Why Property Investment Malaysia?
A combination of factors makes a country lucrative for property investment:
- The property should be below market price
- Easy to sell
- Stable appreciation
- Based in a country that has a stable economy and a regulated financial sector
- There should be no risks involved
The Malaysian property investment market is heating up. It is reaching a point where it is going to shoot up at the slightest positive signs in the world economy. Till then is seems to be waiting. During this waiting time, there are some excellent opportunities available.
Let us proceed thru the basics and see if Malaysia is a suitable property investment market. Once that is established, we will evaluate why it is the right time to invest now.
The nightmare of any property investor is to miss the correct time of buying or selling properties. It strongly impacts the revenues. Missed opportunities sometimes return in years.
Property Investment Malaysia – Below Market Price
Properties in Malaysia have been growing steadily. So there is no real price drop that is observed market wide. The growth in the housing sector, reported in the September 2011 report, has the housing market appreciating by 20%. Similar to what it has been appreciating at in previous years.
The housing sales accounted for less than 2% of the sales last year. This trend shows housing is turning into a buyer’s market. We probably will start seeing the price drops soon. As an investor, this is the best time to track the housing market and watch out for panic or fear sell-offs. The strong appreciation graph shows that there is no real worry about property investment Malaysia.
The growth story in multifamily homes provides another fantastic opportunity. There was a whopping 50% rise in the multifamily home markets. Due to the world economy and government initiatives, a lot of people are opting for small apartments. This explains the rise we observe.
Property Investment Malaysia – Easy To Sell
Investors love a property that they can sell anytime. This is possible, if enough buyers are available in the market.
People need funds at their disposal, to become buyers. These funds come from their salaries, banks and subsidies. The Malaysian job market is not in a crisis. The banks and the government support the property market with favorable policies.
Property Investment Malaysia – Stable appreciation
It takes a long time to create a stable appreciation. Many countries offer short term investment advantages. The Malaysian property market has been steadily climbing. If you study the charts of the Malaysian property markets, you will see a steady, linear growth. It is almost a property market fairy tale. The charts have only a couple of sporadic peaks with awaited corrections.
In the last 10 years, the growth has been slow, but steady. This still tells a story of a strong market. Last 10 years of the world economy saw volatile markets. Consistency in such times is an appreciated feature. Property investment Malaysia able to give you stability.
The only dips in appreciation have come after a sudden appreciation. We would be well advised to see them as corrections rather than property price slumps.
Based in a country that has a stable economy and a regulated financial sector
The Malaysian economy has not been as steady or stable as its property market. There is a contrast here. Malaysia is a small economy. It is also a trading center. These connections expose the economy of Malaysia to situations in the world.
Malaysian domestic growth has been relatively stable. This accounts for the stable property markets.
The Malaysian financial sector is regulated. Electronic banking is supported. Banks are capable and provide world class professional services. Most international banks have a branch at least in Kuala Lumpur.
The people are overwhelmingly caring and law abiding. A legal framework is present for smooth transactions.
Property Investment Malaysia – There should be no risks involved
No one can ever guarantee all risks covered. If nothing else, there are acts of God that cannot be foreseen. The Malaysian investments are quite free of risk. We can list the risks and study how they are covered.
- Malaysian is a democracy within the Federal Constitutional Monarchy. It is stable and has seen no major wars or unrests.
- The country is an oil producing nation with rich reserves. Rubber, palm oil, natural and agricultural resources constitute Malaysia’s exports. It is a relatively open market.
- The rules and regulations are fairly straightforward and clear.
- The property records are being computerized. Old records may still be on paper only.
- Professionals like lawyers, bankers and property agents are readily available. They are efficient and can be trusted.
- Major insurance companies are either present directly or partnered thru a local partner.
If you have any risks in mind, you will undoubtedly find a solution for hedging it.
Property Investment Malaysia – Why now or never?
There are three reasons why now or never. Property investment Malaysia has many good points.
- Few Opportunities: Last time you could buy a property below market price it was in the late 1980’s. A second opportunity came at the end of 1990’s. Since then, the markets have moved steadily and surely upwards. This means that all the investors have been getting capital appreciation. There are no motivators to sell. There are often deals to be found in any market, if you search deep and hard enough.
- World Economy: The world economy being in turmoil, some people fear for their properties. The banking sector is strict in lending policies. These are temporary measures. While they exist, they will drive fear in the minds of people. Some will panic and sell. Some will just want to have cash in hand.
- Poised for Jump: Chart analysts expect the Malaysian market to make an upward jump soon.The only reason the sideways movement is the international situation. Global investors are sitting on their cash and waiting for volatility to settle down. It is estimated that alone in US we have investors are sitting on Trillions of dollars in cash, waiting on the sidelines.
If you miss this general opportunity, you will be buying into a stable market later. This will deprive you of high returns. Why not consider property investment Malaysia.
Malaysia has all the prerequisites that a property investor searches for. All the facts and figures support a stable and growing property market. It seems that the volatility in the world is holding the Malaysian property market from taking a jump forward. As an investor, it would be an appropriate time to study the advantage Malaysia and invest. Choose property investment Malaysia today.