[andyk2]

Hi Olga,

Welcome to the forum. Most of the points that you list are valid, however the official inflation rate rocketed from 2.1% to over 7% in May when the government reduced some of the subsidy that it provided on petrol and diesel. It also increased utility charges substantially and this is having a significant knock on effect throughout the economy.

One enourmous benefit to investors is that construction costs are rising dramatically, and developers are now increasing their prices to account for this. If anybody is looking to purchase a property in Malaysia, they should get involved now before the prices rises really become noticable.

I do not know where you got your data from, but nobody would look at 6.50% guaranteed rental income when 9%-10% is closer to the norm (although not guaranteed) and LTV is 80% through most banks.

However, thank you for your input.

I think that there is going to be much more interest in Malaysian property from the international market. Issues around "bubbles bursting" in some markets and lack of an exit strategy in others, will lead investors to a location which is established, has high LTV, low interest rates and costs. The reason that it does not have such a high perception at present is partly due to the low commission rates available which limit marketing budgets of large international companies and the willingness of sales people to promote it as an investment option.

Happy investing

Andy