Is there such a thing as the best time to purchase a Malaysia property? Will the “best time” cost less; make it easier for a foreigner buying property in Malaysia? Read on as we shed some light on what experts believe to be the best time to buy a property in Malaysia.
Malaysia properties in the heart of Kuala Lumpur
The economic cycle
The economic cycle of a country is the period between growth and recession of the country’s economy. The fluctuation is determined by factors such as levels of employment and consumer spending, interest rates and gross domestic product. During a recession, Malaysia property prices are much cheaper. It is also the best time to look for commercial properties located in prime locations as some of the owners would be selling these properties to pay off their businesses or cover investment losses.
Demand and supply
The best time for a property investment in Malaysia for foreigners is when the country’s property market is cooling down. As the demand for Malaysia properties drops, developers tend to decrease property prices in order to sell properties faster.
As such, bet on some properties in Malaysia at these times to get the best price.
The risk in over-leveraging
Ensure you have time on your side when cashing out huge loans while paying for your investments. This is to be assured that you will not have problems to liquidate your properties when the property market cools down.
The problem with buying property investment when the market is at its peak is that you may not have enough cash to service your loans when the market goes down. This is the reason why experts advice not to over-leverage when investing in properties—including Asia properties.
Availability of capital and market sentiment
In a cooling property market where availability of capital is low and market sentiment is dismal, buyers will have a better chance of negotiating discounts or additional perks on their purchases. Those who are selling property will, however, find it harder to sell in an economic slowdown.
The long term view
Looking at things long-term, it doesn’t really matter when you buy. Any good property is bound to appreciate over the course of 20 to 30 years.
Personal consumption vs investment
If you are buying a condo in Malaysia for personal use, the sooner you buy the better. It all depends on whether or not you can afford a property or not. But you can’t say the same if the property you will be purchasing is for overseas investment use. Look into the bigger picture and see the best deals you can get and how many takeaways you will have in the future before purchasing one.
Find your Malaysia property investment and read about other guidelines in overseas property investment through Yazhou Property blog. Follow us on Facebook for updates on Malaysia property news!