Malaysia is one of the desirable countries for the property and real estate market with its all-year-round tropical climate, free from most natural disasters and generally affordably priced. The country has also been welcoming visitors, so the market is not just for domestic Malaysian buyers, but also for international expat, retirees, or foreign investors and prospects.
That said, there are many property developers that capitalized on it, and it is sometimes hard for a prospective home buyer to choose which companies they can trust. Buying property is one of the most significant financial investments. Especially for a first-time house buyer, you need a lot of researching to recognize the best developer for your property needs.
In this article, we will go through the things that you need to investigate before making that big property investment in Malaysia.
#1 Brand Recognition and Reputation
How would you feel about parting with your hard-earned money with a new, unknown “Company XYZ”? Or would you feel more confident investing with a reputable property developer who has been in the market for more than 20 or 30 years? A well-recognized company with a proven track record would work very hard on protecting their Brand Image. Which means, they are very committed to delivering their property projects at the highest level of perfection, and they’re much more motivated to troubleshoot any problematic situations if it arises. Top developers are less likely to risk a bad image by ignoring customer complaints about their projects.
#2 – Is The Property Developer Adequately Backed Financially?
As a home buyer, one of the biggest fears as a private or commercial property investor is when a real estate project ends up “going up in flames”! To date, there are 11 abandoned property projects flagged in 13 states, with Selangor leading the highest number of abandoned projects numbering 75. This will result in a long-term financial loss, especially as an individual buyer whereby you would have monthly home loan repayment commitments to pay off for a project that may never see the light towards completion at the end of the day.
Therefore, before you part with your hard-earned cash with some property developer offering a too-good-to-be-true deal, bear in mind that you might receive less financial security, than if you were to put your trust with a financially secure Malaysian top property developer.
#3 – Check For Legitimate Developer License
If there’s one important thing you need to do during your home-buying research, is to investigate the company’s Advertising Permit and Developer License (APDL). This is a legal requirement for property developers when selling property. It is an official government approval received from the Malaysian Local Housing Ministry to confirm that they have permission to advertise and sell a specific property. Not every property developer in the country can achieve top developer status, but one thing they should all have is the APDL License.
If you don’t see an APDL, be warned! The next time you come across any advertisements for property development, the APDL should also be included. It should include:
– Validity period
– Project name
– Land tenure
– Projected completion date
– Minimum and maximum price
– Building plan number
#4 – What Are The Construction Practices & Timelines?
A true property development should have physical evidence, like the project or building as well as having their showroom sales gallery with sample units. If you are interested in a particular developer or housing project, make sure you also spend time to visit the site. The outstanding developers will also be partnering with great architects, material suppliers, and construction companies to produce a high-quality and superior product (property) at the end.
As a prospective home-buyer, you are putting up your cash for rental and home loans. Therefore, you want to know that the said property will be finished on time. If you are buying a new house that is under construction, that financial outlay is weighed up against the period of time you have to wait to receive your home.
You, as a home buyer, would probably want to buy properties from top developers, for all the reasons above. Needless to say, extensive research should be done! Find out as much information about the top developers in Malaysia especially, and have a look at their previous projects. Browse through the property company’s website to check for prestigious awards, which is a good sign that they are rewarded for their track records and credibility.
“If you are interested in a product by a particular developer, look up in the Internet and find out if there are any buyers who have had issues with the developer. If you buy a property without any help or due diligence, you may fall victim to a developer’s smooth talk,” according to the News Straits Times online article on “ Choose builders with a good track record”.
Related article: What Makes A Property Developer In Malaysia Better Than The Rest?
Citations:
https://www.nst.com.my/property/2019/08/511071/choose-builders-good-track-record
https://www.propertyguru.com.my/property-guides/why-important-choose-top-developer-malaysia-15940
https://www.iproperty.com.my/guides/top-property-developers-in-malaysia/
