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Is buying a holiday home a good long-term investment?


Before you go full steam ahead and purchase that beachside property, let’s consider some key factors when purchasing a holiday home.

Is buying a holiday home a good long-term investment
©Tropicana Corporation Berhad

The old saying goes, never mix business with pleasure. Nevertheless, there are exceptions to this rule, especially when it comes to property investment. One of them is the purchase of holiday homes. Rental holiday properties are often overlooked as good investment opportunities.

The gradual lifting of travel restrictions recently has led to many property owners benefiting from pent-up demand for leisure activities and holiday retreats. The Covid-19 pandemic has made all of us long for a much-deserved break in a relaxing environment. People are now slowly flocking to beachside resorts, villas, and chalets to unwind with their loved ones after being cooped up at home for the better part of 2021.

Now, imagine owning a rental property fit for a spontaneous family holiday which also adds to your investment portfolio. Does buying a holiday home in Malaysia make sense in the long term? Let’s look at some of the critical factors to consider if you are toying with the idea of investing in one.

1. Location is king

location is king
©Tropicana Corporation Berhad

As with any other property purchase, location is everything when it comes to purchasing a holiday home. As a savvy property investor, you will want to pick a property with healthy and sustainable demand. Similarly, if you plan to enjoy and stay at your holiday home yourself, the location should be ideal.

For example, you might explore properties in attractions that are popular all year round, instead of seasonal ones. Properties in established tourist-oriented islands such as Langkawi and Penang often fare better than most, even during economic ups and downs.

These will generate a good return on investment (ROI) during peak and off-peak seasons. On the other hand, properties in less desirable or far-flung locations could suffer during off-peak seasons. You may also decide to use the said property for your enjoyment and convenience whenever you need a break. The bottom line, a good location for holiday homes is a win-win proposition!

2. Strategise for great returns

Strategise for great returns
©Tropicana Cenang

Sustainable long-term ROI is a must for any serious property investor. You will need to strategise your purchase for maximum and effective returns. The most important thing is knowing what you want as a property owner/investor. Will you be using the property for personal family holidays or will you be renting it out for most days in the year? Or will it be a mix of both?

The next step is to do extensive research on the area based on your and potential customers’ requirements. This research carries even more weight if you are prioritising yields as a property owner. Even a 5%-10% differential in returns might make a huge difference in the long run for a serious property investor.

For example, in islands such as Langkawi or Penang, properties within proximity to beaches will usually fetch better rentals. For example, in 2 of the most popular islands in Malaysia, Langkawi, and Penang – demand is usually strong for properties with sea views and within walking distance to the beaches.

If you are eyeing properties further away from the beach, you can re-strategise by looking for long-term or permanent tenants rather than renting to short-term holidaymakers. On the other hand, if you are a frequent traveller yourself, you will be able to enjoy huge savings from hotel accommodation if you stay in your own holiday home. This only increases the overall value of your investment.

Either way, stretch the Ringgit on your holiday homes for maximum returns!

3. Amenities and infrastructure are big selling points

Amenities and infrastructure are big selling points
©Tropicana Corporation Berhad

Property investors look for holiday homes with excellent amenities and infrastructure. Without these 2 crucial elements, the homes will not be as desirable to both potential tenants and yourself when staying in them for your family holidays.

Holiday homes with good road networks, easy access to public transportation, and integrated commercial areas will usually fetch better capital appreciation and rental growth. Proximity to public transportation such as trains, planes, boats, and even cable cars are definite plus factors if you are in a tourist-oriented area. This will allow your potential tenants to move around easily between different tourist attractions.

If you are staying in your holiday home, arranging for family outings will be much easier with all the necessary infrastructure in place. After all, which holiday-maker will not appreciate convenience right at their doorstep? These amenities will help you maintain the value of your holiday homes if you decide to sell them in the future.

At the end of the day, make sure that you know what your short-term and long-term objectives are for your holiday home. Whether it is an investment or for your stay, a holiday home with all of the above factors considered should provide property investors with solid long-term returns.

Has reading this whet your appetite for holiday homes?

If you are interested in seaside properties in a prime location and good investment potential, not to mention the cool ocean breeze, fresh air, and lovely beaches, you can consider Tropicana Cenang by the award-winning developer Tropicana Corporation Berhad.

tropicana cenang
©Tropicana Cenang

Located in the world-famous Langkawi Island, the seafront project called Tropicana Cenang is part of a master development comprising of residences, retail shops, and a five-star international luxury hotel. It is spread out across 5.28 acres and boasts stunning ocean views of the Andaman Sea. The premium seafront integrated development is the tallest development on the island and offers serviced suites, hotels, and retail shops with direct access to the beautiful Cenang beach.

Tropicana Cenang comprises 831 freehold and fully furnished units with built-up sizes between 380 sf to 1,310 sf (Assana Serviced Suites) that are affordably priced starting from RM457,000. There are various types of units to choose from including studio as well as 2-4 bedroom units to entice different groups of tourists from solo travellers to families. The 30 resort-themed facilities give it unique holiday vibes with fun, food, relaxation, adventure, and shopping at your doorstep.

These fully-fledged facilities give unit owners a distinct edge over other properties when attracting potential tenants. For ease and convenience, owners are assisted by professional property management and operator, HostAStay  to manage their respective units with hotel grade services. Various amenities and public transportation are within the vicinity too.

It has all the prerequisites of a perfect holiday home. All the services and solutions provided at Tropicana Cenang combine to offer its unit owners a truly unique experience of buying and owning holiday homes without all the hassle.

Keen to know more? Tropicana Cenang’s show units are open daily. For further information, call 0163630900 or visit

Disclaimer: The information is provided for general information only. Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

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