Malaysia’s Iskander Area – Worth Investing There?

Malaysia’s Iskander Area – Worth Investing There?

Iskander is a deathtrap for foreign investment! If you were planning to invest there, stop now! The Iskander area may have been a lucrative place to invest in the past, but there are a number of reasons for why they are now an incredibly dangerous place to invest in. Make sure you finish reading all these reasons before you make a big mistake!

Limits of Foreigners

When it comes to buying property in the Iskander area of Malaysia, foreigners have huge restrictions! In the past these restrictions were minimal; however, in the past few years Malaysia has increased these restrictions dramatically! The first restriction is on certain properties. There are a number of properties in the Iskander area which are reserved for local Malaysians; foreigners can’t even touch these places which severely restricts your investment. On top of this issue, for the properties that foreigners are allowed to invest in, they are only allowed to do so if they pay a minimum of RM1,000,000! A few years ago the minimum was RM500,000 but as of 2014 the restriction was increased! This restriction increases the danger of investment by a large amount! It simply isn’t worth it anymore!

Lack of New Businesses

Even if you did manage to secure an investment property in this area, you would run into another problem; lack of potential tenants! Because this area is so far from the main cities and businesses, no new business really wants to set up in this area. Because of this very few new people really require a place to rent. Because of this lack of renters, it is highly likely that your investment will just sit there costing you a mortgage! You may be able to get tenants at some point, but because of the lack of demand you will be forced to allow them in at a low price. Most likely this price will be so low that you will still have to chip in for the mortgage anyway! Your chances at making a high profit are slim to none!

Fake Demand

This area is thought of as a gold mine by many new investors, mainly because the properties are cheaper than those in say, Singapore. More often than not, you will be able to buy a property in the Iskander area for half the price of the same size property in Singapore. This gives the illusion of high demand because so many new investors are buying and selling there. Would you like to know why this is? This is because those new investors buy a property, discover nobody actually wants nor needs to rent it and then sells it again to another new investor! Also, the reason that property in Singapore is more expensive is because the demand there is so much higher. If you are able to secure an investment property in Singapore, you will likely find tenants within a month or less! So before you go and make a big mistake, think about the big picture and start looking to invest in places with real demand!