Investing in property is always a smart choice. The truth is that it’s not like the majority of activities and it’s something that’s not going to lose its value overtime. Of course, potential slow-downs are possible but when you consider the long-term result, investing in property is always a safe bet. However, this seems to be overly true for Malaysia as more and more foreign investors prefer to spend their money for property in Malaysia (Also see Quick Guide to starting foreign-owned company in Malaysia). Let’s see why that is.
Right off the bat, it’s important to understand that there is an expected growth in the prices of houses. Currently, the prices of property in Malaysia are amongst the lowest in entire Asia and there are definitive suggestions for a steady growth at the current resilient economy. Regional property markets like the ones in Hong Kong and Singapore have risen way too much in the course of the last couple of years and they are now taking a step back.
Furthermore, Malaysian property is currently offering a rather stable rental yield somewhere in the range between 4% and 5% per annum for the last two consecutive years which is definitely a good sign. Talking on average, the Malaysian rental return is going to take about 16 years which is definitely incredibly prosperous when comparing it to the other countries in the same region. Apart from that, the local demand for property by the citizens of the country themselves is huge. This is due to the fact that the majority of families are getting richer and that’s driving the overall growth of the property market in the last couple of years. This is mainly because of the steady growth of the economy which increases the purchase potential on average.
What is more, there are attractive social and economic advantages of Malaysia which are overly beneficial, especially when it comes to investing in property as the tendencies are that the country is going to become more developed and thus the prices of the real estate are only going to be increasing. There are a lot of social and geographical factors which contribute to this tendency. Right off the bat, the country isn’t a hub for major natural disasters like the majority of other Asian countries and this makes it attractive because it offers peaceful living free of any particular worries in that specific regard.
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