Investment Property in Tawau

Investment Real Estate in Tawau

Tawau property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Tawau.

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Search Map of Tawau Investment Real Estate

Tawau (Malaysian pronunciation: [ˈta wau], Jawi:

تاواو‎, Chinese: 鬥湖; pinyin: Dǒu Hú) formerly known as Tawao, is the capital of the Tawau District in Sabah, Malaysia. It is the third-largest city in Sabah, after Kota Kinabalu and Sandakan. It is located on the Semporna Peninsula in the southeast coast of the state in the administrative centre of Tawau Division, which is bordered by the Sulu Sea to the east, the Celebes Sea to the south at Cowie Bay and shares a border with North Kalimantan, Indonesia. The town had an estimated population as of 2010, of 113,809, while the whole municipality area had a population of 397,673.

Before the founding of Tawau, the region around it was the subject of dispute between the British and Dutch spheres of influence. In 1893, the first British merchant vessel sailed into Tawau, marking the opening of the town’s seaport. In 1898, the British set up a settlement in Tawau. The North Borneo Chartered Company (BNBC) accelerated growth of the settlement’s population by encouraging the immigration of Chinese. Consequent to the Japanese occupation of North Borneo, the Allied forces bombed the town in mid-1944, razing it to the ground. After the Japanese surrender in 1945, 2,900 Japanese soldiers in Tawau became prisoners of war and were transferred to Jesselton. Tawau was rebuilt after the war, and by the end of 1947, the economy was restored to its pre-war status. Tawau was also the main point of conflict during the Indonesia–Malaysia confrontation from 1963 to 1966. During that period, it was garrisoned by the British Special Boat Section, and guarded by Australian Destroyers and combat aircraft. In December 1963, Tawau was bombed twice by Indonesia and shootings occurred across the Tawau-Sebatik Island international border. Indonesians were found trying to poison the town’s water supply. In January 1965, a curfew was imposed to prevent Indonesian attackers from making contact with Indonesians living in the town. While in June 1965, another attempted invasion by the Indonesian forces was repelled by bombardment by an Australian destroyer. Military conflict finally ended in December 1966.

Among the tourist attractions in Tawau are: the Tawau International Cultural Festival, Tawau Bell Tower, Japanese War Cemetery, Confrontation Memorial, Teck Guan Cocoa Museum, Tawau Hills National Park, Bukit Gemok, and Tawau Tanjung Markets. The main economic activities of the town are: timber, cocoa, oil palm plantations, and prawn farming.

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The financial stability of Tawau has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Tawau

Renting out your Tawau buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Tawauare – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Tawau and be prepared to change your initial outlook.
Thoroughly research the Tawau location with a special emphasis on fringe areas outside the main Tawau metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Tawau.
Ensure that your target investment property in Tawau appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Tawau properties yourself is an easy option, but are these savings justifiable when you run into Tawau red tape? Physis Realty Tawau office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Tawau buy-to-rent sector.

With our expert guidance, investing in Tawau provides the secure knowledge that your money is working harder than it would in a local Tawau bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Tawau, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Tawau property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Tawau

Flipping property in Tawau

Flipping property is when we advise clients to buy a Tawau property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Tawau market has a time to react to the renovation.

The Flipping Strategy in Tawau

Investment property flipping in Tawau is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Tawau real estate investments are sometimes referred to by professionals as ‘distressed’ Tawau real estate.

What is distressed Tawau property:

Tawau property in need of renovation
Tawau real estate with a change of puropose and use
Oversold Tawau property
Bank repossessions in Tawau

Put simply, long term investors in Tawau purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Tawau investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Tawau property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Tawau use a minimum profit value of 22% when looking at potential Tawau projects. The reason for this is because there are lots that can go wrong in Tawau property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Tawau

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Tawau, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Tawau should be entrusted to only the highest-quality agency.

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