How to invest in residential properties in Penang

How to invest in residential properties (7 January 2019)


How you ever wondered why some of your friends or former schoolmates, who did not get the best education, nor have salaries that are much higher than your own, can end up owning several property, and you could only afford one, or even none? Is there something they know that you don't?

The short answer to the afore question is, of course they do! But the good news is, it's not a secret that nobody can learn, that only a privileged few have the talent to master.

If you live in Penang, you can consider yourself fortunate in that it has the best of all worlds. Not only is there a high standard of living and good quality life in Penang, the price of Penang residential properties has remained relatively robust with good year-to-year increase. However, if you want to invest in Penang properties, here are some things you need to understand.

Understand residential properties

Unlike buying other stuff, when buying properties, you don't need 100% of the amount upfront. In fact, nowadays you can get the bank to finance as high as 90%, if not more, of the price of your property. Therefore, property investment is a way to make money out of other people's money. Many developers also offer zero down payment for their properties - but make sure it's worth buying.

Understand geography

The same type of residential property on Penang Island might cost three times more than in a small town on the Penang Mainland. That's entirely fine if you are buying for own use. But if you are considering to buy for investment, it is worth checking out how much rent you can expect to get from it, and how easily you can rent it out.

Understand value

To make any money at all from properties, you need to understand value. The price tag tells you nothing. What you need to know is whether that property you are eyeing (whether something yet to be built from developer, or one that is standing right before your eyes) is worth its value. More likely than not, it is priced above that value. So at what price should you offer?

Do some homework. Find out how much you are able to rent it out. What's the current expected rental for that area. Find out the rental per square foot of a similar property in that neighbourhood.

Understand the economy

When the economy is good, it is of course the best time to profit from property investments. However, astute investors are able to profit regardless a strong or weak economy. It is worth remembering that when times are bad, there will be fewer people who can afford to invest in properties, and so there will be more choices and better bargains for you.

Size up your realtor

At All Malaysia Properties, we want to create not just realtors who are able to transact properties, but those who can provide their clients with long term value. If you want to invest in properties, for sure you need to do your homework. But having a good realtor in your hand helps you get some answers quickly, saving you the time and hassle of doing it yourself.

Engage an All Malaysia Property Realtor

If you need a professional to help you buy, sell or rent property, in Penang and Kuala Lumpur, please contact us today.

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Please use the information on this page as guidance only. The author endeavours to update the information on this page from time to time, but regrets any inaccuracies if there be any.

About this website

Dear visitor, thank you so much for reading this page. My name is Timothy Tye and my hobby is to find out about places, write about them and share the information with you on this website. I have been writing this site since 5 January 2003. Originally (from 2003 until 2009, the site was called AsiaExplorers. I changed the name to Penang Travel Tips in 2009, even though I describe more than just Penang but everywhere I go (I often need to tell people that "Penang Travel Tips" is not just information about Penang, but information written in Penang), especially places in Malaysia and Singapore, and in all the years since 2003, I have described over 20,000 places.

While I try my best to provide you information as accurate as I can get it to be, I do apologize for any errors and for outdated information which I am unaware. Nevertheless, I hope that what I have described here will be useful to you.