Factors to Consider When Buy New Property Launch in Kuala Lumpur

1. Basic Cost of New Property in KL

Property purchases will differ in cost depending on the type of property. Commercial and residential properties have distinct differences that set their basic costs apart. And needless to mention, the best property is not always the one that requires a minimal basic cost.

When you’re looking to invest in a commercial property, prepare a bigger budget. When you’re looking to invest in a commercial property, prepare a bigger budget. Commercial properties cost more because of the size and functionality. Commercial buildings are also strategically placed in locations with a bigger market, causing their value to rise.

Investing in residential properties is a good decision especially for beginners and those who don’t have a large budget to start with. Residential properties will most likely have a low price attached. Also, it is easier to acquire loans from the bank when purchasing residential properties.

2. Maintenance

Maintenance if a big part of real estate investment. The type of property matters most if you consider this factor. Also, maintenance will require you some additional expenses in the long run. So, before you invest in property, assess the extent of maintenance required.

Maintenance for commercial properties is not a problem. Most of the time tenants are the ones responsible for the maintenance themselves. This is because they’re managing their business operations on your property and have their own maintenance preferences.

If you have a place for rent, it is only right that you take care of maintenance. This is because a well-maintained property is one of the important factors for a steady flow of tenants.

The bad side is, at times there will be damages to the property. In fact, it is unavoidable. This is because a large number of people will be renting your place from time to time.

3. Experience Requirement

Investing is not an easy task to accomplish successfully. Experience is a necessity for a successful investment return. Investing in residential properties will require only a budget. Experience is something secondary. However, it is best that you have even the most basic knowledge of investing before you indulge in the business.

Investing in commercial properties requires more knowledge and experience in the real estate business. There are more risks and complications that you’ll need to go through when handling a commercial property.

If you’re unsure how to proceed, it will always be safer to hire a property or real estate broker in Kuala Lumpur. Their experience will come in handy in informing you of what type of property to invest in.

4. Income

Property value is determined by different factors such as location, size, type, and other conditions. At the same time, the income generated by a property is determined by its value.

Whether you invest in KL or any other region in Singapore, remember that commercial buildings will most likely be strategically located in areas with great potential for growth and market stability. This is the reason why commercial properties cost more – because they generate more income besides the size and other features. This means a bigger rental cost than residential properties. Tenants are expected to pay more for residential spaces because they are to earn a good sum of profit from renting the place.

On the other hand, residential properties are more likely to have a steady income but will have lower returns. This is because the size and the functions are much less than that of a commercial property. The good news, however, the Malaysian government has always created an enabling environment where even a foreigner can buy property in KL easily.

5. Vacancy Rate

Vacancy rate refers to how long your property remains vacant in a period of one year. This is something that landlords should keep as low as possible. A higher vacancy rate equals a lower income.

Commercial properties are arranged to house tenants for long periods of time. This ensures a stable income. However, a longer tenancy period equals longer vacancy periods. This means that there will be longer periods of time that your investment won’t be making you money.

On the other hand, residential properties are better in attracting tenants. Large tenant pools are almost attainable in most places. In addition, vacancy rate can be reduced by improving facilities and maybe even lowering the price of the rental.

So, Should You Buy Property in KL?

There really is no best choice when it comes to investing. It will all come down to what you have and what you can offer. The best choice will always vary individually. This is because your experience and skills also play a big role in choosing which type of property to invest in.

A good thing to put in mind is that you should do everything at your own pace. Don’t base your decisions on others’ luck and success. Instead, do things depending on what you can do and what you confidently see as achievable.

To know more information about a property, please always visit us at Sell Property Fast Malaysia.