There are still many Malaysians who are working in overseas, that invest in overseas property market. For those who are working abroad and earning high foreign currency, buying properties in overseas is quite normal. But there are better alternatives available for them in terms of property investments. They should take advantage of the high foreign exchange that they have earned to purchase Malaysian property due to their higher RM-converted income, which makes it more affordable for them to buy.

Why Are These Investors Incline To Buy Properties Abroad

For Malaysians working abroad, the urge for many Malaysians to invest in overseas property is quite high due to the opportunities they are seeing and the value that they are eager to grab whilst living in overseas. Below are few of the reasons why they buy properties abroad.

1. It is common for them to invest in any “local” property. They are working abroad, which makes that oversea country “local” for them, as they are seeing the advertisements and peers buying into properties everyday.
2. Due to the growing need of children – some people who are working overseas have the high tendency to settle down and live abroad until their retirement so this will later turn into the need for them to grab a house for their family planning.
3. The needs for a holiday home for one family, many Malaysians imagine to have their own holiday home overseas where it is somewhere they can enjoy free lifestyle and away from the bustle of the city.
4. Better retirement life and diversified wealth opportunities for those Malaysians who are working abroad. Retiring and moving somewhere quiet and full with lifestyle opportunity might be everyone dream whenever they are thinking to invest on a property, because the location that is important in the end.

However there are the pros and cons when deciding on whether it is wise to start investing in overseas property compared to the local property market. For example, here are the pros that you should consider before making decision on this matter.

Pros Of Investing In Malaysia

1. The change in currencies might affect your income from rental but if you invest in Malaysia property you can take advantage on the high foreign exchange that you earn while working overseas and save a lot of money when you buy local property.
2. The instability of politics and economics of few countries might influence your investment there and in Malaysia you already know how well the stability of the economic and politic, so there is no doubt that your investment would probably prosper here successfully.
3. The different standard of accounting, and the law that associate with it and the cost of foreign investing might be higher.
4. High level of affordability because if you look in Singapore the prices of property has risen and there are lacks of affordability there. In Malaysia you can still afford to buy and finance some of the property as the prices aren’t too high.
5. Lower stamp duty when you purchase property locally in Malaysia, some are even waived if it is your first property.

Cons Of Investing In Malaysia

With that, there are also cons that you should consider if you want to start investing locally in Malaysia especially for those who currently working and residing abroad.

1. The costs of home loan interest in Malaysia is higher compared to for example Singapore, as Malaysia charges around 4% to 5% while in Singapore you still enjoy 1.7% interest charge.
2. Currency fluctuation – the exchange rates between Malaysia and other currencies fluctuate almost daily so by the time you sell your properties in 10 to 15 years, there might be possibility currency fluctuation results in you making less profit.
3. Possible Oversupply – at the moment many investors banking in the upcoming high speed rail projects in which in the future it would cost the boom in population and later will generate demand to meet with the supply.

Conclusion

In conclusion, Malaysians should consider starting investing on local property market because many benefits that comes together with it. Since investing in property is a must, they should consider buying properties in Malaysia as this will help them take advantage of the high foreign currency that they earned overseas. Higher foreign exchange definitely helps increase their borrowing capacity. Therefore everything in Malaysia is considered very affordable for these Malaysians working abroad.