Wednesday, January 21, 2015

Properties in Penang - are bought solely for investment?

I have been living in Penang for near a decade. Another 4 months it'll be ten years or a decade for me. One thing I am going to touch is about the properties in this pearl of the orient. Properties are selling like hot cake over here. No, it is not being bought up to live by the owners. It is being bought for investment. Penang people in the island like to buy up properties and rent out to others. So, they are hoping other people will help them pay off their property loan. I thought Penang living is cheaper than Kuala Lumpur. Well, I am wrong off the mark before I even came over here. That's what I thought.

Properties in Penang for a thousand or more square feet are selling about RM 700,000.00 and above. And most of these properties are ranging from apartments to resort condominiums. Landed properties shoots above a million ringgit mark so this is not for the average middle income earners. As for me, I just bought a resort condominium unit which will cost me my arms and legs and including my saving in the future. I am beginning to fear my retirement savings. Will I be able to retired in the most comfortable means of surviving in my old age... ?

There are many realtors or property agents in Penang island. Why? This is because it is a lucrative business. Imagine all the rental fee which they help owners to find potential tenants. They probably lived it off the agent fees. So, who doesn't want to be a property agent right? It's lucrative, for each unit, there's bound to be an agent representing the owner. You need to rent a place? Sure, you need to prepare an arm of cash to pay one advance, a deposit that goes by the years of rental contract, a deposit for utility bills and finally their eagerly waiting for you to pay their agent fee. Renting a unit may not be as expensive buying a unit but the agent fee will help this property agent to make a hell good of a living. Maybe I should moonlight as a property agent. Come on, people living in the island move from one place to another place like one is changing their clothes. Again why? This is because the owner will always have a reason to increase your rent when your contract is expiring. Lately, our national Bank Negara raised up the BLR (interest rate) and this makes a very good reason for any owners who wanting to raise their tenant's rent. Well, my rent got hike up too from my current owner. Nice, isn't it?

As a matter of fact, people in the island do move around quite frequently. Just looked at the advertising for rentals in and; every month there's bound to be 5 to 10 units waiting to be rent out. Rooms to rent are even abundant! 

In summary, looking for a place to rent is not a concern but the steadily and fast rising cost of property is a main concern for our future generation. Our grandfathers and fathers bought houses which is about three times cheaper than today's cost of properties. Now at this period and moving on, will our newer generation be able to afford a modest home? I think everyone in Penang need to become a millionaire.

williamwilstroth... does it cost an arm and leg to buy a house?

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