The 2009 Malaysia Budget was announced recently. The budget seems to be focussed towards the lower income group and most average urban working Malaysians may think that there’s nothing in store for them. While the budget does not seem to hold that many goodies in store for the city-dwelling worker, here’s another great budget tip to help you make the 2009 Budget work for you.

Invest in Property

The budget provided a hefty 50% savings in stamp duties incurred on loan agreements for properties up to RM250,000. This translates to a big savings on the additional costs buying a home always comes with. While properties below RM250,000 may be termed as medium-cost properties, it will be these properties that will be easier to move in less favourable economic conditions and have higher potential for upward gains.

Smart property investors have recognised this despite rising construction costs as a recent article in The Star reinforced:

Subang Jaya will continue to command good demand for its properties, especially lifestyle products priced below RM250,000.

Investing in property is a very good hedge against inflation especially if your investment is in a good area where demand continues to be high. The recent abolishment of capital gains tax on properties less than 5 years have also created a more liquid market for property sales.

However, like all investments, investing in property requires some research and care before committing fully into it. Always research the good developers in town, take a look at their track records and speak to seasoned property investors before you commit into a purchase.

Although investing in a property is one of the most expensive purchases you will make in your lifetime, it could be one of your most rewarding purchases with careful investing.