30 August 2016, 06:39

There are many welcoming reasons to own a property in Penang, may it be for oneself own usage or for investment purposes. Penang, known to be a food haven and also a popular tourist hotspot, this city invites many people to indulge in some of the delicious street cuisines such as Cendol, Char Kway Teow, Nyonya desserts, and  Asam Laksa. Nevertheless, there are many eye-catching sceneries such as rich art culture, exoctic heritage sites, and trendy cafes and bars on the streets of Penang that exhilarate people to explore and experience. One of the charming benefits of owning a property in Penang is home owners get to earn a side income of rental fees from tourists who visit as this form of living allows tourists to have convenient access to the best experiences that this city could offer.

Some of the other popular benefits of owning a property in Penang are comprehensive modern city infrastructures and enhanced public transportations, and constant economy growth that upgrades the city’s status. There are many projects being carried out to make traveling friendlier to people. Gamuda Berhad has taken the initiative to team up with Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd, with SRS Consortium as the Project Delivery partner for the Penang Transport Master Plan (PTMP) and the South Reclamation Scheme (SRS) to equip Penang with upgraded transport infrastructures to increase the mobility of vehicles and a new commercial hub (SRS Smart City). The value of properties appreciates as the city’s status upgrades, which put home owners in a better position for investment prospects. In comparison to renting a property, renters need to pay higher rental fees.

Over the years, Penang has been pushing hard for economy growth. With it’s booming IT industry, this city calls out to investors on a global scale. Having made one of The Star’s headlines, Bosch is investing RM 140 million to remodel it’s car multimedia plant in Bayan Lepas. Following suit,  Avago Technologies (Malaysia) has taken on a project to splurge RM 85.66 million on enlarging one of it’s facilities in Bayan Lepas as well. Moreover, the company plans to hire more engineers and supply mangement staff. On this note, an expansion of economy creates employment opportunities. This growth brings in a large number of people that will drives up the demand for properties and hence, home owners can obtain a higher re-sale value over the passing years.

On the contrary, these benefits attract many kinds of people from around the world that will increase the potential of jeoperdizing the cleanliness of the enviroment and the well-being of people’s health. According to a post published on CleanerGreenerPenang website, a website handled by the Penang State Government, dissapointing sights of rats, dirty markets and public places are increasing in a very concerning rate that locals and tourist urge the public to reflect on their behaviour and actions to keep a clean environment. A drity environment creates unpleasantness to the image and reputation of Penang, which home owners will face chances of having their properties vacant as renters begin to choose places with cleaner environment to stay.

The Malaysian Ringgit has been hitting low exchanges rates in the stock market due to economical impacts such as low volume of exports and foreign investments in Malaysia that have dimmed the enthusiasm of both local and foreign investors to invest in the market. It has been a while that investors have been hesitating to purchase properties in the event they meet losses in re-sale value, worriesome low rental yields, and other potential impacts that could jeoperdize any investment prospects. In this situation that people are playing safe with their money and relunctant to spend, the flow of business cycle will face many hiccups in the market. On the bright side, one of the promising outlook that sheds some positive light on Malaysia’s economic situation is that the country’s inflation rate in consumer prices is recorded to be standing relatively low at 2.1% in comparison to the market forecast of 2.2% in 2016. Thus, reasonably affordable goods and services encourage tourist to visit, local and international investors to invest, and businesses to pick up. Therefore, home owners may experience lower property value that can hinder them from selling their properties at a higher price.

Thereupon, there are some benefits of owning a propery than renting that coincide with home owners’ investment goals and objectives.

 

Written By : Melissa Sak Yin Si

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