Managing a property portfolio is becoming increasingly popular, and those with considerably less cash to spare are looking out of Singapore especially in Malaysia.
As marketing and sales of properties in the Iskandar region ramps up, it also becomes more difficult to cut through all the industry speak and potential dangers of over-promising agents and developers. Mr. Khaw Boon Wan, the National Development Minister, has warned Singaporeans not to ignore the additional regulatory and legal restrictions that come with the low prices.
The Council for Estate Agencies (CEA) will be stepping up efforts to regulate the industry, and also provide general tips. They have release an online guide which will help investors tick against a checklist before making the decision:
- Motivation behind the investment
- Financial assessment to ascertain affordability
- Hidden costs such as legal fees, stamp duties, taxes, maintenance fees
- Total loan amount
- Monthly Mortgage repayments
One point which many investors may forget to consider is the currency risk. Even though it may seem cheaper on the onset to purchase property in Malaysia, it may also be harder to sell and should the ringgit weaken, the loss may be comparable to the initial savings.
Ultimately, the crucial question to ask could be “Why am I buying this?” And if the practicalities balance out with the value, then the answer might be clear.