35 Factors Lead to Properties Appreciation Part 1
When coming to select a good property for investment purpose, there are so many things need to be considered.
1. Land tenure
Properties on Freehold land (999 years) are the most favorable properties in Malaysia. However, most of the properties with great location or in city center are on leasehold land that have 99 years land tenure or maybe 60 years land tenure. If a freehold land is surrounded by leasehold lands, that can be one of the best location to choose already!
2. Land title, Residential or Commercial Title
The major impact of land title is the cost of utilities such as water and electric. Although houses with commercial title will have more expensive utilities, it can be legally operated as service suites and earn short term rental from Airbnb. Short term rental is normally higher and more profitable if comparing to monthly rental. Because Airbnb is so popular, there is a significant demand increase for mix development projects and properties with commercial title. Properties with good rental return will appreciate faster than normal property.
3. Governments development plan and support
A town with government linked development with have better infrastructure and town planning. Government will help to promote the projects, hold activities or events and support population growth that will bring positive impact to properties appreciation and might turn a town to become a big city. For example, why IKEA store and Ikano Pte Ltd willing to invest in Batu Kawan? (Star News)
Because there is government support on the development and make sure that there will be population growth in near future. This will definitely lead to appreciation of properties in Batu Kawan, although right now the properties price is around RM3xxK only.
Know more about properties investment in Batu Kawan
4. Smart city planning
A well-planned city will include a lot of other attractions to make sure that it will become a self-sustained city. Example, Universities will attract students from far away places, prepare graduated students to work in the town and buy properties in the town. There will have positive economical activities which support the appreciation price of properties.
5. New project developments in near future, 10 or 20 years
Follow the news of developers, and you will be more sensitive to the future of an town. If there are few well-known developers promoting and developing the same area, then you know that there will be a high demand for properties.
Developers did more studies than us, and they will determine the price of properties based on supply and demand. They want to make sure sure that they can sell, not only to local people, but to foreign investors also.
6. Education center, well-known University Colleges and Schools
Properties near education center are always greater choice to invest because there will always have tenants. The best is the Universities with no hostel prepared for students and therefore the students have to rent a room or house near the universities. If the property with retail shops at below, and is directly linked to the university with no hostel, do you think the property price will appreciate? Definitely will!
Properties in the area of the best primary or secondary school is having great appreciation potential also. In Malaysia, parents want their children to enter the best school in town. They need the nearest home address to register for the entry, so the chances of getting into that school will be much higher.
However, this kind of property is really hard to get.
Check with me if the property beside University or popular schools is available
7. Hospitals and healthcare center
Some of the local property buyers might not aware why hospital can lead to property appreciation.
Medical tourism has become more and more popular in Malaysia because we offer international standard of medical treatment at more affordable price if comparing to our neighbor countries. When foreigners come, they will visit some of our tourism spots too.
8. Factories and offices
Factories and offices offer job opportunities to the residents in the area. Working in factories will have more stable monthly income. With stable income, people can obtain bank loan approved easily and will be able to invest in properties. Multi-National Companies such as Intel, Seagate, Sandisk and etc will also attract expert workers from foreign countries to work and stay and even invest in Properties of Malaysia.
9. Potential growth of new
Corporations
One big MNC can create thousands of job opportunities and hundreds of new factories might need to be set up in order to support her production. I take one MNC in Penang, Keysight Technology as an example. This company is producing different types of measurement instruments. In order to support her production, a lot of local factories related to plastic, machining, PCA, cables, electronic components and etc had been set up. Training centers are increasing also in order to provide professional training to workers. Penang island has very limited land and getting too expensive, and therefore the factories started to shift to mainland, such as Batu Kawan. Batu Kawan become a hot spot due to Penang second bridge and very near to Bayan Lepas FTZ and Penang international airport. We can see the potential growth of new corporations in Batu Kawan.
Want to invest in Properties in Batu Kawan? (Click me)
10. Theme park or entertainment center
Theme park will attract local and foreign tourists to visit the area and have a short term stay during public holidays or school holidays.
Short term stay will help property investors to generate handsome rental return and therefore the properties price will increase definitely.
11. Hypermarket, convenience store, retail shops
Hypermarkets such as Aeon Jusco, Tesco, Giant and big shopping mall such as Mid-valley and Queensbay Mall had successfully bring the properties price to higher and higher level. These hypermarkets create job opportunities and tenants for the properties in surrounding area. They attracts visitors too with special events. When I pass by Queensbay Mall every morning, I see workers walking to Queensbay Mall from apartments nearby. If I owned one unit of that apartment, then I will have monthly rental income to cover my bank installment.
12. Special Landmark, or building
Landmark is a special feature of a town that is easily seen and recognized from a distance, especially one that enables someone to establish their location. Kuala Lumpur's city center landmark is Petronas Twin Tower (and TRX tower, KL118 tower in future), Penang landmark is Penang bridge (and Penang second bridge in future), Melaka's city landmark is Red Square (and Melaka Gateway in future). Universities and big shopping mall can become landmarks of a town also. There are landmark buildings in every area or town, and properties located closer to those landmarks will appreciate faster due to its popularity.
I will share the rest of the factors that will lead to properties appreciation Part 2 and Part 3 in my blog. Feel free to subscribe and you will receive email notification if I post a new content in future.
To be honest, all investment involve risks. What we can do is to minimum the risks and maximum the success factors. I choose some hot development projects to blog here, and the projects that I choose to blog has many good factors to appreciate and therefore worth to recommend to readers.
We already surveyed a lot of projects/ properties and compare them, and therefore we can give you reasons of investment for the properties that we recommend.
Elvin (Click me)
Charles (Click me)
Location, location, location - the key to property investment.
I had listened to opinions of some property experts and summarized 35 factors that will lead to properties appreciation, and this blog post is just the Part 1. I will separate the contents to 3 blog posts so that readers will not get tired of reading too much. 😁 (Below factors are applicable to properties in Malaysia)1. Land tenure
Properties on Freehold land (999 years) are the most favorable properties in Malaysia. However, most of the properties with great location or in city center are on leasehold land that have 99 years land tenure or maybe 60 years land tenure. If a freehold land is surrounded by leasehold lands, that can be one of the best location to choose already!
2. Land title, Residential or Commercial Title
3. Governments development plan and support
Because there is government support on the development and make sure that there will be population growth in near future. This will definitely lead to appreciation of properties in Batu Kawan, although right now the properties price is around RM3xxK only.
Know more about properties investment in Batu Kawan
4. Smart city planning
A well-planned city will include a lot of other attractions to make sure that it will become a self-sustained city. Example, Universities will attract students from far away places, prepare graduated students to work in the town and buy properties in the town. There will have positive economical activities which support the appreciation price of properties.
5. New project developments in near future, 10 or 20 years
Follow the news of developers, and you will be more sensitive to the future of an town. If there are few well-known developers promoting and developing the same area, then you know that there will be a high demand for properties.
6. Education center, well-known University Colleges and Schools
Properties near education center are always greater choice to invest because there will always have tenants. The best is the Universities with no hostel prepared for students and therefore the students have to rent a room or house near the universities. If the property with retail shops at below, and is directly linked to the university with no hostel, do you think the property price will appreciate? Definitely will!
Properties in the area of the best primary or secondary school is having great appreciation potential also. In Malaysia, parents want their children to enter the best school in town. They need the nearest home address to register for the entry, so the chances of getting into that school will be much higher.
However, this kind of property is really hard to get.
Check with me if the property beside University or popular schools is available
7. Hospitals and healthcare center
Some of the local property buyers might not aware why hospital can lead to property appreciation.
8. Factories and offices
Factories and offices offer job opportunities to the residents in the area. Working in factories will have more stable monthly income. With stable income, people can obtain bank loan approved easily and will be able to invest in properties. Multi-National Companies such as Intel, Seagate, Sandisk and etc will also attract expert workers from foreign countries to work and stay and even invest in Properties of Malaysia.
One big MNC can create thousands of job opportunities and hundreds of new factories might need to be set up in order to support her production. I take one MNC in Penang, Keysight Technology as an example. This company is producing different types of measurement instruments. In order to support her production, a lot of local factories related to plastic, machining, PCA, cables, electronic components and etc had been set up. Training centers are increasing also in order to provide professional training to workers. Penang island has very limited land and getting too expensive, and therefore the factories started to shift to mainland, such as Batu Kawan. Batu Kawan become a hot spot due to Penang second bridge and very near to Bayan Lepas FTZ and Penang international airport. We can see the potential growth of new corporations in Batu Kawan.
10. Theme park or entertainment center
Theme park will attract local and foreign tourists to visit the area and have a short term stay during public holidays or school holidays.
11. Hypermarket, convenience store, retail shops
Hypermarkets such as Aeon Jusco, Tesco, Giant and big shopping mall such as Mid-valley and Queensbay Mall had successfully bring the properties price to higher and higher level. These hypermarkets create job opportunities and tenants for the properties in surrounding area. They attracts visitors too with special events. When I pass by Queensbay Mall every morning, I see workers walking to Queensbay Mall from apartments nearby. If I owned one unit of that apartment, then I will have monthly rental income to cover my bank installment.
Landmark is a special feature of a town that is easily seen and recognized from a distance, especially one that enables someone to establish their location. Kuala Lumpur's city center landmark is Petronas Twin Tower (and TRX tower, KL118 tower in future), Penang landmark is Penang bridge (and Penang second bridge in future), Melaka's city landmark is Red Square (and Melaka Gateway in future). Universities and big shopping mall can become landmarks of a town also. There are landmark buildings in every area or town, and properties located closer to those landmarks will appreciate faster due to its popularity.
I will share the rest of the factors that will lead to properties appreciation Part 2 and Part 3 in my blog. Feel free to subscribe and you will receive email notification if I post a new content in future.
To be honest, all investment involve risks. What we can do is to minimum the risks and maximum the success factors. I choose some hot development projects to blog here, and the projects that I choose to blog has many good factors to appreciate and therefore worth to recommend to readers.
We already surveyed a lot of projects/ properties and compare them, and therefore we can give you reasons of investment for the properties that we recommend.
Elvin (Click me)
Charles (Click me)
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