By Angie Ng | May 21, 2011
Property remains hot investment instrument
When it comes to what is the best investment instrument to leverage one’s savings on, invariably the subject on property will crop up. So, is it a wonder why the property market is so hot?
Rightly or wrongly so, more Malaysians and investors from around the world believe that investing in property is a better investment choice than others, and are putting more of their “eggs” in the property basket.
Although property investment is not a fool-proof investment, it has been seen many times over that one cannot go seriously wrong with property, unless its location is really poor – for example, it is inaccessible or the project is abandoned before its completion.
Compared with other big ticket items like automobiles which usually depreciate in value the moment the vehicle is driven out of the showroom, property is one of the more reliable in terms of investment return.
Most of the time, even average property developments have the potential to enjoy some form of capital appreciation and steady income streams (if they are leased out to good tenants).
The lack of other more reliable investment alternatives, given the volatile nature of the stock market and prevailing low savings rates, has certainly given an added edge to property investment.
Although Bank Negara has raised the overnight policy rate (OPR) a number of times since the onset of the global financial crisis, borrowing rates are still one of the lowest in recent times.