Is it easy to rent out your property in Penang? The answer is yes, as long as the location is not in a secluded spot. If it is in BJ, Gelugor, Relau, Sg. Ara, Bayan Baru, then it is even more easier as there are a lot of people who work in the manufacturing zones in Bayan Lepas. A lot of these people are not from Penang but are outsiders. For example, from Kedah and Perak. Normally for first few years, they are unlikely to buy a place and thus renting is their option. An online search reveals the following rental asking prices for a 700 sf apartment in Penang. www.propertyguru.com.my
You can see the choices for rentals from the lower ones up till the highest ones. Is this considered a good rental? Depending on when you bought the properties, answer may be a yes or no. If you buy today for rental, it is unlikely that you will have good rental yields, perhaps even just enough to cover your mortgage or lower! Nevertheless, be reminded, both rental and property prices will increase. Thus even a 1% rise for a RM250,000 property meant RM2,500 every year or an increase of RM200 per month. Rental will depend on demand and supply. The more people are attracted to work in Penang, the highest the rentals will inch upwards. I say ‘inch’ and not jump because rental rates are much more stickier compared to property prices.
Suggested next article: Gloom and Doom for property market?