Property in Malaysia has seen an incredible boost in popularity in recent years with their robust economic market and affordable options. Thanks in part to the Iskandar project, which promotes and incentives businesses to come to Malaysia and flourish, residential areas have become highly accommodating and attractive.
An escape from home loan restrictions and economic pitfalls, Malaysia is featuring affordable housing options and welcomes investors and buyers alike. While surrounding areas are considered cramped and inundated with high priced abodes, Malaysia has managed to avoid the extremes of the market and features a surprisingly slow price increase slope. Malaysian property features one of the most desired options in any housing market, and that is more land for less money. In areas such a Singapore a buyer can expect to pay sixty to seventy percent more in estimated costs for one half of the property size than in Malaysia. In the bustling Johor Bahru area, a property owner can enjoy a four bedroom home with a sizeable backyard for almost half of what would be paid in surrounding countries (see: http://www.starproperty.my/property.jsp).
The demand in property in the last quarter has been oddly mixed. While the total value of residential property transactions rose, the total volume of residential property transactions declined. Despite the oddity, Malaysia continues to prosper. Their economic growth rate is substantially higher than many current nations whose GDP has seen a decline in rough economic climates. Curious about renting out your Malaysian property? Malaysia also offers incredibly stable rental prices. Condominium prices in areas such as Kuala Lumpur are some of the most reasonable on the market. When it comes to renting out a property, 120 square meter condominiums give the greatest turn-out with yields averaging about eight percent. Bungalows half that at four percent. A drawback is that Malaysian rental income tax is high in all areas. For nonresidents the rental income tax is stuck in a fixed twenty-six percent. The good news is that buying costs are the opposite. They are some of the lowest at three to seven percent. It might just be a better investment to buy.
While Malaysia is on point to having increasingly impressive economic years, the housing market continues to be a hot-button point. As a renter or a landlord it is important to know a little about the areas laws regarding your rights. Malaysian courts are slow and relatively inefficient, but more often than not are pro-tenant even if the laws themselves are pro-landlord. All agreements must be mutual and recovering unpaid rent is almost impossible especially as a nonresident.