Malaysia's white sandy beaches, its open-minded natives, its rapidly growing economy and the low costs of living are only some of the reasons why investment in Malaysia's property is a good decision.
Reasons to buy property in Malaysia
Due to the currency, which is far below the euro, the dollar or the pound, the investor gets more for his money. In addition, the Malaysian government encourages foreign investment by offering various incentives and tax advantages.
As English is widely spoken, you will very possibly be able to process the purchase entirely in English, including English written agreements and contracts.
The Malaysian government has loosened former restrictions for foreign buyers so than now everybody can buy an unlimited number of real estate in Malaysia, regardless if he is a resident or a tourist. Moreover, foreigners are allowed to own freehold properties.
However, one restriction has been intensified as from the beginning of 2010. Foreign investors are now only permitted to purchase property at a cost not less than RM 500.000 for most states, as opposed to the former restriction of RM 250.000. Some states, like Sarawak or Teranggan, set even higher starting prices.
Where to buy property in Malaysia
Unsurprisingly, the highest property prices are to be found in Kuala Lumpur, which, at the same time also offers the highest investment potential. The north western State of Penang is one of the most popular tourism spots and thus a very promising holiday property investment area. Port Dickson, with his ideal location of only about 60 km from Kuala Lumpur and with its tremendously long beaches is another ideal spot to purchase property.
If you consider to rent your property you should consider some factors before doing so. The higher the prices of your renting property are, the more you restrict your tenant target group to expatriates, who can afford such a price. Therefore, you should consider buying in Kuala Lumpur in the first place, where the demand is the highest. Secondly, holiday and short term rentals are not yet very common in Malaysia. This will very possibly change in the near future, as the number of tourists is constantly rising. For now, however, this is still an important factor that has to be considered when choosing an investment area.