Real Estate

Property Investment Ideas – Is It for You?

Google the phrase ‘property investment’ and you will most likely be bombarded with 10 million or more research results offering you ideas for the best way best to get rich quick through property investments, the kinds of properties to wind up and many fail safe actions to retire young and wealthy via possessions. With all these people going into property and reporting on the terrific earnings they get in return, one would wonder if channeling hard earned money into buying and selling bricks would be the best thing to do. Hopefully, with this short on the present property market in Malaysia in addition to the dos and don’ts of land investment, you’d be more confident in getting your hands on your initial investment, or not.

What is Malaysia’s property market like?

To determine this, we will need to return to a decade or so, before the Asian financial crash in’97. In the early’90s, Malaysia was a hotbed of growth with a flourishing economy that has been resonant throughout the real estate industry. New developments surfaced across the nation and more so in the nation’s capital and its surrounding regions. The industry then regressed after the crash, but has been recovering since then, albeit at a lesser rate.

Real Estate

Sources in the International Property Guide reported that the industry has achieved a rise of 6.9 percent in land prices in 2006! Last year, 2011, the Malaysian Institute of Economic Research (MIER) has predicted that a further growth in Malaysia’s market, a welcomed result in the stimulus package, tax reliefs on housing loans and a minimal Base Lending Rate (BLR). Overall, the property market now has a rosy outlook and you might see you are financing multiplying through real estate investment.

However, let us take a Have a look at the things you want to consider:

The Sort of property

The sort of property you are considering investing in will have an impact on your investment in the long term. The guideline is that condo units will yield a greater return on lease, whereas landed properties will appreciate better in value. Though Malaysia’s rental market is comparatively small, nevertheless, the leasing of luxury condos in central Kuala Lumpur and other up market areas is visiting a lucrative inflow because of the high demand by expatriates and businessmen.

On the other hand, it May also be worth mentioning that the industry is seeing an over-supply of luxury condominiums right now. In the end of 2010, over 65,000 units remain unsold, based on International Real Estate Guide, but this figure is predicted to drop from the following decades.