Malaysians Taking Advantage of Exchange Rates to Buy up Properties Abroad

Malaysians are taking advantage of favourable exchange rates to buy properties abroad, especially in Britain and the United States where the value of sterling and the dollar has declined over recent months.

Apparently several major estate agents who market international properties have noticed the number of Malaysian buyers has been increasing steadily over the last three years, with figures peaking during the first six months of this year.

It's not just favourable exchange rates which make overseas property so attractive to them, as property prices in Malaysia are soaring, especially in the major cities and towns. This has led those with cash to spare to look towards other countries where prices have dropped significantly over the last few years, and which offer much better value.

London is perennially popular, as are university towns in the US as they offer great rental potential. Properties in Florida, Michigan and Las Vegas are proving to be very popular as they yield higher returns, especially in the case of Florida and Michigan, as both these states have a high student population.

Most Malaysians are buying property for rental purposes, although they are able to stay in the country so long as they have the necessary visa.

Australia is also proving popular, in spite of the strength of the Australian dollar, as the property market is seen as being stable and offering good returns on investments.

The country is proving to be particularly popular with young Malaysian professionals who are looking to diversify their investments and achieve early financial freedom. The majority of properties sold to overseas buyers cost between AU$500,000 and AU$800,000.

Malaysian Property Market to Grow in 2011

Property experts report that the Malaysian property market will strengthen and grow in 2011 and according to Malaysian’s Valuation and Property Services, property transactions are predicted to rise above RM 100 billion (US $32.8 billion) when compared to RM 96.77 billion (US $31.7 billion) last year.

Malaysia is experiencing a rebound economically after facing a couple tough years due to the global financial crisis. This economic recovery has given the overall property market a boost, especially the residential market, which is giving the market some forward momentum.

Residential and commercial properties have risen in the last year. Between July and November 2010, properties purchased in the residential sector increased 15.5 percent to RM22.6 billion (US$7.4 billion) when compared to the same time period in 2009. The percentage of commercial properties purchased increased 22.4 percent in the same time period to RM9.78 billion (US$3.2 billion).

Experts are optimistic that a housing bubble will not occur in the near future. Incentives are out there to help propel movement such as offering first-time home buyers a stamp duty exemption of 50 percent for homes under RM350,000 and 100 percent loans to purchase homes below RM220,000.

Positive growth has been recorded in various areas throughout Malaysia. The highest growth recorded was in Pulau, Penang, which increased 9.7 percent. Kuala Lumur, Selangor, and Johor have also showed moderate growth at 8.2 percent 7.2 percent, and 3.6 percent. These areas have been experiencing steady, continual growth throughout the past three years, with figures coming in between 20 and 50 percent.

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