If you are in quest of a commercial or residential plot in Myanmar, you face a tricky task of spotting the right property at a reasonable cost. If you have little to no knowledge about the Myanmar property market, you could be ill-prepared to get hands on the right deal. Speaking of which, here are a few things one should know about the market before giving a thought to invest.
Property can be leased for a maximum of 12 months
Myanmar doesn’t allow foreigners to have absolute ownership of the property and even though the condominium law that allows foreigners to purchase condominiums is in the reckoning, it may take a while to formulate. On the other hand, there is no transparency in the leasing terms and conditions, since they are set at the landlord’s prudent and the maximum tenure for lease is 12 months by law. If you are good enough with the negotiation, you may influence the conditions little bit in your favor though.
No electronic transfers, only cash!
This is one of the biggest reasons why the Myanmar property market is a gambling spot. With the country’s feeble economic condition and poor banking structure, all the major transactions are carried out in hand-to-hand cash. Also, if you lease a property for 12 months, you got to pay all of them in cash up front. This would mean carrying a huge amount of cash in the country and exposing yourself to potential threat. On the counterpart, once you hand over the money to the seller, there’s no official proof that you did it and hence that could be a big disadvantage in case of deceit.
Prices are climbing all the time
Since the time Myanmar property market has opened itself to western buyers, the prices have ricocheted like anything. Even the properties which are yet to be constructed or still under construction won’t be able to fulfill the current demand for space. This is expected to continue since the local land owners look to utilize the scenario and roll in some profit every time there’s an agreement renewal. It would be better off to hire a real estate agent who can assist you in figuring out the real value of the desired property.
Cost is directly proportional to the location
Well, this is the universal law when it comes to buying or selling real estate. You pay for the location more, than for anything else. Over the last 3-4 years Myanmar has become a crowded place with more vehicles on the roads and less people on the same. A small property in a good location is better than a big property in a bad location and there are numerous reasons behind it. It saves you from the frustration of travelling long distances every day and also helps your clients to access you easily. But then again, the quality doesn’t cheap and the market is never in a mood to be lenient about setting prices for posh areas. So one shouldn’t expect areas like Yangon Downtown, Ahlone, Kamayut and Mayangone to be inexpensive in any way, provided the space is available in the first place.
With a lack of banking options here in Myanmar, it’s advisable either to have a real estate advisor or physical security for yourself when in search for a property. It’s important to ensure that the selling party can be autonomously verified in order to avoid any potential loss on both the sides.