04 October 2016, 07:57

Penang Island is considered to be one of Malaysia’s most sought after state for investments due to its high influx of development in recent years. This indicates that having a second property in Penang is a beneficial for an individual or firm as a long term investment.

There are different ranges of property in Penang from houses to apartments, so it would be wise to carefully choose which investment would give you the highest returns. Since this property is purely for investment purposes, then one needs to factor in 2 main issues: recurrent rental or lease income on monthly / yearly basis and the return on the investment in the form of gain on disposal of the property invested in the future.

There are 3 main types of properties that can be invested in Penang i.e. residential properties (either landed or apartments/ condos), commercial properties (example shop houses or retail outlets) and industrial properties (warehouses or factory lots).

For residential properties, there is serious lack of landed properties on the island side of Penang given the relatively small size of the island. The demand for apartments/condos also remain very strong on the island side because high income earners/ wealthier people as well as the expatriates prefer to stay on the island given that most of the big multi national firms, companies and financial institutions are located on the island. Also the island is very peaceful and seductive for people to stay due to the beautiful seaside and beaches. Thus the investment of residential properties on the island especially will be good investment.

For investments in shop houses, one has the choice of investing both on the island side as well as on the main land of Penang.  But one really needs to look at the location of said property.  For example, on the Juru district where it has been unofficially designated as Juru Auto city, one can invest in any automotive-related businesses and obtain a good rental income.

For industrial property investments, this is more suited towards companies rather than individuals. Since Penang is well known to be the centre of manufacturing, especially for the electronics, electrical industries and semi conductor industries. Investors should continue to invest in any factories related to these industries either on their own or on a joint venture basis with other investors.

All in all properties in Penang as a second investment will depend on you. Firstly what are you? A company? An individual? A foreigner? A family? Next it would depend what you want to achieve with your investment. A second home? A holiday home? An office branch? Another factory? A quick way to make some easy money? When you answer these questions the right property will automatically present itself.

 

Written By : Lincoln Lee Ming Tze

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