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Slick Investors Look To Oil-Rich Malaysia
February 3, 2009Article by Ray Withers
Reasonably priced real estate is available for Malaysian property as homes for professionals or holiday lets for tourists both offering potential growth. The key to Malaysia’s economic stability is oil production and strong trading ties with resource hungry the US, China and Japan. Despite the world financial crisis, the Malaysian economy is expected to continue growing. The country also has a strong tourist economy, and with the advent of cheap flights from London starting in March, tourism is only likely to grow stronger.
The two main options for Malaysian investment property are buy-to-let properties in Kuala Lumpur or holiday lets. With a large expat population, the demand for Kuala Lumpur property -especially serviced apartments is high. Rental returns in Kuala Lumpur give as good a return as any other major city.
Take the Axis development – Axis Residence Deluxe and Axis Crown Premier .These Kuala Lumpur properties offer a potential annual return on investment of 58% and a rental yield of up to 8%. The development is about 10 minutes from Kuala Lumpur’s business centre. The Premier offers 3 bedroom apartments for £75,780 with five-star facilities. The other development has two and three bed apartments priced at £50,500 to £61,000. At the other end of the scale are the Sunway Vivaldi apartments in Kuala Lumpur. Located at Mont’ Kiara, a popular a town 15 minutes from Kuala Lumpur City Centre and 10 minutes from the central business district. Prestigious four bedroom apartments are for sale from £545,052.
The expected yield is 7% per year. If holiday lets are more your choice, then consider the Nexus Residence, Sabah, Borneo. Nexus residence is an eco-friendly, five-star resort development, with one and two bed-roomed villas starting from £122,000. The local tourist board suggests tourist occupancy for the area is 72% and that the resort has a severe bed shortage and that 3,000 more beds could easily be filled.
Developers are offering a guaranteed yield of 7% for five years to Sabah property , investors.