22 August 2016, 08:43

Property investment has two types of endeavours. Short-term investments would see to the buying, remodelling and selling of a building while long-term investments earn from renting. The renting of property has become a common occurrence for citizens. In brief, it is a property from which the owner (landlord) would receive payment from the occupants (tenants) in return for the use of the property. Ordinarily, property is rented out for residential and commercial purposes.

 

In Malaysia, Penang is viewed as a state where investments would yield good returns due to its beauty, lifestyle and booming development. The following areas are found to have one of the highest rental yields in Penang. In short, rental yield is the rate of income return over the cost associated with the invested property.

 

Firstly, the area that would benefit an investor is George Town. George Town is recognised one of Malaysia’s UNESCO World Heritage Sites. It is the capital city of Penang, located on the north-east corner of the island. As a result, despite the ever increasing cost of living, it is both treasured by the tourists and locals, thus gaining support economically. It is viewed as a site of remembrance and a place where culture and history is perpetuated. Not only that, it is known for its street foods, culture and its unique post as a medical tourism hub where patients from neighbouring countries would visit the city to undergo treatment.

 

Next, the area to be considered would be Bayan Lepas. It is the main industrial hub for Penang and the location for the Penang International Airport. Multinational companies have located their factories in this area. Consequently, plenty of housing areas such as condominiums and apartments have been built in the area to cater to the population. More housing projects are planned to fill the area. Moreover, it has several attractions such as Queensbay Mall, the Snake Temple, War Museum and the Fisheries Department Aquarium.

 

Thirdly, Butterworth can be included despite the fact that capital appreciation may be slow. It is a strategic location as it is nearby the Penang Bridge and its jetty. It is also a site where army forces have made their base and a site where an integrated transport hub named Penang Sentral would connect rail, ferry and bus transport. The convenient mode of transportation would enable the locals to move about easily. It is also home to the Penang Bird Park and Taman Tugu Demokrasi, where members of the public have been given a space to voice out their opinions regarding state affairs.

Nonetheless, rental property is not for everyone. It is important to have enough capital for the remodelling and repairing of the invested property. Damages incurred have to be fixed quickly. Also, there are a variety of tenants with differing quirks and personalities. If problems arise, they have to be dealt with professionally and the landlord has to be prepared to go to court in the worst case scenario. Matters such as safety, insurance and tax require attention as well. The landlord is responsible for both the welfare of their primary residence and other rented property. Even so, if made with the right decisions and careful planning, rental property can be a lucrative business for its owners.

 

Written By : Katherine Khaw Ze Yun

Back to news

Would you like to share the page with your friends?