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Calvin Legada

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Starting an Airbnb in Malaysia (2026): A Side-Hustler’s Real-Life Guide

TL;DR- Commercial titles are generally safer than residential for Airbnb.- Budget at least RM20,000 for a proper setup.- Aim for a break-even period of around 12 to 18 months.- Automate access and check-ins so you can keep your day job.- Register your business and check local council rules early. If you own a spare room, a dual-key unit, or you are seriously looking at a second property in Kuala Lumpur, Airbnb has probably crossed your mind more than once. The idea sounds simple. List the unit, accept bookings, earn extra income. But heading into 2026, especially with Visit Malaysia 2026 coming up, short-term rental is no longer a casual hobby. It is a small business. I am writing this as someone who has advised property investors through multiple cycles, from pre-Airbnb days to the current regulated environment. This guide is meant for side hustlers. People who want better returns from property without quitting their full-time job, and without stepping into legal or cash flow traps. Starting a short-term rental business in MalaysiaWhat short-term rental really means in Malaysia todayMarket insight for short-term rental in MalaysiaChoosing the right property without future headachesRegulation is no longer optionalState-Specific Requirements for Airbnb (2026 Update)Understanding the real numbers and break-even pointListing strategy that works in real lifeThe subletting question many people are afraid to askWhy 2026 is a unique windowFinal thoughts from an advisor’s perspectiveFAQsReady to start your STR side-hustle without the headache? What short-term rental really means in Malaysia today In Malaysia, short-term rental refers to renting out a fully furnished residential unit for a short stay, usually by the night or week. Think of it as a hotel unit without hotel staff. This is very different from a traditional one or two year tenancy. Many people still confuse urban Airbnb units with homestays. Under Malaysian rules, a homestay registered with MOTAC involves the host living with guests, usually in a kampung or rural setting. Most city Airbnbs fall under what regulators now call Short-Term Residential Accommodation, or STRA. This distinction matters because local councils and management bodies treat them very differently. Market insight for short-term rental in Malaysia Malaysia’s short-term rental market is recovering strongly and 2026 is expected to be one of the busiest years in a decade. Tourism campaigns, digital nomads, cross-border travel and major infrastructure projects are all feeding demand. Kuala Lumpur remains the most liquid market. Units with good views, modern interiors and facilities like infinity pools continue to perform well, especially near KLCC, Bukit Bintang and Bangsar South. Penang attracts higher spending guests, but enforcement in residential condos is stricter and many buildings no longer allow daily stays. Selangor benefits from longer stays driven by digital nomads, especially in Petaling Jaya and Cyberjaya. Johor is seeing renewed interest due to Singaporean weekend travellers and the RTS Link. To ground this in numbers, here is a realistic snapshot of average Airbnb pricing trends heading into 2026. These are market averages, not best-case scenarios. LocationTypical UnitAverage Nightly RateAverage OccupancyMonthly Gross PotentialKuala Lumpur (City)1 to 2 bedroom condoRM260 to RM32055 to 65 percentRM4,500 to RM6,200Penang (Island)Heritage or sea view unitRM300 to RM38050 to 60 percentRM4,500 to RM6,800Selangor (PJ Cyberjaya)Studio to 1 bedroomRM180 to RM24045 to 55 percentRM2,800 to RM3,800Johor BahruLanded or large condoRM220 to RM30050 to 65 percentRM3,500 to RM5,500 These numbers already factor in realistic vacancy, not full calendar bookings. Anyone selling you projections based on 80 to 90 percent occupancy is either inexperienced or overly optimistic. Choosing the right property without future headaches The property you choose determines how smooth or stressful your Airbnb journey will be. New projects with commercial titles such as SOHO or SOVO are generally safer for short-term rental. They are designed for flexible use and less likely to face sudden bans. [property_carousel property_type="project" states="Kuala Lumpur"] For subsale residential condos, never assume Airbnb is allowed. Only proceed if the Management Corporation already allows short stays and this is written into the house rules. Verbal assurances from agents or guards are not enough. Landed homes, especially bungalows and large terraces, are emerging as strong performers for 2026. They attract families and group travellers and are not subject to strata management bans. For side hustlers with access to such properties, this segment offers less regulatory friction and higher booking value per stay. Regulation is no longer optional Running an Airbnb quietly is no longer realistic. Enforcement has increased, and neighbours are far more vocal than before. You will need to register a business with SSM, either as a sole proprietor or a company. You should also check with your local council such as DBKL, MBPJ or MBPP on whether a lodging or business permit is required. Requirements vary by area and are evolving. Some states, including Selangor, are discussing limits on how many days a year a unit can be rented short term. While not uniformly enforced yet, this is something serious operators must monitor going into 2026. State-Specific Requirements for Airbnb (2026 Update) StatesRequirementKuala LumpurGenerally friendly for Commercial-titled properties. Local council (DBKL) requires a business license. Watch out for JMBs in purely residential towers passing "Special Resolutions" to ban STR.PenangThe strictest. Residential-titled high-rises on the island have a de facto ban. Only commercial titles (SOHO/SOVO/Service Apartments) are allowed, and even then, you must pay an annual fee (RM250–RM500) to the JMB/MC.SelangorMBPJ and MBSA have introduced "Limited Stay" rules in some areas (e.g., maximum 180 days of rental per year).SabahRequires a "Lodging House License" for many urban areas in KK. Understanding the real numbers and break-even point Side hustlers often underestimate setup costs. A poorly furnished unit will struggle to compete, no matter how good the location is. For a standard two bedroom unit, a realistic initial setup looks like this. ItemEstimated Cost (RM)NotesFurniture & DecorRM 12,000 – RM 18,000Quality matters for "Insta-worthy" photos.Kitchen & AppliancesRM 3,000Fridge, microwave, kettle, basic utensils.Smart Lock & CCTVRM 1,500Essential for remote management (Side-hustle must!).Legal & Business RegRM 500 – RM 1,000SSM registration, PBT license fees, insurance.Professional PhotosRM 500Do not skip this. Your listing lives or dies by photos.Total Startup CapitalRM 17,500 – RM 24,000Assumes property is already renovated/painted. *this cost only if your property has already comes with appliances The Break-Even Calculation Months to Break Even=Total Startup CapitalMonthly Net Profit\text{Months to Break Even} = \frac{\text{Total Startup Capital}}{\text{Monthly Net Profit}} Sample Scenario: 2BR in Kuala Lumpur (2026) Average Daily Rate (ADR): RM 280 Occupancy Rate: 60% (18 nights) Gross Revenue: RM 5,040 Monthly Expenses: Loan Installment: RM 2,200 Maintenance + Sinking Fund: RM 350 Utilities + High-Speed WiFi: RM 400 Cleaning (paid by guest, but keep RM200 buffer for deep cleans): RM 200 Platform Fees (Airbnb 3% + Booking.com ~15%): RM 450 Monthly Net Profit: RM 1,440 The Result: 20,000 (Startup)/1,440 (Monthly Profit)≈??.? months20,000 \text{ (Startup)} / 1,440 \text{ (Monthly Profit)} \approx \mathbf{13.9 \text{ months}} Realistically, aim for 14 to 18 months to recover your initial furniture investment. Listing strategy that works in real life Relying only on Airbnb is a mistake. Different platforms attract different guests. Airbnb works well for younger travellers and Western markets. Booking.com brings in guests who prefer hotel-like experiences and often book longer stays. Trip.com is increasingly important for Chinese travellers and will matter even more during Visit Malaysia 2026. Direct booking tools such as WhatsApp follow-ups help you retain repeat guests and reduce platform fees. Over time, this improves your net yield without raising prices. The subletting question many people are afraid to ask Yes, you can Airbnb a property you do not own, including your parents’ house or a rented bungalow. But only if you have written consent. Your tenancy agreement must clearly allow subletting for short stays. Without this clause, a landlord can terminate the agreement the moment they find your listing online, and you risk losing your deposit. This is one of the most common and costly mistakes I see among first-time hosts. Why 2026 is a unique window Several national initiatives are converging at the same time. Visit Malaysia 2026 is expected to drive family and group travel. The DE Rantau programme continues to bring digital nomads who prefer monthly stays. MM2H participants often need short-term accommodation when they first arrive before committing to a long lease. Well positioned hosts who understand these segments and price accordingly will have a clear advantage. Final thoughts from an advisor’s perspective Short-term rental in Malaysia is no longer a wild west. It is a regulated, competitive and increasingly professional space. For side hustlers, this is actually good news. Those who plan properly, run clean numbers and stay compliant can still achieve solid returns with manageable risk. Treat your Airbnb like a business, not a side experiment. When done right, it can fund your next property, your children’s education, or simply give you financial breathing room without burning out. FAQs Can condo management ban Airbnb? Yes. Under the Strata Management Act 2013, a Joint Management Body or Management Corporation can restrict short-term rental through a special resolution passed at an AGM. Do I need to pay tax on Airbnb income? Yes. Income from short-term rental is considered business income. Keep receipts for furniture, repairs and utilities as these are deductible. Do I need to pay Tourism Tax for my guests? If your guests are non-Malaysians, there is a RM10 per room/night Tourism Tax. However, as of 2026, major platforms like Airbnb and Booking.com automatically collect and remit this to the Royal Malaysian Customs Department for you. You only need to worry about this if you take direct/offline bookings. Is my standard "Home Insurance" enough to cover Airbnb? No. Most standard home or fire insurance policies in Malaysia specifically exclude "commercial use" or "short-term lodging." If a guest accidentally starts a fire, your claim could be rejected.- The Fix: Look for Short-Stay Insurance (e.g., Allianz or MSIG sometimes offer add-ons) or "Landlord Insurance" that explicitly covers guest-caused damage and liability.- Reddit Wisdom: "Don't rely solely on Airbnb's AirCover. It’s a protection program, not a legal insurance policy. Get your own local third-party liability cover." How do I handle income tax? Is it "Rental Income" or "Business Income"? This is a huge point of confusion.- Section 4(d): Passive rental income (you just provide the house).- Section 4(a): Business income (you provide "hotel-like" services like cleaning, breakfast, or tour guiding). For most side-hustlers providing cleaning and amenities, LHDN (Inland Revenue Board) may view it as Business Income. Keep every receipt for furniture, WiFi, and repairs—these are tax-deductible. I have a neighbor who complains about every guest. What should I do? 1. Screening: Stop using "Instant Book." Check guest reviews. If they have even one mention of "loud," decline. 2. Noise Monitors: Install a device like Minut. It doesn't record conversations (privacy-safe) but alerts your phone if decibel levels exceed a limit. 3. The "Peace Offering": Give your neighbor your phone number. Tell them: "Please call me first before the guard house. I will fix it in 10 minutes." Ready to start your STR side-hustle without the headache? Finding a property that is actually Airbnb-friendly in 2026 is harder than it looks. Between JMB restrictions and changing state laws, you need an expert eye to spot the real winners. We specialize in identifying high-yield properties in KL, Penang, and Johor that are legally cleared for short-term rentals. Let us do the heavy lifting—from property sourcing to legal checks. [custom_blog_form] We’ll reach out to help you find your first (or next) profitable investment property. Related article: Is it Illegal to Run an Airbnb Service in Malaysia? We Have The Answer, Plus A Game-Changing Airbnb Hack How Festive Seasons Affect Malaysia’s Short-Term Rental Market Using AirBnB for Real Estate Investment In Malaysia References: Airbnb. (2024). The host’s guide to the Malaysian market. Kementerian Perumahan dan Kerajaan Tempatan. (2025). National Short-Term Residential Accommodation framework. Malaysia Digital Economy Corporation. (2025). DE Rantau certified nomad-ready hubs list. Tourism Malaysia. (2026). Visit Malaysia 2026 strategic marketing plan and tourist arrival targets.

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Visit Malaysia 2026 (VM2026): How Tourism, DE Rantau and Short-Term Rentals Are Reshaping Property Investment

TL;DRVM2026 (Visit Malaysia 2026) is reshaping Malaysia’s property market through higher-value tourism, DE Rantau long-stay demand, infrastructure delivery, and clearer short-term rental rules. The opportunity is real, but returns in 2026 will depend on choosing the right locations, compliant assets, and realistic rental strategies, not hype. VM2026 Marks a Structural Shift, Not a Tourism Spike Visit Malaysia 2026 (VM2026) is not just another tourism slogan. For investors who have been watching Malaysia’s property market through multiple cycles, this campaign represents something more meaningful: a structural reset in how tourism, long-stay demand, infrastructure, and real estate intersect. With the government targeting 35.6 million visitors and RM147.1 billion in tourism receipts, VM2026 is supported by real fiscal commitment rather than marketing optics. At the same time, long-stay initiatives like DE Rantau, major transport infrastructure completion, and tighter short-term rental regulation are reshaping demand toward quality, compliant, and professionally managed assets. From an investor’s perspective, 2026 is not about chasing speculation. It is about positioning ahead of demand that is already forming. Table of contentsVM2026 Marks a Structural Shift, Not a Tourism SpikeDE Rantau Is Quietly Changing Rental BehaviourInfrastructure Is the Real Signal Investors Should WatchLocation Still Matters More Than TimingShort-Term Rental Rules Are No Longer OptionalRental Yields Are Recovering, but SelectivelyConclusion: VM2026 Creates Opportunity, Not GuaranteesFrequently Ask Questions VM2026 Is About Value, Not Just Visitor Numbers Malaysia has run tourism campaigns before, but VM2026 is noticeably different in intent. The focus is no longer purely on volume. Instead, the emphasis has shifted toward higher-spending, longer-staying visitors, and this distinction matters greatly for property. Medical tourists do not stay for a weekend. Business travellers and event delegates do not tolerate poor connectivity. Digital nomads do not choose locations with unreliable infrastructure. These groups require quality accommodation, good transport access, and a level of professionalism that goes beyond informal hosting. This is why the government’s target of RM147.1 billion in tourism receipts is more telling than the headline visitor numbers. Revenue-driven tourism almost always reshapes accommodation demand, and property investors tend to benefit earlier than the hotel sector when flexibility is required. DE Rantau Is Quietly Changing Rental Behaviour One of the biggest mistakes investors make is assuming all foreign demand behaves like tourism. DE Rantau changes that assumption. Digital nomads do not think in terms of nights booked. They think in terms of months lived. From an investment perspective, this is a very different tenant profile. These renters care about furnishings, layout, internet reliability, and transport access. They are also less price-sensitive than local tenants but more demanding in terms of quality. Over time, this creates a healthier rental ecosystem. Properties are no longer dependent on weekend traffic alone. Instead, demand becomes layered, combining short stays, mid-term rentals, and longer professional occupancy. Markets with this mix tend to experience more stable yields and less extreme vacancy cycles. This is already visible in parts of Kuala Lumpur and Penang, and the trend is expected to strengthen as regional mobility continues normalising into 2026. Infrastructure Is the Real Signal Investors Should Watch Experienced investors know that tourism campaigns matter far less than where infrastructure money is actually being spent. Airport expansions in Penang and Kota Kinabalu are not short-term projects. They are multi-year commitments that increase flight capacity, frequency, and international connectivity. Historically, these upgrades precede sustained growth in accommodation demand, especially outside traditional hotel zones. More importantly, 2026 coincides with key milestones for urban transport infrastructure. The RTS Link connecting Johor and Singapore and the progress surrounding MRT3 in the Klang Valley are not speculative announcements. They represent physical changes that will alter daily movement patterns. When commuting behaviour changes, property demand follows. Transit-linked developments have consistently outperformed peripheral locations across multiple cycles, not because they are fashionable, but because they reduce friction in daily life. Location Still Matters More Than Timing VM2026 will not lift every market evenly. This is where experience matters. Kuala Lumpur continues to benefit from its role as the country’s medical, corporate, and events hub. Demand here is driven less by tourism headlines and more by employment density and international exposure. Well-located properties near transport nodes and established commercial zones tend to see demand first. Johor Bahru is entering a different phase altogether. The RTS Link fundamentally changes the conversation from “future potential” to “daily usage.” When cross-border movement becomes routine rather than aspirational, rental demand becomes structural rather than speculative. Penang remains a more controlled market. Regulations are tighter, supply growth is slower, and this naturally limits upside for poorly selected assets. However, compliant properties aligned with tourism and long-stay demand continue to perform steadily, which appeals to investors who prioritise resilience over aggressive growth. Short-Term Rental Rules Are No Longer Optional Another reality investors must accept is that short-term rental regulation is tightening, not loosening. This is not a sign of a hostile environment. In fact, it often signals market maturity. Clear rules reduce friction with authorities, local councils, and management bodies. Over time, this benefits investors who operate professionally. By 2026, licensing, title selection, and management capability will no longer be secondary considerations. They will be central to whether an asset performs as intended. Investors who plan around compliance early tend to experience fewer disruptions and better tenant quality. Rental Yields Are Recovering, but Selectively The rental market has moved through a full cycle over the past five years. Pandemic lows forced prices down, recovery stabilised them, and current conditions are pushing yields back into focus. However, this recovery is not uniform. Properties aligned with tourism corridors, transport infrastructure, and long-stay demand are seeing much healthier absorption than generic residential supply. In these zones, yields in the mid to high single digits are increasingly achievable with the right asset and management strategy. The opportunity is real, but it is not automatic. Conclusion: VM2026 Creates Opportunity, Not Guarantees Visit Malaysia 2026 should be viewed as a window, not a shortcut. Tourism recovery, DE Rantau, infrastructure completion, and regulatory clarity are converging in a way that does not happen often. For disciplined investors, this creates a favourable environment to deploy capital with confidence. At the same time, experience teaches us that outcomes depend on decisions made at the asset level. Location, compliance, and understanding real demand will always matter more than campaign slogans. IQI Global works closely with developers, regulators, and professional operators across Malaysia’s key growth zones. For investors who want to approach the 2026 cycle with clarity rather than optimism alone, having access to verified data and on-the-ground insight makes a material difference. Frequently Ask Questions What is Visit Malaysia 2026 and how does it impact property investment Visit Malaysia 2026 is a national tourism campaign targeting higher visitor arrivals and tourism spending, which increases demand for short-term rentals, serviced apartments, and investment-grade accommodation. How does DE Rantau affect rental demand in Malaysia DE Rantau attracts digital nomads and remote professionals who prefer flexible, mid-term stays, increasing demand for fully furnished and professionally managed rental properties. Are short-term rentals allowed in Malaysia in 2026 Yes, but regulations vary by state. Kuala Lumpur requires licensing, Selangor has a capped rental period for residential titles, and Penang restricts short-term rentals to commercial properties only. Which locations benefit most from VM2026 tourism growth Key locations include Kuala Lumpur city centre, Johor Bahru near the RTS Link, Penang island, and tourism-driven cities such as Melaka and Kota Kinabalu. Is 2026 a good year to invest in Malaysia property 2026 presents strong opportunities due to tourism recovery, infrastructure completion, and rising rental yields, especially in transit-oriented and tourism-aligned developments. Engage with an IQI advisor to receive our 2026 Property Investment Catalogue and location-specific market analysis. [custom_blog_form] Related articles: References: Ministry of Tourism, Arts and Culture Malaysia. (2023). Tourism development and Visit Malaysia 2026 strategy. https://www.motac.gov.my Malaysia Digital Economy Corporation. (2023). DE Rantau Digital Nomad Initiative. https://mdec.my Tourism Malaysia. (2024). Malaysia tourism performance and outlook. https://www.tourism.gov.my Department of Statistics Malaysia. (2024). Tourism satellite account and visitor expenditure. https://www.dosm.gov.my PLANMalaysia. (2024). Short-term accommodation regulatory framework. https://www.planmalaysia.gov.my

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9 Things You Need to Know Before Buying Dubai Properties

Owning property in Dubai is one of the most impactful investment decisions you can make, offering a unique chance to diversify your portfolio with high-quality assets from one of the world's most dynamic markets. Don't miss this remarkable opportunity to capitalize on Dubai's booming real estate sector, but before you dive in, carefully evaluate several key factors. 9 Things You Should Know Before Buying Property in DubaiThe State of the Dubai EconomyDemographics and Future GrowthUnderstanding the Dubai Land Department & Ownership TypesFreehold & Leasehold AreasIdentifying Your Reason for InvestmentChoosing the Right Location for Your Investment GoalsHow to Research Areas and DevelopersMortgages and Capital RequirementsCommon Questions for Property Investors (FAQ) The State of the Dubai Economy Dubai's economy surged by 3.3% in the first nine months of 2023, showcasing robust growth driven by enhanced export performance and revitalized domestic demand. Significant expansions were noted in accommodation and food services (11.1% growth) and transportation and storage (10.9% increase). The real estate sector also grew by 4.0%, highlighting Dubai's evolving infrastructure and its capability to attract international events and tourism. Demographics and Future Growth Dubai carries very high prospects for its residents and investors, with a high pace of growth, doubling, even tripling in comparison to its prior urban size.  The city is currently witnessing the construction of many large-scale infrastructures and real estate projects, and with more world-renowned events to be held in the city, Dubai is bound to see huge developments in the hospitality, commercial, and recreational real estate arenas. Dubai is known for being a melting pot of cultures, with a population of approximately 2.7 million, where about 88% are expats. Major global corporations have set up regional offices in Dubai, which encourages professional executives to work in its sophisticated facilities and business centers. A significant portion of the population comes from Central Asian ethnicities. Understanding the Dubai Land Department & Ownership Types The Dubai Land Department (DLD) is responsible for regulating and monitoring real estate market activity within Dubai. As per law no. 7 issued in 2013 by His Highness Dubai ruler, the department's main roles include the registration, organization, and promotion of investment in Dubai properties. The DLD implements international standards to create a positive and attractive investment environment for the global real estate sector. Freehold & Leasehold Areas Freehold: In 2000, Dubai authorities made it accessible for foreigners to buy properties in designated freehold areas such as Um Hurair, Al Barsha, Emirates Hills, and Jebel Ali. Leasehold: Full ownership isn't permitted in all areas; some properties are only available on lease terms varying between 10 and 99 years. Leasehold areas include Deira, Discovery Garden, and Jumeirah Identifying Your Reason for Investment You need to set your objective before setting off on a property search in Dubai, to define the purpose or reason for your purchase. If you are looking for investment, then you should consult your agent as there are certain areas considered to be perfect for property investment. The good factors of the property can be its high rental value, high capital growth rate per year, and surrounded by many amenities and commercial centres. On the other hand, if you are looking for a house to live and settle in in Dubai, then you ought to look for convenient areas suitable for you and your family's requirements. You should assess locations for the best schools, hospitals, recreational centres, and other prerequisites for the property you want. We at IQI Dubai have a dedicated team of experienced brokers actively servicing client requirements with satisfaction. Choosing the Right Location for Your Investment Goals When considering the purchase of residential buildings, this location is worthwhile considering. Property NameWhy ConsiderKey HighlightsPrice Range (AED)Property URLDowntown DubaiPrestigious location with iconic landmarks like Burj Khalifa and Dubai Mall.High-end properties, vibrant lifestyle, excellent connectivity.1.5M - 5M+Official websiteDubai MarinaSought-after waterfront community with a mix of high-rise apartments and villas.Waterfront living, bustling community, modern amenities.1.2M - 4M+Property informationPalm JumeirahIconic man-made island known for luxury villas, beachfront apartments, and five-star resorts.Luxury living, private beach access, world-class amenities.3M - 10M+Property listingBusiness BayRapidly developing area that blends commercial and residential properties. Ideal for professionals.Proximity to Downtown Dubai, modern infrastructure, mixed-use development.1M - 3.5M+Listed on IQI GlobalJumeirah Village CircleAffordable option popular among families and young professionals, offering a mix of apartments, villas, and townhouses.Affordable prices, family-friendly environment, growing community.800K - 2.5M+Listed on IQI GlobalArabian RanchesTranquil suburban environment with spacious villas, lush landscapes, and excellent community facilities.Family-oriented, suburban living, excellent community facilities.2M - 6M+Check it out on EmaarDubai Hills EstateMaster-planned community known for green spaces, golf course, and luxury properties. Ideal for families.Green community, luxury properties, extensive amenities.1.5M - 5M+Listed on EmaarThe Greens and The ViewsMid-range apartments surrounded by greenery, with easy access to Sheikh Zayed Road. Popular among young professionals and small families.Green spaces, central location, affordable options.1M - 2.5M+Official website Each of these locations offers unique benefits depending on your investment goals, whether it's high rental yields, luxury living, or long-term capital appreciation. It's important to consider your priorities and consult with a local real estate expert to find the area that best suits your needs. How to Research Areas and Developers Generally, Dubai is a haven in the Middle East; it provides an efficient police and security system that utilizes extremely advanced techniques in ensuring harmony & order within society. Investors should be very careful about the location and type of property. There are some things you need to check, such as the developer's track record, land department verifications, the site selected etc. Today many investors/end users, dealing with us, tend to acquire top real estate brands in Dubai, since these developers offer the highest credibility, transparency and professionalism in conducting transactions. While Dubai’s property buying process is transparent, the outcome often depends on who you work with. Project selection, pricing, and after-sales support can vary widely without proper local guidance. Buyers looking for verified listings and professional advice can connect directly with IQI agents through IQI Dubai, a global platform that links investors with trusted on-the-ground expertise. Mortgages and Capital Requirements Another important thing you need to know before buying a property in Dubai is the real estate finance system in the Emirates. There are financing services available for property buyers; however it is restricted only to banks and companies authorized by the United Arab Emirates Central Bank. Most home loans in Dubai are offered at a rate ranging from 3 to 4 per cent. To get a mortgage, the creditor must check the investor eligibility to assess his financial capability of paying back the debt. This is determined through several factors like; the minimum salary, the minimum length of service, the company which the buyer works for, and so on. Common Questions for Property Investors (FAQ) Can foreigners truly own property in Dubai?+ Yes, but only in designated Freehold Areas (e.g., Dubai Marina, Downtown, Dubai Hills). In these areas, foreigners have 100% ownership of both the property and the land indefinitely. In "Leasehold" areas, you only own the rights to the property for a fixed term, usually up to 99 years. What are the "hidden" costs of buying?+ Beyond the sticker price, you should budget for: DLD Fee: 4% of the property value (paid to the Dubai Land Department). Agency Fee: Typically 2% of the purchase price. Service Charges: Annual fees for building maintenance, usually calculated per square foot (ranging from AED 10 to AED 30+). Trustee/Registration Fees: Approximately AED 2,000–4,000. What kind of ROI (Return on Investment) can I expect?+ In 2026, average gross rental yields in Dubai are typically between 5% and 8%. Short-term rentals (Airbnb style) in tourist hubs like Palm Jumeirah can push yields higher (up to 10%+), but come with higher management costs. Capital appreciation varies by area, with villas currently seeing higher growth due to limited supply compared to apartments. What happens if a developer doesn't finish a project?+ Dubai has strict protections. Developers must place all buyer payments into a RERA-regulated Escrow Account. Funds are only released as construction milestones are met. If a project is cancelled, the Dubai Land Department has a formal process to liquidate assets and refund investors. Is a residency visa required to buy property?+ No. You can purchase and own property as a non-resident. However, many investors choose to buy specifically to qualify for a residency visa like Golden Visa. Here at IQI, we have a global presence with dedicated teams to assist you with any international inquiries. Ask now and get a free consultation curated just for you! [custom_blog_form] Continue reading: The Beginner’s Guide to Property Investment in Malaysia Leasehold VS Freehold: Which is the better offer of a lifetime? 4 Essential Agent Fees When Selling a House in Malaysia 2026

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6 Factors Investors Must Check Before Investing in Properties

Version: BM TL;DRBuying property in Malaysia is not just about “can I afford the instalment”. The safest buyers do 6 checks: research, budget, property type and title, developer credibility, location reality, and the risks investors often underestimate (cash flow, rental demand, and doing DLP properly). If you get these right, you reduce expensive surprises and buyer’s regret. Why This Matters Buying a home should feel exciting, not stressful. But the truth is, many people only realise what they missed after they sign the SPA. This guide keeps it simple; just focus on these 6 factors! Key Takeaways The best property decisions are not made by “best deal”, but by the best fundamentals. Your biggest mistake is usually not the house. It is the developer, the location, or the hidden costs. For investors, ROI alone can be misleading if rental demand and cash flow do not support it. Always use DLP (Defect Liability Period) properly. It is your strongest protection after vacant possession. Important Factors Every Homebuyer Must CheckWhy This MattersKey TakeawaysDo Proper Research Before Purchasing a UnitBudget Properly, Not Just the Monthly PaymentUnderstanding Property Types and TitlesDeveloper Credibility is EssentialStudy the Location and Sight ThoroughlyRisks Investors Often Underestimate Do Proper Research Before Purchasing a Unit Most people start by browsing portals. That’s fine, but research must go deeper than photos and price. Checklist Can you see yourself living there daily (commute, safety, noise, parking)? What is nearby (schools, LRT/MRT, shops, hospital)? Is it a new launch, under construction, a subsale, or a completed unit? What is the real selling point: lifestyle, convenience, rental demand, or future growth? Quick tip (BM)Jangan tengok harga sahaja. Tengok juga akses, kemudahan, dan siapa pembeli sebenar di kawasan tu. Budget Properly, Not Just the Monthly Payment The common trap: “instalment ok”, then you get hit by legal fees, stamp duty, insurance, and renovation. Budget items you should prepare (simple view) Cost CategoryWhat it includesWhy it mattersUpfront cashDown payment, SPA legal fees, stamp duty, loan feesDetermines if you can even startMonthly commitmentHome loan instalment, maintenance fee, sinking fundAffects monthly lifestyle and savingsYearly costsCukai pintu (assessment tax), quit rent or parcel rent, insuranceOften forgotten until bills come If you want a safe buying experience, keep an emergency buffer after paying your down payment. Do not finish all your cash just to “secure the unit”. Understanding Property Types and Titles Before you choose based on design, understand what you are buying legally. Property types Condo, serviced apartment, SOHO Terrace, semi-D, bungalow Dual key Title basics Freehold: permanent ownership Leasehold: fixed term (commonly 99 years), renewal terms may apply Strata title: common for high-rise and gated communities, shared facilities Individual title: landed properties This affects: resale appeal maintenance responsibility management quality long-term value perception Developer Credibility is Essential If you buy under construction, you are not only buying a home. You are buying the developer’s ability to deliver. What to check Track record: completed projects and delivery reputation Licensing and approvals (ask for proof) Financial strength and contractor stability How they handle defects and complaints Buyer mindset you should keepA nice showroom is not proof of quality. Track record is. Study the Location and Sight Thoroughly This is where many first-time buyers and investors regret later. You must do a real site check: Morning rush hour and nighttime Flood risk, traffic bottlenecks, nand oise level Surrounding supply (too many similar units can hurt rental) Who actually lives there: families, students, workers, expats? Simple principle:A cheap property in a weak location is not a bargain. It is a long-term headache. Risks Investors Often Underestimate This factor is the difference between “good on paper” and “good in real life”. Q1. What risks do investors underestimate most? Some investors focus too much on ROI percentages, but forget that strong cash flow, good location, and real rental demand are what keep Malaysian property investments stable. ROI alone can be misleading High ROI on paper does not mean the property is easy to rent or sustainable Some projects show “nice numbers” but struggle with vacancyInvestors who ignore fundamentals are the ones who regret it later. Q2. How have market conditions changed the risk level today? Malaysia’s interest rate is actually very friendly nowadays, and this causes the monthly instalment to be lower, and people find it easier to get a loan. Meaning: buyers feel more confident to enter, but investors still need to check fundamentals because cheaper instalment does not guarantee rental demand. Q3. One risk you’ve seen investors regret not considering enough? Many first-time investors chase cheap properties, but ignore the location and don’t take the time to really visit and understand the site. The best correction: stop looking at ONE factor only. Use DLP and the DLP mindset properly Here is the simplest way to stay grounded before you buy: The “DLP” mindset to avoid regretWhat to doDeveloperStudy track record, approvals, delivery historyLocationStudy track record, approvals, and delivery historyPriceVisit, observe real demand, check access, and daily livability And after you get vacant possession, use DLP (Defect Liability Period) seriously: Inspect carefully Record defects with photos Submit in writing within the timelines Follow up until fixed This is how smart buyers protect themselves. Final Thoughts If you remember one thing, let it be this: Buying property in Malaysia is safest when you check the developer, location, price, and you stay realistic about rental demand and cash flow. Promotions come and go. Fundamentals stay. If you want, send me your target audience (first homebuyer, upgrader, investor, foreigner) and preferred angle (more financial, more lifestyle, more legal), and I will tailor the same 6-factor structure to match your exact campaign. Ready to take the next step in your property investment adventures? Enquire here to get in touch with our trained professionals to find the right fit for you! [custom_blog_form] Continue Reading: How to Avoid Buying an Abandoned House Project in Malaysia Earn in SGD With Your Property: Why Investing in the Johor-Singapore SEZ is a Smart Move! 6 Common Home Mistakes That Could Stop You From Owning a Second Property

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