4 Reasons to invest in Malaysian Properties

 

With the economic and financial environment gradually improving, Malaysian properties are an excellent investment now.

In 2009, there were 337,990 property transactions completed as compared with 340,240 transactions for the corresponding period in 2008. The slight slowed down of Malaysian property market of less than 1% in 2009 was mainly due to weaker global economy.

This slowed down has created many opportunities for serious investors to pick up some good Malaysian properties at a discount. Experts predicted that the Malaysian property market in 2010 will be better than previous years due to improving economic conditions.

I would like to share some of my own researches and opinion on the current Malaysian property market.

1. Owner Occupied Market

From my researches, property owners occupied about 80% of the residential properties in Malaysia. The balance of 20% is owned by investors. This means the property market is not highly saturated by investors. This is good news as it can helps to ensure stability in the property market.

In the event of a sudden economy downturn, most investors will sell down their properties to ride it out. However the property owners will not sell their properties. Instead they will do every means to ride bad economy out. The reason is simple. The property owners still need a home to stay even during economy downturn.

Owner occupied property market tends to be more stable. When there is less people selling properties, opportunity for further growth is good.

2. Steady Growth

For the last 30 years, Malaysia property market has been experiencing steady growth consistently. This proved that the property market is stable and would not fluctuate drastically in response to sudden financial changes.

History may not guarantee the future. But if there is no known adverse reason, there is no reason to suspect why the historical trend could not be continued.

3. Conservative market

Malaysians are conservative when taking loans from bankers to invest in properties. They just simply do not like to over exposed themselves in the property market. Such conservativeness is a good factor to ensure stability in the property market.

4. Friendly Government Policies

The recent liberalization of Foreign Investment Committee (FIC) guidelines by the Malaysian Government makes Malaysian properties very attractive.

The abolishment of FIC approval on foreigners investing in Malaysia and the recent review of Real Property Gains Tax (RPGT) are good music to the property market.

The above are just some of my opinions. You may like to visit Malaysia Property for information.