Bidding a below market value property in Malaysia requires an individual to possess a certain amount of knowledge and effort. Many youngsters are purchasing auctioned property as their first-time home. As some of them also buy sub-sale property for investment purpose.
Auction specialist suggests that people that are defaulting their housing loan has been increasing since the economic slowdown. Which also represent that more properties are being auctioned off in Malaysia these days.
According to Elelong Malaysia, there is an average of 2,500 houses been auctioned off every month in the past year. The mismatch between demand and the supply of property is very potent for the reason that property price growth continues to far exceed the income growth of most Malaysians.
Most of the Lelong property buyers exist because the young generate employment income are unable to match the rate of increase for the property price. Hence, auction property has become an excellent choice for many young Malaysians when they are looking forward to purchasing the property.
Here Are Some of the Tips You Have to Keep In Mind When Purchasing Auctioned Property:
First and foremost, it is critical to identify the Lelong property. As properties are auctioned on various kind of platform in Malaysia. Aside from the digital platform, you can also search on the classified section of the newspaper.
Checking the Property
Next, it is essential to perform a throughout search on the property. For instance, getting a title search of the property, getting the proclamation of scale. As this information will provide location and description of the property for auction.
One of the disadvantages for the bidder is that the auction property interior won’t be shown to the bidder. Thus, you really don’t get a clear picture of the condition of the house. Making it a pretty risky investment. It is always essential to do as much research possible on the property.
Follow by that, it is essential to inspect the property. Many people made a mistake when they don’t go around and investigate the property. As reading and trusting the description alone is never enough. You may have to visit the location so you can see the surrounding area, whether it satisfies your need or preference or not.
If you intend to gain information about the property that is not available on the description. It is always recommended to look up for the auctioneer and sales agent to obtain information. In most of the cases, they are more than happy to provide information as you are demonstrating interest to them.
Getting to The Auction
For the youngster who had to perform pre-research on the auction property they are interested, they could also prepare bank draft that is equivalent to the 10% of the reserve price. It is essential to register on the auction day itself. Items such as a copy of the terms and conditions of sales will be given.
Besides that, there will be a bidder’s card with number issue to you for identification during the auction process as well. Experts also stress out the importance to read the conditions of sale. And to seek clarification from the auctioneer on any queries before the auction starts.
When the auctioneer announces the commencement of the auction, you can raise your hand to start bidding the property. The highest offer will be published with the auctioneer hammer falls.