What determine the property value in Malaysia

What is the main concern of buying a property? Location? Type? Rental Returns? Property Value?

Thinking of this question, we must first ask ourselves what are the investment objectives, namely, target of return, investment time horizon and etc.

Amongst the main determinants of property value include : -

1. Location – This is to determine there is a demand by the target market for this location. Research on the historical rate of property value appreciation in that particular location for similar property is essential.
2. Property type and size – residential or commercial each have different target market, dependent on location, attracts different tenant profiles.
3. Rental returns – Find out how much rent can fetch by researching the rental values of similar properties in the area and determine the cost of owning and maintaining.
4. Cash flow – evaluate the property’s potential to generate income as against cash outflows. Earliest positive cash flow is excellent.

Always, will property value appreciate is the main consideration when investing in property no matter where.