In this case, you can transfer 70% of the unknown factors such as industrial risk, location risk, developer risk and national risk to the bank. To put it bluntly, if the development plan really fails, you will lose all the funds if you buy it with 100% cash, while you will only lose 30% of the cost if you buy it with a loan.
Benefit 1: house purchase loan is tax-free.
If you use 100% cash to buy a property and also use cash to collect rent, then the rental income does not need to be taxed.
But if you apply for a house loan from a bank, you can enjoy the benefits of tax reduction.
This means that the more you pay the bank, the less you pay the government.
It's up to you to pay more government money or bank money.
Benefit 2: Reduce the possibility of losing important files.
When you buy an industry with cash, you must keep all the original documents yourself, which also increases the possibility of loss.
But unlike loans, these documents will be kept by banks for you in the next 25 or even 30 years.
It is also for this reason that many people choose to borrow money from banks.
In Malaysia, unlike our domestic developers, the general developers only provide the names of several banks designated by the developers, and customers contact the banks themselves to handle the loan process of buying a house in Malaysia. Therefore, the preparation and handling procedures of this loan information are also very complicated, and the application time is also relatively long. Here, we should also remind customers to choose a reliable and large-scale service organization to handle it on their behalf.