Sunday, August 27, 2006

Malaysia
Rating:

High quality real estate available across Malaysia ranging from terrace and semi-detached houses, bungalows, apartments and condominiums. The property sector was subdued until 2003 but regardless outshone other sectors.

Malaysian Ringgit RM: Approximately RM3.79 = US$ 1. The cost of living is among the lowest in Asia. Regardless, Malaysia provides an excellent modern infrastructure including extensive but relatively low cost transportation services.

Economic climate: Foreign residents must obtain a Social Visit Pass, (valid for 5 years) which requires proof of a minimum deposit of US$ 39,600 with a local financial institution and a monthly offshore income equivalent to a minimum of US$ 2,000 per month and US$ 2,650 if accompanied by a spouse.

Popular buying areas: High-end residential property in the affluent Klang Valley continues to dominate the residential market. Other favoured areas are Bandar Utama, Kota Damansara, Sunway Damansara, Mutiara Damansara and Langwaki.

Price ranges: Vary as ever by quality and popularity of area but Malaysia offers a very wide spread of pricing bands. A 20% deposit of the house value is usually required.

Budgetary guide: Condominiums: US$ 66,000 to US$ 250,000, Bungalow: US$ 66,000 to US$ 225,000, Two Storey Bungalow (5 to 7 bedrooms): US$ 396,000 to $US 1.3 million, Luxury Villas: average US$ 925,000 upwards.

Overseas Investors: Foreign owners are permitted to buy up to two houses at a cost of not less than US$ 66,000 each, which also entitles them to a housing loan from a local bank. If selling a property they are subject to 30% Capital Gains tax.

Service Fees: Stamp, Transfer, Agreement and Registration Duty 1.5% to 1.75%, Loan Agreement 1.5% to 1.75%, Estate Agents Fees 3% up to US$ 132,000 2% thereafter. Bank loan processing fee US$ 13 US$ 53.

Mortgages: Loans of 60% of the purchase price are available to foreigners on the proviso that the property value is RM 250,000 and above. Current Base Lending Rate 6.8% per annum; loans are available up to a period of 20 years.

Information: Web access www.star-space.com (Malaysian Property information) www.mocat.gov.my (Malaysian Ministry of Culture, Arts & Tourism), www.kdn.gov.my (Malaysian Ministry of Home Affairs) www.fxhistory.com (exchange),

Related site: http://www.star-space.com

Malaysia Property Buyer's Country Guide

International and local property buyers looking to invest in Malaysia have a wealth of urban residential real estate and tropical holiday accommodation to choose from. All generic options currently offer both strong yield potential and medium to long term stable growth and mean that the real estate sector in Malaysia is considered to be a good long term bet by industry analysts.

The attraction of the property market in Malaysia comes from a number of sources but the fundamental reason is that the Malaysian economy has some incredibly strong factors underpinning its predicted sustainable long term growth and as a direct result foreign investment into many economic sectors including the real estate sector in Malaysia is significant.

Since the early 1970’s Malaysia gradually transformed its economy into a multifaceted manufacturing based economy exporting mainly to the US, China and Japan and until early this millennium the levels of growth enjoyed by Malaysia were impressive. The Asian economic downturn, SARS and then a worldwide economic downshift all negatively impacted the Malaysian economy quite dramatically but rates of recovery and growth since 2002 have been equally dramatic.

As export opportunities particularly to China expand rapidly for Malaysian businesses and the country benefits from having healthy foreign exchange reserves, low inflation, and a small external debt, international confidence in the future stability and sustainable growth in Malaysia is now incredibly strong.

In addition to these factors driving general investor confidence in Malaysia there are two further attractions from a real estate developer and corporate or large property investor’s point of view. Firstly the country has a very fast expanding tourism market which is built upon Malaysia’s diverse attractions and beauty together with its cost effectiveness as a resort destination, and secondly the country’s capital city of Kuala Lumpur is expanding as one of the most exciting and vibrant worldwide city prospects for companies and individuals alike - meaning that there is demand for all classes of commercial and residential property and that there is room for development of new units to meet that demand, thus creating profit potential.

For property buyers examining the real estate market in Malaysia for the first time the majority of opportunities exist in Kuala Lumpur, Malacca and in the resorts of Langkawi and Penang which sustained some Tsunami related damage but which have now fully recovered and rebuilt.

Kuala Lumpur is a vibrant city with an international and young population; it is home to the regional headquarters of many of the world’s major corporations and has a fast developing property market. A lot of speculative purchasing of high end units is occurring off plan at the moment, rental yields are steadily increasing, demand for resale and rental property remains strong and international developer interest in the city is intensifying with plans submitted for a number of very desirable and attractive residential communities and commercial concerns.

The tourist resorts on the North Western Island of Malaysia are also proving strong for FDI from the international property investment community. The numbers of visitors to Malaysian resorts is increasing substantially annually - visitors are aware that the tourist attractions of Malaysia are diverse - from tropical sandy beaches to a fantastic nightlife, plenty of culture and heritage, affordability and a freshness no longer associated with similar destinations such as Thailand. All of these factors mean that there is massive room for expansion of facilities and amenities from the construction of hotels to the development of servicing industries and that second homers, buy to let investors, retirees, Malaysia My Second Home qualifying persons and expatriates have all shown strong interest in properties to purchase in and around the main resorts for rental profit, for personal enjoyment and for medium term underlying investment growth potential.

Malaysia remains a cost effective country for property buyers; even in the capital city of Kuala Lumpur real estate prices are far lower than in other international capital cities across the world. As a resort destination Malaysia’s affordability is an added attraction bringing growing numbers of visitors annually to boost the economy. While the country’s economy keeps growing, inflation remains low, overseas export opportunities continue to expand and more businesses establish regional centres in Malaysia, so the amount of foreign investment into the country will continue to expand and international investment into the property sector in Malaysia is predicted to grow unabated.

http://www.amberlamb.com/index.php/a/m/property-buyers-country-guide-to-malaysia/

Malaysia Property Investment Potential

The Malaysian property market offers a good mid range investment opportunity to international investors seeking reasonably priced real estate with sustainable growth potential in both the residential and tourism sectors.

The stability of the property market in Malaysia is based upon the stability of the country’s economy which is currently expanding at a sustainable rate and benefiting from closer export ties with China as well as strong levels of foreign direct investment from the US, China and Japan.

Furthermore the attraction and appeal of the country means that it has a robust tourism sector that has spawned a secondary holiday home market which further boosts the long term strength of the property market and broadens the investment opportunities available to an investor.

International real estate investor interest in Malaysia is roughly divided into those who target the professional, executive rental market particularly in Kuala Lumpur and those who seek to profit from the tourism market either through residential short term lets, commercial accommodation units or through the development of properties for sale to second home and holiday home hunters.

The large expatriate population employed in Kuala Lumpur has pushed up demand for serviced apartments, well located property and real estate in general to rent which means that rental rates chargeable in Kuala Lumpur are on a par with any major city worldwide and new off plan properties are being sold to international property developers with impressive guaranteed rental yields of between six and ten percent.

An alternative to purchasing off plan in Kuala Lumpur is to buy apartments to renovate and then let out perhaps on a corporate let basis, or an investor could buy off plan or buy to renovate and then flip the property on to another investor or home seeker and reap profits from short term growth in Kuala Lumpur’s property market.

Real estate investors in Malaysia looking outside Kuala Lumpur for property investment opportunities are mainly attracted to the North Western island resorts and the tourism sector where strong short term rental rates are chargeable and annual returns from letting to the tourism market are impressive. There’s also potential to target second homers seeking an exotic overseas home in the sun.

The benefits of Malaysia as a destination for a property investor are manifold and stem primarily from the strength of the country’s economy. GDP growth was in excess of 7% in 2004, inflation in Malaysia is low, unemployment is low, exports and reserves are strong and strengthening and Malaysia has very supportive governmental policies for the attraction of foreign investment which include tax incentives and pro-business policies. Therefore an international real estate investor looking for a well priced, strong economy to target for sustainable growth and yields over the medium to long term should consider Malaysia.

http://www.amberlamb.com/index.php/property/malaysia/

Malaysia Property Buying Process

In Malaysia the property buying process is well documented and regulated but that doesn’t prevent the purchase process from differing from person to person!

As is often the case when buying in an overseas emerging market it’s more a case of who you know rather than what you know when it comes to speeding up and easing the entire property buying process; and the more property transactions you engage in the simpler the process gets.

Foreign investors interested in the Malaysian property market are subject to certain restrictions on the type of real estate they can purchase and a great deal of care and attention to detail has to be paid to the whole buying process, therefore it is imperative that a good and recommended local lawyer is used to assist with the transaction.

If a buyer uses an estate agent to help them find property for sale in Malaysia they may be liable to pay agency fees of up to 3% of the property’s underlying purchase price. Some agents will require this fee be paid when an offer to purchase has been accepted but it is not actually wise to pay the agent until the whole property purchase transaction has been completed.

In terms of the restrictions placed on non-resident purchasers, firstly permission to buy has to be granted by the Foreign Investment Committee of the Economic Planning Unit of the Prime Minister’s Department. Secondly property on Malay reserved land cannot be owned by overseas foreign investors. Other than these restrictions foreign owners of property are treated in the same way as Malaysian owners and both are protected by the same real estate laws.

When looking for property for sale in Malaysia it’s wise to have a structural survey carried out on any property that meets the investor’s objectives because many homes are known to have structural problems and they may not be apparent at first glance. Once an investor is satisfied that his chosen real estate is sound and meets his requirements he will sign an offer letter that will be submitted to the vendor for acceptance.

Once the offer letter has been accepted an option to purchase contract will be signed by the vendor and purchaser and the investor will pay a 10% deposit which is non-refundable if they withdraw from the sale. It’s important to make sure that there is a clause added to this standard document stating that if the vendor pulls out they have to pay back the deposit and an amount equal to that to the investor for the inconvenience.

Once this option to purchase has been signed the investor is given three months to find finance, get the title deeds checked and move towards signing the S & P agreement (Sale and Purchase Agreement). Because getting a mortgage in Malaysia is such an incredibly slow, time consuming and frustrating affair this three month period often needs to be extended by another month. If the period to signing the S & P is extended the purchaser has to pay interest on the outstanding amount he has left to pay at a rate of 10% per annum that is calculated on a daily basis for the month.

Overseas investors who require a mortgage to purchase property in Malaysia might like to consider raising the finance outside of the country as this will speed up the whole Malaysia property buying process.

When the completion date comes the Sale and Purchase Agreement is signed and the balance of the property’s selling price is transferred to the vendor. The S & P is then sent to the land registry along with the memorandum of transfer form 14A of the National Land Code to transfer the title deeds into the name of the property investor.

Other than the estate agent’s fees a buyer should be aware that they will be liable to pay stamp duty and lawyer’s fees and if they sell their property within five years of purchase and realize a gain from it they will have to pay a flat tax of 30% of the gain to the government. Gains made on the disposal of property after the fifth year will be taxed at a flat rate of 5%.

http://www.amberlamb.com/index.php/a/m/malaysia-property-buying-process/

Saturday, August 26, 2006

Malaysia My Second Home

http://www.infinityqatar.com/malaysia.htm

The Malaysian government welcome foreign citizens from all over the world (except Israel) to enter and stay in Malaysia on long term Social Visit Pass (duration of 10 years with a Multiple Entry Visa)

However, this programme does not promise a permanent resident status.

Rules and Regulations:

AGE

This programme is open to all categories of citizens with no age limitation. They are allowed to bring their dependant (below 18 years of age) and apply for a maid.

Notes:

Dependant above 18 years of age will have to submit a separate application.
Application for a maid can be submitted after the approval of "Malaysia – My Second Home Programme".

FINANCIAL REQUIREMENT

Application by a person above 50 years of age

Applicant and spouse (either one must be above 50 years of age) will have the privilege of choosing either: To have a fixed deposit of RM 150,000.00 (for 10 years) from any bank in Malaysia;

Derive a fixed monthly income of not less than RM 10,000.00 (from abroad).

Single (individual) applicant will have the privilege of choosing either:

To have a fixed deposit of RM 100,000.00 (for 10 years) from any bank in Malaysia;

Derive a fixed monthly income of not less than RM 7,000.00 (from abroad).

Application by a person below 50 years of age

Applicant and spouse MUST POSSES:

A Fixed deposit of RM 150,000.00 (for 10 years) from any bank in Malaysia;

AND

Derive a fixed monthly income of not less than RM 10,000.00.

Single (individual) applicant MUST POSSES:

A fixed deposit of RM 100,000.00 (for 10 years) from any bank in Malaysia;

AND

Derive a fixed monthly income of not less than RM 7,000.00.

INSURANCE COVERAGE

Applicant must posses a medical insurance policy from any insurance company in Malaysia. The Requirement for insurance policy is however optional for a person of old age and denied by the insurance company.

EDUCATION

Dependants below 18 years of age and still studying are required to apply for Student Pass to further their education in schools or institution of higher learning.

GOVERNMENT TAX

Successful applicants are bound by the policies, systems and regulations of tax of this nation. They do not posses any exemption as granted to the Diplomatic Missions in Malaysia.

APPLICATION PROCEDURES

Application can be submitted while the application is in the country provided that the applicant is in the possession of a valid pass.
Once approved, Visa and social Visit Pass will be issued in Malaysia.

LIST OF DOCUMENTS

Letter of application
Two (2) copies of Form IM.12 (Form of Social Visit Pass)

- Obtainable at all Malaysia Immigration Departments

2 passport sized photographs of applicant and spouse
A copy of applicant's (and spouse) Passport/travel documents (all pages)
An endorsed/certified copy of a Marriage Certificate by the Embassy (if accompanied by a spouse)
A copy of certified fixed deposit and medical insurance
A Personal Bond stamped RM 10.00 by the Stamp-Duty Office (signed by the sponsor)
A copy of the sponsor Identity Card (if applicable)
A proof of monthly income (origin country/abroad) as stated at (Para.2) 'Financial Requirement' – Endorsed/Certified by the Embassy

EXEMPTION

The following requirement can be relaxed by conditional approval. However, the applicant must produce these documents (stated below) before the endorsement of the Social Visit Pass be given upon approval.

The Fixed deposit as pre-required
Medical insurance policy in Malaysia

LOCATION OF APPLICATION

The Headquarters of Malaysia Immigration Department
State Immigration Department
All Malaysian Representative Offices Abroad
All Malaysian Tourism Offices

RESTRICTIONS

Successful applicants are strictly forbidden from the following

Taking part in activities such as political, missionary, provocative or instigative, which is considered sensitive, and threat to the national security
Taking part in any form of employment in Malaysia

Why buy Property in Malaysia

http://www.infinityqatar.com/malaysia.htm

Potential property investors looking to invest in Malaysia have a wide variety of urban and rural residential real estate to choose from, and are considered a good long term investment by Malaysian property analysts

The main attraction of buying a property in Malaysia is that the Malaysian economy has some incredibly strong economic factors underpinning the predicted long term growth and as a direct result, foreign investment into Malaysia; including the real estate sector; is significant

So why buy a property in Malaysia? One of the main reasons is that Malaysia has a fast expanding tourism market which is built upon hugely diverse attractions and some stunning natural beauty coupled with its cost effectiveness as a resort destination

The tourist resorts on the northern islands of Malaysia are also proving strong for investment from people looking for reasonably priced property in Malaysia. Tourists to resorts in Malaysia are increasing substantially annually as visitors realise the huge potential of the country and a freshness no longer associated with similar destinations in the Far East. All of these factors allow of a good investment opportunity for second homers, buy to let investors and retirees

For property buyers examining the property market in Malaysia for the first time the majority of opportunities exist in Kuala Lumpur, Malacca, Langkawi, Port Dickson and Penang

own a property in Malaysia

http://www.infinityqatar.com/malaysia.htm

Tower of service

Following a string of well received service apartment projects in Sri Hartamas in Kuala Lumpur and Johor Baru, the Hong Kong-based Far East Consortium Group launched its latest offering called The Tower right in the heart of the KL city centre.

Located along Jalan Munshi Abdullah, five minutes from Suria KLCC and the Petronas Twin Towers, The Tower, which is developed by Mayland Boulevard Sdn Bhd offers young professionals putting in long hours in Golden Triangle offices, a home in the heart of the city with hotel-like conveniences to suit their busy lifestyles.

Consisting of a 30-storey block on approximately an acre of freehold land, The Tower houses 408 units of studio and three-bedroom apartments with built-up areas ranging from 542sq ft to 1,892sq ft. More than half of the units are the studio type with built-up areas of 600sq ft and 654sq ft.

The apartments pegged from RM189,700 will be complemented by a range of recreational facilities such as a business centre, gym and a swimming pool located on part of the 7th floor. The balance of the floor space on this level will be taken up by the residential units that continue up to the 26th floor, with a typical floor having 22 units served by four lifts.

Car parking for the development is provided for in the form of 400 bays spread from the 1st to the 6th floors of the building.

Those considering making a purchase for investment purposes can avail to the developer’s leaseback scheme, which offers a guaranteed gross yield of five per cent per annum.

Purchasers who are keen to occupy the units themselves will be pleased to know that the development will be managed by the five-star Dorsett Regency Hotel International.

Service charges for the maintenance of the facilities and common areas have been pegged at 25sen per square foot while charges for housekeeping of the individual units have not been determined as yet but will depend on the extent and frequency requested for by the owners or occupants.

The developer has also arranged a panel of end-financiers for the convenience of purchasers. The panel comprising Alliance Bank, Arab-Malaysian Finance Bhd, Citibank, Hong Leong Bank, Southern Bank and Standard Chartered Bank are offering a margin of financing of up to 90 per cent for those who qualify.

Prospective purchasers can view the on-site show unit at Jalan Munshi Abdullah. For more information, call us at +974 4369228/4369493 or log on to http://www.infinityqatar.com.

Staying at the Waldorf

A layout revamp in the Far East Consortium Group’s Waldorf Tower service apartments has resulted in a better opportunity for a larger cross-section of buyers to own a home in Sri Hartamas, Kuala Lumpur.

The 29-storey Waldorf Tower houses 160 apartments, and is sited on a 1.5-acre freehold parcel along Jalan Sri Hartamas 1 adjacent to the company’s Plaza Damas commercial development. It was initially launched with three layouts in early 2001. The Hampton and Crown Suites came with built-up areas of 1,460sq ft and 1,710sq ft and the penthouses with 3,435sq ft of space.

But since September last year, the project being undertaken by Malaysia Land Properties Sdn Bhd (Mayland) has now been given an additional four layouts. The new layouts comprise two studio units with built-up areas of 480sq ft and 680sq ft dubbed Studio 48 and Studio 68 respectively, and two larger designs of 1,000sq ft and 1,130sq ft named Ritz and Carlton.

As a result of this revamp, the total number of units available under the first block rose to 228 units, inclusive of 12 penthouses. To date, close to 60 per cent of the units have been sold, demonstrating the wider appeal the project has commanded since the inclusion of the new layouts.

The Studio 68 units come with one bedroom, while the Ritz and Carlton have two-plus-one bedrooms and three bathrooms. The larger Hampton and Crown Suites, on the other hand, have three-plus-one bedrooms and three bathrooms.
Prices for these apartments range from RM143,376 for the Studio 48 apartments to RM496,700 for the Crown Suites. The penthouses, however, are pegged from RM1.3 million.

According to Mayland advertising and promotions manager Ian Tay the availability of different sizes, layouts and pricing means that both investors and owner-occupiers are able to select a unit that best suits their needs.

Additional features that Mayland will be incorporating into the apartments have also gone down well with buyers who were undoubtedly also drawn by the project’s location and convenient access to Plaza Damas and the other commercial centres of Sri Hartamas and Desa Sri Hartamas.
“We have also incorporated practical features for the benefit of our buyers. For instance, all units come with 11-foot high ceilings, kitchen built-ins including a hob and hood, Broadband access and Astro cable sockets. For the penthouses we have incorporated formal and informal dining areas as well as a wet and dry kitchen,” he said.
Being a service apartment, the Waldorf Tower also offers aside from the usual complement of recreational facilities of condo developments (for which buyers will be charged 25sen per square foot) the services of commercial apartment suites located in the heart of the city.

In this instance, all services will be provided and managed by the Dorsett Hotel International chain, which is also owned by the Far East Consortium Group.
Among the services offered by the Dorsett includes leasing services, housekeeping, laundry and dry cleaning and even catering services for special functions. Charges for such optional services have yet to be determined, but will depend on the nature and frequency of the services required.

Car parking facilities in the development will be provided in a six-storey podium block. Purchasers of units with built-up areas of 1,000sq ft and above will be allocated one bay each, while buyers of the studio apartments have the option of either leasing the bays or buying them at RM20,000 each.
The Waldorf Tower is expected to be completed by early 2007.