Key Benefits of Investing in Malaysian Residential Properties

Foreign investors are presented with a wide choice of properties to invest in, ranging from residential to commercial properties to land. On the whole, investing in residential properties in Malaysia makes for a worthwhile endeavour, as it offers many benefits not available with other types of investments.

For one, buyers who purchase residential properties from developers are provided ample protection by the Buyer-friendly statutory Sale and Purchase Agreements (SPAs) established in Schedule G (for landed properties) or Schedule H (for residential apartments or condominium units).

Banks are also more willing to offer a higher margin of financing up to 90 percent for residential properties which are considered to possess lower risks than commercial properties. Valuation of the property is yet another key advantage possessed by residential properties – as long as buyers purchase at the market price, valuation is often commonly at or very close to their purchase prices due to previous transactions around the market level.

With their higher margin of financing and official valuation prices, the down-payment requirements for residential properties are much lower, making it easier to close out "Zero or Little Money Down" deals for this sector.

Residential properties are also able to secure a longer bank loan tenor of 30 years or up to the age of 70 and a lower interest rate of -2.4% due to the lower risk perceived. With the lower spreads for home loans, longer tenor, and higher margin of financing, residential home buyers will only need to fork out a lower monthly instalment with less impact on their monthly cash flow.

Investors buying into the residential home market have often been advised to specialise in not more than three different locations, places which are most convenient for their daily activities. With specialised locations, they will be equipped with in-depth knowledge and prices, and can confidently make a decision whenever a good deal comes along. The residential market is easily filled with thousands of properties within each location for buyers to select from.

Most importantly, unlike investments in a commercial property, any potential mistakes made in a residential market will prove to be bearable, and not create any fatal impact on investors’ bottom-line.

Whether you choose to invest in a residential property such as the exclusive 10 Mont’ Kiara, or a commercial flagship development such as the Solaris @ Dutamas, the more you know about each market, the safer it will be to invest your time, effort, and hard-earned cash in it.

Back to Articles