Investing or buying condos in Kuala Lumpur.
The global credit crunch and the sub-prime crisis in the US has prompted investors to look to new markets and Malaysia is one of many developing Asian countries that appears to be benefiting from investment dollars that would likely have gone elsewhere – if not for the fears of a looming recession in the United States and western Europe. The threat of a continuing, long-term downturn stateside could mean Malaysia, and Kuala Lumpur real estate in particular, can expect this extra attention to last for some time yet.
The price of land in KL is high and shows no sign of slowing down so an increasing number of property developers with land banks in good locations are opting to develop high rise luxurious condominium projects. The selling price of such developments can be as much as RM2000-00 per square feet or more in Kuala Lumpur depending on design, specifications and location. Kuala Lumpur City Centre (KLCC), Ampang, Bangsar, Brickfields, and Mont Kiara have all enjoyed strong appreciation and are in demand among the city’s ex-pat community. Another promising area is Jalan Ceylon – the site of a new luxury condominium project by property developer Starpuri Development. The $87 million condominium is expected to be completed by December of 2010 after a 32 month build.
Financing is available for foreign investors once potential purchasers show proof of possessing some source of income to enable repayment. For foreigners, the maximum loan normally allowed is 80 per cent and the term of loan depends on the age of the purchaser. Those looking to buy a condominium in Kuala Lumpur are currently looking at a range of between US$ 66,000 and US$ 250,000 for mid-range units.
The fortunes of the companies responsible for KL’s recent developments have differed widely, in line largely with their targeted market area. Those with a focus on high-end segment such as IGB Corp Bhd, Sunrise Bhd and E&O Property Development Bhd have seen significant earnings growth this year, while the ones with focus on the mass market, such as MK Land Holdings Bhd and LBS Bina Group Bhd, have seen earnings down sharply due to poor sales. The recent history of these companies is a clear demonstration of the shift occurring in the city’s market at present.
Become a Successful Kuala Lumpur Real Estate Investor
In Kuala Lumpur real estate, there are plenty of opportunities for everyone to accumulate wealth and become financially free. Poor financial planning coupled with wrong investments have made many people poor wealth accumulators.
Most people acquire their financial knowledge once they start working or though rial and error. This traditional of learning would cost them thousand of ringgit and it would set them back a few years financially. When it comes to putting money to work, it requires a different mindset and new set of skill that is best learned from the experts.
For example, many people have made wrong property investment that have cost them thousand of ringgit and a few of their life is required indo the damage. It is easy to get into properties but very difficult and costly to get out.
“You must get it right, not only the first time, but every time in property purchases-whether you are buying as investment or your own home.”
Kuala Lumpur real estate is one of the few cities where the majority can easily invest in one property every three to five years. Whereas, in countries like Singapore or Hong Kong, it is considered a major achievement to buy a second property for investment purposes.
Kuala Lumpur real estate has a huge advantage as the prices of properties are amongst the lowest in the world.
One can esily buy a medium-cost apartment that gives rental return of 7 to 9% per annum for as low as RM70,000. All you need to do is come up with a low payment of only 10%.
Properties also provide an excellent long-term investment vehicle to fund your children’s education and retirement needs while providing a steady and predictable passive rental income that will help you to gain financial independence and ultimately, financial freedom.
In Kuala-Lumpur-Real-Estate.com, I will share my expertise and experience to benefit all my readers and clients. So, stay tune for more article and strategy coming on how you can become a successful real estate investor.