Is There Still A Future In
Real Estate Investment?
Many have asked if there is still a future in the property market.
Some even doubt the conventional and popular wisdom of real estate investment. This is not unpredictable due to the overwhelming negative publicity surrounding it.
People who turned away from real estate investment cited the difficulties in flipping properties or to earn a fortune within a short span of time as their main reasons.
However, it is undeniably true that over the years, the value of the right type of properties in Malaysia had increased steadily without wild variation or fluctuation and that is the reason why real estate is one of the oldest and most popular asset class.
What Is Real Estate Investment?
1. Real estate investment has always been a long term play instead of a short one.
2. The ability or possibility in flipping properties during the good times shall never change and diminish the very identity of real estate investment which is slow and steady.
3. Property investment has also long been regarded as a safe haven investment because it provides a low level of risk during periods of extreme economic uncertainty.
Growth of sample properties in Kota Kinabalu
Growth of property in Klang Valley
Over the years, the condominiums in Klang Valley have also enjoyed approximately 5.5% - 9.8% capital appreciation per year over the last 17 years.
For instance, condominiums in Bangsar (Sri Penaga, Cascadium and Tivoli Villa) had been transacted at an average price of RM366,333 in 2001 before rising by about 167% to almost RM980,000 in 2017.
The graph above certainly reveals that the property market in Klang Valley is indeed very encouraging and positive over the past 17 years.
Why Should You Invest In
1. On top of enjoying the capital appreciation of the property you invested in, real estate investment also allows you to receive the passive income generated from the monthly rental.
2. The government are introducing numerous policies to stimulate the property market. For example, currently, there is the waiver of stamp duty for both the transfer and charge instrument and the Home Ownership Campaign.
3. It is now a buyer’s market as not many people are financially sound or capable of obtaining a bank loan to finance the purchase. Also, buyer's has more power when it comes to negotiation.