When it comes to generating passive income, “investing” is a familiar avenue. In Malaysia, the most popular investment directions are real estate and stocks. Click to learn more about the trend of property prices in Malaysia in 2022. This article will share the advantages and disadvantages of investing in real estate in Malaysia, so that you can clearly understand which investment method suits you.
What are the advantages of investing in Malaysian real estate?
Real estate is definitely the most stable long-term investment! First of all, after buying a house, you can rent it out first to relieve mortgage pressure through rental income.
If you buy in a hotspot with high appreciation potential, coupled with favorable factors such as convenient transportation and proximity to the city center, it means that you can increase the rent every year, allowing you to have a considerable surplus after deducting the monthly loan.
Moreover, a house is not an intangible asset that fluctuates every day or that needs to be watched all the time, like the stock market.
In addition to rental income, you can enjoy capital gains from property appreciation, which is known to grow in value over the long term.
According to the National Property Information Centre of Malaysia (NAPIC), in the past 10 years from 2012 to 2021, the average house price in Malaysia has increased by 60.2%, from RM271,384 to RM434,758!
What are the disadvantages of investing in Malaysian real estate?
When buying a new house, if you don’t do your research beforehand, you’re likely to run into unscrupulous developers who take your money and run away, or build a house with poor quality materials and construction.
Of course, you can also choose to buy a second-hand property (subsale property), but you may need to prepare an extra sum of money to decorate and take care of the house before you can rent it.
In addition to this, you as the homeowner have to maintain the house on a regular basis, and any structural damage will cost you money to repair, which will be an additional cost to you.
But in the long run, real estate is definitely a long-term investment worth considering, suitable for investors with sufficient funds and the patience to wait for returns.
It must be noted that the value of the house will appreciate with factors such as community development, population density and transportation convenience. Therefore, before entering the property, you must consider its location, and prospective community development, transportation, and proximity to hotspots as investment considerations.
In any case, if you want to invest in real estate in the most “secure” way, your capital will generally be on the house for at least 5 to 10 years, so it is not suitable for investors looking for short-term returns.
There is no absolute good or bad in real estate, stocks and other investment vehicles. The only thing to consider is whether it’s right for you. To invest, you must first understand the advantages and disadvantages of different investment vehicles in order to make the most informed decision. If you continue to want to know more about buying property and immigration in Malaysia, remember to follow Denzity.
Property investment is a long-term game and planning is the key. Watch more videos for a better decision!
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Malaysia investment information:
- Malaysia | Why you should Immigrant in Selangor
- Immigrate to Malaysia | Lower housing costs are the best choice for Hong Kong residents
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