|Date: 3 December 2019||Published by: IBN|
The previous article has made it clear why Malaysia is highly-rated in terms of property investment. If you have made up your mind to look into property investment in Malaysia, where should you start? The most popular place to buy property in Malaysia is Kuala Lumpur.
Firstly, Kuala Lumpur is the financial heart and cultural mind of Malaysia that drives the cultural, financial and economic development of the country. The high population growth, extensive transportation network, economic and education opportunities makes it the perfect city for property investment, regardless of your intention to buy for investment or own stay.
Secondly, Kuala Lumpur is the headquarters to more than 80% of local and international companies, including 64 giant multinational corporations such as Microsoft Corporation, Huawei, Siemens, Alibaba, etc. In addition, the government has launched Tun Razak Exchange (TRX) project, which is set to be an International Financial District in Malaysia. The project is expected to attract more foreign direct investments, which will lead to a large influx of local and foreign talents.
Thirdly, Malaysia has also launched the Greater Kuala Lumpur programme with the aim of spurring local economic growth. The implementation of new entry-point projects under this programme is expected to bring forth high population growth, thus enhancing property investment market of Kuala Lumpur.
Last but not least, Kuala Lumpur itself is one of the biggest cities in Malaysia that has a plethora of tourist attractions. It is one of the most popular tourist destinations within the country. If you purchase a house in Kuala Lumpur but do not have the opportunity to stay there yourself, you do not need to worry about renting it out as there will always be a high demand for serviced apartment.
What are the important criteria to consider before you step into the world of property investment?
Firstly, the property must be well connected with its transportation network and has matured surrounding facilities and amenities. Depending on your purchase intention, you may need to consider extra factors such as education opportunities for your children (own stay) and convenience of the location, such as surrounding entertainment options and public transportation (investment). Shopping is one of the favourite tourist activities. Serviced apartments that are located nearby to shopping malls have higher occupancy rate.
Next, you need to consider the rental return and capital appreciation of the property. Properties located within Kuala Lumpur city centre have high capital appreciation due to a high potential for growth. The strategic location of the property ensure that there is always a high demand for houses and serviced apartment, which leads to excellent rental yield.
Lastly, you need to know what types of unit design you prefer. Although bigger unit allows you to rent out at a higher price, small unit is typically preferred among tourists and those on business trips who are looking for a budget pick.