When it comes to property or real estate investment in Malaysia, the law governs the fundamentals of property ownership, from the issuance of land title, recognition of boundaries and ownership. Thus, knowledge of the top 5 legal trends in property investment will give you advantage in making sustainable property investments in the long term.
Home Buyer Protection Over Investor Protection
The last few years have seen an increase in our Government’s focus on home ownership campaigns, especially on affordable housing. Homebuyers who purchase a house for the purpose of staying in it will gain more protection over property investors.
Harder to Become A Developer
As Malaysia is gearing towards the status of a developed nation, there will be less developers as there will no longer be much land to build on; if developers want a prized land with good location, existing building needs to be torn down for re-construction, and there will be compliance matters involved. The Housing Development laws put a lot of obligations on developers while the entry cost is higher.
Due to higher entry barriers of the property investment industry, such as tighter bank financing criteria, property investors should work as a collective and leverage on each other’s positive traits to succeed. As a property investor, you will need to consider alternate ways to raise capital that are not just limited to the bank, as well as new ways of selling and disposing of your properties. Working closely with your buyer, or seller, is key.
As we are entering an era of low yield and high appreciation, you have to either compete by price or compete by selling features. At this critical point in time, a good property investor must know how to manage the property and add value to it, to attract the right buyer.
Strata Is The Way Of Life
Do not be ignorant of strata living. With Strata titles, you have to be very involved; you are a part of it like a shareholder in a corporation. If the condominium neighbourhood is managed properly, the price of your unit will definitely go up!