Find The Best Property Investment For You - New, Subsale Or Commercial
Property investment is one of the safest investment vehicles around, and the business of buying, renting and selling properties can be very lucrative.
However not every property is a good buy, and a big part of what makes the property a good buy or not comes down to its location.
But first of all is the planning of the property buying budget, before the most important criteria of choosing the location.
This guide will teach its readers how to find properties in great locations and then how to apply for a property loan.
An easy way to find homes in the best areas of town within budget is with a detailed Advanced Search function on online property platforms, that enable property hunters to specify exactly what type of home they want.
Fulfilling this criteria in property hunting are just some of the available pages available in PropertyGuru.
- Residential Subsale
- Pre/soft Launch Residential Properties
- Residential Rental Properties
- Commercial Rental Properties
1. Residential – New Development
When it comes to buying developer properties, buyers will usually be able to find new developments catering to all walks of lives in prime or soon-to-boom locations.
Buyers should however have a set of criteria to consider when buying a property either for their own use or investment.
The location of the properties should always be chosen for its potential in capital appreciation.
With this, if the family or investor wishes to sell or upgrade their home in future, they will be able to offset the amount needed to be paid for the new home with their current property.
The property should be close to preschools, primary schools and secondary schools. This will be for the convenience of school going children.
The safety of the area in which the property is bought should be very carefully selected.
After all, nobody wishes for their home to be broken into every other month or to be a victim of snatch theft outside their own homes.
Proximity To Workplace And Amenities:
Living close to your workplace always helps in alleviating the stress of travelling to work daily, and having a shopping mall or park close to home also helps with leisure activities.
Being able to live close to highways or major roads is a major advantage as the purchaser will be able to get around town easily.
The size of the home will be a major factor depending on the size of the family.
For example, a couple with 2 children may be able to live in an 560 sq ft apartment with only 2 bedrooms – but it will not be a very comfortable experience.
The facilities of a neighbourhood will also play an important role. A major requirement of a home nowadays is its safety, hence gated and guarded neighbourhoods are becoming very popular.
If considering purchasing a high rise, a good facility to have would be a nursery or daycare centre for those with small children.
This way, there will be no need to find a caretaker for the children when the adults are working.
2. Residential – Subsale
The requirements of purchasing a subsale home is more or less the same as when purchasing a developer unit.
There is however a very big difference when purchasing a subsale property as opposed to a developer unit, as per below:
The age of the development is a very important factor. After all, the older the development is, the more maintenance and money it will require to upkeep.
3. Commercial Properties
While the criteria for purchasing a new or subsale residential home may be roughly the same, the criteria for purchasing commercial properties differ slightly.
In terms of the location, it still needs to be selected carefully for its potential in capital appreciation in case the purchaser wishes to upgrade their property in future.
However instead of being close to schools, a commercial property will need to be located close to highways for easy accessibility.
This is especially important for logistics companies and companies that require frequent stock deliveries.
If the business depends on high traffic, the location should also be surrounded by large catchments of residents.
Aside from being close to highways, a commercial development should also have convenient access to public transportation for the convenience of its workers.
The safety of the area in which the commercial property is bought should also be very carefully considered.
This is because commercial properties usually have merchandise that are much more valuable.
A piece of small machinery could cost up to RM30,000 at the very least, and being robbed at knife point is also a risk in more dangerous areas.
Proximity To Population Catchment:
Being located close to the major population or being surrounded by offices is important as these will be a business’s biggest clientele.
The size of the commercial development will depend highly on the business that is going to be run there.
For example, a logistics company with much stock will require a huge store room to store their wares. A simple clothes boutique will however not require that much space.
Whether you decide to purchase a brand new, subsale residential or commercial development, the next step you will need to take is to begin contacting the relevant agents.
If you cannot seem to find your perfect property online or prefer to let someone else do the legwork for you, go to the PropertyGuru Agent’s Page, find an agent, feed him/ her your requirements and let him/ her come back to you with a suitable property.
For new projects, visit the PropertyGuru New Launches or Project Reviews page to search for your new property.
If you find a project you like in the New Launches page, fill in your details on the right side of the page and an agent will get back to you within a week.
To ensure that you get the best property, make several appointments and view as many properties as you can until you are satisfied.
Below is a checklist for you to check when visiting a new property.
- Is the property freehold or leasehold?
- If it is a strata titled property, how much are the maintenance fees?
- How many parking lots does your unit come with?
- What is this area like? Your agent will likely know much more about the area than you do unless you grew up in the area.
- Are there any upcoming changes in the neighbourhood? This is especially important if there are empty plots of land nearby.
Below are some additional items for subsale property buyers to look out for:
- Are there are defects in the unit? Ensure you check for structural cracks, leaking roof, missing roof tiles and so forth. These repairs can cost up to tens of thousands of Ringgit, which should be offset from the selling price.
- Are there any items that need to be replaced or repaired soon?
- Why is the owner selling?
And for buyers looking at property for rental, they should ask the below questions.
- What kind of rental can the property fetch?
- What can or can’t the property be used for? Some residential properties, especially high rises, have strict rules on renting the property out.
For purchasers who are looking to buy a residential property, please read the types of Legal Documents that you will need to purchase a residential property.
Purchasers who are looking to buy a commercial property should move on to the necessary documents needed to purchase a commercial development.
For more guides on property buying, you can visit the following pages:
- The complete guide to purchasing a new, subsale or commercial property in Malaysia
- Finding the best property for investment in Malaysia – New, Subsale or Commercial
- Signing the Letter of Offer, Sales & Purchase (S&P) and Loan Agreement
- The property buying process for subsale, commercial and new developments
To learn about property titles, payment schedules and loan documents, visit our other guides:
- Understanding the differences of freehold, leasehold and bumi lot land titles
- Payment schedule of new and under construction property project
- Loan documents for buying a property