If you are on a mission to find property investment opportunities in Malaysia, it may be a wise decision to increase your income, but it can also be daunting, especially if you are not familiar with Malaysia’s property market. There are several factors that you need to consider before signing that contract, such as location, property type and market trends. With the right amount of preparation and research, you can enjoy the financial benefits that real estate property investments offer. To learn more about why you should invest in properties in Malaysia, continue reading this article.
Reasons to Invest in Properties in Malaysia
As mentioned earlier, investing in properties in Malaysia can be a lucrative opportunity for those seeking to generate a steady stream of income. But, how exactly does it work?A) Income Generation
1. Buy-to-rent
When you are buying a property, it is not necessary for you to live in the property or use it for your business. You can generate your income through buy and rent strategies, where you rent out your purchased property to your tenants. In this way, you can provide a reliable source of cash flow be it weekly or monthly, depending on your rental policy. Did you know that rental yields in Malaysia can be particularly attractive, especially in high-demand areas such as near public transport or highways? Therefore, it is important to take into account this factor when researching how to rent a property in Malaysia.
2. Rent as Airbnb
If you’re not keen to rent your property to tenants for the long term, you can opt to rent it as an Airbnb. Short-term rentals have become increasingly popular, particularly for tourists that are seeking alternative hotels or for those traveling for business or events. Many of these tourists prefer to stay in short-term rental properties as they can benefit from the bigger amount of space, privacy and a more authentic experience of the local culture. Moreover, if you choose to rent out your properties as an Airbnb, you can potentially earn a higher rental income than conventional long-term rentals. Airbnb properties are typically rented out for a few nights or a week, which can provide you with more flexibility and the ability to generate more income throughout the year.
3. Buy-to-sell
Another way to generate your income through property investment is the buy-to-sell method, also known as property flipping. In this strategy, you can purchase a property with the intention of holding it for a short period of time, making improvements to increase its value and then selling it for a profit. However, it is important to take note that property flipping can be a high-risk, high-reward strategy that requires careful analysis of the real estate market and a keen eye for identifying undervalued properties with potential for improvements. Nonetheless, when done correctly, property flipping can offer you significant returns on your investment in a relatively short period.
B) Value Appreciation
Investing in properties in Malaysia can be a wise decision for the reason of value appreciation. Unlike other types of investments, the value of property tends to appreciate over time. This means that if you invest in a property today, its value is likely to be worth more in the future. This is due to several factors such as inflation, population growth and economic development. If you wonder what is primary market in real estate in Malaysia is, property values have been on an upward trend for many years. According to data from the National Property Information Centre, the average price of a house in Malaysia increased by 5.6% in the fourth quarter of 2021 compared to the same period in 2020. This is a clear indication of the value appreciation potential that exists in the Malaysian property market.
C) Freedom of Choice
Another reason why people choose to invest in Malaysian properties is the freedom of choice that comes with it. As an investor, you get the final say in what your property looks like in terms of its interior, design, style, mood, colours and others. This means that you can make decisions that will enhance the value of your property and increase your chances of getting higher returns on your investment.
Types of Properties to Invest In Malaysia
There are several types of property investments in Malaysia that you can consider. These include residential investments, commercial investments, retail investments, and industrial investments. Each type of property investment has its own set of advantages and disadvantages, and it is important for investors to choose the type of investment that best suits their investment goals and objectives.
Residential Investments
Residential investments are perhaps the most common type of property investment in Malaysia. This type of investment typically includes properties such as apartments, condominiums, landed properties, and townhouses. Residential investments are popular among investors because they offer steady rental income and have the potential for long-term capital appreciation. Also, the requirements to buy house in Malaysia are easier compared to other types of property investments, so it’s worth checking this out if this is your first time trying this type of investment.
Commercial Investments
Commercial investments include properties such as office buildings, shopping malls, and hotels. This type of investment typically offers higher rental yields than residential investments but requires a higher capital investment upfront. Commercial properties are popular among investors who are looking for long-term investment opportunities.
Retail Investments
Retail investments include properties such as shops, supermarkets, and other retail outlets. Retail properties are popular among investors who are looking for a stable income stream and have a long-term investment horizon.
Industrial Investments
Industrial investments include properties such as factories, warehouses, and logistics centres. This type of investment typically requires a higher capital investment upfront but can offer high rental yields over the long term. Industrial properties are popular among investors who are looking for a stable income stream and are willing to invest in a long-term investment opportunity.
Property Investment Opportunities in Malaysia
Malaysia offers a wide range of property investment opportunities, with some of the most exciting prospects being Tropicana Grandhill and Tropicana Cenang.Tropicana Grandhill
Tropicana Grandhill is a luxury development located in Genting Highlands, which is a popular tourist destination in Malaysia. The development offers breathtaking views of the surrounding mountains and is designed to cater to high-end buyers. Tropicana Grandhill offers a range of residential units, including villas, bungalows, and townhouses, which are expected to see high demand from both local and international buyers.
Tropicana Cenang
Tropicana Cenang, on the other hand, is a mixed-use development located in Langkawi, which is another popular tourist destination in Malaysia. The development includes residential units, hotels, and retail outlets, making it an attractive investment opportunity for those looking for a diverse portfolio. Tropicana Cenang is designed to cater to the growing demand for high-quality accommodation in Langkawi, and investors are expected to benefit from the strong tourism industry in the area.
Reference:
- https://www.iproperty.com.my/guides/how-to-become-property-agent-real-estate-agent-malaysia-56416
- https://www.propertyguru.com.my/property-guides/what-is-the-difference-ren-and-rea-15930
