house decoration to increase the rent, it is better to maintain the house regularly under the condition of fine decoration to keep its appearance and basic functions at the best "level", which is conducive to finding new tenants quickly and even increasing the rent every time.

Myth 3: Exclusion of colored people's gathering places

Many domestic buyers feel that there are security problems in areas where people of color live in Malaysia, so they are unwilling to buy houses in areas where people of color live.

Experts suggest that Malaysia is dominated by Malays, Chinese and Indians. With the development of real estate and tourism in Malaysia, Kuala Lumpur, the capital of Malaysia, has become an international metropolis with people of different nationalities and colors. Buying a house in Malaysia will inevitably lead to the gathering of colored people, but it is precisely because of its diverse culture that Malaysian real estate is deeply loved by investors from all over the world.

Myth 4: Cheap real estate will definitely earn a lot.

In overseas investment, some property buyers are keen to buy cheap real estate, thinking that cheap real estate will definitely earn more and get higher returns.

Expert advice: in Malaysia and other countries, real estate is really a penny for a penny. There are deep-seated reasons for the extremely cheap real estate in some places, such as the poor appreciation potential of the region, the fact that the region is in slums or the low income of surrounding residents. Such a house is easy to depreciate, not to mention the high rental return, even if it is not suitable for self-occupation.