Low Risk Investment Property in Malaysia

The stock markets of the world are crashing around us as we write this, so the team at Amberlamb are pleased to announce that there is a way to acquire a low risk entry into investment property in Malaysia for all those who have become risk averse overnight!

The REIT (Real Estate Investment Trust) industry in Malaysia may be in its infancy, but as we will demonstrate, it offers property investors a way to buy-in to a sustainably expanding property market where high yields and low risks over the medium to long term are the name of the game.

The first REIT was listed officially back in 2005 which means that when compared to other markets in the region, Malaysia’s REITs offerings are all in their infancy.  This does not mean that there is no maturity in the market however – in fact, some of the fund managers working in the Malaysian sector are among the most experienced, and the wealth of experience coupled with some exceptionally attractive offerings have already attracted much larger numbers of foreign investors to Malaysian REITs offerings than local investors!

Whilst locally the citizens in Malaysia are demanding more residential real estate and the robust economy is contributing to the fact that there is increasing demand for commercial property, it’s foreign investment fuelling a lot of the larger development and buying in to the majority of REITs.  This may appear surprising when you consider that as yet, it is less tax attractive to buy into a Malaysian REIT than a Singaporean one or one in Hong Kong for that matter, but the yields, market stability and long term prospects for Malaysian property are far more impressive than in other markets in the region.

Adding to this level of attraction is the fact that many international buyers see Malaysian REITs as actually being undervalued and as offering substantial growth potential over the medium to longer term – especially when viewed in light of the Ninth Malaysia Plan which may well boost the value of commercial holdings in certain property industry sectors.  If local industry pressure is heeded by the government as well, this could make investment into REITs in Malaysia more attractive again!  Pressure is being put on the government to lower withholding taxation levels – currently foreigners pay 20% - to allow REITs to be invested in development projects and to increase the statutory gearing limit whilst shortening the property transaction period.

Such changes to REIT based legislation would have an immediate and strong impact on the investment market and on the Malaysian property industry too, as it would encourage developers to work with REITs managers to construct and sell more real estate.  As they stand at the moment though, Malaysian REITs offer investors a low risk way to acquire overseas property in a market where the long term fundamentals upon which real estate prospects are built are exceptionally robust.

So, if you want to diversify away from highly volatile stocks and change your short term approach to profiting from property, considering investing in a real estate investment trust in Malaysia may make sense to you.

Special Reports: Property News for Malaysia

Malaysia Property Buyer’s Country Guide
Luxury real estate developments across Malaysia are attracting international interest from property buyers attracted to the scope in the market.

Malaysia Property Buying Process
The Malaysia property buying process is relatively straightforward, but raising local finance to buy Malaysian real estate is time consuming

Malaysia Property Investment Potential
Property investment opportunities in Malaysia offer strong rental yield potential and real estate investors draw confidence from Malaysia's strong economy